Activities of Gilles BOYER related to 2023/0115(COD)
Shadow reports (1)
REPORT on the proposal for a directive of the European Parliament and of the Council amending Directive 2014/49/EU as regards the scope of deposit protection, use of deposit guarantee schemes funds, cross-border cooperation, and transparency
Amendments (39)
Amendment 95 #
Proposal for a directive
Recital 5
Recital 5
(5) The range of depositors that are currently protected through repayment by a DGS is motivated by the wish to protect non-professional investors, while professional investors are deemed not to need such protection. For that reason, public authorities have been excluded from coverage. However, most public authorities (which in some Member States include schools and hospitals) cannot be considered to be professional investors. It is therefore necessary to ensure that deposits of all non-professional investors, including small public authorities, can benefit from the protection offered by a DGS.
Amendment 100 #
Proposal for a directive
Recital 18
Recital 18
(18) Pursuant to Article 10(2) of Directive 2014/49/EU, Member States are to ensure that by 3 July 2024, the available financial means of a DGS reach a target level of 0,8 % of the amount of the covered deposits of its members, or the lower target level where applicable. To objectively assess whether DGSs fulfil that requirement, a clear reference period should be set to determine the amount of covered deposits and DGSs’ available financial means.
Amendment 104 #
Proposal for a directive
Recital 18 a (new)
Recital 18 a (new)
(18a) Contributions to the DGS and the resolution financing arrangements should be determined in a manner that accurately assesses the likelihood of a contributing bank to impose losses for the DGS or the resolution financing arrangement. To that end, the rules governing contributions of individual banks to these funds shall mainly take into account the Minimum Requirement for Own Funds and Eligible Liabilities (MREL) capacity and quality of the concerned banks.
Amendment 105 #
Proposal for a directive
Recital 18 b (new)
Recital 18 b (new)
(18b) The target level of the resolution financing arrangements and the DGS were determined in 2014 to withstand a certain adverse shock to the banking system given its loss absorption capacity at the time. Since then, the banking system has considerably increased its loss absorption capacity by building up its capital and MREL buffers, and by improving the overall asset quality, primarily with the reduction in NPLs. As a result, the same target level enables today to withstand a much bigger shock, which in turn means that there is no need to increase the target levels as a result of this review.
Amendment 117 #
Proposal for a directive
Recital 26
Recital 26
(26) To ensure that preventive measures achieve their objective, credit institutions should be required to prepare a note outlining the measures that they commit to undertake. The preparation of such note should not be too burdensome and time- consuming for the credit institution to ensure the possibility for the DGS to intervene early enough. Therefore, the note accompanying preventive measures should take the form of a sufficiently short explanatory document and also providing a restructuring plan. Such note should contain all elements which aim at preventing the outflow of funds and strengthening the capital and liquidity position of the credit institution, enabling the credit institution to comply with all the relevant prudential and other regulatory requirements on a forward-looking basis. Such note should therefore contain capital raising measures, including rules on the issuance of rights, the voluntary conversion of subordinated debt instruments, liability management exercises, capital generating sales of assets, the securitisation of portfolios, and earnings retention, including dividend bans and bans on the acquisition of stakes in undertakings. For the same reason, during the implementation of the measures envisaged in the note, credit institutions should also strengthen their liquidity positions and refrain from aggressive commercial practices, and from the repurchasing of own shares or call hybrid capital instruments. Such note should also contain an exit strategy for any support measures received. Competent authorities are best positioned to be consulted on the relevance and credibility of the measures envisaged in the note. No preventive measure should be implemented without prior approval of the competent authority at the end of this consultation. To ensure that the designated authorities of the DGS that is requested to finance a preventive measure by the credit institution can assess that all the conditions for preventive measures are fulfilled, the competent authorities should cooperate with the designated authorities. To ensure a consistent approach to the application of preventive measures across the Union, the EBA should issue guidelines to assist credit institutions to draft such a note.
Amendment 122 #
Proposal for a directive
Recital 28
Recital 28
(28) To avoid detrimental effects on competition and on the internal market, it is necessary to lay down that in the case of alternative measures in insolvency, relevant bodies representing a credit institution in the context of national insolvency proceedings (liquidator, receiver, administrator or other) should make arrangements for the marketing of the business of the credit institution or part of it in an open, transparent and non- discriminatory process, while aiming to maximise, as far as possible, the sale price. The credit institution or any intermediary acting on behalf of the credit institution should apply rules that are adequate for the marketing of assets, rights and liabilities that are to be transferred to potential purchasers. In any event, the use of State DGS resources should remainbe subject to the same conditions that would apply to State resources subject to relevant State aid rules under the Treaty, where applicable.
Amendment 127 #
Proposal for a directive
Recital 34
Recital 34
(34) Credit institutions may change affiliation to a DGS because they move their headquarters to another Member State or convert their subsidiary into a branch or vice versa. Article 14(3) of Directive 2014/49/EU requires that tThe contributions of that credit institution paid during the 12 months preceding the transfer ar, net of any disbursement and pro rata, should be transferred to the other DGS in proportion to the amount of covered deposits transferred. To ensure that the transfer of contributions to the receiving DGS is not dependent on divergent national rules regarding invoicing or actual date of payment of contributions, the DGS of origin should calculate the amount to be transferred on the basis of contributions due rather than contributions paid.
Amendment 156 #
Proposal for a directive
Article 1 – paragraph 1 – point 4 – point a – point v
Article 1 – paragraph 1 – point 4 – point a – point v
Directive 2014/49/EU
Article 5 – paragraph 1 – point j
Article 5 – paragraph 1 – point j
(v) point (j) is deletedreplaced by the following: ‘(j) deposits by central and regional governments’ ;
Amendment 176 #
Proposal for a directive
Article 1 – paragraph 1 – point 11 – point a – point i
Article 1 – paragraph 1 – point 11 – point a – point i
Directive 2014/49/EU
Article 10 – paragraph 2 – subparagraph 3
Article 10 – paragraph 2 – subparagraph 3
When determining whether the DGS has reached that target level, Member States shall only take into account available financial means directly contributed by, or recovered from, members to the DGS, net of administrative fees and charges. Those available financial means shall include investment income derived from funds contributed by members to the DGS, but shall exclude repayments not claimed by eligible depositors during payout procedures, and loans between DGSs, any debt liabilities due by the DGS, including loans from other DGSs and alternative funding arrangement referred to in Article 10(9).;
Amendment 178 #
Proposal for a directive
Article 1 – paragraph 1 – point 11 – point a – point i
Article 1 – paragraph 1 – point 11 – point a – point i
Directive 2014/49/EU
Article 10 – paragraph 2 – subparagraph 3a (new)
Article 10 – paragraph 2 – subparagraph 3a (new)
An outstanding loan to another DGS under Article 12 shall be treated as an asset of the DGS which provided the loan and may be counted towards that DGS’s target level.’;
Amendment 190 #
Proposal for a directive
Article 1 – paragraph 1 – point 11 – point g
Article 1 – paragraph 1 – point 11 – point g
Directive 2014/49/EU
Article 10 – paragraph 12
Article 10 – paragraph 12
Amendment 209 #
Proposal for a directive
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Directive 2014/49/EU
Article 11 – paragraph 3 – point c a (new)
Article 11 – paragraph 3 – point c a (new)
(ca) the credit institution has not benefitted in the last ten years from any extraordinary public financial support measures as defined in Article 32c of Directive 2014/59/EU, including DGSs preventive measures.
Amendment 212 #
Proposal for a directive
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Directive 2014/49/EU
Article 11 – paragraph 4 – point b
Article 11 – paragraph 4 – point b
(b) the available financial means of the DGS fall below 262,5 % of the target level.
Amendment 213 #
Proposal for a directive
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Directive 2014/49/EU
Article 11 – paragraph 5
Article 11 – paragraph 5
5. Where a credit institution is wound up in accordance with Article 32b of Directive 2014/59/EU in order to exit the market or terminate its banking activity, Member States may allow DGSs to use the available financial means for alternative measures to preserve the access of depositors to their deposits, including the transfer of assets and liabilities and a deposit book transfer, provided thatwhere all of the following applies : (a) the DGS confirms that the cost of the measure does not exceed the cost of repaying depositors as calculated in accordance with Article 11e of this Directive and that all the conditions laid down in Article 11d of this Directive are met.’;; (b) all the conditions laid down in Article 11d of this Directive are met; (c) the measure was envisaged in the resolution plan defined in articles 10 and 12 of the Directive 2014/59/EU; (d) should the measure take the form of a transfer of assets or liabilities, the transferred liabilities take the form of: (i) covered deposits; (ii) eligible deposits from natural persons and micro, small and medium-sized enterprises; (iii) deposits that would be eligible deposits from natural persons and micro, small and medium-sized enterprises were they not made through branches located outside the Union of institutions established within the Union; (iv) any liabilities that ranked senior to covered deposits in the national creditor hierarchy of claims in insolvency.
Amendment 216 #
Proposal for a directive
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Directive 2014/49/EU
Article 11 – paragraph 5a (new)
Article 11 – paragraph 5a (new)
5a. Member States shall ensure that where DGSs perform measures as referred to in paragraphs (2), (3) and (5) of this article, the available financial means disbursed should be limited to 50% of their target level pursuant to Article 10.
Amendment 222 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11a – paragraph 1 – point a
Article 11a – paragraph 1 – point a
(a) the request of a credit institution for the financing of such preventive measures is accompanied by a note committing to a restructuring plan to ensure or restore long-term viability and compliance with the supervisory requirements applicable to the institution concerned in accordance with Directive 2013/36/EU and Regulation (EU) No 575/2013, containing measures as referred to in Article 11b and approved by the competent authority;
Amendment 225 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11a – paragraph 1 – point b
Article 11a – paragraph 1 – point b
Amendment 229 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11a – paragraph 1 – point d
Article 11a – paragraph 1 – point d
(d) the use of the preventive measures by the DGS is conditional upon the credit institution’s commitments to securdepositors' effective access to covered deposits;
Amendment 231 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11a – paragraph 1 – point f
Article 11a – paragraph 1 – point f
(f) the credit institution complies with its obligations under this Directive, has not already been subject to a preventive measure in the past, and has fully reimbursed any other previous preventive measure.extraordinary financial support received in the last 10 years;
Amendment 234 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11a – paragraph 1 – point f a (new)
Article 11a – paragraph 1 – point f a (new)
(fa) The envisaged amount of support does not exceed 50% of the deposit guarantee schemes’ available financial means;
Amendment 237 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
(fb) the measures are confined to solvent institutions or entities, as confirmed by the competent authority;
Amendment 238 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
(fc) the measures are of a precautionary and temporary nature and are based on a pre-defined exit strategy approved by the competent authority, including a clearly specified termination date, sale date or repayment schedule for any of the measures provided;
Amendment 239 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11a – paragraph 1 – point f d (new)
Article 11a – paragraph 1 – point f d (new)
(fd) the measures are not used to offset losses that the institution or entity has incurred or is likely to incur in the near future.
Amendment 240 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11a – paragraph 1 – subparagraph 1a (new)
Article 11a – paragraph 1 – subparagraph 1a (new)
1a. For the purposes of the first subparagraph, point (fb), an institution or entity shall be deemed to be solvent where the competent authority has concluded that no breach has occurred, or is likely to occur in the 12 following months, of any of the requirements referred to in Article 92(1) of Regulation (EU) No 575/2013, Article 104a of Directive 2013/36/EU, Article 11(1) of Regulation (EU) 2019/2033, Article 40 of Directive (EU) 2019/2034 or the relevant applicable requirements under Union or national law.
Amendment 242 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11a – paragraph 1 – subparagraph 1b (new)
Article 11a – paragraph 1 – subparagraph 1b (new)
1b. For the purposes of the first subparagraph, point (fd), the relevant competent authority shall quantify the losses that the institution or entity has incurred or is likely to incur. That quantification shall be based, as a minimum, on asset quality reviews conducted by the European Central Bank, 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 or entity’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 should 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 243 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11a – paragraph 1 – subparagraph 1c (new)
Article 11a – paragraph 1 – subparagraph 1c (new)
1c. If the evaluation is based on the institution or entity’s balance sheet, the support measures granted to the institution or entity shall encompass a clawback mechanism based on an ex-post quantification of losses at the time the support was granted, conducted by the competent authority.
Amendment 252 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11b – paragraph 1
Article 11b – paragraph 1
1. Member States shall ensure that credit institutions which request a DGS to finance preventive measures in accordance with Article 11(3) present to the competent authority for consultation a note with measures that those credit institutions commit to undertake to ensure or restoreapproval a restructuring plan to ensure or restore long-term viability and compliance with the supervisory requirements applicable to the credit institution concerned and that are laid down inin accordance with Directive 2013/36/EU and Regulation (EU) No 575/2013.
Amendment 265 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11b – paragraph 5a (new)
Article 11b – paragraph 5a (new)
5a. It shall be ensured that the DGS is properly remunerated for the preventive measure and that the beneficiary credit institution, its shareholders, its creditors or the business group to which it belongs, contribute significantly to the restructuring or liquidation costs from their own resources. Preventive measures to support liquidity provision shall be temporary, shall not be used to absorb losses and shall not become capital support. Proper remuneration shall be paid to the DGS for the preventive measures granted to support liquidity provision.
Amendment 270 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11b – paragraph 6
Article 11b – paragraph 6
6. Where the Union State aid framework is applicable, Member States shall ensure that the measures envisaged in the noterestructuring plan referred to in paragraph 1 are alignedcompatible with the restructuring plan that the credit institution is required to submit to the Commission under that framework.
Amendment 273 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11b – paragraph 6a (new)
Article 11b – paragraph 6a (new)
6a. The competent authority shall have two weeks to approve the restructuring plan. When the competent authority deems the restructuring plan unsatisfactory, the envisaged preventive measure cannot be undertaken.
Amendment 280 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11c – paragraph 3
Article 11c – paragraph 3
3. Where the competent authority is not satisfied that the remediation plan is credible or feasible, the DGS shall not grant any further preventive measures to that credit institutioninstitution shall be deemed failing or likely to fail.
Amendment 282 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11c – paragraph 4
Article 11c – paragraph 4
4. By … [OP – please insert the date = 424 months after the date of entry into force of this Directive] the EBA shall issue guidelines setting elements of the note accompanying the preventive measures referred to in Article 11b(1) and the remediation plan referred to in paragraph 1 of this Article.
Amendment 286 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11da (new)
Article 11da (new)
1a. ‘Article 11da Support granted to portfolio transfers in alternative measures 1. Member States shall ensure that, where the DGS is used in accordance with Article 11(5) with respect to a credit institution, and provided that such action ensures that natural persons and micro, small and medium-sized enterprises continue to have access to their deposits, to prevent them from bearing losses, the DGS to which that credit institution is affiliated shall contribute the following amounts: (i) the amount necessary to cover the difference between the value of the covered deposits and of the liabilities with the same or a higher priority ranking, and the value of the assets of the institution under resolution which are to be transferred to a recipient; and (ii) where relevant, an amount necessary to ensure the capital neutrality of the recipient following the transfer. 2. Member States shall ensure that the available financial means used in accordance with Article 11(5) does not exceed 25% of DGS target level pursuant to Article 10. Should the amount needed from the DGS be greater than 25% of its target level, the affiliated credit institutions shall immediately provide the DGS with the means needed to finance the remaining part, where necessary in the form of extraordinary contributions.
Amendment 289 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11e – paragraph 2 – point a
Article 11e – paragraph 2 – point a
(a) for the estimation of the costs referred to in paragraph 1, point (a), the DGS shall take into account the expected earnings, operational expenses and potential losses related to the measure; shall be estimated as the difference between: (i) the sum of the amount disbursed by the DGS to finance the measure, the administrative costs of levying ex post contributions pursuant to Article 10(8) should such contributions be needed to finance the measure, and the costs of mobilizing alternative funding arrangements pursuant to Article 10(9) should these arrangements be mobilised; and (ii) the expected recoveries on the claim held by the DGS pursuant article 9(2).
Amendment 291 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11e – paragraph 2 – point c
Article 11e – paragraph 2 – point c
(c) for the measures referred to in Article 11(2), (3) andthe cost of repaying depositors, as referred to in paragraph 1, point (5b), when estimating the cost of repaying depositors, as referred to in paragraph 1, point (b), the DGS shall take into account the expected ratio of recoveries, the cost for the replenishment of the DGS that is to be borne by credit institutishall be estimated as the difference between: (i) the sum of the estimated amount to be paid to depositors, the administrative costs linked to the process of repayment that are not covered by annual contributions, the administrative costs of levying ex post contributions pursuant to Article 10(8) should such contributions be needed to repay the depositors, and the costs of mobilizing alternative funding arrangements pursuant to Article 10(9) should these arrangements be mobilised; and (ii) the expected recoveries ons that are members of the DGS, and the potential additional cost of funding for the DGS;e claim held by the DGS pursuant to article 9(2). The recovery rate on this claim should not be lower than 50%.
Amendment 293 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11e – paragraph 2 – point d
Article 11e – paragraph 2 – point d
Amendment 296 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11e – paragraph 4a (new)
Article 11e – paragraph 4a (new)
4a. As soon as possible after performing alternative measures, Member States shall ensure that DGS publish a summary of the core elements of the calculation made as per this Article. It shall notably comprise the net recovery rate derived from the estimated cost of repaying depositors for the DGS and a broad justification of the related underlying assumptions.
Amendment 297 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11e – paragraph 5
Article 11e – paragraph 5
Amendment 315 #
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point d
Article 1 – paragraph 1 – point 14 – point d
Directive 2014/49/EU
Article 14 – paragraph 3
Article 14 – paragraph 3
3. Member States shall ensure that where a credit institution ceases to be member of a DGS and joins a DGS of another Member State, or if some of the credit institution’s activities are transferred to a DGS of another Member State, the DGS of origin shall transfer to the receiving DGS the contributions due for the last 12 months preceding the change of DGS membershipof the related credit institution, with the exception of the extraordinary contributions referred to in Article 10(8)., net of profits and losses recorded by the DGS of origin, including past intervention, investment income and expected recoveries.’;