4 Amendments of Frances FITZGERALD related to 2021/0343(COD)
Amendment 29 #
Proposal for a regulation
Recital 7
Recital 7
(7) In the context of the indirect subscription of internal MREL eligible instruments by resolution entities pursuant to the revised Union bank resolution framework, intermediate parents should be required to deduct from their own internal MREL eligible resources the full holding of own funds and eligible liabilities, according to internal MREL requirements, issued by their subsidiaries belonging to the same resolution group. 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 subsidiary for the purposes of compliance by the intermediate parent with its own internal MREL. Additionally, without those deductions, the individual solvency ratios of intermediate parents would not reflect appropriately and prudently their actual loss-absorbing capacity, as those ratios would also include the loss- absorbing capacity of their subsidiaries. This could compromise the proper implementation of the chosen resolution strategy, as the intermediate parent could use up not only its own loss absorption capacity but also that of its subsidiary, before the intermediate parent or the subsidiary are no longer viable. The deductions should first be applied to 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 should be deducted from their Tier 2 items. To ensure that the deduction regime remains proportionate, that regime should not be applicable in the exceptional cases where internal MREL is applied on a consolidated basis only.
Amendment 52 #
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 – subparagraph 1
Article 72 e – paragraph 5 – subparagraph 1
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 instruments and eligible liabilities instruments that meet the conditions of Article 45f(2) of that Directive of their subsidiaries that belong to the same resolution group.
Amendment 57 #
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 – subparagraph 3
Article 72 e – paragraph 5 – subparagraph 3
For the purposes of this paragraph, the reference to eligible liabilities items shall also be understood as a reference to eligible liabilitiededuction of own funds instruments and eligible liabilities instruments shall be limited to the intermediate entities holdings of eligible instruments of the lower subsidiaries up to the lower subsidiaries’ loss absorption amount and recapitalisation amount as rdeferred toined in Article 45f (2), point (a), (a) and (b) of Directive 2014/59/EU. When calculating the limit that applies in the above paragraph, direct issuances of eligible instruments from lower subsidiaries to the relevant resolution entity should be accounted for first to reduce the limit by the amount of eligible instruments already directly issued.
Amendment 73 #
Proposal for a regulation
Article 3 – paragraph 3
Article 3 – paragraph 3
However, Article 1, point (3), point (5)(b), and points (7), (8) and (9) and Article 2 shall apply from [OP please insert the date = 6 months after date of entry into force]1 January 2024.