[ParlTrack]

Fulvio MARTUSCIELLO, Gabriel MATO, Anne SANDER, Georgios KYRTSOS

Proposal for a directive
Article 1 – paragraph 1 – point 1 – point b

Directive 2013/36/EU
Article 2 – paragraph 5a

~~5a. This Directive shall not apply to an institution where the Commission establishes in a~~ delegated act adopted pursuant to Article 148, on the basis of information available to it that the institution fulfils all of the following conditions, without prejudice to the application of state aid rules: (a) public law by a Member State's central government, regional government or local authority; (b) institution confirm that its activity is limited to advancing specified objectives of financial, social or economic public policy in accordance with the laws and provisions governing that institution, on a non-competitive, not for profit basis. For these purposes, public policy objectives may include the provision of financing for promotional or development purposes to specific economic activities, or geographical areas of the relevant Member State; (c) effective prudential requireit has been established under laws and provisions governing the it is subject to adequate and the central governments, including minimum own funds requirements, and to an adequate supervisory framework which has similar effect as the framework established under Union law; (d) government or local authority, as applicable, has an obligation to protect the institution's viability or directly or indirectly guarantees at least 90% of the institution's own funds requirements, funding requirements or exposures; (e) covered deposits as defined in point (5) of Article 2(1) of Directive 2014/49/EU of the European Parliament and of the Council12 ; (f) Member State where its head office is situated; (g) assets is below EUR 30 billion; (h) assets over the GDP of the Member State concerned is less than 20%; (i) relevance with regard to the domestic economy of the Member State concerned. The Commission shall regularly review whether an institution subject to a delegated act adopted pursuant to Article 148 continues to fulfil the conditions set out in the first subparagraph. __________________ 12 Directive 2014/49/EU of the European Parliament and of the Council of 16 April 2014 on deposit guarantee schemes (recast) (OJ L 173, 12.6.2014, p. 149)regional it is precluded from accepting its activities are confined to the the total value of the institution's the ratio of the institution's total the institution is not of significant

2018/02/02
Committee: ECON

Fulvio MARTUSCIELLO, Gabriel MATO, Anne SANDER, Georgios KYRTSOS

Proposal for a directive
Article 1 – paragraph 1 – point 1 – point d

Directive 2013/36/EU
Article 2 – paragraph 7

(d) the following paragraph 7 is added: ‘ By [5 years after entry into force], the Commission shall review the list set out in Article 2(5) by considering whether the reasons that led to the inclusion of entities in the list are still valid, the national legal framework and supervision applicable to the entities in the list, the type and quality of deposit coverage of the entities in the list and, for entities of the type specified in paragraphs 2(5a) and 2(5b) taking into account also the criteria described therein.. ’deleted

2018/02/02
Committee: ECON

Anne SANDER, Alain LAMASSOURE, Alain CADEC

Proposal for a directive
Article 1 – paragraph 1 – point 9

Directive 2013/36/EU
Article 21b – paragraph 2

2. Member States shall require an intermediate EU parent undertaking in the Union to obtain authorisation as an institution in accordance with Article 8, or as a financial holding company or mixed financial holding company in accordance with Article 21aAn intermediate EU parent undertaking shall be a credit institution in accordance with Article 8, or a financial holding company or mixed financial holding company approved in accordance with Article 21a. By way of derogation from the first subparagraph, where the activities of the third country group are predominantly carried out by investment firms, or the second intermediate EU parent undertaking must be set up in connection with investment activities to comply with a mandatory requirement as referred to in paragraph 1a, the intermediate EU parent company or the second intermediate EU parent company, respectively, may be an investment firm authorised in accordance with Article 5(1) of Directive 2014/65/EU. For the purpose of this paragraph, an activity shall be considered as predominantly carried out by investment firms where the total balance sheet of investment firms in the group represents at least 50% of the group’s total balance sheet, or where the income generated by investment firms represents at least 50% of the group’s total income.

2018/02/02
Committee: ECON

Anne SANDER, Alain LAMASSOURE, Alain CADEC

Proposal for a directive
Article 1 – paragraph 1 – point 13

Directive 2013/36/EU
Article 84 – paragraph 2

2. Competent authorities shall ensure that institutions implement systems to assess and monitor the risks arising from potential changes in credit spreads that a~~ffect both the economic value of equity and the net interest income of an institution's non-trading book activities~~re not explained by interest rate risk or by the expected credit-jump to default risk of an institution's non-trading book activities assets accounted for their market values (mark –to – market).

2018/02/02
Committee: ECON

Anne SANDER, Alain LAMASSOURE, Alain CADEC

Proposal for a directive
Article 1 – paragraph 1 – point 13

Directive 2013/36/EU
Article 84 – paragraph 3

3. Competent authorities may require on a case by case basis an institutions to use the standardised methodology referred to in paragraph 1 where the internal systems implemented by theat institutions for the purposes of evaluating the risks referred to in paragraph 1 are not satisfactory. Competent authorities shall duly justify in writing to each institution the decision to require the use of the standardised methodology.

2018/02/02
Committee: ECON

Anne SANDER, Alain LAMASSOURE, Alain CADEC

Proposal for a directive
Article 1 – paragraph 1 – point 13

Directive 2013/36/EU
Article 84 – paragraph 3

3. Competent authorities may require institutions to use the standardised methodology referred to in paragraph 1 as a fall-back where the internal ~~system~~models implemented by the institutions for the purposes of evaluating the risks referred to in paragraph 1 ~~are not satisfactory~~deficient, based on an individual assessment of the institutions measurement models.

2018/02/02
Committee: ECON

Anne SANDER, Alain LAMASSOURE, Alain CADEC

Proposal for a directive
Article 1 – paragraph 1 – point 18 – point b

Directive 2013/36/EU
Article 98 – paragraph 5

5. The review and evaluation performed by competent authorities shall include the exposure of institutions to the interest rate risk arising from non-trading book activities. ~~Supervisory measur~~Greater attention from competent authorities shall be required ~~at least~~ in the case of institutions whose economic value of equity referred to in Article 84(1) declines by more than 15 % of their Tier 1 capital as a result of a sudden and unexpected change in interest rates as set out in any of six supervisory shock scenarios applied to interest rates..

2018/02/02
Committee: ECON

Anne SANDER, Alain LAMASSOURE, Alain CADEC

Proposal for a directive
Article 1 – paragraph 1 – point 18 – point b

Directive 2013/36/EU
Article 98 – paragraph 5

5. The review and evaluation performed by competent authorities shall include the exposure of institutions to the interest rate risk arising from non-trading book activities. Supervisory measures ~~shall~~may be required at least in the case of institutions whose economic value of equity referred to in Article 84(1) declines by more than 15 % of their Tier 1 capital as a result of a sudden and unexpected change in interest rates as set out in any of six supervisory shock scenarios applied to interest rates..

2018/02/02
Committee: ECON

Anne SANDER, Alain LAMASSOURE, Alain CADEC

Proposal for a directive
Article 1 – paragraph 1 – point 18 – point c

Directive 2013/36/EU
Article 98 – paragraph 5a – point a

(a) six supervisory shock scenarios, including two parallel scenarios, to be applied to interest rates for every ~~currency;~~ significant currency; these scenarios should be set at a level reflective of the 15% of Tier 1 capital threshold referred to in paragraph 5.

2018/02/02
Committee: ECON

Anne SANDER, Alain LAMASSOURE, Alain CADEC

Proposal for a directive
Article 1 – paragraph 1 – point 18 – point c

Directive 2013/36/EU
Article 98 – paragraph 5a – point c

(c) whether supervisory measures shall also be required in the case of a decline in the institutions' net interest income referred to in Article 84(1) as a result of potential changes in interest rates.deleted

2018/02/02
Committee: ECON

Anne SANDER, Alain LAMASSOURE, Alain CADEC