BETA

11 Amendments of Markus FERBER related to 2016/0362(COD)

Proposal for a directive
Recital 1 a (new)

(1 a) In order to facilitate long-term planning and establish certainty with regards to the necessary buffers, markets need timely clarity about the eligibility criteria required for instruments to be recognised as TLAC/MREL liabilities.

2018/01/29
Committee: ECON

Markus FERBER, Werner LANGEN

Proposal for a directive
Recital 5

(5) Member States should ensure that institutions have sufficient loss absorbing and recapitalisation capacity to ensure smooth and fast absorption of losses and recapitalisation in resolution with a minimum impact on financial stability and taxpayers. That should be achieved through compliance by institutions with an institution-specific minimum requirement for own funds and eligible liabilities ('MREL') as provided in Directive 2014/59/EU. Where the resolution plan provides that no resolution action would be taken, including if the entity shall be wound up under normal insolvency proceedings, the entity should not be subject to MREL requirements.

2018/01/29
Committee: ECON

Proposal for a directive
Recital 9 a (new)

(9 a) The entire stock of subordinated instruments issued before the date of adoption of eligibility criteria should be considered eligible for MREL without the need to fulfil the new eligibility criteria introduced with the risk reduction package. Such a grandfathering rule should be required because market participants could not anticipate those changes and would need time to adjust their issuances. The grandfathering should encompass all new eligibility criteria, including netting and set-off rights, as well as acceleration rights.

2018/01/29
Committee: ECON

Proposal for a directive
Article 1 – paragraph 19

Directive 2014/59/EU
Article 29a – paragraph 2

2. The suspension referred to in paragraph 1 shall not exceed the minimum period of time that the competent authority considers necessary to carry out the assessment referred to in point (a) of Article 27(1) or to make the determination referred to in point (a) of Article 32(1) and shall in any event not exceed 57 working days.

2018/01/29
Committee: ECON

Proposal for a directive
Article 1 – paragraph 19

Directive 2014/59/EU
Article 29a – paragraph 3 – point c

~~(c) covered deposits.~~deleted

2018/01/29
Committee: ECON

Markus FERBER, Werner LANGEN

Proposal for a directive
Article 1 – paragraph 23

Directive 2014/59/EU
Article 45 – paragraph 2 a (new)

2 a. Where the resolution plan provides for no resolution action to be taken pursuant to Article 32, including if the entity is to be wound up under normal insolvency proceedings, the entity should not be subject to MREL.

2018/01/31
Committee: ECON

Proposal for a directive
Article 1 – paragraph 23

Directive 2014/59/EU
Article 45b – paragraph 1 a (new)

1 a. By way of derogation from paragraph 1, liabilities issued before ... [the date of entry into force of this amending Directive] which do not meet the conditions set out in points (g) to (o) of Article 72b(2) of Regulation (EU) No 575/2013 may be included in the amount of own funds and eligible liabilities of resolution entities included in MREL.

2018/01/31
Committee: ECON

Proposal for a directive
Article 1 – paragraph 23

Directive 2014/59/EU
Article 45b – paragraph 3 – subparagraph 2 a (new)

For entities considered systemically relevant by the resolution authority, the amount of own funds and eligible liabilities required by a decision under this paragraph to be met with instruments that meet all of the conditions referred to in Article 72a of Regulation (EU) No 575/2013 shall at least be equal to 8% of total liabilities and own funds. An amount beyond 8% of total liabilities and own funds, including the possibility of full subordination, shall be required if the resolution authority determines that this contributes to an efficient and orderly resolution process.

2018/01/31
Committee: ECON

Proposal for a directive
Article 1 – paragraph 23

Directive 2014/59/EU
Article 45c – paragraph 4 a (new)

4 a. In addition to the requirements of paragraphs 3 and 4, the resolution authority shall be able to increase the loss absorption and recapitalisation amounts if this is needed to ensure that the costs of resolution would be fully borne by the entity’s own funds and liabilities, and to ensure that an entity retains sufficient market confidence after resolution. In determining a market confidence amount, the capital position of peer institutions should be taken into account. An amount at least equal to the combined buffer requirement shall generally be imposed under this paragraph, except if the resolution authority determines this is not required to achieve the resolution objectives. For systemically relevant entities, the requirement referred to in Article 45(1) shall be set to at least 8% of total liabilities and own funds.

2018/01/31
Committee: ECON

Markus FERBER, Werner LANGEN

Proposal for a directive
Article 1 – paragraph 23

Directive 2014/59/EU
Article 45i – paragraph 1 – introductory part

1. Entities referred to in Article 1(1) with the exception of entities for which the resolution plan provides that no resolution action would be taken pursuant to Article 32, including if the entity shall be wound up under normal insolvency proceedings, shall report to their competent and resolution authorities on the following on at least a yearly basis:

2018/01/31
Committee: ECON

Markus FERBER, Werner LANGEN

Proposal for a directive
Article 1 – paragraph 23

Directive 2014/59/EU
Article 45i – paragraph 2 – introductory part

2. Entities referred to in Article 1(1), with the exception of entities for which the resolution plan provides that no resolution action would be taken pursuant to Article 32, including if the entity shall be wound up under normal insolvency proceedings, shall make the following information publicly available on at least a yearly basis:

2018/01/31
Committee: ECON