Activities of Gilles BOYER related to 2023/0111(COD)
Shadow reports (1)
REPORT on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 806/2014 as regards early intervention measures, conditions for resolution and funding of resolution action
Amendments (42)
Amendment 66 #
Proposal for a regulation
Recital 9
Recital 9
(9) The rules for determining the MREL are mostly focused on setting the appropriate level of the MREL with the assumption of the bail-in tool as the preferred resolution strategy. However, Regulation (EU) No 806/2014 allows the Board to use other resolution tools, namely those relying on the transfer of the business of the institution under resolution to a private purchaser or to a bridge institution, as a standalone tool or in combination with other tools including bail-in. It should therefore be further specified that, in case the resolution plan envisages the use of a combination of tools, or the sale of business tool or of the bridge institution tool and the resolution entity’s exit from the market, the Board should always determine the level of the MREL for the resolution entity concerned on the basis of the specificities of those resolution tools and of the different loss-absorbing and recapitalisation needs those tools entail, taking into consideration the reduction in size and complexity that result from the implementation of recovery options in the runup to resolution and from the resolution actions.
Amendment 67 #
Proposal for a regulation
Recital 10
Recital 10
(10) The level of the MREL for resolution entities is the sum of the amount of the losses expected in resolution and the recapitalisation amount that enables the post-resolution entity to continue to comply with its conditions for authorisation and enabling it to pursue its activities for an appropriate period. Certain preferred resolution strategies entail the transfer of assets, rights and liabilities to a recipient and market exit, in particular the sale of business tool. In those cases, the objectives pursued by the recapitalisation component might not apply to the same extent as in the case of an open-bank bail- in strategy, because the Board will not be required to ensure that the resolution entity restores compliance with its own funds requirements after resolution action, although the acquirer might ask for the transaction to be capital neutral. Nevertheless, the losses in such cases are expected to exceed the resolution entity’s own funds requirements. It is therefore appropriate to lay down that the level of the MREL of those resolution entities continues to include a recapitalisation amount that is adjusted in a way which is proportionate to the resolution strategy, and subject to an appropriate floor.
Amendment 74 #
Proposal for a regulation
Recital 11
Recital 11
(11) Where the resolution strategy envisages the use of resolution tools other than bail-in or alongside bail-in, the recapitalisation needs of the entity concerned will generally be smaller after resolution than in case of the sole open bank bail-in strategy. The calibration of the MREL in such a case should take that aspect into account when estimating the recapitalisation requirement. Therefore, when adjusting the level of the MREL for such resolution entities the resolution plan of which envisages the sale of business tool or the bridge institution tool and its exit from the market, the Board should take into account the features of those tools, including the expected perimeter of the transfer to the private purchaser or to the bridge institution, the types of instruments to be transferred, the expected value and marketability of those instruments, and the design of the preferred resolution strategy, including the complementary use of the asset separation tool. S or any other tool. In case of the transfer tool with market exit, since the resolution authority has to decide on a case by case basis on any possible use in resolution of funds from the deposit guarantee scheme and since such decision cannot be assumed with certainty ex ante, the Board should not consider the potential contribution of the deposit guarantee scheme (in resolution when calibrating the level of the MREL.
Amendment 105 #
Proposal for a regulation
Recital 31
Recital 31
Amendment 126 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4 – point a a (new)
Article 1 – paragraph 1 – point 4 – point a a (new)
(aa) in paragraph 6, fifth subparagraph, the following point is inserted: ‘(ca) any use of deposit guarantee schemes’;
Amendment 139 #
Proposal for a regulation
Article 1 – paragraph 1 – point 8 a
Article 1 – paragraph 1 – point 8 a
Regulation (EU) No 806/2014
Article 12a – paragraph 1 a (new)
Article 12a – paragraph 1 a (new)
(8a) in Article 12a, the following paragraph is inserted: 1a. Within a resolution group, subsidiaries that are institutions or entities referred to in Article 2(1) but are not resolution entities, whose total assets do not exceed EUR 5 billion and that do not reach a 2% threshold of the resolution group’s total risk exposure amount, or leverage exposure, shall not be subject to the requirement referred to in paragraph 1 of this Article.
Amendment 140 #
Proposal for a regulation
Article 1 – paragraph 1 – point 8 b (new)
Article 1 – paragraph 1 – point 8 b (new)
Regulation (EU) No 806/2014
Article 12b
Article 12b
(8b) Article 12b is replaced by the following: Article 12b Exemption from the minimum requirement for own funds and eligible liabilities 1. Notwithstanding Article 12a, the Board shall exempt from the requirement laid down in Article 12a(1) mortgage credit institutions financed by covered bonds which are not allowed to receive deposits under national law, provided that all of the following conditions are met:(a) those institutions will be wound up in national insolvency proceeding or in other types of proceedings laid down for those institutions and implemented in accordance with Article 38, 40 or 42 of Directive 2014/59/EU; and(b) the proceedings referred to in point (a) ensure that creditors of those institutions, including holders of covered bonds, where relevant, bear losses in a way that meets the resolution objectives.2. Institutions exempted from the requirement laid down in Article 12(1) shall not be part of the consolidation referred to in Article 12f(1). 2. Institutions exempted from the requirement laid down in Article 12(1) shall not be part of the consolidation referred to in Article 12f(1). from the requirement laid down in Article 12a(1). " Or. en (REGULATION (EU) No 806/2014)
Amendment 141 #
Proposal for a regulation
Article 1 – paragraph 1 – point 10
Article 1 – paragraph 1 – point 10
Regulation (EU) No 806/2014
Article 12d
Article 12d
(10) in Article 12d, paragraph 3, eightArticle12d is amended as follows: (a) in paragraph 3, the fifth and sixth subparagraphs are replaced by the following: ‘When setting the recapitalisation amounts referred to in the previous subparagraphs, the Board shall: (a) use the most recently reported values for the relevant total risk exposure amount or total exposure measure, adjusted for any changes resulting from resolution actions set out in the resolution plan, including the reduced size and risk profile of the resolution group resulting from resolution, in particular when the preferred resolution strategy includes the use of resolution tools referred to in Article 22(2), points (a), (b) or (c), as well as for any changes resulting from the recovery options included in the recovery plan that are expected to be implemented by the time of resolution or shortly thereafter; and (b) after consulting the competent authorities, including the ECB, adjust the amount corresponding to the current requirement referred to in Article 104a of Directive 2013/36/EU downwards to determine the requirement that is to apply to the resolution entity after the implementation of the preferred resolution strategy, taking into account changes referred to in point (a) of this subparagraph; (c) after consulting the competent authority, including the ECB, for resolution entities subject to the requirement of Article 131 of Directive 2013/36/EU, adjust the combined buffer requirement applicable to the resolution group, taking into account the changes referred to in point (a) of this subparagraph. The Board shall be able to increase the requirement provided in point (a)(ii) of the first subparagraph by an appropriate amount necessary to ensure that, following resolution, the entity is able to sustain sufficient market confidence for an appropriate period, which shall not exceed one year, except where its preferred resolution strategy envisages primarily the use of the sale of business tool or the bridge institution tool and its exit from the market. The Board shall communicate to the resolution entity the rationale behind the adjustments mentioned in points (a), (b) and (c) of the fifth subparagraph. (b) in paragraph 3, eighth subparagraph, and paragraph 6, eighth subparagraph, the words ‘critical economic functions’ are replaced by the words ‘critical functions’;
Amendment 146 #
Proposal for a regulation
Article 1 – paragraph 1 – point 11
Article 1 – paragraph 1 – point 11
Regulation (EU) No 806/2014
Article 12da – paragraph 1 – point a
Article 12da – paragraph 1 – point a
(a) the resolution entity’s size, business model, funding model and risk profile, and the depth of the market in which the resolution entity operates;
Amendment 149 #
Proposal for a regulation
Article 1 – paragraph 1 – point 11
Article 1 – paragraph 1 – point 11
Regulation (EU) No 806/2014
Article 12da – paragraph 1 – point b – point ii
Article 12da – paragraph 1 – point b – point ii
(ii) the liabilities excluded from bail-in pursuant to Article 27(3) or bail-inable liabilities where Article 27(5) is likely to apply with regard to these liabilities;
Amendment 150 #
Proposal for a regulation
Article 1 – paragraph 1 – point 11
Article 1 – paragraph 1 – point 11
Regulation (EU) No 806/2014
Article 12da – paragraph 1 – point b – point iii a (new)
Article 12da – paragraph 1 – point b – point iii a (new)
(iiia) expected own funds requirements for any bridge institution that may be needed to implement the market exit strategy, to ensure its compliance with Regulation (EU) No 575/2013, Directive 2013/36/EU and Directive 2014/65/EU, as applicable;
Amendment 152 #
Proposal for a regulation
Article 1 – paragraph 1 – point 11
Article 1 – paragraph 1 – point 11
Regulation (EU) No 806/2014
Article 12da – paragraph 1 – point a – point iii b (new)
Article 12da – paragraph 1 – point a – point iii b (new)
(iiib) expected demand by the recipient for the transaction to be capital neutral with regards to the requirements applicable to the acquiring entity.
Amendment 158 #
Proposal for a regulation
Article 1 – paragraph 1 – point 11
Article 1 – paragraph 1 – point 11
Regulation (EU) No 806/2014
Article 12da – paragraph 1 a (new)
Article 12da – paragraph 1 a (new)
1a. For resolution entities subject to the proportionalisation rules of paragraph 1 of this Article, the level of the requirement referred to in paragraph 3 of Article 12d shall be at least equal to: (a) 16 % when calculated in accordance with point (a) of Article 12a(2); and (b) 5,5 % when calculated in accordance with point (b) of Article 12a(2). Resolution entities that are part of a resolution group the total assets of which exceed EUR 5 billion and resolution entities with consolidated total assets in excess of EUR 5 billion shall meet a level of the requirement referred to in the first subparagraph of this paragraph that is equal to 4,5 % when calculated in accordance with point (a) of Article 12a(2) and to 1,5 % when calculated in accordance with point (b) of Article 12a(2), using Tier 2 instruments and eligible liabilities.’ In order to ensure effective and consistent application of this Article, the Board shall give guidance and address instructions to the national resolution authorities for the application of the RTSs referred to in Article 45ca(1b) of Directive 2014/59/EU.
Amendment 163 #
Proposal for a regulation
Article 1 – paragraph 1 – point 11
Article 1 – paragraph 1 – point 11
Regulation (EU) No 806/2014
Article 12da – paragraph 2
Article 12da – paragraph 2
2. Where the resolution plan provides that the entity is to be wound up under normal insolvency proceedings or other equivalent national procedures and envisages the use of the deposit guarantee scheme pursuant to Article 11(5) of Directive 2014/49/EU, the Board shall also take into account paragraph 1 of this Article when carrying outby way of derogation from Article 12d(2a) the resolution authority shall set a recapitalization amount as provided in Article 12d(3) in a proportionate way on the bassessment referred to in Article 12d(2a), second subparagraph, of this Regulationis of the criteria referred to in paragraph 1.
Amendment 166 #
Proposal for a regulation
Article 1 – paragraph 1 – point 14 – point a a (new)
Article 1 – paragraph 1 – point 14 – point a a (new)
Regulation (EU) No 806/2014
Article 12k – paragraph 1a (new)
Article 12k – paragraph 1a (new)
(aa) the following paragraph is inserted: ‘1a. Regarding entities that were not part of a resolution group prior to the [date of application of this amending Regulation], the Board shall determine appropriate transitional periods for institutions or entities referred to in Article 2(1) to comply with the requirements of Articles 12f or 12g, or with requirements that result from the application of Article 12c(4), (5) or (7), as appropriate. These transitional periods shall not extend beyond 1 January 2030.’
Amendment 167 #
Proposal for a regulation
Article 1 – paragraph 1 – point 15
Article 1 – paragraph 1 – point 15
Regulation (EU) No 806/2014
Article 13 – paragraph 1 – introductory part
Article 13 – paragraph 1 – introductory part
1. The ECB mconsiders without undue delay, appnd if necessary adopts swiftly, early intervention measures where an entity as referred to in Article 7(2)(a) meets any of the following conditions:
Amendment 171 #
Proposal for a regulation
Article 1 – paragraph 1 – point 15
Article 1 – paragraph 1 – point 15
Regulation (EU) No 806/2014
Article 13 – paragraph 1 – subparagraph 1 a (new)
Article 13 – paragraph 1 – subparagraph 1 a (new)
Where appropriate to characterize the infringement referred to in point (b), the ECB shall ensure that the Board and the relevant national resolution authorities inform the competent authorities without delay.
Amendment 177 #
Proposal for a regulation
Article 1 – paragraph 1 – point 15
Article 1 – paragraph 1 – point 15
Regulation (EU) No 806/2014
Article 13 – paragraph 4
Article 13 – paragraph 4
4. For each of the measures referred to in paragraph 2, the ECB shall set a deadline that is appropriate for completion of that measure and that enables the ECB to evaluate its effectiveness. The evaluation of the measure should be carried out immediately after the deadline is reached and shared with the Board and relevant national resolution authorities. Should the evaluation conclude that the measures have not been fully implemented or are not effective, the ECB or the relevant national competent authority shall make an assessment of the condition referred to in paragraph 1, point (a) of Article 18 of this Regulation, after having consulted the Board and the relevant national resolution authority.
Amendment 196 #
Proposal for a regulation
Article 1 – paragraph 1 – point 17
Article 1 – paragraph 1 – point 17
Regulation (EU) No 806/2014
Article 14 – paragraph 2 – point d
Article 14 – paragraph 2 – point d
(d) to protect depositorscovered deposits, and to the extent possible also that uncovered part of eligible deposits from natural persons and micro, small and medium- sized enterprises, while minimising losses for deposit guarantee schemes, and to protect investors covered by Directive 97/9/EC;;
Amendment 208 #
Proposal for a regulation
Article 1 – paragraph 1 – point 19 – point a
Article 1 – paragraph 1 – point 19 – point a
Regulation (EU) No 806/2014
Article 18 – paragraph 1a
Article 18 – paragraph 1a
1a. TWhen a resolution action is deemed necessary in the public interest, the Board mayshall adopt a resolution scheme in accordance with paragraph 1 in relation to a central body and all credit institutions permanently affiliateds to it, that are part of the same resolution group where the central body and all credit institutions permanently affiliateds to it, or the resolution group to which they belong, comply as a whole with the conditions laid down in paragraph 1, first subparagraph. The assessment of the conditions referred to in paragraph 1, first subparagraph, shall be made exclusively for the central body and its permanent affiliates as a whole.
Amendment 217 #
Proposal for a regulation
Article 1 – paragraph 1 – point 19 – point c
Article 1 – paragraph 1 – point 19 – point c
Resolution action shall be presumed not to be in the public interest for the purposes of paragraph 1, point (c), where the institution qualifies as small and non- complex institution as defined in Article 4(1), point 145, of Regulation (EU) No 575/2013. In case the Board assesses that one or more of those resolution objectives would be at risk, the presumption shall not apply.
Amendment 219 #
Proposal for a regulation
Article 1 – paragraph 1 – point 19 – point c
Article 1 – paragraph 1 – point 19 – point c
Regulation (EU) No 806/2014
Article 18 – paragraph 5 – subparagraph 1b (new)
Article 18 – paragraph 5 – subparagraph 1b (new)
Resolution action shall be presumed to be in the public interest for the purposes of paragraph 1, point (c), of this Article where the institution qualifies as large institution as defined in Article 4(1), point (146) of Regulation (EU) No 575/2013. In case the Board assesses that no resolution objective would be at risk, the presumption shall not apply.
Amendment 228 #
Proposal for a regulation
Article 1 – paragraph 1 – point 19 – point c
Article 1 – paragraph 1 – point 19 – point c
Regulation (EU) No 806/2014
Article 18 – paragraph 5 – subparagraph 2 a (new)
Article 18 – paragraph 5 – subparagraph 2 a (new)
Moreover, in the resolution plan, the Board shall include its reasoning as regards the procedure best achieving resolution objectives for each of the resolution objectives laid down in Article 14.
Amendment 229 #
Proposal for a regulation
Article 1 – paragraph 1 – point 19 – point e a (new)
Article 1 – paragraph 1 – point 19 – point e a (new)
Regulation (EU) No 806/2014
Article 18 – paragraph 11 a (new)
Article 18 – paragraph 11 a (new)
(ea) the following paragraph is added: 11a. In order to ensure effective and consistent application of this Article, the Board shall give guidance and address instructions to national resolution authorities for the application of the RTSs referred to in Article 32(5) of Directive 2014/59/EU.
Amendment 240 #
Proposal for a regulation
Article 1 – paragraph 1 – point 20
Article 1 – paragraph 1 – point 20
Regulation (EU) No 806/2014
Article 18a – paragraph 2 – subparagraph 1 – introductory part
Article 18a – paragraph 2 – subparagraph 1 – introductory part
The support measures referred to in paragraph 1, point (a) and (b), shall fulfil all of the following conditions:
Amendment 248 #
Proposal for a regulation
Article 1 – paragraph 1 – point 20
Article 1 – paragraph 1 – point 20
Regulation (EU) No 806/2014
Article 18a – paragraph 2 – subparagraph 3
Article 18a – paragraph 2 – subparagraph 3
For the purposes of the first subparagraph, point (d), the relevant competent authority shall quantify the losses that the entity has incurred or is likely to incur. That quantification shall be based, as a minimum, on the institution’s balance sheet, provided that the balance sheet complies with the applicable accounting rules and standards, as confirmed by an independent external auditor, and, where available, on asset quality reviews conducted by the ECB, EBA or national authorities or, where appropriate, on on- site inspections conducted by the ECB or the relevant national competent authorityasset quality reviews conducted by the ECB, EBA or national authorities, or, where appropriate, on on- site inspections conducted by the competent authority. Where such exercises cannot be undertaken in due time, the competent authority can base its evaluation on the institution’s balance sheet, provided that the balance sheet complies with the applicable accounting rules and standards, as confirmed by an independent external auditor. The competent authority shall make its best efforts to ensure that the quantification is based on the market value of the institution or entity’s assets, liabilities and off-balance sheet items.
Amendment 253 #
Proposal for a regulation
Article 1 – paragraph 1 – point 20
Article 1 – paragraph 1 – point 20
In case any of the support measures referred to in paragraph 1, point (a) and (b), is not redeemed, repaid or otherwise terminated in accordance with the terms of the exit strategy established at the time of granting such measure, the ECB or the relevant national competent authority shall conclude that the condition laid down in Article 18(1), point (a), is met in relation to the institution or entity which has received those support measures and shall communicate that assessment to the Commission and to the Board, in accordance with Article 18(1), third subparagraph.;
Amendment 268 #
Proposal for a regulation
Article 1 – paragraph 1 – point 23 a (new)
Article 1 – paragraph 1 – point 23 a (new)
Regulation (EU) No 806/2014
Article 22 – paragraph 4 – subparagraph 1 a (new)
Article 22 – paragraph 4 – subparagraph 1 a (new)
(23a) in Article 22(4), the following subparagraph is added: "The resolution plan shall consider the combination of resolution tools which is the best suited to achieve resolution objectives.
Amendment 273 #
Proposal for a regulation
Article 1 – paragraph 1 – point 24 – point a
Article 1 – paragraph 1 – point 24 – point a
Regulation (EU) No 806/2014
Article 27 – paragraph 7 – point a
Article 27 – paragraph 7 – point a
(a) a contribution to loss absorption and recapitalisation equal to an amount not less than 8 % of the total liabilities including own funds of the institution under resolution, measured in accordance with the valuation provided for in Article 20(1) to (15), has been made by shareholders, the holders of relevant capital instruments and other bail-inable liabilities through reduction, write-down, or conversion pursuant to Article 48(1) of Directive 2014/59/EU and Article 21(10) of this Regulation, and by the deposit guarantee scheme pursuant to Article 79 of this Regulation and Article 109 of Directive 2014/59/EU where relevantapplicable;
Amendment 274 #
Proposal for a regulation
Article 1 – paragraph 1 – point 24 – point b
Article 1 – paragraph 1 – point 24 – point b
Regulation (EU) No 806/2014
Article 27 – paragraphs 9 and 10
Article 27 – paragraphs 9 and 10
Amendment 280 #
Proposal for a regulation
Article 1 – paragraph 1 – point 26 a (new)
Article 1 – paragraph 1 – point 26 a (new)
Regulation (EU) No 806/2014
Article 31 – paragraph 1 – subparagraph 3
Article 31 – paragraph 1 – subparagraph 3
Amendment 282 #
Proposal for a regulation
Article 1 – paragraph 1 – point 31 a (new)
Article 1 – paragraph 1 – point 31 a (new)
(31a) in Article 50(1), the following points are added: ‘(qa) adopt rules to ensure that national resolution authorities are consulted and are able to contribute to any policy or guidance adopted by the executive session that they will contribute to implementing. (qb) adopt rules for organising industry consultations where appropriate prior to any substantive decision by the plenary or the executive session of a broad or general nature.’
Amendment 288 #
Proposal for a regulation
Article 1 – paragraph 1 – point 35 a (new)
Article 1 – paragraph 1 – point 35 a (new)
Regulation (EU) No 806/2014
Article 69 – paragraph 1 – subparagraph 1 a (new)
Article 69 – paragraph 1 – subparagraph 1 a (new)
(35a) in Article 69(1), the following subparagraph is added: ‘When the available financial means have significantly exceeded the target level for a second consecutive year, the Commission shall assess the situation and report on the appropriateness of introducing a possibility to restitute part of available financial means.’
Amendment 290 #
Proposal for a regulation
Article 1 – paragraph 1 – point 36
Article 1 – paragraph 1 – point 36
Regulation (EU) No 806/2014
Article 69 – paragraph 4
Article 69 – paragraph 4
4. If, aAfter the initial period referred to in paragraph 1, the available financial means fall below the target level specified in that paragraph, the regular contributions calculated in accordance with Article 70 shall be raised until the target level is reached. Ttarget level has been reached for the first time, the collection of the regular contributions calculated in accordance with Article 70 shall be subject to the following modulations: (a) until the available financial means, net of any disbursement, diminish below 85% of the target level, the Board mayshall defer the collection of the regular contributions raised in accordance with Article 70 for 1 or more years to ensure that; (b) where the amount to be collected reaches an amount that is proportionate to the costs of the collection process, provided that such deferral does not materially affect the capacity of the Board to use the Fund pursuant to Section 3. After the target level has been reached for the first time and whthe Board shall defer the collection of the regular contributions. Furthermore, the resumption of the regular contributions aftere the available financial means have subsequently been reduced to less than two-thirds of the target level, those contributionsdeferral mentioned in the first subparagraph shall be set at a level allowing for reaching the target level to be reached within 63 years.’;
Amendment 294 #
Proposal for a regulation
Article 1 – paragraph 1 – point 37 – point b
Article 1 – paragraph 1 – point 37 – point b
Regulation (EU) No 806/2014
Article 70 – paragraph 3a – subparagraph 2
Article 70 – paragraph 3a – subparagraph 2
Where an institution or entity stops being within the scope of Article 2 and is no longer subject to the obligation to pay contributions in accordance with paragraph 1 of this Article, the Board shall call the irrevocable payment commitments made pursuant to paragraph 3 and still due. If the contribution linked to the irrevocable payment commitment is duly paid at firstthis regulation the irrevocable payment commitments shall be cancelled and the caoll, the Board shall cancelateral backing these commitment ands shall be returned at the collateral. If the contribution is not duly paid at first call, the Board shall seizest two years after the entity has exited the scollateral and cancel the commitment.pe of this Regulation;
Amendment 296 #
Proposal for a regulation
Article 1 – paragraph 1 – point 40 – point -a (new)
Article 1 – paragraph 1 – point 40 – point -a (new)
Regulation (EU) No 806/2014
Article 76 – paragraph 1 – point ga (new)
Article 76 – paragraph 1 – point ga (new)
(-a) in paragraph 1, the following point is added: '(ga) where the deposit guarantee scheme makes a contribution pursuant to Article 79(1) and where applicable conditions are met, to contribute the amount needed to close the remaining funding gap after the DGS contribution towards the 8% TLOF; in this case, the contribution made by the Fund is to be repaid in full by the DGS within 6 years at the most;
Amendment 297 #
Proposal for a regulation
Article 1 – paragraph 1 – point 40 – point -a (new)
Article 1 – paragraph 1 – point 40 – point -a (new)
Regulation (EU) No 806/2014
Article 76 – paragraph 1 – point g a (new)
Article 76 – paragraph 1 – point g a (new)
(-a) in paragraph 1, the following point is added: '(ga) where the deposit guarantee scheme makes a contribution pursuant to Article 79(1) and where applicable conditions are met, to contribute the amount needed to close the remaining funding gap after the DGS contribution towards the 8% TLOF;
Amendment 300 #
Proposal for a regulation
Article 1 – paragraph 1 – point 40 – point b
Article 1 – paragraph 1 – point 40 – point b
Regulation (EU) No 806/2014
Article 76 – paragraph 6a (new)
Article 76 – paragraph 6a (new)
6a. By 31 December 2026, the Commission shall report, to the European Parliament and to the Council, on the appropriateness of the rules governing the contributions to the Fund. The report shall take stock of the reforms to the crisis management framework, and assess whether these changes call for a review of the rules governing the contributions to the resolution financing arrangement in order to preserve the effectiveness of the incentives of a polluter-pay principle. Where appropriate, the Commission shall table a legislative proposal.’;
Amendment 304 #
Proposal for a regulation
Article 1 – paragraph 1 – point 41 – point a
Article 1 – paragraph 1 – point 41 – point a
Regulation (EU) No 806/2014
Article 79 – paragraph 1
Article 79 – paragraph 1
1. Participating Member States shall ensure that when the Board takes resolution action with respect to a credit institution, provided that such action ensures that depositornatural persons and micro, small and medium-sized enterprises continue to have access to their deposits, to prevent depositorsthem from bearing losses, the deposit guarantee scheme to which that credit institution is affiliated shall contribute for the purposes and under the conditions laid down in Article 109 of Directive 2014/59/EU.
Amendment 306 #
Proposal for a regulation
Article 1 – paragraph 1 – point 41 – point a
Article 1 – paragraph 1 – point 41 – point a
Regulation (EU) No 806/2014
Article 79 – paragraph 2
Article 79 – paragraph 2
2. The Board shall determine the amount of the contribution of the deposit guarantee scheme in accordance with paragraph 1 after having consulted the deposit guarantee scheme, and where necessary the designated authority within the meaning of Article 2(1), point (18), of Directive 2014/49/EU, ondetermined the estimated cost of repaying depositors pursuant to Article 11e of Directive 2014/49/EU and in compliance with the conditions referred to in Article 20 of this Regulation. in consultation with consulted the deposit guarantee scheme, and where necessary the designated authority within the meaning of Article 2(1), point (18), of Directive 2014/49/EU
Amendment 308 #
Proposal for a regulation
Article 1 – paragraph 1 – point 41 a (new)
Article 1 – paragraph 1 – point 41 a (new)
Regulation (EU) No 806/2014
Article 79 a (new)
Article 79 a (new)
(41a) the following article is inserted: Article 79a Reporting on liquidity resolution By 31 December 2024 the Commission shall report, to the European Parliament and to the Council, on the issue of “liquidity in resolution”. There might be situations where a resolved bank with insufficient remaining collateral temporarily struggles to access again the markets and/or to stabilise the outflow of deposits, and as a result keeps facing a liquidity shortfall although it has been properly recapitalised during the resolution weekend. In such a case, depending on the size of the concerned bank, the Fund, even in combination with the ESM backstop, might not have sufficient means to provide the adequate amount of temporary refinancing, since such safety nets have been calibrated in accordance with a recapitalisation need and not a refinancing need. The report shall therefore examine whether such situations correspond to a missing instrument in the resolution toolbox, and what the most efficient way to address this issue might be, taking into consideration what other jurisdictions do. The report shall present concrete policy options. In particular, the report shall explore an option that would combine liquidity provision by the ECB to ensure sufficient firepower, with a guarantee provided by the EU budget in order to meet the collateral criteria of the ECB, backed by a counter-guarantee provided by the Fund to ensure that any loss be ultimately borne by the banking sector.
Amendment 310 #
Proposal for a regulation
Article 1 – paragraph 1 – point 41 a (new)
Article 1 – paragraph 1 – point 41 a (new)
Regulation (EU) No 806/2014
Article 79 b (new)
Article 79 b (new)
(41b) the following article is inserted: Article 79b Reporting on internal loss transfer mechanism By 31 December 2024, in the context of the resumption of Banking Union discussions, the Commission shall report, to the European Parliament and to the Council, on the effectiveness and scope of the internal loss transfer mechanism within resolution groups resulting from the reform of the crisis management framework. In particular, the report shall take stock of the expansion of the scope of resolution to smaller entities, the level of compliance with internal MREL targets, the implementation of the new deduction rules, and the changes in conditions to access the industry funded safety nets, in particular the single resolution fund. The Commission shall then assess whether this situation delivers sufficiently credible and efficient solidarity mechanisms within resolution groups, among entities earmarked for resolution, for granting more systematically material liquidity waivers to such entities, or whether further safeguards should be introduced.