BETA

40 Amendments of Carlo CALENDA related to 2021/0342(COD)

Proposal for a regulation
Recital 46

(46) However, the actual CVA risk of the exempted transactions may be a source of significant risk for banks applying those exemptions; if those risks materialise, the banks concerned could suffer significant losses. As EBA highlighted in their report on CVA from February 2015, the CVA risks of the exempted transactions raise prudential concerns that are not being addressed under CRR. To help supervisors monitor the CVA risk arising from the exempted transactions, institutions should report the calculation of capital requirements for CVA risks of the exempted transactions that would be required if those transactions were not exempted. In addition, EBA should develop guidelines to help supervisors identify excessive CVA risk and to improve the harmonisation of supervisory actions in this area across the EU.deleted

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point b

Regulation (EU) No 575/2013
Article 5 – point 9 – subparagraph 2 – point d

(d) contractual arrangements where the institution is required to assess the creditworthiness of the client immediately prior to deciding on the execution of each drawdown is conditional upon assessing the creditworthiness of the client by the institution;

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – point i – indent 1

— where the subsidiary is an institution, the sum of the requirement laid down in Article 92(1), point (a), the requirements referred to in Articles 458 and 459 , the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in Article 128, point (6), of that Directive, or any local supervisory regulations in third countries insofar as those requirements are to be met by Common Equity Tier 1 capital, as applicable;deleted

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – point i – indent 2

— where the subsidiary is an investment firm, the sum of the requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific own funds requirements referred to in Article 39(2), point (a), of Directive (EU) 2019/2034, or any local supervisory regulations in third countries, insofar as those requirements are to be met by Common Equity Tier 1 capital, as applicable;deleted

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – point ii

(ii) the amount of consolidated Common Equity Tier 1 capital that relates to that subsidiary that is required on a consolidated basis to meet the sum of the requirement laid down in Article 92(1), point (a), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU and the combined buffer requirement defined in Article 128, point (6), of that Directive; and the Common Equity Tier 1 capital of the subsidiary required at local level to avoid restrictions on dividend payments. In case of third countries it shall be measured based on local own funds requirements;

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation(EU) No 575/2013
Article 85 – paragraph 1 – point a – point i – introductory part

(i) the amount of Tier 1 capital of the subsidiary ~~required to meet the following~~minus:

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 20

— where the subsidiary is an institution, the sum of the requirement laid down in Article 92(1), point (b), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in Article 128, point (6), of that Directive, or any local supervisory regulations in third countries insofar as those requirements are to be met by Tier 1 Capital, as applicable;deleted

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – point i – indent 2

— where the subsidiary is an investment firm, the sum of the requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific own funds requirements referred to in Article 39(2), point (a), of Directive (EU) 2019/2034, or any local supervisory regulations in third countries insofar as those requirements are to be met by Tier 1 capital, as applicable;deleted

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – point ii

(ii) the amount of consolidated Tier 1 capital that relates to the subsidiary that is required on a consolidated basis to meet the sum of the requirement laid down in Article 92(1), point (b), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU and the combined buffer requirement defined in Article 128, point (6), of that Directive; and the Common Equity Tier 1 capital of the subsidiary required at local level to avoid restrictions on dividend payments. In case of third countries it shall be measured based on local own funds requirements.;

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point a – subparagraph 5a (new)

By way of derogation from the first subparagraph, institutions which deduct an IRB shortfall amount from their Common Equity Tier 1 in accordance with Article 36 (1), point (d) shall apply the following formula: TREA= max {U-TREA; (x*S-TREA)– (SF*12,5)} where SF = the absolute value of the IRB shortfall deducted in accordance with Article 36(1), point (d)

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 575/2013
Article 111 – paragraph 4

4. For contractual arrangements offered by an institution, but not yet accepted by the client, that would become commitments if accepted by the client, and contractual arrangements that would qualify as commitments but meet the conditions for not being treated as commitments, the percentage applicable to that type of contractual arrangement shall be that provided for in accordance with paragraph 2.deleted

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 40 – point b a (new)

Regulation (EU) No 575/2013
Article 122 – paragraph 2 a (new)

(b a ) the following paragraph is added: 2a. By way of derogation from paragraph 2, exposures under the standardised approach due to not-real estate leases granted by an institution to corporate borrowers against the payment of periodic contractual payment sshall be assigned a risk weight of 70%, provided that all the following conditions are met: a) the lessor performs a complete credit risk assessment process comprising lessees, subject of leases and their relative suppliers; b) the lessor retains the legal ownership of the leased asset throughout the life of the contract; c) the lessor has the right to carry out on- site inspections/access; d) the leased assets are instrumental to the exercise of the borrower’s economic activities.

2022/08/11
Committee: ECON

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

Regulation (EU) 575/2013
Article 122a – paragraph 3 – point b

(b) where the purpose of a specialised lending exposure is to provide for short- term financing of ~~reserves,~~ inventories or receivables of ~~exchange-~~liquidly traded commodities, including crude oil, metals, or ~~crop~~soft commodities, and the income to be generated by those ~~reserves,~~ inventories or receivables is to be the proceeds from the sale of the commodity (‘commodities finance exposures’), institutions shall apply a risk weight of 100 %;

2022/08/11
Committee: ECON

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

Regulation (EU) 575/2013
Article 122a – paragraph 3 – point c – point i

(i) 1310 % where the project to which the exposure is related is in the pre- operational phase;

2022/08/11
Committee: ECON

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

Regulation (EU) 575/2013
Article 122a – paragraph 3 – point c – point ii – indent 2

— the obligor has sufficient reserve funds fully funded in cash, or other financial arrangements, with ~~highly rated~~guarantors with an ECAI rating with a credit quality step of at least 3, or, if not externally rated, are assigned with a rating equivalent to a step 3 or higher with the bank validated internal rating model guarantors to cover the contingency funding and working capital requirements over the lifetime of the project being financed;

2022/08/11
Committee: ECON

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

R UE 575/2013
Article 122a – paragraph 3 – point c – point ii –indent 4 – introductory part

— where the revenues of the obligor are not funded by payments from a large number of users, the source of repayment of the obligation depends on one main counterparty and that main counterparty is one of the following:

2022/08/11
Committee: ECON

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

— a public sector entity, provided that that entity is assigned a risk weight of 20 % or below in accordance with Article 116, or is assigned an ECAI rating with a credit quality step of at least 3, or, if not externally rated, are assigned with a rating equivalent to a step 3 or higher with the bank validated internal rating model;

2022/08/11
Committee: ECON

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

R UE 575/2013
Article 122a – paragraph 3 point c – point ii – indent 4 – indent 3

— a corporate entity which has been assigned an ECAI rating with a credit quality step of at least 3, or, if not externally rated,are assigned with a rating equivalent to a step 3 or higher with the bankvalidated internal rating model. • an entity that is replaceable without a significant change in the level and timing of revenues.

2022/08/11
Committee: ECON

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

Regulation (EU) 575/2013
Article 122a – paragraph 3 –point c – point ii –indent 8

— equity is pledged or assigned to the lending institution such that they are able to take control of the obligor entity upon default;

2022/08/11
Committee: ECON

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

Regulation (EU) 575/2013
Article 123 – paragraph 4 a (new)

4 a.. By way of derogation from paragraph 3, exposures under the standardised approach due to not-real estate leases granted by an institution to retail borrowers against the payment of periodic contractual payments shall be assigned a risk weight of 55%, provided that all the following conditions are met: a) the lessor performs a complete credit risk assessment process comprising lessees, subject of leases and their relative suppliers; b) the lessor retains the legal ownership of the leased asset throughout the life of the contract; c) the lessor has the right to carry out on- site inspections/access; d) the leased assets are instrumental to the exercise of the borrower’s economic activities.

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation (EU) 575/2013
Article 124 –paragraph 2 – point c – point ii a (new)

(ii a) exposures related to property leasing transactions concerning offices or other commercial premises under which the institution is the lessor and the lessee has an option to purchase shall be assigned a risk weight of 50% provided that the exposure of the institution is fully and completely secured by its ownership of the property and the commercial immovable property is instrumental to the lessee’s economic activities.

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 53 a (new)

Regulation (EU) 575/2013
Article 134 – paragraph 8 a (new)

8a. Securities financing transactions exposures risk weights shall be capped at 50 % and 20% where the exposures residual maturities are respectively one year or less and 3 months or less.

2022/08/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 98 a (new)

Regulation (EU) No 575/2013
Article 197a (new)

(98 a) the following article is inserted. Article 197a Additional eligibility for collateral under the Standardised Approach1. Competent authorities shall permit an institution to use, as other eligible collateral, physical collateral where conditions specified in Article 199 (6) and in article 210 are met. Institutions shall document the fulfilment of these conditions. 2. Unless otherwise decided by the competent authorities regarding specific risk weights based on the product category, to exposures fully secured by a physical collateral, which met the conditions set in paragraph 1, shall be assigned a risk weight of 60%.

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 118 – point b

Regulation (EU) No 575/2013
Article 229 – paragraph1 – point b – point ii

(ii) the value is adjusted to take into account the potential for the ~~current market price to be significantly above the value that would be sustainable over the life of the loan~~market value or mortgage lending value to be significantly above the current market price;

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 320 – paragraph 1 – introductory part

1. Competent authorities may permit an institution to exclude Institutions may notify competent authorities by formal communication with tacit agreement (60 days silence procedure) as already used in the ex ante notification (Commission Delegated Regulation 529/2014) the exclusion from the calculation of the institution’s annual operational risk losses exceptional operational risk events that are no longer relevant to the institution’s risk profile, where all of the following conditions are fulfilled:

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 320 – paragraph 1 – point b – point i

(i) equal to or above 15 % of the institution’s average annual operational risk loss, calculated based on the threshold referred to in Article 319(1), where the operational risk loss event refers to activities that are still part of the business indicator;

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 320 – paragraph 3 – subparagraph 2

EBA shall submit those draft regulatory technical standards to the Commission by [OP please insert the date = 186 months after entry into force of this Regulation]. ]. The application date of the regulatory technical standards will at least be 18 months after publication in the OJEU.

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 136 – point a

Regulation (EU) No 575/2013
Article 325j – paragraph 1 – point b – point i

(i) it shall calculate the own funds requirement for market risk of the CIU by considering the position in the CIU as a single equity position allocated to ~~the b~~Bucket ~~’Other sector‘ in Article 325ap(1), Table 8~~12 or 13 (Qualified indices);

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 136 – point a

Regulation (EU) No 575/2013
Article 325j – paragraph 1 – subparagraph 2

For the purposes of the calculation referred to in point (i), the institution shall consider the position in the CIU as a single unrated equity position allocated to the bucket “Unrated” in Article 325y(1), Table 2.deleted

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 136 – point b

Regulation UE No 575/2013
Article 325j – paragraph 1 a – introductory part

1a. For the purposes of the approaches referred to in paragraph 1, point ~~(b)(i) and~~ (b)(ii), the institution shall:

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 136 – point b

Regulation (EU) No 575/2013
Article 325j – paragraph 1 a – point b

(b) for all positions in the same CIU, use the same approach among the approaches set out in paragraph 1, point (b), ~~to calculate the own funds requirements on a stand-alone basis as a separate portfolio.;~~

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 136 – point d

Regulation (EU) No 575/2013
Article 325j – paragraph 6

6. Institutions that do not have adequate data or information to calculate the own funds requirements for market risk of a CIU position in accordance with the approach set out in paragraph 1, point (a), may rely on a third party to perform such calculation, provided that all the following conditions are met: (a) following: (i) depository financial institution of the CIU, provided that the CIU exclusively invests in securities and deposits all securities at that depository institution or depository financial institution; (ii) the CIU management company, provided that the CIU management company meets the criteria set out in Article 132(3), point (a); (b) institution with the adequate data or information missing to calculate the own fund requirement for market risk of the CIU position in accordance with the approach refdeleted the third party is one of the the depository institution or the for CIUs not coverred to in in paragraph 1, point (a); (c) institution has confirmed the adequacy of the third party's data or information referred to in point (b) and the institution’s competent authority has unrestricted access to these data and information upon request.by point (i), the third party provides the an external auditor of the

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 141 a (new)

6 a. Long and short positions in institution’s own debt should be excluded from the calculation of own funds requirements for default risk.

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 156 – point a

Regulation (EU) No 575/2013
Article 325bg – paragraph 2

2. Notwithstanding paragraph 1, where the theoretical changes in the value of a trading desk's portfolio, based on the institution's risk-measurement model are sufficiently close to the hypothetical changes in the value of that trading desk's portfolio, based on the institution's pricing model, the institution shall calculate, for all the positions assigned to that trading desk, an additional own funds requirement to the own funds requirements referred to in Article 325ba, paragraphs 1 and 2.deleted

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 166 – point b

Regulation (UE) No 575/2013
Article 382 – paragraph 4b

4b. Institutions shall report to their competent authorities the results of the calculations of the own funds requirements for CVA risk for all the transactions referred to in paragraph 4. For the purposes of that reporting requirement, institutions shall calculate the own funds requirements for CVA risk using the relevant approaches set out in Article 382a(1), that they would have used to satisfy an own funds requirement for CVA risk if those transactions were not excluded from the scope in accordance with paragraph 4.deleted

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 3 – subparagraph 2

EBA shall monitor the use of the transitional treatment laid down in the first subparagraph and ~~the~~assess the following (i) whether there is sufficient availability of credit assessments by nominated ECAIs for exposures to corporates. ; (ii) evidence that the 65% RW has led to inappropriate risk weighting of exposures; (iii) the development of private or public led solutions such as credit benchmarking and central bank ratings to provide a viable and reliable alternative assessment of credit risk for the purpose of calculating the output floor and how this could be implemented in legislation; and (iv) the approaches of other jurisdictions in the application of the output floor to unrated corporate exposures and long- term level playing field considerations that could arise. EBA shall report its findings to the Commission by 31 December 2028.

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 3 – subparagraph 3

On the basis of that report and taking due account of the related internationally agreed standards developed by the BCBS, the Commission shall~~, where appropriate,~~ - in case the report verifies an insufficient availability of credit assessments by nominated ECAIs for exposures to corporates - consider to propose an extention of the transitional arrangement. Where appropriate, the Commission shall submit to the European Parliament and to the Council a legislative proposal by 31 December 2031.

2022/08/18
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 4 – subparagraph 1

4. By way of derogation from Article 92(5)(a), point (iv), parent institutions, parent financial holding companies or parent mixed financial holding companies, subsidiary institutions, stand-alone institutions in the EU or stand- alone subsidiary institutions in Member States shall, until 31 December 2029, replace alpha by 1 in the calculation of the exposure value for the contracts listed in Annex II in accordance with the approaches set out in Part Three, Title II, Chapter 6, Sections 3 and 4~~, where the same exposure values are calculated in accordance with the approach set out in Part Three, Title II, Chapter 3, Section 6 for the purposes of the total un-floored risk exposure amount~~.

2022/08/18
Committee: ECON

Proposal for a regulation
Annex - table – column 2 – row 8

Regulation (EU) No 575/2013
Annex I

~~• Performance bonds, bid bonds, warranties and standby letters of credit related to particular transactions and similar transaction-related contingent items;~~deleted

2022/08/18
Committee: ECON

Annex – table – row 2 – column 13 -a (new)Regulation (EU) No 575/2013

Annex 1

 Trade finance off-balance sheet items: (i) documentary credits in which underlying shipment acts as collateral and other self-liquidating transactions; (ii) warranties (including tender and performance bonds and associated advance payment and retention guarantees) and guarantees not having the character of credit substitutes; (iii) irrevocable standby letters of credit not having the character of credit substitutes

2022/08/18
Committee: ECON