Activities of Corien WORTMANN-KOOL related to 2011/0203(COD)
Plenary speeches (1)
Credit institutions and prudential supervision - Prudential requirements for credit institutions and investment firms (debate)
Amendments (32)
Amendment 67 #
Proposal for a directive
Recital 57
Recital 57
(57) In order to ensure that countercyclical buffers properly reflect the risk to the banking sector of excessive credit growth, credit institutions and investment firms should calculate their institution specific buffers as a weighted average of the counter-cyclical buffer rates that apply for the countries where their credit exposures are located. Every Member State should therefore designate an authority responsible for quarterly setting the level of the Countercyclical Capital Buffer rate for exposures located in that Member State. That buffer rate should be based on the buffer guidance of the ESRB. The buffer guidance by the ESRB should take into account the growth of credit levels and changes to the ratio of credit to GDP in that Member States, and any other variables relevant to the risks to financial stability.
Amendment 68 #
Proposal for a directive
Recital 58
Recital 58
(58) In order to promote international consistency in setting Countercyclical Capital Buffer rates, BCBS has developed a methodology on the basis of the ratio between credits and GDP. This should serve as a common starting point for decisions on buffer rates by the relevant national authoritiesguidance by ESRB, but should not give rise to an automatic buffer setting or bind the designated authority. In particular, designated authoritiesESRB. In particular, ESRB could also take into account structural variables and the exposure of the banking sector to any other risk factors related to risks to financial stability.
Amendment 70 #
Proposal for a directive
Recital 60
Recital 60
(60) It is appropriate that dDecisions of Member States on countercyclical buffer rates are coordinated as far as possibleshould be fully coordinated in order to ensure a level playing field between institutions as well as between national authorities. In this regard, the ESRB, if requested by should give national authorities, c principal guidance on calculating buffer rates and should facilitate discussions among them about their proposed buffer settings. In order to promote a consistent approach to the factors on which designated authorities base those decisions, and to ensure that the setting of countercyclical buffer rates is consistent with the fundamental principles of the internal market, designated authorities should also be required to notify the ESRB and prior approval of EBA in consultation withe ESRBA whenever they take into account variables other than the deviation of the ratio of credit-to- GDP from its long term trend and related guidance from the ESRB, and as a result set a buffer rate that is higher than it would have been if those variables had not been taken into account. The purpose of such notification should be for the ESRB and the EBA to assess the nature of those variables and setting or maintaining buffer requirements in excess of 2,5% every six months. When taking this decision, EBA and ESRB should ensure the consistency of the setting of the buffer rate with the internal market principles.
Amendment 71 #
Proposal for a directive
Recital 60 a (new)
Recital 60 a (new)
(60a) Systemically relevant institutions and systemic risk associated with these institutions need to be addressed in the context of the European internal market and not in fragments of this market. In this regard, EBA should, in consultation with the ESRB, identify systemic institutions within the European Union. Proportionate to their size, complexity, substitutability as well as other factors that create systemic relevance, EBA should require a systemic institution to maintain an appropriate systemic buffer up to 2,5% of its total risk exposure amount. Where a systemic institution fails to meet in full the systemic buffer requirement, EBA may restrict distributions in connection with Common Equity Tier 1 capital, restrict payments on Additional Tier 1 instruments and restrict variable remuneration and discretionary pension benefits. The Commission should, after consulting EBA and the ESRB, review the setting of systemic buffer rates and, if appropriate, submit a legislative proposal to the European Parliament and the Council.
Amendment 73 #
Proposal for a directive
Recital 62
Recital 62
(62) Technical standards in financial services should ensure consistent harmonisation and adequate protection of depositors, investors and consumers across the Union. As a body with highly specialised expertise, it would be efficient and appropriate to entrust EBA with the elaboration of draft regulatory and implementing technical standards which do not involve policy choices, for submission to the Commission. EBA should ensure efficient administrative and reporting processes when drafting regulatory technical standards.
Amendment 87 #
Proposal for a directive
Article 4 – paragraph 2 – point c a (new)
Article 4 – paragraph 2 – point c a (new)
(ca) 'systemic institution' means an institution which in case of failure or malfunction could lead to systemic risk within the European Union;
Amendment 88 #
Proposal for a directive
Article 4 – paragraph 2 – point c b (new)
Article 4 – paragraph 2 – point c b (new)
(cb) 'systemic risk' means a risk of disruption in the financial system with the potential to have serious negative consequences for the financial system and the real economy;
Amendment 89 #
Proposal for a directive
Article 4 – paragraph 2 – point c c (new)
Article 4 – paragraph 2 – point c c (new)
(cc) 'systemic buffer' means the own funds ratio that a specific systemic institution is required to maintain in accordance with Article 130a(new);
Amendment 112 #
Proposal for a directive
Article 21 – paragraph 2
Article 21 – paragraph 2
2. In case of exemptions exercised by the competent authorities in accordance with Article 9 of Regulation [inserted by OP], Articles 17, 33, 34, 35, 36(1)-(3) and 39-46, 39-46, Section II of Chapter 2 of Title VII, and Chapter 4 of Title VII of this Directive shall apply to the whole as constituted by the central body together with its affiliated institutions.
Amendment 347 #
Proposal for a directive
Article 89 – point c
Article 89 – point c
(c) no variable remuneration is paid to the persons who effectively direct the business of the institution within the meaning of Article 13(1) unless justified.
Amendment 356 #
Proposal for a directive
Article 90 – paragraph 1 – subparagraph 1 – point f
Article 90 – paragraph 1 – subparagraph 1 – point f
(f) institutions shall set the appropriate ratios between the fixed and the variable component of the total remuneration, thereby taking into account that, as a rule, the variable component shall not exceed the fixed component of total remuneration;
Amendment 462 #
Proposal for a directive
Article 125 – paragraph 1 – point a
Article 125 – paragraph 1 – point a
(a) principles to guide designated authorities when exercising their judgement as to the appropriate countercyclical buffer rate, ensure that authorities adopt a sound approach to relevant macro-economic cycles and promote sound and consistent decision- making across jurisdictions;
Amendment 464 #
Proposal for a directive
Article 125 – paragraph 1 – point c
Article 125 – paragraph 1 – point c
(c) guidance on variables that indicate or might indicate the build-up of system-wide risk in a financial systemassociated with periods of excessive credit growth in a financial system, in particular the relevant credit-to-GDP-ratio and its deviation from the long-term trend, and on other relevant factors that should inform the decisions of designated authorities on the appropriate countercyclical buffer rate under Article 126;
Amendment 473 #
Proposal for a directive
Article 126 – paragraph 2 – introductory part
Article 126 – paragraph 2 – introductory part
2. Each designated authority shall calculate for every quarter a buffer guide as a reference to guide its exercise of judgement in setting the countercyclical buffer rate in accordance with paragraph 3. The buffer guide shall be based on the deviation of the ratio of credit-to-GDP from its long-term trend, taking into account:guidance of the ESRB referred to in Article 125 (b)(ii).
Amendment 474 #
Proposal for a directive
Article 126 – paragraph 2 – point a
Article 126 – paragraph 2 – point a
Amendment 476 #
Proposal for a directive
Article 126 – paragraph 2 – point b
Article 126 – paragraph 2 – point b
Amendment 479 #
Proposal for a directive
Article 126 – paragraph 3 – point c
Article 126 – paragraph 3 – point c
Amendment 481 #
Proposal for a directive
Article 126 – paragraph 4 – subparagraph 1
Article 126 – paragraph 4 – subparagraph 1
Amendment 484 #
Proposal for a directive
Article 126 – paragraph 4 – subparagraph 2
Article 126 – paragraph 4 – subparagraph 2
Amendment 489 #
Proposal for a directive
Article 126 – paragraph 4 – subparagraph 3
Article 126 – paragraph 4 – subparagraph 3
Amendment 494 #
Proposal for a directive
Article 126 – paragraph 5
Article 126 – paragraph 5
5. The countercyclical buffer rate, expressed as a percentage of the total risk exposure amount referred to in Article 87(3) of Regulation [inserted by OP(EU) No. .../2012 of ... [on prudential requirements for credit institutions and investment firms] of institutions that have credit exposures in that Member State, must be between 0% and 2.5%, calibrated in steps of 0.25 percentage points or multiples of 0.25 percentage points.Where justified in view of the considerations set out in paragraph 3, and prior to approval of EBA in consultation with ESRB, a designated authority may set a countercyclical buffer rate in excess of 2.5% of the total risk exposure amount referred to in Article 87(3) of Regulation [inserted by OP] for the purpose set out in Article 130(3)(EU) No. .../2012 of ... [on prudential requirements for credit institutions and investment firms] for the purpose set out in Article 130(3). The designated authority shall review its decision regularly and shall obtain approval from EBA, in consultation with ESRB, to maintain a buffer requirement in excess of 2,5% every six months.
Amendment 495 #
Proposal for a directive
Article 126 – paragraph 6
Article 126 – paragraph 6
6. When a designated authority sets the countercyclical buffer rate above zero for the first time, or when thereafter a designated authority increases the prevailing countercyclical buffer rate setting, it shall also decide the date from which the institutions must apply that increased buffer for the purposes of calculating their institution specific countercyclical capital buffer. That date may be no later thanshall be 12 months after the date when the increased buffer setting is announced in accordance with paragraph 8. If the date is less than 12 months after the increased buffer setting is announced, that shorter deadline for application shall be justified by exceptional circumstances.
Amendment 497 #
Proposal for a directive
Article 126 – paragraph 8 – subparagraph 1 – point b
Article 126 – paragraph 8 – subparagraph 1 – point b
Amendment 498 #
Proposal for a directive
Article 126 – paragraph 8 – subparagraph 1 – point d
Article 126 – paragraph 8 – subparagraph 1 – point d
(d) a justification for that buffer rate, including by reference to any variables other than those covered by the buffer guide that the designated authority took into account in accordance with point (c) of paragraph 3 when setting the countercyclical buffer rate;
Amendment 499 #
Proposal for a directive
Article 126 – paragraph 8 – subparagraph 1 – point f
Article 126 – paragraph 8 – subparagraph 1 – point f
Amendment 500 #
Proposal for a directive
Article 126 – paragraph 8 – subparagraph 1 – point h
Article 126 – paragraph 8 – subparagraph 1 – point h
Amendment 508 #
Proposal for a directive
Article 127 – paragraph 2 a (new)
Article 127 – paragraph 2 a (new)
2a. EBA and the ESRB shall ensure supervisory convergence across jurisdictions in terms of the application of the calculation methodology for the buffer requirements.
Amendment 512 #
Proposal for a directive
Article 129 – paragraph 3 – subparagraph 2
Article 129 – paragraph 3 – subparagraph 2
When exercising the power under the first sub-paragraph, a designated authority shall not set a countercyclical buffer rate below the level set by the relevant third country authority unless that buffer rate exceeds 2.5%, expressed, as a percentage of the total risk exposure amount referred to in Article 87(3) of Regulation [inserted by OP] of institutions that have credit exposures in that third country. (EU) No. .../2012 of ... [on prudential requirements for credit institutions and investment firms] of institutions that have credit exposures in that third country. EBA and the ESRB shall ensure the consistency of third country buffer rates across jurisdictions.
Amendment 513 #
Proposal for a directive
Article 129 – paragraph 4
Article 129 – paragraph 4
4. Where a relevant third country authority sets a countercyclical buffer rate for a third pursuant to paragraph 2 or 3 which increases the existing applicable countercyclical buffer rate, it shall decide the date from which domestically authorised institutions must apply that buffer rate for the purposes of calculating their institution specific countercyclical capital buffer. That date shall be no later than 12 months from the date when the buffer rate is announced in accordance with paragraph 5. If that date is less than 12 months after the setting is announced, that shorter deadline for application must be justified by exceptional circumstances.
Amendment 514 #
Proposal for a directive
Article 129 – paragraph 5 – point d
Article 129 – paragraph 5 – point d
Amendment 521 #
Proposal for a directive
Section II a (new)
Section II a (new)
Amendment 544 #
Proposal for a directive
Article 150 – paragraph 4 a (new)
Article 150 – paragraph 4 a (new)
4a. By 31 December 2014, the European Commission shall, after consulting EBA and ESRB, review Article 130a on setting systemic buffer rates, taking into account internationally agreed standards for systemic institutions and, if appropriate, submit a legislative proposal to the European Parliament and the Council.