53 Amendments of Anne E. JENSEN related to 2011/0202(COD)
Amendment 187 #
Proposal for a regulation
Recital 68
Recital 68
(68) A leverage ratio is a new regulatory and supervisory tool for the Union. In line with international agreements, it should be introduced first as an additional feature that can be applied on individual institutions at the discretion of supervisory authorities. Reporting obligations for institutions would allow appropriate review and calibration, with a view to migrating to a binding measure in 2018 based on a legislative proposal by the Commission, and subject to the Union's full co-decision procedure.
Amendment 204 #
Proposal for a regulation
Recital 76
Recital 76
(76) Apart from short-term liquidity needs, credit institutions and investment firms should also adopt funding structures that are stable at a longer term horizon. In December 2010, the BCBS agreed that the NSFR will move to a minimum standard by 1 January 2018 and that the BCBS will put in place rigorous reporting processes to monitor the ratio during a transition period and will continue to review the implications of these standards for financial markets, credit extension and economic growth, addressing unintended consequences as necessary. The BCBS thus agreed that the NSFR will be subject to an observation period and will include a review clause. In this context, EBA should, based on reporting required by this Regulation, evaluate how a stable funding requirement should be designed. Based on this evaluation, the Commission should report to Council and European Parliament together with any appropriate proposals in order to introducedecide whether such a requirement should be introduced by 2018.
Amendment 210 #
Proposal for a regulation
Recital 85
Recital 85
(85) The power to adopt acts in accordance with Article 290 of the TFEU should also be delegated to the Commission in respect of prescribing a temporary reduction in the level of own funds or risk weights specified under that Regulation in order to take account of specific circumstances; to clarify the exemption of certain exposures from the application of provisions of that Regulation on large exposures; to specify amounts relevant to the calculation of capital requirements for the trading book to take account of developments in the economic and monetary field; to adjust the categories of investment firms eligible for certain derogations to required levels of own funds to take account of developments on financial markets; to clarify the requirement that investment firms hold own funds equivalent to one quarter of their fixed overheads of the preceding year to ensure uniform application of this Regulation; to determine the elements of own funds from which deductions of an institution's holdings of the instruments of relevant entities should be made; to introduce additional transitional provisions relating to the treatment of actuarial gains and losses in measuring defined benefit pension liabilities of institutions; and to temporarily increase in the level of own funds; and to specify liquidity requirements.
Amendment 218 #
Proposal for a regulation
Recital 89
Recital 89
(89) The Commission should adopt the draft regulatory technical standards developed by EBA in the areas of cooperative societies or similar institutions, certain own funds instruments, prudential adjustments, deductions from own funds, additional own funds instruments, minority interests, services ancillary to banking, the treatment of credit risk adjustment, probability of default, loss given default, corporate Governance, approaches to risk- weighting of assets, convergence of supervisory practices, liquidity, and transitional arrangements for own funds, by means of delegated acts pursuant to Article 290 TFEU and in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level.
Amendment 282 #
Proposal for a regulation
Article 7 – paragraph 2 – subparagraph 1
Article 7 – paragraph 2 – subparagraph 1
Amendment 489 #
Proposal for a regulation
Article 49 – paragraph 1 – point n
Article 49 – paragraph 1 – point n
(n) the provisions governing the instruments require the principal amount of the instruments except for the provisions contained under Article 51, paragraph c) let (i) below to be written down temporarily, or the instruments to be converted to Common Equity Tier 1 instruments, upon the occurrence of a trigger event;
Amendment 493 #
Proposal for a regulation
Article 49 – paragraph 2 – subparagraph 1 – point b
Article 49 – paragraph 2 – subparagraph 1 – point b
(b) the nature of the permanent or temporarily write down of the principal amount;
Amendment 521 #
Proposal for a regulation
Article 79 – paragraph 1 – point a – introductory part
Article 79 – paragraph 1 – point a – introductory part
(a) the Common Equity Tier 1 capital of the subsidiary minus the lowhigher of the following:
Amendment 527 #
Proposal for a regulation
Article 79 – paragraph 1 – point a – point i
Article 79 – paragraph 1 – point a – point i
(i) the amount of Common Equity Tier 1 capital of that subsidiary required to meet the sum of the requirement laid down in point (a) of Article 87(1) a specific requirement under Article 100 of Directive [inserted by OP] or the internal capital calculated by the institution and the combined buffer referred to in Article 122(2) of Directive [inserted by OP];
Amendment 533 #
Proposal for a regulation
Article 79 – paragraph 1 – point a – point ii
Article 79 – paragraph 1 – point a – point ii
(ii) the amount of consolidated Common Equity Tier 1 capital that relates to that subsidiary that is required on a consolidated basis to meet the sum of the requirement laid down in point (a) of Article 87(1) a specific requirement under Article 100 of Directive [inserted by OP] or the internal capital calculated by the institution in Article 72 of Directive and the combined buffer referred to in Article 122(2) of Directive [inserted by OP];
Amendment 539 #
Proposal for a regulation
Article 80 – paragraph 1 – point a – introductory part
Article 80 – paragraph 1 – point a – introductory part
(a) the lowTier 1 capital of the subsidiary minus the higher of the following:
Amendment 546 #
Proposal for a regulation
Article 80 – paragraph 1 – point a – point i
Article 80 – paragraph 1 – point a – point i
(i) the amount of Tier 1 capital of the subsidiary required to meet the sum of the requirement laid down in point (b) of Article 87(1), a specific requirement under Article 100 of Directive [inserted by OP] or the internal capital calculated by the institution and the combined buffer referred to in Article 122(2)of Directive [inserted by OP];
Amendment 550 #
Proposal for a regulation
Article 80 – paragraph 1 – point a – point ii
Article 80 – paragraph 1 – point a – point ii
(ii) the amount of consolidated Tier 1 capital that relates to the subsidiary that is required on a consolidated basis to meet the sum of the requirement laid down in point (b) of Article 87(1) a specific requirement under Article 100 of Directive [inserted by OP] or the internal capital calculated by the institution and the combined buffer referred to in Article 122(2)of Directive [inserted by OP];
Amendment 554 #
Proposal for a regulation
Article 82 – paragraph 1 – point a – introductory part
Article 82 – paragraph 1 – point a – introductory part
(a) the lowOwn Funds of the subsidiary minus the higher of the following:
Amendment 561 #
Proposal for a regulation
Article 82 – paragraph 1 – point a – point i
Article 82 – paragraph 1 – point a – point i
(i) the amount of own funds of the subsidiary required to meet the sum of the requirement laid down in point (c) of Article 87(1) a specific requirement under Article 100 of Directive [inserted by OP] or the internal capital calculated by the institution in Article 72 of Directive and the combined buffer referred to in Article 122(2) of Directive [inserted by OP];
Amendment 564 #
Proposal for a regulation
Article 82 – paragraph 1 – point a – point ii
Article 82 – paragraph 1 – point a – point ii
(ii) the amount of own funds that relates to the subsidiary that is required on a consolidated basis to meet the sum of the requirement laid down in point (c) of Article 87(1), a specific requirement under Article 100 of Directive [inserted by OP] or the internal capital calculated by the institution in Article 72 of Directive and the combined buffer referred to in Article 122(2) of Directive [inserted by OP];
Amendment 565 #
Proposal for a regulation
Article 82 – paragraph 1 – point b
Article 82 – paragraph 1 – point b
(b) the qualifying own funds of the undertaking, expressed as a percentage of all own funds instruments of the subsidiary that are included in Common Equity Tier 1, Additional Tier 1 and Tier 2 items and the related retained earnings and share premium accounts
Amendment 598 #
Proposal for a regulation
Article 96 – paragraph 3 – subparagraph 1 – point a
Article 96 – paragraph 3 – subparagraph 1 – point a
(a) uniform definition, formats, frequencies and dates of reporting of the items referred to in paragraph 1 to ensure a uniform and comparable definition of losses;
Amendment 672 #
Proposal for a regulation
Article 120 – paragraph 2 – point b
Article 120 – paragraph 2 – point b
Amendment 713 #
Proposal for a regulation
Article 124 – paragraph 5
Article 124 – paragraph 5
5. Covered bonds issued before 31 December 2007 are not subject to the requirements of paragraph 1 and 2. They are eligible for the preferential treatment under paragraph 3 and 4 until their maturity.
Amendment 750 #
Proposal for a regulation
Article 155 – paragraph 1
Article 155 – paragraph 1
Institutions shall subtract the expected loss amounts calculated in accordance with Article 154(2)(3) and (7) from the sum of value adjustments and provisions related to these exposures. general and specific credit risk adjustments related to these exposures. Discounts on balance sheet exposures purchased when in default according to Article 162(1) shall be treated in the same manner as specific credit riskvalue adjustments Sspecific credit risk adjustments on exposures in default shall not be used to cover expected loss on other exposures. Expected loss amounts for securitiszed exposures and general and specific credit risk adjustments related to these exposures shall not be included in this calculation.
Amendment 753 #
Proposal for a regulation
Article 160 – paragraph 4 – subparagraph 1
Article 160 – paragraph 4 – subparagraph 1
Amendment 762 #
Proposal for a regulation
Article 174 – paragraph 1 – subparagraph 1 – point b
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. The competent authorities of each Member State may set the number of days past due up to a figure of 180 for exposures secured by mortgages on immovable property to counterparties situated in their territory, if local conditions make it appropriate.
Amendment 882 #
Proposal for a regulation
Article 389 – paragraph 2 – point a
Article 389 – paragraph 2 – point a
(a) covered bonds falling within the terms of Article 124 (1), and Article 124 (2);, and 124 (5)
Amendment 1027 #
Proposal for a regulation
Article 404 – paragraph 3 – subparagraph 1 – point a
Article 404 – paragraph 3 – subparagraph 1 – point a
(a) they are not issued by the institution itself or its parent or subsidiary institutions or another subsidiary of its parent institutions or parent financial holding company; This does not apply to assets referred to in (i) and (ii) in paragraph 2, point (a), which are traded on an ongoing basis in the secondary market;
Amendment 1036 #
Proposal for a regulation
Article 404 – paragraph 3 – subparagraph 1 – point c
Article 404 – paragraph 3 – subparagraph 1 – point c
(c) their price is generally agreed upon by market participants and can easily be observed in the market, or their price can be determined by a formula that is easy to calculate based on publicly available inputs and does not depend on strong assumptions as is typically the case for structured or exotic products;
Amendment 1043 #
Proposal for a regulation
Article 404 – paragraph 3 – subparagraph 1 – point e
Article 404 – paragraph 3 – subparagraph 1 – point e
(e) they are tradable on active outright sale or repurchase agreement markets with a large and diverse number of market participants, a high trading volume, and market breadth and depth. These criteria should be interpreted separately for each market;
Amendment 1080 #
Proposal for a regulation
Article 405 – paragraph 1 – point b
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); Secured lending and capital market driven transactions, as defined in Article 188, that are collateralised by assets not qualifying as liquid assets according to Article 404, is not to have any impact on the eligible amount of liquid assets;
Amendment 1092 #
Proposal for a regulation
Article 405 – paragraph 1 – point g
Article 405 – paragraph 1 – point g
(g) the consistency of the denomination of the liquid assets is consistent with the distribution by significant currency of liquidity outflows after the deduction of capped inflows is monitored and reported, including the institution's ability to swap currencies and access the relevant foreign exchange markets. A currency is considered significant if the aggregate liabilities denominated in that currency amount to 5% or more of the institution's total liabilities.
Amendment 1192 #
Proposal for a regulation
Article 413 – paragraph 1
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. Institutions may exempt liquidity inflows from monies due from borrowers and bond investors related to mortgage lending funded by bonds eligible for the treatment set out in Article 124(3), (4) or (5) or as defined in Article 52(4) of Directive 2009/65/EC from this limit.
Amendment 1204 #
Proposal for a regulation
Article 413 – paragraph 2 – point a
Article 413 – paragraph 2 – point a
(a) monies due from customers that are not financial customers for the purposes of principal repayment 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 monies due from mortgage lending funded by bonds eligible for the treatment set out in Article 124(3), (4) or (5) or as defined in Article 52(4) of Directive 2009/65/EC;
Amendment 1243 #
Proposal for a regulation
Article 414 – paragraph 1 – point b – point ix
Article 414 – paragraph 1 – point b – point ix
(ix) liabilities resulting from securities issued qualifying for the treatment in Article 124 or as defined in Article 52(4) of Directive 2009/65/;
Amendment 1259 #
Proposal for a regulation
Article 415 – paragraph 1 – point g a (new)
Article 415 – paragraph 1 – point g a (new)
(g a) and separately those: v) collateralised by commercial real estate (CRE); (vi) collateralised by residential real estate (RRE); (vii) match funded (pass-through) via bond eligible for the treatment set out in Article 124 or as defined in Article 52(4) of Directive 2009/65/EC;
Amendment 1270 #
Proposal for a regulation
Article 416 – paragraph 2 – subparagraph 2
Article 416 – paragraph 2 – subparagraph 2
Institutions shall calculate the leverage ratio as the simple arithmetic mean of the monthly leverage ratios over aevery quarter.
Amendment 1386 #
Proposal for a regulation
Article 444
Article 444
Amendment 1488 #
Proposal for a regulation
Article 476 – paragraph 1 – point a
Article 476 – paragraph 1 – point a
(a) They shall hold own funds as required by Article 87 Part Three Title II Chapter 1;
Amendment 1489 #
Proposal for a regulation
Article 476 – paragraph 1 – point b
Article 476 – paragraph 1 – point b
(b) They shall hold own funds which are at all times more than or equal to 80 % of the total minimum amount of own funds that the credit institution would be required to hold under Article 4 of Directive 93/6/EEC and Directive 2000/12/EC, as applicable prior to 1 January 2007 meet a temporary capital ratio of not less 6.4%. The temporary capital ratio is the own funds of the institution expressed as a percentage of the risk-adjusted assets and off-balance sheet items as set out in Annex IV.
Amendment 1490 #
Proposal for a regulation
Article 476 – paragraph 1 – point b a (new)
Article 476 – paragraph 1 – point b a (new)
(b a) Subject to the approval of the competent authorities the amount referred to in (b) may be replaced by any requirements to hold own funds which are at all times more than or equal to 80 % of the total minimum amount of own funds that those credit institutions would be required to hold under any of Article 78 to 83, 103 or 104 of Directive 2006/48/EC and Directive 2006/49/EC, as applicable prior to 1 January 2011.
Amendment 1491 #
Proposal for a regulation
Article 476 – paragraph 1 – point b b (new)
Article 476 – paragraph 1 – point b b (new)
(b b) A credit institution may apply paragraph (b a) only if it stated to use the IRB approach or the Advanced Measurements Approaches for the calculation of its capital requirements on or after 1 January 2010.
Amendment 1501 #
Proposal for a regulation
Article 478 – paragraph 1
Article 478 – paragraph 1
The Commission shall, by 31 December 2015 and after consulting the EBA, report to the Parliament and the Council, together with any appropriate proposals, whether the risk weights laid down in Article 124 and the own funds requirements for specific risk in Article 325(5) are adequate for all the instruments that qualify for these treatments and whether the criteria in Article 124 should be made stare appropricater.
Amendment 1528 #
Proposal for a regulation
Article 481 – paragraph 2 – introductory part
Article 481 – paragraph 2 – introductory part
2. EBA shall, by 31 December 2013, report to the Commission on appropriate uniform definitions of high and of extremely high liquidity and credit quality of transferable assets for purposes of Article 404, taking into account all relevant factors such as the applicable legal framework, incentive structures, available market initiatives and tools designed to enhance transparency and liquidity of assets. EBA shall in particular test the adequacy of the following criteria and the appropriate levels for such definitions:
Amendment 1530 #
Proposal for a regulation
Article 481 – paragraph 2 – point a
Article 481 – paragraph 2 – point a
(a) minimum trade volume of the assets
Amendment 1531 #
Proposal for a regulation
Article 481 – paragraph 2 – point b
Article 481 – paragraph 2 – point b
(b) minimum outstanding volume of the assets
Amendment 1533 #
Proposal for a regulation
Article 481 – paragraph 2 – point d
Article 481 – paragraph 2 – point d
(d) credit quality steps referred to in Sub- section 2 of Annex VI
Amendment 1534 #
Proposal for a regulation
Article 481 – paragraph 2 – point g
Article 481 – paragraph 2 – point g
(g) maximum bid/ask spread
Amendment 1535 #
Proposal for a regulation
Article 481 – paragraph 2 – point i
Article 481 – paragraph 2 – point i
(i) minimum turnover ratio
Amendment 1543 #
Proposal for a regulation
Article 481 – paragraph 2 a (new)
Article 481 – paragraph 2 a (new)
2 a. The Commission shall submit a legislative proposal to the European Parliament and Council to specify in detail the general requirement set out in Article 401. Such legislative proposal shall be based on the items to be reported according to Part Six, Title II. The legislative proposal 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.
Amendment 1544 #
Proposal for a regulation
Article 481 – paragraph 2 b (new)
Article 481 – paragraph 2 b (new)
2 b. For the purposes of paragraph 3 the Commission shall either individually or cumulatively assess whether a liquidity coverage requirement would have a detrimental impact on the business and risk profile of European institutions or on financial markets or the economy and shall take into account the reports referred to in paragraphs 1 and 2.
Amendment 1545 #
Proposal for a regulation
Article 481 – paragraph 2 c (new)
Article 481 – paragraph 2 c (new)
2 c. The Commission shall submit the proposal referred to in paragraph 3 at the latest by 31 December 2014.
Amendment 1549 #
Proposal for a regulation
Article 481 – paragraph 3 – subparagraph 1
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, including non-deposit taking 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 match funded mortgage lending.
Amendment 1556 #
Proposal for a regulation
Article 481 – paragraph 3 – subparagraph 2 a (new)
Article 481 – paragraph 3 – subparagraph 2 a (new)
The reports referred to in paragraph 1, 2 and 6 shall be open for public consultation in all Member States before submitted to the Commission.
Amendment 1561 #
Proposal for a regulation
Article 482 – paragraph 1
Article 482 – paragraph 1
1. The Commission shall submit by 31 December 2016 a report on the impact and effectiveness of the leverage ratio to the European Parliament and the Council. Where appropriate, the report shall be accompanied by a legislative proposal on the introduction of one or more levels for the leverage ratio that institutions would be required to meet as a Pillar I tool or a continuation of a Pillar II approach, suggesting an adequate calibration for those levels and any appropriate adjustments to the capital measure and the total exposure measure as defined in Article 416. Any legislative proposal for one or more levels of leverage ratio shall be expressly subject to the full European legislative process involving the Parliament and Council.
Amendment 1628 #
Proposal for a regulation
Article 487 – paragraph 2
Article 487 – paragraph 2
2. Article 436(1) shall apply from 1 January 20158.