2 Amendments of Irene TINAGLI related to 2021/0343(COD)
Amendment 28 #
Proposal for a regulation
Recital 7
Recital 7
(7) In the context of the indirect subscription of internal MREL eligible instrumentresources by resolution entities pursuant to the revised Union bank resolution framework, intermediate parentities should be required to deduct from their ownfull holding of internal MREL eligible resources the full holding of own funds and eligible liabilities issued by their subsidiariesissued by entities that are not themselves resolution entities and which belonging to the same resolution group up to an amount equivalent to the internal MREL requirements of such entities. This ensures the proper functioning of the internal loss- absorbing and recapitalisation mechanisms within a group and avoids the double- counting of the internal MREL eligible resources of the subsidiaryose entities for the purposes of compliance by the intermediate parentity with its own internal MREL. Additionally, wWithout those deductions, the individual solvency ratios of intermediate parents would not reflect appropriately and prudently their actual loss-absorbing capacity, as tproper implementation of the chosen ratios would also include the loss-absorbing capacity of their subsidiaries. Thisesolution strategy could be compromise the proper implementation of the chosen resolution strategyd, as the intermediate parentity could use up not only its own loss absorption and recapitalisation capacity but also that of its subsidiary, before the intermediate parent or the subsidiary are no longer viable. The deductions should first be appliother entities that are not themselves resolution entities and which belong to the same resolution group, before the intermediate entity or those other entities are no longer viable. To ensure that the obligation to deduct is aligned with the scope of entities that may be used toby the eligible liabilities items of the intermediate parents. In case the amount to be deducted would exceed the amount of the eligible liabilities items of the intermediate parents, the remaining amount sresolution entity for the indirect subscription of internal MREL eligible resources, and to avoid regulatory arbitrage, intermediate entities should deduct their holdings of internal MREL eligible resources issued by all entities belonging to the same resolution group and that may be subject to compliance with internal MREL, and not just the hould be deducted from their Tier 2 items. To ensure that the deduction regime remains proportionate, that regime should not be appings of resources issued by their subsidiaries. The same obligations should apply in the case of indirect issuance of resources eligible for compliance with the requirement for own funds and eligible licable in the exceptional cases where internal MREL is applied on a consolidated basis only. ilities for material subsidiaries of non- EU G-SIIs laid down in Article 92b of Regulation (EU) No575/2013, where relevant.
Amendment 49 #
Proposal for a regulation
Article 1 – paragraph 1 – point 5 – point b
Article 1 – paragraph 1 – point 5 – point b
Regulation (EU) No 575/2013
Article 72 e – paragraph 5
Article 72 e – paragraph 5
5. Institutions and entities required to comply with Article 45c of Directive 2014/59/EU that are not themselves resolution entities shall deduct from eligible liabilities items their holdings of own funds and eligible liabilities that meet the condishall deduct from eligible liabilities items their holdings of own funds instruments and eligible liabilities instruments where all of the following conditions are met: (a) the own funds instruments and eligible liabilities instruments are held by an institution or entity that is not itself a resolution entity but that is a subsidiary of a resolution entity or of a third-country entity that would be a resolution entity if it were established in the Union; (b) the institution or entity referred to in point (a) is required to comply with the requirements laid down in Article 92b of this Regulation or in Article 45f of Directive 2014/59/EU; (c) the own funds instruments and eligible liabilities instruments held by the institution or entity referred to in point (a) were issued by an institutions ofr entity referred to in Article 45f(292b(1) of that Directive of their subsidiariesis Regulation or in Article 45f(1) of Directive 2014/59/EU that is not itself a resolution entity and that belongs to the same resolution group. The deduction shall not appl as the institution or entity referred to in point(a). The deduction established in the first subparagraph shall be equal to the amount of own funds instruments and eligible liabilities instruments held by tohe institutions and entities that are not themselves resolution entities where the or entity referred to in point (a) of the first subparagraph that have been issued by the institution or entity referred to in point (c) of the first subparagraph to comply with the requirement indicated by Article 45c(7). By way of derogation from the first subparagraph, holdings of own funds instruments and eligible liabilities instruments shall not be deducted where the institution or entity areferred to in point (a) is required to comply with the requirement referred to in Articles 45c and 45d of Directive 2014/59/EU on a consolidated basispoint (b) on a consolidated basis and the institution or entity referred to in point (c) is included in the consolidation of the institution or entity referred to in point(a) in accordance with Part One, Title II, Chapter 2. For the purposes of this paragraph, the reference to eligible liabilities items shall also be understood as a reference to: (a) eligible liabilities referred to in Article 45f(2), point (a), of Directive items taken into account for the purposes of complying with the requirement in Article 92b; (b) eligible liabilities that meet the conditions of Article 45f(2), point (a), of Directive2014/59/EU. For the purposes of this paragraph, the reference to own funds instruments and eligible liabilities instruments shall be understood as a reference to: (a) own funds instruments and eligible liabilities instruments that meet the conditions of Article 92b, paragraphs 2 and 3; (b) own funds and liabilities that meet the conditions of Article 45f(2) of Directive2014/59/EU.