30 Amendments of Jean-Paul GAUZÈS related to 2008/0191(COD)
Amendment 32 #
Proposal for a directive – amending act
Recital 3
Recital 3
(3) Therefore, it is important to lay down criteria for those capital instruments to be eligible for original own funds of credit institutions and to align the provisions in Directive 2006/48/EC to that agreement. The amendments to Annex XII to Directive 2006/48/EC result directly from the establishment of those criteria. The eligibility criteria should refer to the most subordinated instruments of a credit institution that does not have proprietors or shareholders under national law, such as certain members' certificates of cooperative banks, insofar as the respective capital has been paid up and ranks after all other claims.
Amendment 47 #
Proposal for a directive – amending act
Recital 14 a (new)
Recital 14 a (new)
(14a) The provisions related to External Credit Assessment Institutions (ECAIs) under this Directive should be consistent with Regulation (EC) No .../2009 on Credit Rating Agencies. In particular, the Committee of European Banking Supervisors should review its guidelines on the recognition of ECAIs to avoid duplication of work and reduce the burden of the recognition process where an ECAI is registered as a Credit Rating Agency (CRA) at Community level.
Amendment 48 #
Proposal for a directive – amending act
Recital 15
Recital 15
(15) It is important to remove misalignment between the interest of firms that 're-package' loans into tradable securities and other financial instruments (originators or sponsors) and firms that invest in these securities or instruments (investors). It is therefore important for the originators or the sponsors to retain exposure to the risk of the loans in question. In particular where credit risk is transferred by securitisation, investors should make their decisions only after conducting thorough due diligence, for which they need adequate information about the securitisations. ; the exposure of the originators or the sponsors shall be to this end a net exposure after the effects of credit risk mitigation techniques so that an alignment of interest with investors is achieved by the retention. Such retention should be applicable in all situations where the economic substance of a securitisation according to the definition of the directive is applicable, whatever legal structures or instruments are used to obtain this economic substance. Accordingly, retention should be applicable to credit risk transfers such as sales of receivables, syndicated loans or credit default swaps to the extent that their economic substance does meet the definition of a securitisation under this Directive. In particular where credit risk is transferred by securitisation, investors should make their decisions only after conducting thorough due diligence, for which they need adequate information about the securitisations. Investors need to apply robust due diligence on securitisation positions regardless of whether these positions reside in the banking or in the trading book and in any event subject to the minimum list of analyses set out in this directive. The processes and procedures adopted to this end by credit institutions should be appropriately designed for the respective trading or banking book environment. The measures to address the potential misalignment of these structures need to be consistent and coherent in all relevant financial sector regulation; the Commission intends to bring forward the appropriate legislative proposals to ensure this will be the case, after duly considering the impact.
Amendment 73 #
Proposal for a directive – amending act
Article 1 – point 8 – point a
Article 1 – point 8 – point a
Directive 2006/48/EC
Article 57 – point a
Article 57 – point a
(a) capital within the meaning of Article 22 of Directive 86/635/EEC, in so far as it has been paid up, plus the related share premium accounts, it fully absorbs losses in going concern situations, and in the event of bankruptcy or liquidation ranks after all opari passu with ordinary shares on a going concern basis and in the event of bankruptcy or liquidation ranks pari passu with ordinary shares. Original own funds referred to in this subparagraph may include instruments providing preferential rights of dividend payment on a non-cumulative basis, provided that they are included in Article 22 of Directive 86/635/EEC, rank pari passu with ordinary shares during bankruptcy or liquidation, and fully absorb losses on a going concern basis pari passu with ordinary shares. Original own funds referred to in this subparagraph also include any other instrument under credit institutions' statutory terms taking into account the specific constitution of mutuals, cooperative societies and similar institutions and which are deemed equivalent to ordinary shares in terms of their claims. apital qualities. Instruments that do not rank pari passu with ordinary shares during liquidation or that do not absorb losses on a going concern basis pari passu with ordinary shares are included in the category of hybrids referred to in Article 57(ca).
Amendment 74 #
Proposal for a directive – amending act
Article 1 – point 8 – point b a (new)
Article 1 – point 8 – point b a (new)
Directive 2006/48/EC
Article 57 – paragraph 3
Article 57 – paragraph 3
(ba) The third paragraph of Article 57 is amended as follows : "For the purposes of point (b), the Member States shall permit inclusion of interim or year-end profits before a formal decision has been taken only if these profits have been verified by persons responsible for the auditing of the accounts and if it is proved to the satisfaction of the competent authorities that the amount thereof has been evaluated in accordance with the principles set out in Directive 86/635/EEC and is net of any foreseeable charge or dividend."
Amendment 82 #
Proposal for a directive – amending act
Article 1 – point 11
Article 1 – point 11
Directive 2006/48/EC
Article 63a – paragraph 6
Article 63a – paragraph 6
6. The Committee of European Banking Supervisors shall elaborate guidelines for the convergence of supervisory practices with regard to the instruments referred to in paragraph 1 and in Article 57(a) and shall monitor their application. By January 2012, the Commission shall review the application of this Article and shall report to the European Parliament and the Council together with any appropriate proposals to ensure the quality of own funds.
Amendment 87 #
Proposal for a directive – amending act
Article 1 – point 13 a (new)
Article 1 – point 13 a (new)
Directive 2006/48/EC
Article 81 - paragraph 2
Article 81 - paragraph 2
13a. Article 81(2) is replaced by the following: "2. Competent authorities shall recognise an ECAI as eligible for the purpose of Article 80 only if they are satisfied that its assessment methodology complies with the requirements of objectivity, independence, ongoing review and transparency, and that the resulting credit assessments meet the requirements of credibility and transparency. For those purposes, the competent authorities shall take into account the technical criteria set out in Annex VI, part 2. Where an ECAI is registered as a CRA in accordance with Regulation (EC) No .../2009 of ... *of the European Parliament and of the Council on Credit Rating Agencies**, the competent authorities shall consider that the requirements of objectivity, independence, ongoing review and transparency with respect to its assessment methodology are satisfied." ** OJ please insert number and date * OJ L ...
Amendment 88 #
Proposal for a directive – amending act
Article 1 – point 14 – point a
Article 1 – point 14 – point a
Directive 2006/48/EC
Article 87 – paragraph 11 – subparagraph 1
Article 87 – paragraph 11 – subparagraph 1
"11. Where exposures in the form of a collective investment undertaking (CIU) meet the criteria set out in Annex VI, Part 1, points 77 and 78 and the credit institution is aware of all or parts of the underlying exposures of the CIU, the credit institution shall look through to those underlying exposures in order to calculate risk-weighted exposure amounts and expected loss amounts in accordance with the methods set out in this Subsection. Paragraph 12 shall apply to the part of the underlying exposures of the CIU the credit institution is not aware of andor could not reasonably be aware of. In particular, paragraph 12 shall apply where it would be unduly burdensome for the credit institution to look through the underlying exposures in order to calculate risk- weighted amounts and expected loss amounts in accordance with methods set out in this section.
Amendment 92 #
Proposal for a directive – amending act
Article 1 – point 15 a (new)
Article 1 – point 15 a (new)
Directive 2006/48/EC
Article 97 – paragraph 2
Article 97 – paragraph 2
15a. Article 97(2) is replaced by the following: "2. The competent authorities shall recognise an ECAI as eligible for the purpose of paragraph 1 only if they are satisfied as to its compliance with the requirements laid down in Article 81, taking into account the technical criteria set out in Annex VI, part 2, and that it has a demonstrated ability in the area of securitisation, which may be evidenced by a strong market acceptance. Where an ECAI is registered as a CRA in accordance with the Regulation (EC) No .../2009 of ...* of the European Parliament and of the Council on Credit Rating Agencies**, competent authorities shall consider the requirements of objectivity, independence, ongoing review and transparency with respect to its assessment methodology to be satisfied." * OJ L ... ** OJ please insert number and date.
Amendment 94 #
Proposal for a directive – amending act
Article 1 – point 16 – point a
Article 1 – point 16 – point a
Directive 2006/48/EC
Article 106 – paragraph 2 – point a
Article 106 – paragraph 2 – point a
(a) in the case of foreign exchange transactions, exposures incurred in the ordinary course of settlement during the 48 hourtwo working days following payment;
Amendment 96 #
Proposal for a directive – amending act
Article 1 – point 16 – point a
Article 1 – point 16 – point a
Directive 2006/48/EC
Article 106 – paragraph 2 – point c
Article 106 – paragraph 2 – point c
(c) in the case of: (i) the provision of money transmission or securities clearing and settlement services to clients, delayed receipts in funding and other exposures arising from client activityincluding the execution of payment instructions, clearing and settlement in any currency and correspondent banking; or (ii) financial instruments clearing, settlement and custody services, exposures including balances and overdrafts on current accounts such as delayed receipts in funding, which do not last longer than the following businessworking day.
Amendment 108 #
Proposal for a directive – amending act
Article 1 – point 19 – point a
Article 1 – point 19 – point a
Directive 2006/48/EC
Article 111 – paragraph 1 – subparagraph 3
Article 111 – paragraph 1 – subparagraph 3
Amendment 111 #
Proposal for a directive – amending act
Article 1 – point 21 – point b – point ii
Article 1 – point 21 – point b – point ii
Directive 2006/48/EC
Article 113 – paragraph 3 – subparagraph 1– point f
Article 113 – paragraph 3 – subparagraph 1– point f
(f) exposures to counterparties referred to in paragraph 7 or paragraph 8 ofArticle 80(7) and (8), excluding Article 80(7)(d), if they would be assigned a 0 % risk weight under Articles 78 to 83; exposures that do not meet these criteria, whether exempted from Article 111(1) or not, shall be treated as exposures to a third party.
Amendment 115 #
Proposal for a directive – amending act
Article 1 – point 21 – point b – point iv
Article 1 – point 21 – point b – point iv
Directive 2006/48/EC
Article 113 – paragraph 3 – point j
Article 113 – paragraph 3 – point j
(iv) Points (j) to (t) are deleted.is replaced by the following: "(j) exposures to an institution with maturity of three months or less;"
Amendment 117 #
Proposal for a directive – amending act
Article 1 – point 21 – point b – point iv a (new)
Article 1 – point 21 – point b – point iv a (new)
Directive 2006/48/EC
Article 113 – paragraph 3 – points k to q
Article 113 – paragraph 3 – points k to q
(iva) Points (k) to (q) are deleted.
Amendment 120 #
Proposal for a directive – amending act
Article 1 – point 21 – point b – point iv b (new)
Article 1 – point 21 – point b – point iv b (new)
Directive 2006/48/EC
Article 113 – paragraph 3 – point r
Article 113 – paragraph 3 – point r
(ivb) Point (r) is deleted.
Amendment 123 #
Proposal for a directive – amending act
Article 1 – point 21 – point b – point iv c (new)
Article 1 – point 21 – point b – point iv c (new)
Directive 2006/48/EC
Article 113 – paragraph 3 – points s and t
Article 113 – paragraph 3 – points s and t
(iv) Point (s) and (t) are deleted.
Amendment 125 #
Proposal for a directive – amending act
Article 1 – point 21 – point d
Article 1 – point 21 – point d
Directive 2006/48/EC
Article 113 – paragraph 4 – introductory part
Article 113 – paragraph 4 – introductory part
"4. Member States may fully or partially exempt tThe following exposures shall be exempted from the application of Article 111(1):
Amendment 134 #
Proposal for a directive – amending act
Article 1 – point 21 – point d
Article 1 – point 21 – point d
Directive 2006/48/EC
Article 113 – paragraph 4 – point f
Article 113 – paragraph 4 – point f
(f) asset items constituting claims on and other exposures to institutions, provided that these exposures do not constitute such institutions' own funds, do not last longer than the following business day and are denominated in a currency of the Member State exercising this option, provided that such currency is not the euro.
Amendment 135 #
Proposal for a directive – amending act
Article 1 – point 21 – point d
Article 1 – point 21 – point d
Directive 2006/48/EC
Article 113 – paragraph 4 – point f a (new)
Article 113 – paragraph 4 – point f a (new)
(fa) 50 % of medium/low risk off-balance- sheet documentary credits and of medium/low risk off-balance-sheet undrawn credit facilities referred to in Annex II and subject to the competent authorities' agreement, 80 % of guarantees other than loan guarantees which have a legal or regulatory basis and are given for their members by mutual guarantee schemes possessing the status of credit institution.
Amendment 137 #
Proposal for a directive – amending act
Article 1 – point 23
Article 1 – point 23
Directive 2006/48/EC
Article 115 – paragraph 1 – subparagraph 2
Article 115 – paragraph 1 – subparagraph 2
The value of the property shall be calculated, to the satisfaction of the competent authorities, on the basis of strict valuation standards laid down by law, regulation or administrative provisions. Valuation shall be carried out at least once a yearevery three years for residential real estate.
Amendment 142 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 1
Article 122a – paragraph 1
1. A credit institution shall only be exposed to the credit risk of an obligation or potential obligation or a pool of obligati, other than an originator, spons or potential obligations where it was not involved in directly negotiating, structuring and documenting the original agreement which created the obligations or potential obligations, if: (a) the persons or entities that directly negotiated, structured and documented the original agreement with the obligor or potential obligor; or alternatively and where applicable, (b) the persons or entities that manage and purchase such obligatior original lender, shall be exposed to the credit risk of a securitisation position in its trading book or non-trading book only if the originator, spons or potential obligations directly or indirectly on behalf of the credit institution, have issued an explicit commitmentor original lender has explicitly disclosed to the credit institution to mainhat it will retain, on an ongoing basis, a material net economic interest andwhich, in any event not less than 5 per cent in positions having the same risk profile as the one that the credit institution is exposed toshall be no less than 5%.
Amendment 151 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 1 a (new)
Article 122a – paragraph 1 a (new)
1a. For this purpose, retention of net economic interest shall mean either: (a) retention of not less than 5% of the nominal value of each of the tranches sold or transferred to the investors; or (b) in the case of securitisations of revolving exposures, retention of originator's interest of not less than 5% of the nominal value of the securitised exposures; or (c) retention of randomly selected exposures, equivalent to not less than 5% of the nominal amount of the securitised exposures, where these would otherwise have been securitised in the securitisation provided that the number of potentially securitised exposures is not less than 100 at origination.
Amendment 152 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 1 b (new)
Article 122a – paragraph 1 b (new)
1b. Net economic interest is measured at the origination and shall be maintained on an ongoing basis. It shall not be subject to any credit risk mitigation or any short positions or any other hedge. The net economic interest shall be determined by the notional value for off-balance- sheet items.
Amendment 155 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph c (new)
Article 122a – paragraph c (new)
1c. For the purpose of this Article, "ongoing basis” shall mean that retained positions, interest or exposures shall not be hedged or sold.
Amendment 171 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 2 – subparagraph 2
Article 122a – paragraph 2 – subparagraph 2
Paragraph 1 shall not apply either to syndicated loanto: (i) transactions based on an index, where the underlying reference entities are identical to those that make up an index of entities that is widely traded, or are other tradable securities other than securitisation positions; (ii) syndicated loans, purchased receivables or credit default swaps where these instruments are not used to package and/or hedge an oblig securitisation that is covered by paragraph 1.;
Amendment 174 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 2 – subparagraph 2 – point ii a (new)
Article 122a – paragraph 2 – subparagraph 2 – point ii a (new)
(iia) when the originator or sponsor of the securitisation concerned, or (in the case where the securitised exposures were not originated by the originator or sponsor) the original regulated lender of the securitised exposures, either: - originated the securitised exposures and retains an interest in the securitised exposures concerned; or - otherwise has an interest in common with the investors in the securitisation positions concerned or in the ongoing performance of the securitised exposures concerned.
Amendment 207 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 5 – save for last sentence
Article 122a – paragraph 5 – save for last sentence
5. Credit institutions shall establish formal procedure, other than originators or sponsors or original lenders, shall establish formal procedures appropriate to their trading book and non-trading book and commensurate with the risk profile of their investments in securitised positions to monitor on an ongoing basis and in a timely manner performance information on the exposures underlying their securitisation positions. Where relevantappropriate, this shall include, at a minimum: the exposure type, the length of time the exposures have been held by the originator including the percentage held by the originator for less than 2 years, the percentage of loans more than 30, 60 and 90 days past due, default rates, prepayment rates, loans in foreclosure, collateral type and occupancy, frequency distribution of credit scores or other measures of credit worthiness across underlying exposures, industry and geographical diversification, frequency distribution of loan to value ratios with band widths that facilitate adequate sensitivity analysis. Where the underlying exposures are themselves securitisation positions, the requirements tcredit institutions shall have the above listed information not only on the underlying securitisation tranches, such as the issuer name and credit quality, but also monitor and be able to access information shall apply to the characteristics and performance of the pools underlying securitisation tranches. Credit institutions shall have a thorough understanding of all structural features of a securitisation transaction that would materially impact the performance of their exposures underlying these securitisation positionsto the transaction such as the contractual waterfall and waterfall related triggers, credit enhancements, liquidity enhancements, market value triggers, and deal-specific definition of default.
Amendment 213 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 5 – last sentence
Article 122a – paragraph 5 – last sentence
Where the requirements in paragraph 4 and in this paragraph are not met, credit institutions shall apply a risk weight of 1250% to these securitisation positions under Annex IX, part 4 in any material respect, or by reason of negligence or omission, including, in the case of an investment made from 31 December 2010, failure to obtain and analyse from the originator or sponsor, prior to investing, all relevant information required under paragraphs 4 and 5, credit institutions shall apply a risk weight of 1250% to these securitisation positions under Annex IX, part 4 except where competent authorities have decided to temporarily suspend the requirements referred to in paragraphs 1 and 2 during periods of general market liquidity stress.
Amendment 280 #
Proposal for a directive – amending act
Article 1 – point 35 b (new)
Article 1 – point 35 b (new)
Directive 2006/48/EC
Annex IX – part 3 – paragraph 7 a (new)
Annex IX – part 3 – paragraph 7 a (new)
(35b) In Annex IX, Part 3, the following paragraph is inserted: "7a. Competent authorities shall, furthermore, take the necessary measures to ensure that, with regard to credit assessments relating to securitisation positions, the ECAI is committed to produce, on an ongoing basis, summary information on the structure of the transaction, the performance of pool assets and how this affects its credit assessment. That summary information shall be made available to all credit institutions using the credit assessments for the purpose of Article 96."