BETA

94 Amendments of Jean-Paul GAUZÈS related to 2011/0202(COD)

Amendment 159 #
Proposal for a regulation
Recital 21 a (new)
(21a) Where the deduction of the minority interests included in consolidated Common Equity Tier 1 capital results in a disproportionate increase of capital requirement for certain types of credit institutions or investment firms, such institutions or firms should be exempted from the application of such rule.
2012/03/07
Committee: ECON
Amendment 161 #
Proposal for a regulation
Recital 25
(25) It is essential to take account of the diversity of credit institutions and investments firms in the Union by providing alternatives approaches to the calculation of capital requirements for credit risk incorporating different levels of risk- sensitivity and requiring different degrees of sophistication. Use of external ratings and credit institutions and investment firms' own estimates of individual credit risk parameters represents a significant enhancement in the risk-sensitivity and prudential soundness of the credit risk rules. There should be appropriate incentives for credit institutions and investment firms to move towards the more risk-sensitive approaches. In producing the estimates needed to apply the approaches to credit risk of this Regulation, credit institutions and investment firms should enhance credit risk measurement and management processes of credit institutions and investment firms to make methods for determining credit institutions and investment firms' regulatory own funds requirements available that reflect the sophistication of individual credit institutions and investment firms' processes. In this regard, the processing of data in connection with the incurring and management of exposures to customers should be considered to include the development and validation of credit risk management and measurement systems. That serves not only to fulfil the legitimate interest of credit institutions and investment firms but also the purpose of this Regulation, to use better methods for risk measurement and management and also use them for regulatory own funds purposes.
2012/03/07
Committee: ECON
Amendment 352 #
Proposal for a regulation
Article 22 – paragraph 1 – point 30 a (new)
(30 a) ‘totally mutualised guarantee funds’ means guarantee funds raised by credit institutions dedicated to promote through guarantee specified sectors of the economy.
2012/03/07
Committee: ECON
Amendment 360 #
Proposal for a regulation
Article 24 – paragraph 1 – point f a (new)
(fa) totally mutualised guarantee funds
2012/03/07
Committee: ECON
Amendment 391 #
Proposal for a regulation
Article 26 – paragraph 1 – point h – point iii
(iii) the conditions governing the instruments do not include a cap or other restriction on the maximum level of distributions, except in the case of the instruments referred to in Article 25; and higher or lower distributions than those paid on ordinary shares or instruments referred to in Article 25 do not constitute preferential distribution, a cap or other restrictions on the maximum level of distributions;
2012/03/07
Committee: ECON
Amendment 405 #
Proposal for a regulation
Article 27 – paragraph 1
1. Capital instruments issued by mutuals, cooperative societies and similar institutions shall qualify as Common Equity Tier 1 instruments only if the conditions laid down in Article 26 and amended by this Article are met.
2012/03/07
Committee: ECON
Amendment 410 #
Proposal for a regulation
Article 27 – paragraph 4 – subparagraph 1 a (new)
The condition laid down in the first sub- paragraph is without prejudice of the possibility for a mutual, cooperative society or a similar institution to recognize within CET1 capital instruments that do not afford voting rights to the holder and that meet both the following conditions: (a) the claim of the holders of the non- voting instruments in the insolvency or liquidation of the institution is proportionate to the share of the total Common Equity Tier 1 instruments that those non-voting instruments represent; (b) the instruments otherwise qualify as a Common Equity Tier 1 instruments.
2012/03/07
Committee: ECON
Amendment 412 #
Proposal for a regulation
Article 27 – paragraph 5 – subparagraph 1 a (new)
The condition laid down in the first sub- paragraph is without prejudice of the possibility for a mutual, cooperative society or a similar institution to recognize within CET1 capital instruments that do not afford voting rights to the holder and that meet both the following conditions: (a) the claim of the holders of the non- voting instruments in the insolvency or liquidation of the institution is proportionate to the share of the total Common Equity Tier 1 instruments that those non-voting instruments represent; (b) the instruments otherwise qualify as a Common Equity Tier 1 instruments.
2012/03/07
Committee: ECON
Amendment 444 #
Proposal for a regulation
Article 46 – title
Other exemptions from, and alternatives to, deduction where consolidation isRequirement for deduction where consolidation or supplementary supervision are applied
2012/03/07
Committee: ECON
Amendment 450 #
Proposal for a regulation
Article 46 – paragraph 1 – subparagraph 1
As an alternative toFor the purposes of calculating own funds on a stand-alone basis, a subconsolidated basis and a consolidated basis, where the competent authorities require institutions to apply methods 1 or 2 of Annex I to Directive 2002/87/EC, the deduction of the holdings of an institution in the Common Equity Tier 1 instruments ofown funds instruments of a relevant entity in which the parent institution, parent financial holding company or parent mixed financial holding company or institution has a significant investment is not required, provided that the conditions laid down in points (a) to (e) are met: (a) the relevant entity is an insurance undertaking, re-insurance undertaking or an insurance holding company; (b) that insurance undertakings, re- insurance undertakings or and insurance holding company ies in which the institution has a significant investment, competent authorities may allow institutions to applycluded in the same supplementary supervision under Directive 2002/87/EC as the parent institution, parent financial holding company or parent mixed financial holding company or institution that has the holding; (c) where an institution uses method 1 (accounting consolidation[...]), it has received the prior [...]permission of the competent [...]authorities; (d) prior to granting the permission referred to in point (c), and on a continuing basis, the competent authorities are satisfied that the level of integrated management, risk management and internal control regarding the entities that would be included in the scope of consolidation under methods 1, 2 or 3 of Annex I to Directive 2002/87/EC. The institution shall apply the method chosen is adequate[...]; (e) the parent entity is one of the following: (i) the parent credit institution; (ii) the parent financial holding company; (iii) the parent mixed financial holding company; (iv) the institution; (v) a subsidiary of one of the entities referred to in points (i) to (iv) that is included in the scope of consolidation pursuant to Chapter 2 of Title II of Part One. The method chosen shall be applied in a consistent manner over time.
2012/03/07
Committee: ECON
Amendment 452 #
Proposal for a regulation
Article 46 – paragraph 1 – subparagraph 2
An institution may apply method 1 (accounting consolidation) only if it has received the prior consent of the competent authority. The competent authority may grant such consent only if it is satisfied that the level of integrated management and internal control regarding the entities that would be included in the scope of consolidation under method 1 is adequate.deleted
2012/03/07
Committee: ECON
Amendment 465 #
Proposal for a regulation
Article 46 – paragraph 3 – point a
(a) where the holding is in a relevant entity which is included in the same supplementary supervision as the institution in accordance with Directive 2002/87/EC;deleted
2012/03/07
Committee: ECON
Amendment 487 #
Proposal for a regulation
Article 46 – paragraph 3 a (new)
3a. The holdings in respect of which deduction is not made in accordance with paragraphs 1, 2 or 3 shall qualify as equity exposures and be risk weighted in accordance with Chapter 2 or 3 of Title II of Part Three, as applicable.
2012/03/07
Committee: ECON
Amendment 536 #
Proposal for a regulation
Article 79 – paragraph 1 a (new)
Where the parent company of a credit institution or of an investment firm is a non operating holding company having a minority control over its consolidated risk- weighted assets, such credit institution or investment firm is exempted, with regard to its relations with the minority subsidiaries concerned, from the application of the provisions of this Article. As the case may be, competent authorities may impose such rule on a case by case basis to a credit institution or an investment firm which they deemed exposed to a high degree of systemic risk.
2012/03/08
Committee: ECON
Amendment 682 #
Proposal for a regulation
Article 121 – paragraph 1 – point c
(c) exposures related to property leasing transactions concerning offices or other commercial premises under which the institution is the less or and the tenant has an option to purchase may 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. In a Member State where competent authorities have determined this risk weight is appropriate, according to article 119 (2) and where commercial real estate leasing is regulated and supervised, this risk weight will be assigned without the application of paragraph 2 (d) here below.
2012/03/08
Committee: ECON
Amendment 689 #
Proposal for a regulation
Article 121 – paragraph 3 – point a
(a) losses stemming from lending or leasing collateralised by commercial immovable property up to 50 % of the market value or 60 % of the mortgage lending value (unless otherwise determined under Article 119(2)) do not exceed 0,3 % of the outstanding loans collateralised by commercial immovable property in any given year;
2012/03/08
Committee: ECON
Amendment 691 #
Proposal for a regulation
Article 121 – paragraph 3 – point b
(b) overall losses stemming from lending or leasing collateralised by commercial immovable property do not exceed 0,5 % of the outstanding loans collateralised by commercial immovable property in any given year.
2012/03/08
Committee: ECON
Amendment 709 #
Proposal for a regulation
Article 124 – paragraph 1 – subparagraph 1 – point d a (new)
(da) residential loans fully guaranteed by an eligible protection provider referred to in Article 197 qualifying for the credit quality step 2 or above as set out in this Chapter, where the limit for covered bonds issuance complies with the 80% limit set up in letter (d) and where a loan- to-income ratio respects at most 35% when the loan has been granted. The loan-to-income ratio represents the share of the gross income of the borrower that covers the reimbursement of the loan, including the interests. The protection provider shall be supervised by the competent authorities and shall establish a mutual guarantee fund or equivalent protection for regulated insurance companies to absorb credit risk losses, whose calibration shall be periodically reviewed by the competent authorities. Both the credit institution and the protection provider shall carry out a creditworthiness assessment of the borrower.
2012/03/08
Committee: ECON
Amendment 711 #
Proposal for a regulation
Article 124 – paragraph 1 – subparagraph 1 – point e a (new)
(ea) the 10% limit for senior units issued by French Fonds Communs de Créances or by equivalent securitisation entities laid down in points (d) and (e) of the present Article 124(1) shall not apply provided that: (i) the securitised residential or commercial real estate exposures were originated by a member of the same consolidated group of which the issuer of the covered bonds is also a member or by an entity affiliated to the same central body to which the issuer of the covered bonds is also affiliated (that common group membership or affiliation to be determined at the time the senior units are made collateral for covered bonds; (ii) a member of the same consolidated group of which the issuer of the covered bonds is also a member, or an entity affiliated to the same central body to which the issuer of the covered bonds is also affiliated, retains the whole first loss tranche supporting those senior units;
2012/03/08
Committee: ECON
Amendment 717 #
Proposal for a regulation
Article 129 – paragraph 7
7. The exposure value for leases shall be the discounted minimum lease payments. Minimum lease payments are the payments over the lease term that the lessee is or can be required to make and any bargain option the exercise of which is reasonably certain. A party other than the lessee may be required to make a payment related to the residual value of a leased property and that payment obligation fulfils the set of conditions in Article 197 regarding the eligibility of protection providers as well as the requirements for recognising other types of guarantees provided in Articles 208 to 210, that payment obligation may be taken into account as unfunded credit protection under Chapter 4. These exposures shall be assigned to the relevant exposure class in accordance with Article107. When the exposure is a residual value of leased assets, the risk weighted exposure amounts shall be calculated as follows: 1/t * 100 % * exposure value, where t is the greater of 1 and the nearest number of whole years of the lease remaining.(Does not affect English version.)
2012/03/08
Committee: ECON
Amendment 747 #
Proposal for a regulation
Article 152 – paragraph 1 – point b – introductory part
(b) when the exposure is a residual value of leased assets in which case it shall be calculated as follows:Does not affect English version.)
2012/03/08
Committee: ECON
Amendment 748 #
Proposal for a regulation
Article 152 – paragraph 1– point b – second subparagraph
where t is the greater of 1 and the nearest number of whole years of the lease remaining.(Does not affect English version.)
2012/03/08
Committee: ECON
Amendment 756 #
Proposal for a regulation
Article 162 – paragraph 4
4. The exposure value for leases shall be the discounted minimum lease payments. Minimum lease payments shall comprise the payments over the lease term that the lessee is or can be required to make and any bargain option (i.e. option the exercise of which is reasonably certain). If a party other than the lessee may be required to make a payment related to the residual value of a leased asset and this payment obligation fulfils the set of conditions in Article 197 regarding the eligibility of protection providers as well as the requirements for recognising other types of guarantees provided in Article 208, the payment obligation may be taken into account as unfunded credit protection in accordance with Chapter 4.(Does not affect English version.)
2012/03/08
Committee: ECON
Amendment 761 #
Proposal for a regulation
Article 174 – paragraph 1 – subparagraph 1 – point b
(b) the obligor is past due more than 90 days on any material credit obligation to the institution, the parent undertaking or any of its subsidiaries. In the case of residential or commercial real estate exposures (lending or leasing) and exposures to public sector entities (PSE) the institution shall set a number of days past due of between 90 days and 180 days.
2012/03/08
Committee: ECON
Amendment 783 #
Proposal for a regulation
Article 195 – paragraph 9
9. Subject to the provisions of Article 225(2), where the requirements set out in Article 206 are met, exposures arising from transactions whereby an institution leases property to a third party may be treated in the same manner as loans collateralised by the type of property leased.(Does not affect English version.)
2012/03/08
Committee: ECON
Amendment 836 #
Proposal for a regulation
Article 372 – paragraph 3
3. Transactions with a central counterparty are excluded from the own funds requirements for CVA risk. 4. Exposures incurred by an institution to its parent undertaking, to other subsidiaries of that parent undertaking or to its own subsidiaries, in so far as those undertakings are covered by the supervision on a consolidated basis to which the institution itself is subject, in accordance with this Regulation or with equivalent standards in force in a third country are excluded from the own funds requirements for CVA risk. 5. Transactions with counterparties referred to in Article 1 paragraph (4) of the Regulation (EU) No [xxxx/xxxx] of [date] on OTC derivative transactions, central counterparties and trade repositories ("EMIR) shall be excluded from the own funds requirements for CVA risk. Transactions with counterparties referred to in Article 2 paragraph (23) and therein subject to the transitional provisions referred to in Article 71 of the Regulation (EU) No [xxxx/xxxx] of [date] on OTC derivative transactions, central counterparties and trade repositories ("EMIR) shall be excluded from the own funds requirements for CVA risk. Transactions with non-financial counterparties that do not meet the conditions referred to in Article 3 of the Regulation (EU) No [xxxx/xxxx] of [date] on OTC derivative transactions, central counterparties and trade repositories ("EMIR) and therefore not subject to the clearing obligation shall be excluded from the own funds requirements for CVA risk.
2012/03/09
Committee: ECON
Amendment 852 #
Proposal for a regulation
Article 373 – paragraph 5 – point b a (new)
(ba) The three-times multiplier inherent in the calculation of a bond VaR and a stressed VaR will apply to these calculations. The EBA shall monitor for consistency any supervisory discretion used to apply a higher multiplier than the three-times multiplier to the VaR and stressed VaR inputs to the CVA charge. Competent authorities applying a multiplier higher than three shall provide a written justification to the EBA.
2012/03/09
Committee: ECON
Amendment 884 #
Proposal for a regulation
Article 389 – paragraph 2 – point e
(e) asset items constituting claims on and other exposures to credit institutions incurred by credit institutions operating on a non-competitive basis, providing loans under legislative programmes or their statutes, to promote specified sectors of the economy under some form of government oversight and restrictions on the use of the loans, provided that the respective exposures arise from such loans that are passed on to the beneficiaries via other credit institutions or assets items constituting claims on and other exposures to credit institutions operating on a non-competitive basis, guarantying loans under legislative programmes or their statutes, to promote specified sectors of the economy under some form of government oversight and restrictions on the use of the loans, provided that the respective exposures arise from such guaranteed loans;
2012/03/09
Committee: ECON
Amendment 916 #
Proposal for a regulation
Article 400 – paragraph 1 – point 2
(2) ‘Retail deposit’ means a liability to a natural person or to a small and medium sized enterprise where the aggregate liability to such clients or group of connected clients is less than 1 million EURif this small and medium sized enterprise qualifies for the retail exposure class under the Standardised or IRB approaches for credit risk or to a company which is eligible to the treatment mentioned in Article 148(4).
2012/03/09
Committee: ECON
Amendment 932 #
Proposal for a regulation
Article 403 – paragraph 1 – subparagraph -1 (new)
-1 new Until the liquidity coverage requirement in Article 401 is fully specified and implemented as a minimum standard according to Article 481 (3), the liquidity reporting requirements apply at the level of each liquidity sub-group that the institutions forecast to apply for.
2012/03/09
Committee: ECON
Amendment 934 #
Proposal for a regulation
Article 403 – paragraph 1 – subparagraph 2
Competent authorities shall only authorise a lower reporting frequency or a longer reporting delay on the basis of the individual situation of a credit institution. They shall monitor the implementation of the restoration plan referred to in that Article and shall, if appropriate, require a more timely restoration than it is set out in the plan.
2012/03/09
Committee: ECON
Amendment 935 #
Proposal for a regulation
Article 403 – paragraph 2
2. When aA competent authority may decides that an institution has a significant liquidity risk in another currency or a significant branch as defined in Article 52 of Directive [inserted by OP] in a host Member State using a different currency than its home Member State, the institution shall separately report to the competent authorities of the home Member States the items denominated in or indexed to the former currency. liquidity sub group shall report the items referred to in paragraph 1 in a specific currency when it has: (a) aggregate liabilities in a currency different from the reporting currency as defined in paragraph 1 amounting to or exceeding 5% of the institution's or liquidity subgroup's total liabilities, or (b) a significant branch as defined in Article 52 of Directive [inserted by OP] in a host Member State using a currency different from the reporting currency as defined in paragraph 1.
2012/03/09
Committee: ECON
Amendment 938 #
Proposal for a regulation
Article 403 – paragraph 6 a (new)
6a. Parent institutions in the Union, their subsidiaries, and sub-consolidated groups which belong to the same cross-border group shall be subject to one single coherent reporting framework when reporting to home and host competent authorities. Until EBA has issued a harmonised set of standards for reporting in accordance with paragraph 3, the consolidating supervisor shall, after consulting the competent authorities responsible for the supervision of the subsidiaries and sub-groups of the parent institutions, submit the reporting framework to the parent institutions and to other competent authorities.
2012/03/09
Committee: ECON
Amendment 939 #
Proposal for a regulation
Article 404 – paragraph 1 – subparagraph 1 – introductory part
1. Institutions shall report the following as liquid assets unless excluded by paragraph 2 and only if the liquid assets fulfil the conditions in paragraph 3:
2012/03/09
Committee: ECON
Amendment 943 #
Proposal for a regulation
Article 404 – paragraph 1 – subparagraph 1 – point a
(a) cash and deposits held with central banks to the extent that these deposits can be withdrawn directly or indirectly through an institution linked by a relationship according times of stresso Articles 108(6), 108(7) or 389 (2) d ;
2012/03/09
Committee: ECON
Amendment 948 #
Proposal for a regulation
Article 404 – paragraph 1 – subparagraph 1 – point b
(b) transferable assets that are of extremely high liquidity and credit quality;
2012/03/09
Committee: ECON
Amendment 956 #
Proposal for a regulation
Article 404 – paragraph 1 – subparagraph 1 – point c
(c) transferable assets representing claims on or guaranteed by the central government of a Member State or a third country if the institution incurs a liquidity risk in that Member State or third country that it covers by holding those liquid assets;
2012/03/09
Committee: ECON
Amendment 962 #
Proposal for a regulation
Article 404 – paragraph 1 – subparagraph 1 – point d
(d) transferable assets that are of high liquidity and credit quality .
2012/03/09
Committee: ECON
Amendment 985 #
Proposal for a regulation
Article 404 – paragraph 1 – subparagraph 2
Pending a uniform definition in accordance with Article 481(2) of high and extremely high liquidity and of high credit quality, institutions shall identify themselves in a given currency transferable assets that are respectively of high or extremely high liquidity and of high credit quality. Pending a uniform definition, competent authorities may, taking into account the criteria listed in Article 481(2), provide general guidance that institutions shall follow in identifying assets of high and extremely high liquidity and of high credit quality. In the absence of such guidance, institutions shall use transparent and objective criteria to this end, including some or all of the criteria listed in Article 481(2).
2012/03/09
Committee: ECON
Amendment 991 #
Proposal for a regulation
Article 404 – paragraph 2 – introductory part
2. The following shall not be considered high liquid assets:
2012/03/09
Committee: ECON
Amendment 996 #
Proposal for a regulation
Article 404 – paragraph 2 – point a – point ii
(ii) they are bonds as defined in Article 52(4) of Directive 2009/65/EC other than those referred to in (i) especially bonds backed by loans and exposures to small or medium sized enterprises, or equivalent items subject to the approval of the competent authorities;
2012/03/09
Committee: ECON
Amendment 1000 #
Proposal for a regulation
Article 404 – paragraph 2 – point a – point ii a (new)
(ii a) they are bonds eligible for the treatment set out in Article 124 (3) or (4) or asset backed instruments of high liquid and credit quality as established by EBA pursuant to Article 481 (1) and which fulfil the requirements [as set forth in Article 174b (2), (5), (6), (7) and (8) of the Solvency draft implementing measures].
2012/03/09
Committee: ECON
Amendment 1016 #
Proposal for a regulation
Article 404 – paragraph 2 – point b – point ii
(ii) an insurance undertaking;deleted
2012/03/09
Committee: ECON
Amendment 1020 #
Proposal for a regulation
Article 404 – paragraph 3 – subparagraph 1
Institutions shall only report as high liquid assets that fulfil each of the following conditions:
2012/03/09
Committee: ECON
Amendment 1035 #
Proposal for a regulation
Article 404 – paragraph 3 – subparagraph 1 – point b
(b) ideally they are eligible collateral in normal times for intraday liquidity needs and overnight liquidity facilities of a central bank inof a Member State or if the liquid assets are held to meet liquidity outflows in the currency of a third country, of the central bank of that third country;
2012/03/09
Committee: ECON
Amendment 1041 #
Proposal for a regulation
Article 404 – paragraph 3 – subparagraph 1 – point d
(d) ideally they are listed on a recognised exchange;
2012/03/09
Committee: ECON
Amendment 1047 #
Proposal for a regulation
Article 404 – paragraph 3 – subparagraph 2
The condition in point (b) shall not apply in case of liquid assets held to meet liquidity outflows in a currency in which there is an extremely narrow definition of central bank eligibility. In case of currencies of third countries, this exception shall apply and only apply if the competent authorities of the third country apply the same exception and the third country has comparable reporting requirements in place.deleted
2012/03/09
Committee: ECON
Amendment 1054 #
Proposal for a regulation
Article 404 – paragraph 4
4. EBA shall develop draft implementing technical standards listing the currencies which meet the conditions referred to in the paragraph 3. EBA shall submit those draft technical standards to the Commission by 1 January 2013. Power is conferred on the Commission to adopt the implementing technical standards referred to in the first subparagraph in accordance with the procedure laid down in Article 15 of Regulation (EU) No 1093/2010. Before the entry into force of the technical standards referred to in the previous subparagraph, institutions may continue to apply the treatment set out in the first subparagraph, where the competent authorities have applied that treatment before 1 January 2013.deleted
2012/03/09
Committee: ECON
Amendment 1059 #
Proposal for a regulation
Article 404 – paragraph 4 a (new)
4 a. Institutions shall only report as of high credit quality the assets that fulfil the following conditions: (a) they are not already reported as high liquid assets; (b) their probability of default over a one- year horizon is lower than 0.4% (c) assets should be : (i) asset backed securities; (ii) bonds issued by non financial institutions; (iii) bonds as defined in Article 52(4) of Directive 2009/65/EC; (iv) loans to non-financial corporate which support financing of the European economy, notably types of claims that benefit from specific financing mechanisms in other jurisdictions. (d) assets should have plain vanilla cash flows: (i) the coupons should be either zero coupons, fixed rate coupons, or floating rate coupons linked to an interest rate references or inflation references, and should not result in negative cash flows (ii) the cash flows should not be subordinated to other cash flows' tranches of the same issue. (iii) the cash flows should not consist, in whole or in part, actually or potentially, of tranches of other asset-backed securities. In addition, they should not consist, in whole or in part, actually or potentially, of credit- linked notes, swaps or other derivatives instruments, except if used as hedging instruments, or synthetic securities; (e) they are eligible collateral in normal times for intraday liquidity needs and overnight liquidity facilities of a central bank of a Member State or of a third country; Assets will be allocated haircuts derived from their default probability over a one year horizon. Pending a uniform definition of those haircuts, competent authorities may provide general guidance that institutions shall follow in allocating them.
2012/03/09
Committee: ECON
Amendment 1063 #
Proposal for a regulation
Article 404 – paragraph 5
5. Shares or units in CIUs may be treated as liquid assets up to an absolute amount of 250 million EUR provided that the requirements in Article 127(3) are met and that the CIU, apart from derivatives to mitigate interest rate or credit risk, only invests in liquid assets. Institutions may report as liquid assets deposits held at a central institution due to (i) legal requirements or (ii) contractual obligations within a network referred to in Art 389 (2) (d)
2012/03/09
Committee: ECON
Amendment 1072 #
Proposal for a regulation
Article 405 – paragraph 1 – introductory part
The institution shall only report as high liquid assets those holdings of liquid assets that meet the following conditions:
2012/03/09
Committee: ECON
Amendment 1076 #
Proposal for a regulation
Article 405 – paragraph 1 – point b
(b) not less than 60% of the liquid assets that the institution reports are assets referred to under points (a) to (c) of Article 404(1). Such assets owed and due or callable within 30 calendar days shall not count towards the 60% unless the assets have been obtained against collateral that also qualifies under points (a) to (c) of Article 404(1);deleted
2012/03/09
Committee: ECON
Amendment 1090 #
Proposal for a regulation
Article 405 – paragraph 1 – point f – introductory part
(f) price risks associated with the assets may be hedged but the liquid assets are subject to appropriate internal arrangements that ensure that they will not be used in other ongoing operations, including: (i) hedging or oare readily available to ther trading strategies; (ii) providing credit enhancementseasury function of a credit in structured transactions; (iii) to cover operational costsitution when needed.
2012/03/09
Committee: ECON
Amendment 1094 #
Proposal for a regulation
Article 405 – paragraph 1 – point g
(g) the denomination of the liquid assets is consistent with the distribution by currency of liquidity outflows after the deduction of capped inflows.
2012/03/09
Committee: ECON
Amendment 1120 #
Proposal for a regulation
Article 410 – paragraph 2 – introductory part
2. Institutions shall multiply liabilities resulting from secured lending and capital market driven transactions as defined in Article 188 if they are collateralised by assets that would qualify as liquid assets according to Article 404 by:
2012/03/09
Committee: ECON
Amendment 1123 #
Proposal for a regulation
Article 410 – paragraph 2 – point a
(a) 0% up to the value of the collateralising liquid assets according to Article 406;
2012/03/09
Committee: ECON
Amendment 1125 #
Proposal for a regulation
Article 410 – paragraph 2 – point b
(b) 100% for the remaining liability.25% if the assets would not qualify as high or extremely high liquid assets according to Article 404 and the lender is the central government, the central bank or another public sector entity of the Member State in which the credit institution has been authorised or has established a branch;
2012/03/09
Committee: ECON
Amendment 1126 #
Proposal for a regulation
Article 410 – paragraph 2 – point b a (new)
(ba) 100 % otherwise.
2012/03/09
Committee: ECON
Amendment 1127 #
Proposal for a regulation
Article 410 – paragraph 3
3. Institutions shall multiply liabilities resulting from secured lending and capital market driven transactions as defined in Article 188 by 25% if the assets would not qualify as liquid assets according to Article 404 and the lender is the central bank or another public sector entity of the Member State in which the credit institution was authorised.deleted
2012/03/09
Committee: ECON
Amendment 1135 #
Proposal for a regulation
Article 410 – paragraph 4 – subparagraph 1 – point b a (new)
(ba) by the depositor in the context of an established operational relationship other than that mentioned under point (a);
2012/03/09
Committee: ECON
Amendment 1140 #
Proposal for a regulation
Article 410 – paragraph 4 – subparagraph 3
Clearing, custody or cash management services referred to in point (a) only covers such services to the extent that they are rendered in the context of an established relationship on which the depositor has substantial dependency. They shall not merely consist in correspondent banking or prime brokerage services and the. Pending a uniform definition of 'established relationship', institutions shall have objective evidence that the client is unable to withdraw those amounts over a 30 day horizon without compromising its operational functioningestablish the criteria for qualifying as an 'established relationship'. Institutions shall follow any general guidance laid down by competent authorities for identifying deposits with established relationships.
2012/03/09
Committee: ECON
Amendment 1148 #
Proposal for a regulation
Article 410 – paragraph 5
5. Institutions shall multiply liabilities resulting from deposits by clients that are not financial customers by 750% to the extent they do not fall under paragraph 4. When conducting the assessment referred to in Article 409(5), EBA shall also assess the calibration of corporate deposits.
2012/03/09
Committee: ECON
Amendment 1153 #
Proposal for a regulation
Article 410 – paragraph 6
6. Institutions shall take payables and receivables expected over the 30 day horizon from the contracts listed in Annex II into account on a net basis across counterparties and net of the close out of the hedge (to the extend that the hedges is not already counted neither in the stock of liquid assets nor in other inflows and outflows, in line with the principle that items cannot be double-counted) and shall multiply them by 100% in case of a net amount payable. Net basis shall mean also net of collateral to be received that qualifies as liquid assets under Article 404.
2012/03/09
Committee: ECON
Amendment 1162 #
Proposal for a regulation
Article 410 – paragraph 8 – subparagraph 1 – point d
(d) the institution and the depositor are established in the same Member State unless Article 18(1)(b) applies.deleted
2012/03/09
Committee: ECON
Amendment 1168 #
Proposal for a regulation
Article 411 – paragraph 2
2. If the competent authority considers the dealings of an institution in capital market driven transactions defined in Article 188 or in the contracts listed in Annex II material in relation to the potential liquidity outflows of the institution, the institution shall add an additional outflow for the additional collateral needs resulting, according to the contracts that the institution has entered into, from a material deterioration in the credit quality of the institution such as a downgrade in its external credit assessment by threewo notches. The extent of this material deterioration shall be reviewed regularly and notified to the competent authority.
2012/03/09
Committee: ECON
Amendment 1171 #
Proposal for a regulation
Article 412 – paragraph 1
1. Institutions shall report outflows from committed credit and liquidity facilities, which shall be determined as a percentage of the maximum amount that can be drawn. This maximum amount that can be drawn may be assessed net of the value according to Article 406 of collateral to be provided if the institution can reuse the collateral and if the collateral is held in the form of liquid assets in accordance with Article 404. The collateral to be provided mayshall not be assets issued by the counterparty of the facility or one of its affiliated entities. If the necessary information is available to the institution, the maximum amount that can be drawn for credit and liquidity facilities provided to SSPEs shall be determined as the maximum amount that could be drawn given an SSPEs own obligationsthe counterparty's own obligations or given the pre-defined contractual drawing schedule coming due over the next 30 days.
2012/03/09
Committee: ECON
Amendment 1172 #
Proposal for a regulation
Article 412 – paragraph 2
2. The maximum amount that can be drawn of undrawn credit and liquidity facilities shall be multiplied by 5% if they qualify for the retail exposure class under the Standardised or IRB approaches for credit risk. As regards revolving credit, it shall be possible to take into account only the off balance-sheet amounts held by clients who have been using their account for less than two years.
2012/03/09
Committee: ECON
Amendment 1173 #
Proposal for a regulation
Article 412 – paragraph 2
2. The maximum amount that can be drawn of undrawn committed credit and liquidity facilities shall be multiplied by 5% if they qualify for the retail exposure class under the Standardised or IRB approaches for credit risk.
2012/03/09
Committee: ECON
Amendment 1175 #
Proposal for a regulation
Article 412 – paragraph 3 – introductory part
3. The maximum amount that can be drawn of undrawn committed credit and liquidity facilities shall be multiplied by 10% where they meet the following conditions:
2012/03/09
Committee: ECON
Amendment 1176 #
Proposal for a regulation
Article 412 – paragraph 3 – point b
(b) they have been provided to clients that are not financial customers or to SSPEs for the purpose of enabling such SSPE to purchase assets from clients that are not financial customers ;
2012/03/09
Committee: ECON
Amendment 1179 #
Proposal for a regulation
Article 412 – paragraph 3 – point c
(c) they have not been provided for thexpressly the sole purpose of replacing funding of the client in situations where he is unable to obtainroll over its funding requirements in the financial markets. other than if provided to SSPEs as described in paragraph 3(b)
2012/03/09
Committee: ECON
Amendment 1182 #
Proposal for a regulation
Article 412 – paragraph 4 – introductory part
4. The maximum amount that can be drawn of other undrawn committed credit and liquidity facilities shall be multiplied by 100%. This applies in particular to the following:
2012/03/09
Committee: ECON
Amendment 1184 #
Proposal for a regulation
Article 412 – paragraph 4 – point a
(a) liquidity facilities that the institution has granted to SSPEs other than described in paragraph 3(b) above ;
2012/03/09
Committee: ECON
Amendment 1185 #
Proposal for a regulation
Article 412 – paragraph 4 – point b
(b) arrangements under which the institution is required to buy or swap assets from an SSPE other than described in paragraph 3(b) above.
2012/03/09
Committee: ECON
Amendment 1189 #
Proposal for a regulation
Article 413 – paragraph 1
1. Institutions shall report their capped liquidity inflows. Capped liquidity inflows shall be the liquidity inflows limited to 75% of liquidity outflows. Institutions may exempt liquidity inflows from deposits placed with other institutions and qualifying for the treatments set out in Article 108(6) or Article 108(7) from this limit.
2012/03/09
Committee: ECON
Amendment 1198 #
Proposal for a regulation
Article 413 – paragraph 2 – introductory part
2. The liquidity inflows shall be measured over the next 30 days. They shall comprise only contractual inflows from exposures that are not past due and for which the bankinstitution has no reason to expect non- performance within the 30-day time horizon. The inflow shall be taken into account in full with the exception of the following:
2012/03/09
Committee: ECON
Amendment 1203 #
Proposal for a regulation
Article 413 – paragraph 2 – point a
(a) monies due from customers that are not central banks or financial customers shall be reduced by 50% of their value or by the contractual commitments to those customers to extend funding, whichever is higher. This does not apply to monies due from secured lending and capital market driven transactions as defined in Article 188 that are collateralised by liquid assets according to Article 404 and to monies due from trade financing transactions referred to in point (b) in the second subparagraph of Article 158(3), customers' assets bought by consolidated SSPEs, and to loans that finance one-off well identified project that do not rollover (mortgages, shipping, aircraft, export finance, project finance, etc), which shall be taken into account in full as inflows;
2012/03/09
Committee: ECON
Amendment 1209 #
Proposal for a regulation
Article 413 – paragraph 2 – point b
(b) monies due from secured lending and capital market driven transactions as defined in Article 188 if they are collateralised by liquid assets, shall not be taken into account up to the value net of haircuts of the liquid assets and shall be taken into account in full for the remaining monies du as defined in Article 404 (1), shall be treated symmetrically to outflows from secured borrowing specified in Article 410 (2) by applying the factor: (i) haircut value applicable to the liquid assets according to Article 406 if they qualify as extremely or highly liquid assets according to Article 404; (ii) 100 otherwise;
2012/03/09
Committee: ECON
Amendment 1277 #
Proposal for a regulation
Article 416 – paragraph 5 – point c
(c) netting of loans and deposits shall not be permitted except as regards the share of collected deposits which are covered by a legal requirement to be centralised and which in turn give rise to exposure to central government within the meaning of Article 109 of this Regulation.
2012/03/09
Committee: ECON
Amendment 1288 #
Proposal for a regulation
Article 416 – paragraph 8 – point b a (new)
(b a) the specific credit risk adjustment for guarantee given to credit institutions on credit risks which were already incorporated in the leverage ratio of that institution is 20%.
2012/03/09
Committee: ECON
Amendment 1385 #
Proposal for a regulation
Article 444
Liquidity 1. The Commission shall be empowered to adopt a delegated act in accordance with Article 445 to specify in detail the general requirement set out in Article 401. Such specification shall be based on the items to be reported according to Part Six, Title II. The delegated act shall also specify under which circumstances competent authorities have to impose specific in- and outflow levels on credit institutions in order to capture specific risks to which they are exposed. 2. The Commission shall be empowered to modify the items referred to in paragraph 1 or add additional items only if one of the following conditions is met: (a) a liquidity coverage requirement based on those criteria, considered either individually or cumulatively, would have a material detrimental impact on the business and risk profile of European institutions or on financial markets or the economy; or (b) modification is appropriate to align them with internationally agreed standards for liquidity supervision. For the purposes of point (a), in assessing the impact of a liquidity coverage requirement based on those criteria, the Commission shall take into account the reports referred to in paragraphs 1 and 2 of Article 481. 3. The Commission shall adopt the first delegated act referred to in paragraph 1 at the latest by 31 December 2015. A delegated act adopted in accordance with this Article shall, however, not apply before 1 January 2015.deleted
2012/03/09
Committee: ECON
Amendment 1478 #
Proposal for a regulation
Article 473 – paragraph 1
1. Until 31 December 2014, the 10 % limit for senior units issued by French Fonds Communs de Créances or by equivalent securitisation entities laid down in points (d) and (e) of Article 124(1) shall not apply, provided that: (a) the securitised residential or commercial immovable property exposures were originated by a member of the same consolidated group of which the issuer of the covered bonds is also a member, or by an entity affiliated to the same central body to which the issuer of the covered bonds is also affiliated, where that common group membership or affiliation shall be determined at the time the senior units are made collateral for covered bonds; (b) a member of the same consolidated group of which the issuer of the covered bonds is also a member, or an entity affiliated to the same central body to which the issuer of the covered bonds is also affiliated, retains the whole first loss tranche supporting those senior units.deleted
2012/03/09
Committee: ECON
Amendment 1480 #
Proposal for a regulation
Article 473 – paragraph 2
2. By 1 January 2013, the Commission shall review the appropriateness of the derogation set out in paragraph 1 and, if relevant, the appropriateness of extending similar treatment to any other form of covered bond. In the light of that review, the Commission may, if appropriate, adopt delegated acts in accordance with Article 445 to make that derogation permanent or make legislative proposals to extend it to other forms of covered bonds.deleted
2012/03/09
Committee: ECON
Amendment 1509 #
Proposal for a regulation
Article 481 – paragraph 1 – subparagraph 1
EBA and the ECB shall monitor and evaluate the reports made in accordance with Article 403(1), across currencies and across different business models. EBA shall, and after consulting the ESRB, non- financial end-users, the banking industry, competent authorities and national Central Banks biannually and for the first time by 31 December0 June 2013 report to the Commission whether a specification of the general liquidity coverage requirement in Article 401 based on the criteria for liquidity reporting in Part Six Title II, considered either individually or cumulatively, is likely to have a material detrimental impact on the business and risk profile of Union institutions or on financial markets or the economy and bank lending, with a particular focus on lending to small and medium enterprises and on trade financing, including lending under official export credit insurance schemes.
2012/03/09
Committee: ECON
Amendment 1511 #
Proposal for a regulation
Article 481 – paragraph 1 – subparagraph 2 – introductory part
EBA shall in its report reviewassess in particular the appropriateness of the calibration of the following:
2012/03/09
Committee: ECON
Amendment 1513 #
Proposal for a regulation
Article 481 – paragraph 1 – subparagraph 2 – point a
(a) theof providing mechanisms restricting the value of liquidity inflows, in particular assessing whether an inflow cap is appropriate; taking into account different business models including pass through financing models;
2012/03/09
Committee: ECON
Amendment 1516 #
Proposal for a regulation
Article 481 – paragraph 1 – subparagraph 2 – point b
(b) the calibration of the outflows in accordance with Article 410(5);
2012/03/09
Committee: ECON
Amendment 1518 #
Proposal for a regulation
Article 481 – paragraph 1 – subparagraph 2 – point c
(c) the calibration of the appropriate haircuts for purposes of Article 406 for assets held in accordance with the derogations laid down to in Article 407. (d) providing mechanisms restricting the coverage of liquidity requirements by certain categories of liquid assets.
2012/03/09
Committee: ECON
Amendment 1523 #
Proposal for a regulation
Article 481 – paragraph 2 – introductory part
2. EBA and the ECB shall, by 31 December0 June 2013, report to the Commission on appropriate uniform definitions of high and of extremely high liquidity and credit quality of transferable assets for purpoliquidity and high credit quality assets for purposes of Article 404, taking into account all relevant factors such as applicable framework, incentive structures, available market initiatives and tools designed to enhance transparency and liquidity of assets. In particular, it shall be assessed if equities can be considered eligible asset under art. 404 (3), their volatility compared to other assets of Article 404and which haircuts can be applied.. EBA shall in particular test the adequacy of the following criteria and the appropriate levels for such definitions: A. High credit quality assets: (a) additional quality criteria on top of those set by central banks for monetary policies; (b) support financing of the European economy, notably in comparison with other financing mechanism that are applied by other jurisdictions B. High Liquid Assets:
2012/03/09
Committee: ECON
Amendment 1532 #
Proposal for a regulation
Article 481 – paragraph 2 – point d
(d) credit quality steps referred to in Sub- section 2 of Annex VIPart Three, Title II, Chapter 2
2012/03/09
Committee: ECON
Amendment 1538 #
Proposal for a regulation
Article 481 – paragraph 2 a (new)
2 a. By 31 December 2013, the Commission shall report and submit a legislative proposal to the European Parliament and Council to introduce the liquidity coverage requirement according to Article 401 by 31 December 2015 at the latest, but not before 1st January 2015. In particular, the Commission shall point out: (i) any appropriate changes to the categories and calibration of the inflows and outflows referred to in Part Six Title II, taking into account the report referred to in the first paragraph and international developments; (ii) the need to limit the coverage of liquidity requirements by liquid assets referred to in points (d) of Article 404(1); (iii) uniform definitions of high liquid assets and of high credit quality assets; (iv) the definition of established operational relationship for corporate clients.
2012/03/09
Committee: ECON
Amendment 1547 #
Proposal for a regulation
Article 481 – paragraph 3 – subparagraph 1
By 31 December 2015, EBA shall report to the Commission on whether and how it would be appropriate to ensure that institutions use stable sources of funding, including an assessment of the impact on the business and risk profile of Union institutions or on financial markets or the economy and bank lending, with a particular focus on lending to small and medium enterprises and on trade financing, including lending under official export credit insurance schemes and pass through financing models.
2012/03/09
Committee: ECON
Amendment 1555 #
Proposal for a regulation
Article 481 – paragraph 3 – subparagraph 2 a (new)
EBA shall, by 31 December 2014, report to the Commission on the application of Part Six, Titles I and II of this Regulation by major financial centres outside the European Union.
2012/03/09
Committee: ECON
Amendment 1611 #
Proposal for a regulation
Article 486 a (new)
Article 486 a Credit valuation adjustment monitoring and updating 1. EBA shall monitor and evaluate the application of the provisions on credit valuation adjustment in Title VI of Part III. By 1 January 2015 EBA shall report to the Commission on the impact and effectiveness of such provisions and on the alignment with the trading book review conducted by the Basel Committee. All provisions in the field of Credit Valuation Adjustment shall not result in capital requirements until such date as the EBA shall specify following their review. 2. The Commission shall be empowered to adopt delegated acts in accordance with Article 445 to update the method of calculation of own funds requirements for credit valuation adjustment risk as referred to in Title VI of Part III, taking into account modifications to international standards and the report referred to in paragraph 1.
2012/03/09
Committee: ECON