[ParlTrack]

Proposal for a regulation
Recital 6

(6) Existing risk reduction measures should also be improved to ensure that they can be applied in a more proportionate way and that they do not create an excessive compliance burden, especially for smaller and less complex institutions. This requires a precise definition of “small and non-complex institutions” based on clear qualitative and quantitative criteria.

2018/02/02
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 52

(52) Small and medium-sized enterprises (SMEs) are one of the pillars of the Union's economy as they play a fundamental role in creating economic growth and providing employment. Given the fact that SMEs carry a lower systematic risk than larger corporates, capital requirements for SME exposures should be lower than those for large corporates to ensure an optimal bank financing of SMEs. Currently, SME exposures of up to EUR 1,5 million are subject to a 23,81% reduction in risk weighted exposure amount. ~~Given that t~~The threshold should be raised tof EUR ~~1,5~~3,0 million ~~for an SME exposure is not indicative of a change in riskiness of an SME,~~. The reduction in capital requirements should be extended to SME exposures beyond the threshold of EUR ~~1,5~~3,0 million and for the exceeding part should amount to a 15 % reduction of a risk- weighted exposure amount.

2018/02/02
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 54

(54) In order to encourage private investments in infrastructure projects it is therefore essential to lay down a regulatory environment that is able to promote high quality infrastructure projects and reduce risks for investors. In particular capital charges for exposures to infrastructure projects should be reduced provided they comply with a set of criteria able to reduce their risk profile and enhance predictability of cash flows. The Commission should review the provision by [three years after the entry into force] in order to assess a) its impact on the volume of infrastructure investments ~~by institutions and the quality of investments having regard to EU's objectives to move towards a low-carbon, climate-resilient and circular economy;~~ and b) its adequacy from a prudential standpoint. The Commission should also consider whether the scope should be extended to infrastructure investments by corporates.

2018/02/02
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 54 a (new)

(54a) The regulation and supervision of credit institutions and the corresponding own funds requirements should continue to depend solely on a credit institution’s underlying risk. This rules out taking account of unrelated criteria such as environmental or social considerations in determining the own funds requirements and the corresponding reporting obligations.

2018/02/02
Committee: ECON

Markus FERBER

Proposal for a regulation
Recital 65

(65) The EBA should report on where proportionality of the Union supervisory reporting package could be improved in terms of scope, granularity or frequency and where the bureaucratic burden for small and non-complex institutions can be reduced.

2018/02/02
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 3 – point j

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 144 a (new)

144a. ‘small and non-complex institution’ means an institution which fulfils all of the following criteria: (a) the total value of the assets at the consolidated level, or, in the case of institutions controlled by a parent undertaking, a financial holding company or a mixed financial holding company, the total value of assets of the parent entity at the consolidated level is less than or equal to EUR 2.0 billion plus 0.2% of the GDP of the Member State in which the institution is established; (b) the resolution assessment in accordance with Articles 15 and 16 of Directive 2014/59/EU concludes that the liquidation of the institution in normal insolvency proceedings is feasible and credible; (c) the institution is not a large institution within the meaning of Article 4(1) point 144b; (d) its trading activities are classified as low within the meaning of Article 94; (e) the total value of its derivative positions is less than or equal to 2% of its total on- and off-balance sheet assets, where only derivatives which qualify as positions held with trading intent are included in calculating the derivative positions; (f) the institution does not use internal models for calculating own funds requirements under Pillar 1; g) the institution has not communicated to the competent authority an objection to being classified as a small and non- complex institution; (h) the competent authority has not decided that the institute is not to be considered a small and non-complex institution based on an analysis of its size, interconnectedness, complexity or risk profile. i) the institution has a stable deposit base and at least 50% of funding (liabilities) comes from retail deposits from retail customers and small and medium-sized firms. j) at least 33% of the assets are classified as loans to non-financial businesses, households and public budgets (‘non- banks’). k) the institution has low foreign exposure and not more than 10 per cent of assets consist of loans to foreign obligors. By way of derogation from point a, the competent supervisory authority may at its discretion lower the threshold value from EUR 2.0 billion to as low as 1% of the gross domestic product of the Member State in which the institution is established, provided that the threshold value of EUR 2.0 billion is more than 1% of the GDP of the Member State in question, and provided that the competent supervisory authority considers this to be necessary.

2018/02/02
Committee: ECON

Othmar KARAS, Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 19 – point a a (new)

Regulation (EU) No 575/2013
Article 52 – paragraph 1 – point l – point i

~~"(i) they are paid out of distributable items;"~~ (aa) In Article 52, paragraph 1, subpoint (i) of point (l) is replaced by the following: "(i) they are paid out of distributable items, or reserves built under national law;" Or. en (http://eur-lex.europa.eu/legal-content/en/TXT/?uri=celex%3A32013R0575)

2018/02/02
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 27

Regulation (EU) No 575/2013
Article 72b – paragraph 2 – point k

~~k) the liabilities may only be called, redeemed, repurchased or repaid early where the conditions laid down in Articles 77 and 78 are met;~~deleted

2018/02/02
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 33

Regulation (EU) No 575/2013
Article 78 – paragraph 1 – introductory part

The competent authority shall grant permission for an institution to reduce, repurchase, call or redeem Common Equity Tier 1, Additional Tier 1~~, Tier 2 or eligible liabilities instruments~~ or Tier 2 where either of the following conditions is met:

2018/02/05
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 33

Regulation (EU) No 575/2013
Article 78 – paragraph 1 – subparagraph 2

~~The competent authority shall consult the resolution authority before granting that permission.~~deleted

2018/02/05
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 94 – paragraph 1 – point b

(b) EUR 5100 million;

2018/02/05
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 42

Regulation (EU) No 575/2013
Article 99 – paragraph 4

4. The reports required in accordance with paragraphs 1 to 3 shall be submitted on an annual basis by small and non- complex institutions as defined in Article 430a and, subject to paragraph 6, semi- annually or more frequently by all other institutions.

2018/02/05
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 42

Regulation (EU) No 575/2013
Article 99 – paragraph 7 – introductory part

7. EBA shall assess the financial impact on institutions of Commission Implementing Regulation (EU) No 680/201429 in terms of compliance costs and report its findings to the Commission by no later than [31 December 2019]. That report shall in particular examine whether reporting requirements have been applied in a sufficiently proportionate manner. This shall apply in particular in the case of small and non-complex institutions. For those purposes, the report shall: __________________ 29 Commission Implementing Regulation (EU) No 680/2014 of 16 April 2014 laying down implementing technical standards with regard to supervisory reporting of institutions according to Regulation (EU) No 575/2013 of the European Parliament and of the Council (OJ L 191 28.6.2014, p. 1).

2018/02/05
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 42

Regulation (EU) No 575/2013
Article 99 – paragraph 7 – point e

(e) recommend amendments of Implementing Regulation (EU) No 680/2014 to reduce the reporting burden on institutions or specified categories of institutions where appropriate having regard to the objectives of this Regulation and Directive 2013/36/EU. The report shall, at a minimum, make recommendations on how to reduce the level of granularity of reporting requirements for small and non-complex institutions as defined in Article 430a.;

2018/02/05
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 42

Regulation (EU) No 575/2013
Article 99 – paragraph 11

11. Competent authorities may waive the requirements to report data items specified in the implementing technical standards referred to in this Article and Articles 100, 101, 394, 415 and 430 where those data items are already available to the competent authorities by means other than those specified under the above mentioned implementing technical standards, including where that information is available to the competent authorities in different formats or levels of granularity.". This shall apply in particular in the case of small and non-complex institutions.

2018/02/05
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 54

Regulation (EU) No 575/2013
Article 132 – paragraph 2 – subparagraph 2

Subject to Article 132b(2), institutions that do not apply the look-through approach or the mandate-based approach shall assign a risk weight of 1~~,25~~00 % (‘fall-back approach’) to their exposures in the form of units or shares in a CIU.

2018/02/05
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 54

Regulation (EU) No 575/2013
Article 132 – paragraph 3 – point c – point iii

(iii) where the institution applies the look-through approach, information about the underlying exposures is verified once a year by an independent third party.

2018/02/05
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 54

Regulation (EU) No 575/2013
Article 132 – paragraph 4 – introductory part

Institutions ~~that do not have adequate data or information to calculate the risk weighted exposure amount of a CIU's exposures in accordance with the approaches set out in Article 132a~~ may rely on the calculations of a third party, provided that all of the following conditions are met:

2018/02/05
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 54

Regulation (EU) No 575/2013
Article 132 – paragraph 4 – subparagraph 2

Institutions that rely on third-party calculations shall multiply the risk weighted exposure amount of a CIU'’s exposures resulting from those calculations by a factor of 1,2 if the institutions do not have the necessary data or information to replicate the calculations.

2018/02/05
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 57

Regulation (EU) No 575/2013
Article 152 – paragraph 7 – introductory part

Institutions ~~that do not have adequate data or information to calculate the risk weighted amount of a CIU in accordance with the approaches set out in paragraphs 2, 3, 4 and 5~~ may rely on the calculations of a third party, provided that all of the following conditions are met:

2018/02/05
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 57

Regulation (EU) No 575/2013
Article 152 – paragraph 7 – subparagraph 2

Institutions that rely on third-party calculations shall multiply the risk weighted exposure amounts of a CIU'’s exposures resulting from those calculations by a factor of 1,2 if they do not have the necessary data or information to replicate the calculations.

2018/02/05
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 94

Regulation (EU) No 575/2013
Article 394 – paragraph 4 – subparagraph 3

Power is conferred on the Commission to adopt the implementing technical standards referred to in the first Paragraph in accordance with Article 15 of Regulation (EU) No 1093/2010. The implementing technical standards shall enter into force one year after their adoption by the Commission.

2018/02/05
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 94

Regulation (EU) No 575/2013
Article 394 – paragraph 5

5. EBA shall develop draft regulatory technical standards to specify the criteria for the identification of shadow banking entities referred to in paragraph 2. In developing those draft regulatory technical standards, EBA shall take into account international developments and internationally agreed standards on shadow banking and shall consider whether: (a) group of entities may carry risks to the institution's solvency or liquidity position; (b) or liquidity requirements similar to those imposed by this Directive and Regulation (EU) No 1093/2010 shall be entirely or partially excluded from the reporting obligations referred to in paragraph 2 on shadow banking entities. EBA shall submit those draft regulatory technical standards to the Commission by [one year after entry into force of the Amending Regulation]. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.deleted the relation with an individual or a entities that are subject to solvency

2018/02/05
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 100

Regulation (EU) No 575/2013
Article 401 – paragraph 4

4. Where an institution reduces an exposure to a client due to an eligible credit risk mitigation technique in accordance with Article 399(1), it shall treat the part of the exposure by which the exposure to the client has been reduced as having been incurred to the protection provider rather than to the client.deleted

2018/02/05
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 114

Regulation (EU) No 575/2013
Article 428 c – paragraph 3a (new)

3a. Institutions providing services concerned with the resolution of precious- metal transactions do not take into account precious-metal exposures which result from these services when calculating the Net Stable Funding Ratio.

2018/02/05
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 114

6a. Institutions take no account of the following positions when making calculations: (a) Positions resulting from services concerned with the resolution of precious- metal transactions; (b) Positions resulting from precious- metal financing transactions with a time frame of no more than 180 days;

2018/02/05
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 114

Regulation (EU) No 575/2013
Article 428 r – paragraph 1 – point f a (new)

(fa) Exposures resulting from services concerned with the resolution of precious- metal transactions;

2018/02/05
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 114

Regulation (EU) No 575/2013
Article 428 r – paragraph 1 – point f b (new)

(fb) Positions resulting from precious- metal financing transactions with a time frame of no more than 180 days;

2018/02/05
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 115

Regulation (EU) No 575/2013
Article 429 a – paragraph 1 – point c

(c) exposures that are assigned a risk weight of 0% in accordance with Article 113(6) and (7);

2018/02/05
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 115

Regulation (EU) No 575/2013
Article 429 a – paragraph 1 – point d

(d) where the institution is a public development credit institution, the exposures arising from assets that constitute direct or indirect claims on regional governments, local authorities or public sector entities in relation to public sector investments;

2018/02/05
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 115

Regulation (EU) No 575/2013
Article 429 a – paragraph 1 – point e

(e) exposures arising from p~~assing- through promotional loans to other credit institutions granting the p~~romotional loans;

2018/02/05
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 115

Regulation (EU) No 575/2013
Article 429 a – paragraph 2 – introductory part

2. For the purposes of point (d) of paragraph 1, public development credit institution means a credit institution or a facility associated with a credit institution that meets all of the following conditions:

2018/02/05
Committee: ECON

Markus FERBER

Proposal for a regulation
Article 1 – paragraph 1 – point 115

Regulation (EU) No 575/2013
Article 429 a – paragraph 2 – point e

(e) it ~~is precluded from accepting covered deposits as defined in point (5) of Article 2(1) of Di~~shall not directly recteive ~~2014/49/EU or in the national law of Member States implementing that Directive.~~private individuals’ savings deposits;

2018/02/05
Committee: ECON

Markus FERBER