[ParlTrack]

Proposal for a regulation
Recital 8 a (new)

(8a) Point in time reporting of the leverage ratio at the end of the quarterly reporting period rather than reporting on the basis of a three-month average better aligns the leverage ratio with solvency reporting.

2018/02/02
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 4 – point b

Regulation (EU) No 575/2013
Article 6 – paragraph 1a – subparagraph 1

By way of derogation from paragraph 1, only institutions identified as resolution entities, that are also G-SII or ~~are part of a G-SII~~O-SII with the total value of its assets exceeds EUR30bn or are part of a G-SII or are part of a O-SII with the total value of its assets exceeds EUR30bn and that do not have subsidiaries shall comply with the requirement laid down in Article 92a on an individual basis.

2018/02/02
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 4 – point b

Regulation (EU) No 575/2013
Article 6 – paragraph 1a – subparagraph 2

Only material subsidiaries of a non-EU G- SII that are not subsidiaries of an EU parent institution, ~~that are not resolution entities~~or of an EU G-SII or a EUO-SII with the total value of its assets exceeds EUR30bn that are not resolution entities, not located in the same member States than their resolution entity and that do not have subsidiaries shall comply with Article 92b on an individual basis.

2018/02/02
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 5

(iii) the guarantee is ~~fully~~ collateralised for ~~at least~~up to 50% of its amount through a financial collateral arrangement as defined in point (a) of Article 2(1) of Directive 2002/47/EC of the European Parliament and of the Council27 ; __________________ 27 Directive 2002/47/EC of the European Parliament and of the Council of 6 June 2002 on financial collateral arrangements (OJ L 168, 27.6.2002, p. 43).

2018/02/02
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 6

Regulation (EU) No 575/2013
Article 8 – paragraph 1 – subparagraph 1 a (new)

This paragraph does not apply to Title IV of Part Six.

2018/02/02
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 6

Regulation (EU) No 575/2013
Article 8 – paragraph 2 – subparagraph 1 a (new)

This paragraph does not apply to Title IV of Part Six.

2018/02/02
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 6

regulation 575/2013/EU
Article 8 – paragraph 3 – subparagraph 1 a (new)

This paragraph does not apply to Title IV of Part Six.

2018/02/02
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 6

Regulation (EU) 575/2013
Article 8 – paragraph 3 a (new)

3 a. An authority that is competent for supervising on an individual basis an institution and all or some of its subsidiaries having their head offices situated in the same or different Member States than the institution's head office shall waive in full the application of Title IV Part Six to that institution and to all of these subsidiaries and supervise them as a single liquidity sub-group.

2018/02/02
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 7

Regulation (EU) 575/2013
Article 11 – paragraph 6 a (new)

6 a. Competent authorities may waive the application of Article 11(1) or (3) to a parent institution in the meaning of an institution belonging to a group of cooperative credit institutions permanently affiliated to a central body meeting the requirements of Article 113(6) and where all of the conditions laid down in respectively Article 7(3) or 8(1), are satisfied.

2018/02/02
Committee: ECON

Caroline NAGTEGAAL, Wolf KLINZ, Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 14

Regulation (EU) No 575/2013
Article 36 – paragraph 1 – point b

~~"(b) intangible assets;" (http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32013R0575&from=~~(14) In paragraph 1 of Article 36, point (b) is replaced by the following: "(b) intangible assets, except investments in software that have a market value;" Or. en)

2018/02/02
Committee: ECON

Thierry CORNILLET, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 1 – point 27

Regulation (EU) No 575/2013
Article 72b – paragraph 2 – subparagraph 1 a (new)

By way of derogation from this paragraph and Articles 72b (3)(a) and 72(b) (4)(b) below, instruments issued by entities referred to in points (a), (b), (c) and (d) of Article 1 (1)of Directive 2014/59/EU prior to [date of application of the Regulation amending CRR] shall qualify as eligible liabilities instruments where they at least meet the conditions laid down in points (a), (b), (c), (d) and (e) provided that they do not need to meet point (d) for the purpose of Article 45b of Directive2014/59/EU.

2018/02/02
Committee: ECON

Caroline NAGTEGAAL, Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 27

Regulation (EU) No 575/2013
Article 72c – paragraph 2 a (new)

2 a. For the purposes of paragraph 1, where an eligible liabilities instrument includes one or more early repayment options including call options exercisable by the issuer, the maturity of the instrument shall be defined as the original stated maturity of the instrument, unless the provisions governing the instrument include an explicit incentive for the principal amount of the instrument to be called, redeemed, repaid or repurchased prior to the original stated maturity. Where the provisions governing the instrument include an explicit incentive for the principal amount of the instrument to be called, redeemed, repaid or repurchased prior to the original stated maturity, the maturity of the instrument shall be defined as the earliest possible date upon which such an issuer redemption or repayment option may be exercised.

2018/02/02
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 32

Regulation (EU) No 575/2013
Article 77 – point b

(b) effect the call, redemption, repayment or repurchase of Additional Tier 1~~, Tier 2 or eligible liabilities~~ instruments, or Tier 2 instruments as applicable, prior to the date of their contractual maturity..;

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 32

Regulation (EU) No 575/2013
Article 77 – point b a (new)

(ba) effect the call, redemption, repayment or repurchase of eligible liabilities instruments as applicable, prior to the date of their contractual maturity, if the institution is in breach, or if the planned operation would lead the institution to be in breach of one or more of the requirements laid down in Articles 92a and 92b of this Regulation and 45 c and d of Directive 2014/59/EU.

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 33

Regulation (EU) No 575/2013
Article 78 – title

Article 78 Supervisory permission for reducing own funds ~~and eligible liabilities~~

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 33

The competent authority shall grant permission for an institution to reduce, repurchase, call or redeem Common Equity Tier 1, Additional Tier 1~~, Tier 2 or eligible liabilities~~ or Tier 2 instruments where either of the following conditions is met:

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 33

Regulation (EU) No 575/2013
Article 78 – paragraph 1 – point a

(a) earlier than or at the same time as the action referred to in Article 77, the institution replaces the instruments referred to in Article 77 with own funds ~~or eligible liabilities~~ instruments of equal or higher quality at terms that are sustainable for the income capacity of the institution;

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 33

Regulation (EU) No 575/2013
Article 78 – paragraph 1 – point b

(b) the institution has demonstrated to the satisfaction of the competent authority that the own funds and eligible liabilities of the institution would, following the action in question, exceed the requirements laid down in ~~this Regulation, in, Directive 2013/36/EU and in~~Article 92(1) of this Regulation and in Article 128(6) of Directive 201~~4/59~~3/36/EU by a margin that the competent authority may considers necessary on the basis of Article104a of Directive 2013/36/EU.

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 33

Regulation (EU) No 575/2013
Article 78 – paragraph 1 – subparagraph 2

The competent authority shall ~~consult~~inform the resolution authority before granting that permission.

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 33

Regulation (EU) No 575/2013
Article 78 – paragraph 1 – subparagraph 3

Where an institution provides sufficient safeguards as to its capacity to operate with own funds above the amount of the requirements laid down in this Regulation, in Directive 2013/36/EU and in Directive 2014/59/EU, the resolution authority, after consulting the competent authority, may grant a general prior permission to that institution to effect calls, redemptions, repayments or repurchases of eligible liabilities instruments, subject to criteria that ensure that any such future actions will be in accordance with the conditions laid down in points (a) and (b) of this paragraph. This general prior permission shall be granted only for a certain time period, which shall not exceed one year, after which it may be renewed. The general prior permission shall only be granted for a certain predetermined amount, which shall be set by the resolution authority. Resolution authorities shall inform the competent authorities about any general prior permission granted.deleted

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 33

Regulation (EU) No 575/2013
Article 78 – paragraph 1 – subparagraph 4

Where an institution provides sufficient safeguards as to its capacity to operate with own funds above the amount of the requirements laid down in this Regulation, in Directive 2013/36/EU and in Directive 2014/59/EU, the competent authority, after consulting the resolution authority, may grant that institution a general prior permission to that institution to effect calls, redemptions, repayments or repurchases of eligible liabilities instruments, subject to criteria that ensure that any such future actions will be in accordance with the conditions laid down in points (a) and (b) of this paragraph. This general prior permission shall be granted only for a certain time period, which shall not exceed one year, after which it may be renewed. The general prior permission shall be granted for a certain predetermined amount, which shall be set by the competent authority. In case of Common Equity Tier 1 instruments, that predetermined amount shall not exceed 3% of the relevant issue and shall not exceed 10 % of the amount by which Common Equity Tier 1 capital exceeds the sum of the Common Equity Tier 1 capital requirements laid down in this Regulation, in Directive 2013/36/EU and in Directive 2014/59/EU by a margin that the competent authority considers necessary. In case of Additional Tier 1 instruments or Tier 2 instruments, that predetermined amount shall not exceed 10% of the relevant issue and shall not exceed 3 % of the total amount of outstanding Additional Tier 1 instruments or Tier 2 instruments, as applicable. ~~In case of eligible liabilities instruments, the predetermined amount shall be set by the by the resolution authority after it has consulted the competent authority.~~

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 33

Regulation (EU) No 575/2013
Article 78 – paragraph 2

2. When assessing under point (a) of paragraph 1 the sustainability of the replacement instruments for the income capacity of the institution, competent authorities shall consider the extent to which those replacement capital instruments ~~and liabilities~~ would be more costly for the institution than those they would replace.

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 33

Regulation (EU) No 575/2013
Article 78 – paragraph 4 – point d

(d) earlier than or at the same time as the action referred to in Article 77, the institution replaces the instruments referred to in Article 77 with own funds ~~or eligible liabilities~~ instruments of equal or higher quality at terms that are sustainable for the income capacity of the institution and the competent authority has permitted that action based on the determination that it would be beneficial from a prudential point of view and justified by exceptional circumstances;

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 36

Regulation (EU) No 575/2013
Article 81 – paragraph 1 – point a – point ii

(ii) an undertaking that is subject by virtue of applicable national law to thcomparable requirements of this Regulation and Directive 2013/36/EU;

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 40

Regulation (EU) No 575/2013
Article 92 a – title

Article 92a G-SII and O-SII Requirement for own funds and eligible liabilities

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 40

Regulation (EU) No 575/2013
Article 92 a – paragraph 1 – subparagraph 1 a (new)

Subject to Articles 93 and 94 and to the exceptions set out in paragraph 2 of this Article, institutions identified as resolution entities and that are O-SIIs or part of O-SIIs with a total value of assets exceeding EUR30bn shall at all times satisfy a risk-based ratio of 13.5%, representing the own funds and eligible liabilities of the institution expressed as a percentage of the total risk exposure amount calculated in accordance with Article 92(3) and (4).

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 52 a (new)

Regulation (EU) No 575/2013
Article 113 – paragraph 6 – point d

(52a) In paragraph 6 of Article 113, point (d) is replaced by the following: "(d) the counterparty is established in the same Member State as the institution;" , or both are established in Member States that belong to the Banking Union;" Or. en (http://eur-lex.europa.eu/legal-content/en/TXT/?uri=celex%3A32013R0575)

2018/02/05
Committee: ECON

Caroline NAGTEGAAL, Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 52 a (new)

(52a) In Article 124, paragraph 2 is replaced by the following: "2. Based on the data collected under Article 101, and any other relevant indicators, the competent authorities shall periodically, and at least annually, assess whether the risk-weight of 20% or 35 % for exposures secured by mortgages on residential property referred to in Article 125 and the risk weight of 50 % for exposures secured on commercial immovable property referred to in Article 126 located in their territory are appropriately based on: (a) the loss experience of exposures secured by immovable property; (b) forward-looking immovable property markets developments; Competent authorities may set a higher risk weight or stricter criteria than those set out in Article 125(2) and Article 126(2), where appropriate, on the basis of financial stability considerations. For exposures secured by mortgages on residential property, the competent authority shall set the risk weight at a percentage from 3520 % t~~hrough~~o 150 %,. For exposures secured on commercial immovable property, the competent authority shall set the risk weight at a percentage from 50 % through 150 %, Within these ranges, the higher risk weight shall be set based on loss experience and taking into account forward-looking markets developments and financial stability considerations. Where the assessment demonstrates that the risk weights set out in Article 125(2) and Article 126(2) do not reflect the actual risks related to one or more property segments of such exposures, fully secured by mortgages on residential property or on commercial immovable property located in one or more parts of its territory, the competent authorities shall set, for those property segments of exposures, a higher risk weight corresponding to the actual risks. The competent authorities shall consult EBA on the adjustments to the risk weights and criteria applied, which will be calculated in accordance with the criteria set out in this paragraph as specified by the regulatory technical standards referred to in paragraph 4 of this Article. EBA shall publish the risk weights and criteria that the competent authorities set for exposures referred to in Articles 125, 126 and 199~~(1)(a)."~~ ." Or. en (http://eur-lex.europa.eu/legal-content/en/TXT/?uri=celex%3A32013R0575)

2018/02/05
Committee: ECON

Caroline NAGTEGAAL, Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 83

Regulation (EU) No 575/2013
Article 325 c – paragraph 1

1. Any position which an institution 1. has deliberately taken in order to hedge against the adverse effect of foreign exchange rates on its ratios referred to in Article 92(1) may, subject to permission of the competent authorities, be excluded from the calculation of own funds requirements for market risks, provided the following conditions are met: (a) tThe ~~exclusion is limited to the largest of the following amounts: (i) affiliated entities denominat~~institution provides to the competent authorities its hed gin foreign currencies but which are not consolidated with the institution; (ii) consolidated subsidiaries denominated in foreign currencies. (b) the exclusion from the calculation of own funds requirements for market risks is made for at least six months; (c) competent authorities the details of that position, has substantiated that that positiong policy that substantiates that the position exempted from the market risk requirements has been entered into for the purpose of hedging partially or totally against the adverse effect of the exchange rate on its ratios defined in accordance with Article 92(1) ~~and~~. the amounts of ~~that position that are excluded from the own funds requirements for market risk as referred to in point (a)~~investment in the amount of investment in (b) Competent authorities shall approve the hedging policy of the institution. the institution has provided to the Taking into account EBA/DP/2017/01of 22 June 2017, EBA shall develop draft regulatory technical standards specifying in which circumstances the conditions set out in this article are met.

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 84

Regulation (EU) No 575/2013
Article 325 a i – table 4 – columns Sector and Risk weight – row Bucket 9

Table 4 [Bucket 9 is subdivided in the following 3 categories:] Credit Quality Step 1 Covered bonds issued by credit institutions in Member States: 0.75% Credit Quality Step 2 Covered bonds issued by credit institutions in Member States: 1.25% Credit Quality Step 3 Covered bonds issued by credit institutions in Member States: 2.0%

2018/02/05
Committee: ECON

Caroline NAGTEGAAL, Morten LØKKEGAARD, Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 84

Regulation (EU) No 575/2013
Article 325 a w – paragraph 2

2. The risk weight of the foreign exchange risk factors concerning currency pairs which are composed by the Euro and the currency of a Member State participating in the second stage of the economic and monetary union shall be one of the following: (a) the risk weight referred to in paragraph 1 divided by ~~√2.~~ 3; (b) the maximum fluctuation within the fluctuation band formally agreed by the Member State and the European Central Bank if narrower than the fluctuation band defined under the second stage of the economic and monetary union (ERM II).

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 98 – point a a (new)

Regulation (EU) No 575/2013
Article 399 – paragraph 1 a (new)

(aa) The following paragraph 1a is inserted: "1a. By way of derogation from paragraph 1, institutions that used a credit risk mitigation technique to calculate capital requirements for credit risk in accordance with Part Three, Title II may not use this technique for the purpose of article 395(1) to exposures in the form of a collateral or a guarantee provided by an official export credit agency or by an eligible protection provider referred to in Article 201 qualifying for the credit quality step 2 or above, for officially supported export credits and residential loans."

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 99 – point a – point ii a (new)

Regulation (EU) No 575/2013
Article 400 – paragraph 1 – point k a (new)

(ka) exposures, including participations or other kinds of holdings, 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, Directive 2002/87/EC or with equivalent standards in force in a third country; exposures that do not meet these criteria, whether or not exempted from Article 395(1), shall be treated as exposures to a third party.

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 101

Regulation (EU) No 575/2013
Article 403 – subparagraph 1

Where an exposure to a client is guaranteed by a third party or secured by collateral issued by a third party, with the exception of exposures referred to in article 399(1a), an institution shall:.

2018/02/05
Committee: ECON

Thierry CORNILLET, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 1 – point 103

Regulation No 575/2013/EU
Article 411 – point 15 a (new)

(15a) "Factoring" means a contractual agreement between a business (assignor) and a financial entity (factor) in which the assignor assigns or sells its receivables to the factor in exchange of providing the assignor with one or more of the following services with regard to the receivables assigned: – advance of a percentage of the amount of receivables assigned generally short term, uncommitted and without automatic roll-over, – receivables management, collection and credit protection generally the factor administering the assignor’ sales ledger and collecting the receivables in its own name.

2018/02/05
Committee: ECON

Thierry CORNILLET, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 1 – point 103

Regulation No 575/2013/EU
Article 411 – subparagraph 1 a (new)

For the purposes of this Part, factoring shall be treated as trade finance.

2018/02/05
Committee: ECON

Caroline NAGTEGAAL, Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 114

Regulation (EU) No 575/2013
Article 428 d – paragraph 4

4. All derivative contracts referred to in points (a) to (e) of paragraph 2 of Annex II that involve a full exchange of principal amounts on the same date shall be calculated on a net basis across currencies, ~~including for the purpose of reporting in a currency that is subject to a separate reporting in accordance with Article 415(2),~~ even where those transactions are not included in the same netting set that fulfils the requirements set out in Articles 295, 296 and 297.

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 114

Regulation (EU) No 575/2013
Article 428 h – paragraph 1 – introductory part

1. By way of derogation from Article 428g and from Chapters 3 and 4 of this Title, competent authorities ~~may on a case- by-case basis~~shall authorise institutions to apply a higher available stable funding factor or a lower required stable funding factor to assets, liabilities and both granted or received committed credit or liquidity facilities where all of the following conditions are fulfilled:

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 114 (new)

Regulation (EU) No 575/2013
Article 428 h – paragraph 1 – point a – point v a (new)

(va) the counterparty is located within the same Member State or in a different Member State.

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 114

Regulation (EU) No 575/2013
Article 428 h – paragraph 1 – point b

(b) there are reasons to expect that the liability or committed credit or liquidity facility received constitutes a more stable source of funding or that the asset or committed credit or liquidity facility granted requires less stable funding within the one-year horizon of the net stable funding ratio than the same liability, asset or committed credit or liquidity facility with other counterparties;deleted

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 114

~~(d) the institution and the counterparty are established in the same Member State.~~deleted

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 114

Regulation (EU) No 575/2013
Article 428 h – paragraph 2

2. Where the institution and the counterparty are established in different Member States, competent authorities may waive the condition set out in point (d) of paragraph 1 where, in addition to the criteria set out in paragraph 1, the following criteria are fulfilled: (a) there are legally binding agreements and commitments between group entities regarding the liability, asset or committed credit or liquidity facility; (b) the funding provider presents a low funding risk profile; (c) the funding risk profile of the funding receiver has been adequately taken into account in the liquidity risk management of the funding provider. The competent authorities shall consult each other in accordance with point (b) of Article 20(1) to determine whether the additional criteria set out in this paragraph are met.deleted

2018/02/05
Committee: ECON

Caroline NAGTEGAAL, Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 114

A 50% RSF factor applies to securities that are held on balance sheet to hedge an exposure to a client facing equity derivative which are in turn re-used or re- pledged, and the period of encumbrance is for between six months and one year. If a higher required stable funding factor would apply then this should override this treatment. A 100% required stable funding factor applies to equity securities held to hedge an institution’s exposure to an equity derivative where the security is held on balance sheet and is encumbered for a period of greater than one year.

2018/02/05
Committee: ECON

Caroline NAGTEGAAL, Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 114

Regulation (EU) No 575/2013
Article 428 r – paragraph 1 – point f a (new)

(fa) assets that have a residual maturity of less than six months resulting from secured lending transactions and capital market-driven transactions as defined in Article 192(2) and (3), with credit institutions and other regulated financial institutions as defined in Delegated Regulation (EU) 2015/61, where those assets are collateralised by assets that qualify as Level 1 assets under Title II of Delegated Regulation (EU)2015/61, excluding high quality covered bonds referred to in point (f) of Article 10(1) of that Delegated Regulation, and where the institution would be legally entitled and operationally able to reuse those assets for the life of the transaction, regardless of whether the collateral has already been reused. Institutions shall take those assets into account on a net basis where Article 428e(1) of this Regulation applies;

2018/02/05
Committee: ECON

Caroline NAGTEGAAL, Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 114

Regulation (EU) No 575/2013
Article 428 s – point b

(b) assets that have a residual maturity of less than six months resulting from secured lending transactions and capital market-driven transactions as defined in Article 192(2) and (3) with financial customers, where those assets are collateralised by assets that qualify as Level 1 assets under Title II of Delegated Regulation (EU) 2015/61, excluding extremely high quality covered bonds referred to in point (f) of Article 10(1) of that Delegated Regulation , and where the institution would be legally entitled and operationally able to reuse those assets for the life of the transaction, regardless of whether the collateral has already been reused. Institutions shall take those assets into account on a net basis where Article 428e(1) of this Regulation applies;deleted

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 114

Regulation (EU) No 575/2013
Article 428 s – point d

(d) trade finance and short term trade receivables financing techniques off- balance sheet related products as referred to in Article ~~111(1) of this Regulation with a residual maturity of less than six months~~429, and Annex I of Regulation (EU) n°575/2013.

2018/02/05
Committee: ECON

Caroline NAGTEGAAL, Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 114

Regulation (EU) No 575/2013
Article 428 s – point d a (new)

(da) equity securities held to hedge an institution’s exposure to a client facing equity derivative which has been funded by initial margin. The initial margin should at a minimum cover the value of the equity securities held and the securities should be the same as the underlying exposure of the equity derivative transaction.

2018/02/05
Committee: ECON

Caroline NAGTEGAAL, Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 114

Regulation (EU) No 575/2013
Article 428 s – point d b (new)

(db) For all netting sets of derivative contracts subject to margin agreements under which institutions post variation margins to their counterparties, institutions shall apply a 5% required stable funding factor to the absolute market value of those netting sets of derivative contracts, gross of any collateral posted, where those netting sets have a negative market value.

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 114

Regulation (EU) No 575/2013
Article 428 u – paragraph 1 – point d

~~(d) trade finance off-balance sheet related products as referred to in Article 111(1) with a residual maturity of minimum six months and less than one year.~~deleted

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 114

Regulation (EU) No 575/2013
Article 428 w – point b

~~(b) trade finance off-balance sheet related products as referred to in Article 111(1)with a residual maturity of one year or more.~~deleted

2018/02/05
Committee: ECON

Caroline NAGTEGAAL, Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 114 (new)

Regulation (EU) No 575/2013
Article 428 w – point b a (new)

(ba) equity securities, or relevant portions of equity securities, held to hedge an institution’s exposure to a client facing equity derivative which would qualify as Level 2B liquid assets in accordance with Article 12 of Delegated Regulation (EU) 2015/61 and which are the same as the underlying exposure of the equity derivative transaction but:- the institution has not received initial margin; or,- the value of the equity securities exceeds the value of initial margin received.

2018/02/05
Committee: ECON

Caroline NAGTEGAAL, Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 114

Regulation (EU) No 575/2013
Article 428 x – paragraph 2

2. For all netting sets of derivative contracts subject to margin agreements under which institutions post variation margins to their counterparties, institutions shall apply a 20% required stable funding factor to the absolute market value of those netting sets of derivative contracts, gross of any collateral posted, where those netting sets have a negative market value.deleted

2018/02/05
Committee: ECON

Caroline NAGTEGAAL, Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 114

Regulation (EU) No 575/2013
Article 428 a c – point a

(a) unencumbered assets eligible as Level 2B assets in accordance with Article 12 of Delegated Regulation (EU) 2015/61, excluding Level 2B securitisations and high quality covered bonds referred to in points (a) and (e) of Article 12(1) of that Delegated Regulation, and equity securities described in Article 428rs(d) or Article 428w(c) regardless of their compliance with the operational requirements and with the requirements on the composition of the liquidity buffer as set out in Articles 8 and 17 of that Delegated Regulation;

2018/02/05
Committee: ECON

Caroline NAGTEGAAL, Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 114

Regulation (EU) No 575/2013
Article 428 a c – point g a (new)

(ga) equity securities, or relevant portions of equity securities, held to hedge an institution’s exposure to a client facing equity derivative which would not qualify as Level 2B liquid assets in accordance with Article 12 of Delegated Regulation (EU) 2015/61 and which are the same as the underlying exposure of the equity derivative transaction but: – the institution has not received initial margin; or, – the value of the equity securities exceeds the value of initial margin received.

2018/02/05
Committee: ECON

Caroline NAGTEGAAL, Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 114

Regulation (EU) No 575/2013
Article 428 a f – point f

(f) unencumbered exchange-traded equities that are not eligible as Level 2B assets in accordance with Article 12 of Delegated Regulation (EU) 2015/61, excluding equity securities described in Article 428s(d) or Article428ac(h);

2018/02/05
Committee: ECON

Caroline NAGTEGAAL, Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 115

Regulation (EU) No 575/2013
Article 429 c – paragraph 3 – introductory part

3. For the purposes of paragraph 1 of this Article, institutions calculating the replacement cost of derivative contracts in accordance with Article 275 may recognise only collateral received ~~in cash~~that qualifies as Level 1 high quality liquid assets in accordance with Article 10 of Delegated Regulation (EU) 2015/61, excluding extremely high quality covered bonds referred to in point (f) of Article 10(1) of that Delegated Regulation, regardless of their compliance with the operational requirements as set out in Article 8 of that Delegated Regulation from their counterparties as the variation margin referred to in Article 275, where the applicable accounting framework has not already recognised the variation margin as a reduction of the exposure value and where all of the following conditions are met:

2018/02/05
Committee: ECON

Caroline NAGTEGAAL, Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 115

Regulation (EU) No 575/2013
Article 429 c – paragraph 3 – point a

(a) for trades not cleared through a QCCP, the ~~cash received~~Level 1 high quality liquid asset received as collateral by the recipient counterparty is not segregated;

2018/02/05
Committee: ECON

Caroline NAGTEGAAL, Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 115

Regulation (EU) No 575/2013
Article 429 c – paragraph 3 – subparagraph 2

For the purposes of the first subparagraph, where an institution provides ~~cash~~ collateral as referred to under paragraph 3 to a counterparty and that collateral meets the conditions laid down in points (a) to (e) of that subparagraph, the institution shall consider that collateral as the variation margin posted to the counterparty and shall include it in the calculation of replacement cost.

2018/02/05
Committee: ECON

Caroline NAGTEGAAL, Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 115

Regulation (EU) No 575/2013
Article 429 c – paragraph 4

4. For the purposes of paragraph 1 of this Article, institutions shall not include collateral received in the calculation of NICA as defined in point 12a of Article 272, except in the case of derivatives contracts with counterparties referred to under point (10) of Article 2 of Regulation (EU) No 648/2012 or with clients where those contracts are cleared by a QCCP.

2018/02/05
Committee: ECON

Caroline NAGTEGAAL, Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 115

Regulation (EU) No 575/2013
Article 429 c – paragraph 5

5. For the purposes of paragraph 1 of this Article, institutions shall set the value of the multiplier used in the calculation of the potential future exposure in accordance with Article 278(1) to one, except in the case of derivatives contracts with counterparties referred to under point (10) of Article 2 of Regulation (EU) No 648/2012 or with clients where those contracts are cleared by a QCCP.

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 121

Regulation (EU) No 575/2013
Article 494 – paragraph 2 a (new)

2a. For the purposes of paragraph 3 of Article 72b, until the resolution authority assesses for the first time the elements referred to in points (b) and (c) of Article 45b(3) of Directive 2014/59/EU [NWCO test] and confirms there is no material adverse impact on the resolvability of the institution, liabilities shall qualify as eligible liabilities instruments up to an aggregate amount that does not exceed, until 31 December 2021, 2.5% and, after that date, 3.5% of the total risk exposure amount calculated in accordance with paragraphs 3 and 4 of Article 92, provided that they meet the conditions laid down in points (a) and (b) of Article 72b(3).

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 123

(ii) ~~five~~two years after the date of submission of the application.

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 127

Regulation (EU) No 575/2013
Article 501 a – paragraph 1 – point j

(j) the obligor has adequate safeguards to ensure completion of the project according to the agreed specification, budget or completion date; including strong completion guarantees or experienced constructor providing adequate liquidated damages as confirmed by the technical advisor (to be provided by credit worthy counterparts or covered by acceptable LC);

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 127

Regulation (EU) No 575/2013
Article 501 a – paragraph 2 – point a – point iv – indent 3 a (new)

– it is partly regulated or contractually fixed and, in addition, the project is resilient to downside sensitivities regarding price or volume risk, or a combination of both;

2018/02/05
Committee: ECON

Thierry CORNILLET

Proposal for a regulation
Article 1 – paragraph 1 – point 127

Regulation (EU) No 575/2013
Article 501 d a (new) after title II “reports and reviews” before Article 502

(127) In title II, reports and reviews, a new Article 501d a is inserted before Article 502: "Article 501da By [one year after the publication of this regulation in the Official Journal of the EU], and after consulting the EBA, the SSM, the SRB, the ESRB and the relevant national competent authorities, the Commission shall present an amendment to this regulation on robust governance arrangements, which shall include a clear organisational structure with well- defined, transparent and consistent lines of responsibility, effective processes to identify, manage, monitor and report the risks they are or might be exposed to, adequate internal control mechanisms, including sound administration and accounting procedures, and remuneration policies and practices that are consistent with and promote sound and effective risk management. The arrangements, processes and mechanisms referred to above shall be comprehensive and proportionate to the nature, scale and complexity of the risks inherent in the business model and the institution's activities. The technical criteria established in Articles 76 to 95 of Directive 2013/36/EU of the European Parliament and of the Council of Ministers of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC shall be taken into account."

2018/02/05
Committee: ECON

65 Amendments of Thierry CORNILLET related to 2016/0360A(COD)

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