BETA
Home MEPs Dossiers Committees Subjects Blog About Dumps

Activities of Ieke van den BURG related to 2008/0191(COD)

Plenary speeches (1)

Credit requirements directives: Directives 2006/48/EC and 2006/49/EC - Community programme for financial services, financial reporting and auditing
2016/11/22
Dossiers: 2008/0191(COD)

Amendments (32)

Amendment 27 #
Ieke van den BURG, Pervenche BERÈS
Proposal for a directive – amending act
Recital 1
(1) Article 3 of Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions allows Member States to provide for special prudential regimes for credit institutions which are permanently affiliated to a central body since 15 December 1977, provided that those regimes were introduced in national laws no later than 15 December 1979. Those time limits prevent Member States, especially those which have acceded to the European Union since 1980, to introduce the same regimes for similar affiliations of credit institutions which have been set up later on their territories. It is therefore appropriate to remove the time limits set out in Article 3, in order to ensure equal conditions for competition between credit institutions in Member States. The Committee of European Banking Supervisors should provide for non- binding guidelines in order to enhance the convergence of supervisory practices in this regard.
2009/01/19
Committee: ECON
Amendment 35 #
Ieke van den BURG, Pervenche BERÈS, Udo BULLMANN
Proposal for a directive – amending act
Recital 7
(7) Competent authorities should be able to participate in colleges established for the supervision of credit institutions the parent institution of which is situated in a third country. The Committee of European Banking Supervisors should provide, where necessary, for non-binding guidelines and recommendations in order to enhance the convergence of supervisory practices pursuant to Directive 2006/48/EC. In order to avoid inconsistencies and regulatory arbitrage, which could result from differences in the approaches and rules applied by the various colleges and application of discretion by Member States, guidelines on the proceedings of rules governing colleges should be developed by the Committee of European Banking Supervisors.
2009/01/19
Committee: ECON
Amendment 41 #
Ieke van den BURG, Udo BULLMANN
Proposal for a directive – amending act
Recital 8 a (new)
(8a) Cooperation between supervisory authorities, dealing with groups and holdings and their subsidiaries and branches, in colleges is a phase in a development towards further regulatory convergence and supervisory integration. Trust between supervisors and respect for their respective responsibilities is essential. In the event of a conflict between members of a college linked to those different responsibilities, neutral and independent advice, mediation and conflict resolving mechanisms at Community level are essential. If voluntary and non-binding mediation mechanisms are complemented or replaced by binding mechanisms in the future, these should be applicable to the procedures in this Directive.
2009/01/19
Committee: ECON
Amendment 51 #
Ieke van den BURG
Proposal for a directive – amending act
Recital 15 a (new)
(15a) In the light of the present turmoil in the financial markets and the liquidity and credit problems in the real economy the rules to be applied on securitisation demand a balanced and flexible approach and should therefore be elaborated, assessed and where necessary promptly and properly adapted in a comitology procedure. In order to avoid inconsistencies and regulatory arbitrage, which could result from differences in the approaches and rules applied by various colleges and national discretions, guidelines should be developed by the Committee of European Banking Supervisors.
2009/01/19
Committee: ECON
Amendment 61 #
Ieke van den BURG, Pervenche BERÈS
Proposal for a directive – amending act
Article 1 – point 3
Directive 2006/48/EC
Article 40 – paragraph 3
3. The competent authorities in one Member State shall take into account to the potential impact of their decisions on the stability of the financial system and the real economy in all other Member States concerned and, in particular, in emergency situations.
2009/01/19
Committee: ECON
Amendment 63 #
Ieke van den BURG, Pervenche BERÈS
Proposal for a directive – amending act
Article 1 – point 4
Directive 2006/48/EC
Article 42a – paragraph 1 – subparagraph 2 – point b
(b) the likely impact of a suspension or closure of the operations of the credit institution on liquidity and the payment and clearing and settlement systems in the host Member State;
2009/01/19
Committee: ECON
Amendment 84 #
Ieke van den BURG, Pervenche BERÈS
Proposal for a directive – amending act
Article 1 – point 13 a (new)
Directive 2006/48/EC
Article 74 – paragraph 2 – subparagraph 2 a (new)
13a. In Article 74(2), the following subparagraph is added: "For the communication of these calculations by credit institutions, the competent authorities shall, by 30 June 2011, apply uniform formats, frequencies and dates of reporting. To facilitate this, the Committee of European Banking Supervisors shall, by 31 December 2009, elaborate guidelines to introduce, within the Community, a uniform reporting format."
2009/01/19
Committee: ECON
Amendment 139 #
Ieke van den BURG
Proposal for a directive – amending act
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 1
1. A credit institution shall only be exposed to the credit risk of an obligation or potential obligation or a pool of obligatiThe securitisation market needs to be properly risk managed in order to provide the EU capital markets with liquidity. Prudent risk taking serves the stability of the financial markets and the real economy. A credit institution other than an originator, sponsor or potential obligations where it was not involved in directly negotiating, structuring and documenting the original agreement which created the obligations or potential obligations, if: (a) the persons or entities that directly negotioriginal lender shall: (a) be exposed to the credit risk of a securitisation position in its trading book or non-trading book only if the originator, sponsor or original lender has explicitly disclosed to the credit institution that it will retain, on an ongoing basis, a material net economic interest which, in any event shall be no less than 10%; (b) be able to demonstrated, structured and docufrom the momented the original agreement with the obligor or potential obligor; or alternatively and where applicable, (b) the persons or enty invest, to the competent authorities for each of their individual securitisation positieons that manage and purchase such obligations or potential obligations directly or indirectly on behalf of the credit institution, havthey have a comprehensive and thorough understanding of and have implemented formal policies and procedures appropriate to their trading book and non-trading book and commensurate with the rissued an explicit commitment to the credit institution to maintak profile of their investments in securitised positions for analysing, recording and monitorin,g on an ongoing basis, a material net economic interest and in any event not less than 5 per cent in positions having the same risk profile as the one thatnd in a timely manner performance information on the exposures underlying their securitisation positions. Where the requirements under Annex IX part 4a are not met in any material respect, the competent authority shall impose a proportionate penalty upon the credit institution is exposed to. concerned.
2009/01/19
Committee: ECON
Amendment 161 #
Ieke van den BURG
Proposal for a directive – amending act
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 1 a (new)
1a. Credit institutions shall comply with the definition of the net economic interest and the conditions attached to it regarding a prudent process of retention as provided in Annex IX, part 4a. The Committee of European Banking Supervisors will report annually to the European Parliament, the Council and the Commission about the compliance of credit institutions with and enforcement by competent authorities of this Article. The Committee of European Banking Supervisors shall elaborate guidelines and recommendations for the convergence of supervisory practices and avoidance of regulatory arbitrage with regard to the tasks and responsibilities of competent authorities as provided under Annex IX, part 4a. The Commission shall, by 31 December 2014, report to the European Parliament and the Council on the application and effectiveness of this Article in the light of market developments.
2009/01/19
Committee: ECON
Amendment 162 #
Ieke van den BURG
Proposal for a directive – amending act
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 2 – subparagraph 1 – introductory part
2. Paragraph 1 shall not apply to obligations or potential obligations that constitute claims or contingent claims on or guaranteed by:deleted
2009/01/19
Committee: ECON
Amendment 165 #
Ieke van den BURG
Proposal for a directive – amending act
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 2 – subparagraph 1 - point a
(a) central governments or central banks;deleted
2009/01/19
Committee: ECON
Amendment 167 #
Ieke van den BURG
Proposal for a directive – amending act
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 2 – subparagraph 1 - point b
(b) institutions to which a credit quality step of 3 or better applies according to Annex VI, Part 1, point 29; andeleted
2009/01/19
Committee: ECON
Amendment 169 #
Ieke van den BURG
Proposal for a directive – amending act
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 2 – subparagraph 1 - point c
(c) multilateral development banks.deleted
2009/01/19
Committee: ECON
Amendment 170 #
Ieke van den BURG
Proposal for a directive – amending act
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 2 – subparagraph 2
Paragraph 1 shall not apply either to syndicated loans or credit default swaps where these instruments are not used to package and/or hedge an obligation that is covered by paragraph 1.deleted
2009/01/19
Committee: ECON
Amendment 178 #
Ieke van den BURG
Proposal for a directive – amending act
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 3
3. Paragraphs 1 and 2 shall apply to exposures incurred by the credit institution after 1 January 2011. Competent authorities may decide to temporarily suspend the requirements during periods of general market liquidity stress.deleted
2009/01/19
Committee: ECON
Amendment 181 #
Ieke van den BURG
Proposal for a directive – amending act
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 4
4. Before investing and on an ongoing basis, credit institutions shall be able to demonstrate at all times to the competent authorities for each of their individual securitisation positions that they have a comprehensive and thorough understanding of and have implemented formal policies and procedures for analysing and recording, in writing: (a) the commitment, under paragraph 1, of originators and/or sponsors to maintain a net economic interest in the securitisation and the period for which such commitment is given; (b) the risk characteristics of the individual securitisation position; (c) the risk characteristics of the exposures underlying the securitisation position; (d) the reputation and loss experience in earlier securitisations of the originators in the relevant exposure classes underlying the securitization position; (e) the statements made by the originators and sponsors about the due diligence undertaken by them on the obligors and, where applicable, on the collateral quality of the exposures underlying the securitization position; (f) where applicable, the methodologies and concepts on which the valuation of collateral supporting the exposures underlying the securitization position is based and the policies adopted by the originators to ensure the independence of the valuer; and (g) all the structural features of the securitisation that can materially impact the performance of the credit institution's securitisation position. To this end, credit institutions shall prior to investing and regularly thereafter perform and record appropriate stress tests, such stress tests to be conducted independently of the ECAI or ECAIs who have rated the securitisation and to be based on all relevant information provided by the originator for this purpose.deleted
2009/01/19
Committee: ECON
Amendment 206 #
Ieke van den BURG
Proposal for a directive – amending act
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 5
5. Credit institutions shall establish formal procedures to monitor on an ongoing basis and in a timely manner performance information on the exposures underlying their securitisation positions. Where relevant, this shall include, at a minimum: the exposure type, the length of time the exposures have been held by the originator including the percentage held by the originator for less than 2 years, the percentage of loans more than 30, 60 and 90 days past due, default rates, prepayment rates, loans in foreclosure, collateral type and occupancy, frequency distribution of credit scores or other measures of credit worthiness across underlying exposures, industry and geographical diversification, frequency distribution of loan to value ratios with band widths that facilitate adequate sensitivity analysis. Where the underlying exposures are themselves securitisation positions, the requirements to monitor and be able to access information shall apply to the exposures underlying these securitisation positions. Where the requirements in paragraph 4 and in this paragraph are not met, credit institutions shall apply a risk weight of 1250% to these securitisation positions under Annex IX, part 4.deleted
2009/01/19
Committee: ECON
Amendment 215 #
Ieke van den BURG
Proposal for a directive – amending act
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 6
6. Sponsor and originator credit institutions shall apply the same sound and well-defined criteria for credit- granting in accordance with the requirements of Annex V, point 3 to exposures to be securitised as they apply to exposures to be held on their own non- trading book. To this end the same processes for approving and, where relevant, amending, renewing and re- financing credits shall be applied by the originator and sponsor credit institutions. Credit institutions shall also apply the same standards of analysis to participations and/or underwritings in securitization issues purchased from third parties whether such participations and/or underwritings are to be held on their trading or non-trading book.deleted
2009/01/19
Committee: ECON
Amendment 217 #
Ieke van den BURG
Proposal for a directive – amending act
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 7
7. Sponsor and originator credit institutions shall disclose to investors the level of their commitment under paragraph 1 to maintain a net economic interest in the securitisation. Sponsor and originator credit institutions shall ensure that prospective investors have readily available access to all materially relevant data on the credit quality and performance of the individual underlying exposures, cash flows and collateral supporting a securitization exposure as well as such information that is necessary to conduct comprehensive and well informed stress tests on the cash flows and collateral values supporting the underlying exposures. Where these requirements and those in paragraph 6 are not met, Article 95 (1) shall not be applied by an originator credit institution which will not be allowed to exclude the securitised exposures from the calculation of its capital requirements under this Directive.deleted
2009/01/19
Committee: ECON
Amendment 223 #
Ieke van den BURG
Proposal for a directive – amending act
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 8
8. Paragraphs 4 to 7 shall apply to securitisations issued from the date that this Directive comes into effect and to existing securitisations where new underlying exposures are added or substituted after that date.deleted
2009/01/19
Committee: ECON
Amendment 226 #
Ieke van den BURG
Proposal for a directive – amending act
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 9
9. Competent authorities shall disclose publicly at least annually: (a) the methodologies adopted to review the compliance with paragraphs 1 to 7; (b) a description and the number of the measures undertaken to review the compliance with paragraphs 1 to 7 during the past 12 months; and (c) the number and a summary description of the cases of non- compliance with paragraphs 1 to 7 identified during the past 12 months. This requirement is subject to the second subparagraph of Article 144.deleted
2009/01/19
Committee: ECON
Amendment 232 #
Ieke van den BURG
Proposal for a directive – amending act
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 10
10. The Committee of European Banking Supervisors will report annually to the Commission about the compliance by competent authorities with this Article. The Commission shall, no later than December 2014, report to the European Parliament and the Council on the application and effectiveness of this Article in the light of market developments."deleted
2009/01/19
Committee: ECON
Amendment 240 #
Ieke van den BURG, Pervenche BERÈS
Proposal for a directive – amending act
Article 1 – point 28 – point a – point i
Directive 2006/48/EC
Article 129 – paragraph 1 – point b
(b) planning and coordination of supervisory activities in going concern situations, including in relation to the activities referred to in Articles 123, 124, and 136, in Chapter 5 and in Annex V, in cooperation with the competent authorities and central banks involved;
2009/01/19
Committee: ECON
Amendment 241 #
Ieke van den BURG
Proposal for a directive – amending act
Article 1 – point 28 – point a – point ii
Directive 2006/48/EC
Article 129 – paragraph 1 – point c – subparagraph 1
(c) planning and coordination of supervisory activities in cooperation with the competent authorities involved, and if necessary with central banks and relevant competition authorities, in preparation of and during emergency situations, including adverse developments in credit institutions or in financial markets.
2009/01/19
Committee: ECON
Amendment 250 #
Ieke van den BURG, Pervenche BERÈS
Proposal for a directive – amending act
Article 1 – point 28 – point b
Directive 2006/48/EC
Article 129 – paragraph 3 – subparagraph 5
In the absence of such a joint decision between the competent authorities within six months, the consolidating supervisor shall make its own decision on the application of Articles 74(2), 123, 124 and 136(2). The decision shall be set out in a document containing the fully reasoned decision and shall take into account the views and reservThe consolidating supervisor will follow the advice of CEBS and do its utmost to come to an acceptable and workable decision as soon as possible and at least within three months on the consolidated level of own funds held by the group in relations of to the other competent authorities expressed during the six months period. The decision shall be provided to the other competent authorities by the consolidating supervisorlevel of own funds for the application of Article 136(2) for each entity within the banking group.
2009/01/19
Committee: ECON
Amendment 255 #
Ieke van den BURG, Pervenche BERÈS
Proposal for a directive – amending act
Article 1 – point 28 – point b
Directive 2006/48/EC
Article 129 – paragraph 3 – subparagraph 6
WThere the Committee of European Banking Supervisors has be respective competent authorities for the supervision of subsidiaries of an EU parent consulted, the consolidating supervisor shall consider such advice, and explain any significant deviation there fromredit institution or an EU parent financial holding company will follow up the advice of CEBS and do their utmost to come to acceptable and coherent decisions on the application of Article 136(2) in relation to the decisions on consolidated supervision on Articles 123 and 124.
2009/01/19
Committee: ECON
Amendment 257 #
Ieke van den BURG
Proposal for a directive – amending act
Article 1 – point 28 – point b
Directive 2006/48/EC
Article 129 – paragraph 3 – subparagraph 6 a (new)
Where mediation and appeal procedures are established at Community level, binding rulings in relation to the decision- making process shall be applied.
2009/01/19
Committee: ECON
Amendment 258 #
Ieke van den BURG, Pervenche BERÈS
Proposal for a directive – amending act
Article 1 – point 28 – point b
Directive 2006/48/EC
Article 129 – paragraph 3 – subparagraph 6 a (new)
All decisions shall be set out in a document, provided by the consolidating supervisor, containing the fully reasoned decision and shall take into account the views and reservations of the other competent authorities expressed during the whole decision-making period and shall be provided to the other competent authorities involved and to the EU parent credit institution. The Committee of European Banking Supervisors may disclose its advice.
2009/01/19
Committee: ECON
Amendment 260 #
Ieke van den BURG, Pervenche BERÈS
Proposal for a directive – amending act
Article 1 – point 28 – point b
Directive 2006/48/EC
Article 129 – paragraph 3 – subparagraph 7
The joint decision referred to in the first subparagraph and the decisions referred to in the sixth subparagraph shall be recognised as determinative and applied by the competent authorities in the Member State concerned. The Committee of European Banking Supervisors shall determine procedures for the convergence of supervisory practices with regard to the joint decision process referred to in this paragraph and with regard to application of Articles 123, 124 and 136(2) with a view to facilitating joint decisions.
2009/01/19
Committee: ECON
Amendment 267 #
Ieke van den BURG, Pervenche BERÈS
Proposal for a directive – amending act
Article 1 – point 30
Directive 2006/48/EC
Article 131a – paragraph 2 – subparagraph 5
The decision of the consolidating supervisor shall take account of the relevance of the supervisory activity to be planned or coordinated for those authorities, and the obligationsin particular the potential impact on the stability of the financial system and the real economy in the Member States concerned referred to in Articles 40(3) and Article 42a(2).
2009/01/19
Committee: ECON
Amendment 272 #
Ieke van den BURG
Proposal for a directive – amending act
Article 1 – point 33 a (new)
Directive 2006/48/EC
Article 156 – paragraph -1 (new)
(33a) In Article 156, the following paragraph -1 is inserted: "By 31 January 2010, the Commission shall review this Directive as whole to address how this Directive should take into account the economic cycle. The review should take into account how valuation, leverage, bank capital and provisioning may exacerbate cyclical trends, and should promote through-the- cycle provisioning. The Commission shall consult, where appropriate, the Committee of European Banking Supervisors on the above issues, and in particular on the Annex regarding securitisation, and take their advice duly into account. The Commission shall, by 31 January 2010 submit a report on the above issues to the Parliament and to the Council with any appropriate proposals."
2009/01/19
Committee: ECON
Amendment 281 #
Ieke van den BURG
Proposal for a directive – amending act
Article 1 – point 35 b (new)
Directive 2006/48/EC
Annex IX – part 4 a (new)
(35b) In Annex IX, the following part is added: "PART 4a EXPOSURE TO TRANSFER CREDIT RISK DEFINITION AND CONDITIONS OF RETENTION 1. For the purpose of Article 122a, retention of net economic interest shall mean either: (a) retention of no less than 10% of the nominal value of each of the tranches sold or transferred to the investors; (b) in the case of securitisations of revolving exposures, retention of originator's interest of no less than 10% of the nominal value of the securitised exposures; (c) retention of randomly selected exposures, equivalent to not less than 10% of the nominal amount of the securitised exposures, where these would otherwise have been securitised in the securitisation provided that the number of potentially securitised exposures is no less than 100 at origination; or (d) retention of a position that is riskier than 10% of the nominal value of each tranche, equals in total no less than 10% of the nominal value of the securitised exposures and does not mature earlier than the tranches transferred or sold to investors. Net economic interest is measured at issuance and shall be maintained, which shall mean that retained positions, interest or exposures shall not be hedged or sold. Where an EU parent credit institution or an EU financial holding company, or one of its subsidiaries, as an originator or a sponsor, securitises exposures from several credit institutions, investment firms or financial institutions which are included in the scope of supervision on a consolidated basis, the requirement referred to in the first subparagraph may be satisfied on the basis of the consolidated situation of the related EU parent credit institution or EU financial holding company. This point shall apply only where credit institutions, investment firms or financial institutions which created the securitised exposures have committed themselves to adhere to the requirements set out in point 6 and deliver, in a timely manner, to the originator or sponsor and to the EU parent credit institution or an EU financial holding company the information needed to satisfy the requirements referred to in point 7. 2. Point 1 shall not apply when the securitised exposures are claims or contingent claims on or guaranteed by: (a) central governments or central banks; (b) regional governments, local authorities and public sector entities of Member States; (c) institutions to which a 50% risk weight or less is assigned under Articles 78 to 83; or (d) multilateral development banks. 3. Point 1 shall not apply to: (a) transactions based on an index, where the underlying reference entities are identical to those that make up an index of entities that is widely traded, or are other tradable securities other than securitisation positions; (b) syndicated loans, purchased receivables or credit default swaps where these instruments are not used to package and/or hedge a securitisation that is covered by point 1. 4. Credit institutions, other than originators or sponsors or original lenders, shall be able to demonstrate, from the moment they invest on, to the competent authorities for each of their individual securitisation positions that they have a comprehensive and thorough understanding of and have implemented formal policies and procedures appropriate to their trading book and non-trading book and commensurate with the risk profile of their investments in securitised positions for analysing and recording: (a) information disclosed under point 1, by originators or sponsors to specify the net economic interest that they maintain, on an ongoing basis, in the securitisation; (b) the risk characteristics of the individual securitisation position; (c) the risk characteristics of the exposures underlying the securitisation position; (d) the reputation and loss experience in earlier securitisations of the originators or sponsors in the relevant exposure classes underlying the securitisation position; (e) the statements made by the originator or sponsor, or its agent or advisor, about its due diligence to ensure the quality of the securitised exposures and, where applicable, on the collateral quality of the securitised exposures; (f) where applicable, the methodologies and concepts on which the valuation of collateral supporting the securitised exposures is based and the policies adopted by the originator or sponsor to ensure the independence of the valuer; and (g) all the structural features of the securitisation that can materially impact the performance of the credit institution's securitisation position. Credit institutions shall regularly perform their own stress tests appropriate to their securitisation positions. To this end, credit institutions may rely on stress tests performed by an ECAI provided that credit institutions can demonstrate, when requested, that they understand methodology, assumptions and results. 5. Credit institutions, other than originators or sponsors or original lenders, shall establish formal procedures appropriate to their trading book and non-trading book and commensurate with the risk profile of their investments in securitised positions to monitor on an ongoing basis and in a timely manner performance information on the exposures underlying their securitisation positions. Where appropriate, this shall include: the exposure type, the percentage of loans more than 30, 60 and 90 days past due, default rates, prepayment rates, loans in foreclosure, collateral type and occupancy, frequency distribution of credit scores or other measures of credit worthiness across underlying exposures, industry and geographical diversification, frequency distribution of loan to value ratios with band widths that facilitate adequate sensitivity analysis. Where the underlying exposures are themselves securitisation positions, credit institutions shall have the above listed information not only on the underlying securitisation tranches, such as the issuer name and credit quality, but also on the characteristics and performance of the pools underlying securitisation tranches. Credit institutions shall have a thorough understanding of all structural features of a securitisation transaction that would materially impact the performance of their exposures to the transaction such as the contractual waterfall and waterfall related triggers, credit enhancements, liquidity enhancements, market value triggers, and deal-specific definition of default. Where the requirements in point 4, and in this point are not met in any material respect, the competent authority shall impose a proportionate penalty upon the credit institution concerned, which, in the case of capital charge shall not exceed 150% of the risk weighted (capped at 1250%) which would, but for this point apply to the relevant securitisation positions under Annex IX, part 4 except where competent authorities have decided temporarily to suspend the requirements referred to in points 1 during periods of general market liquidity stress. 6. Originator credit institutions shall apply the same sound and well-defined criteria for credit-granting in accordance with the requirements of Annex V, point 3 to exposures to be securitised as they apply to exposures to be held on their book. To this end, the same processes for approving and, where relevant, amending, renewing and re-financing credits shall be applied by the originator credit institutions. Credit institutions shall also apply the same standards to securitisation positions purchased from third parties. The same standards of analysis should be applied to the underwriting of securitisation positions as applied to other underwritings undertaken by the credit institution. 7. Sponsor and originator credit institutions shall disclose to investors the net economic interest that they maintain in the securitisation. Sponsor and originator credit institutions shall ensure that investors and prospective investors have readily available access to all materially relevant data on the securitisation exposure, such as the credit quality and performance of the individual underlying exposures, or the credit quality and performance of underlying pools of exposures where these exposures are assigned to the retail exposure class, and information that is necessary to conduct appropriate stress tests. Where these requirements and those in point 6 are not met, by an originator credit institution in any material respect, Article 95(1) shall not be applied by an originator credit institution which will not be allowed to exclude the securitised exposures from the calculation of its capital requirements under this Directive. 8. Points 1 to 7 shall apply to securitisations issued from 31 December 2010. To existing securitisations where new underlying exposures are added or substituted after that date, points 1 to 7 shall apply from 31 December 2015. Competent authorities may decide to temporarily suspend the requirements referred to in point 1 during periods of general market liquidity stress. 9. Competent authorities shall disclose publicly at least annually the following information: (a) the general criteria and methodologies adopted to review the compliance with points 1 to 8 at 31 December 2010; (b) without prejudice to the provisions laid down in Chapter 1, Section 2, a summary description of the outcome of the supervisory review and description of the measures imposed in cases of non- compliance with points 1 to 7 identified on an annual basis starting from December 2011. This requirement is subject to the second subparagraph of Article 144."
2009/01/19
Committee: ECON
@parltrack
@parltrack@eupolicy.social
[javascript protected email address]
code AGPLv3.0+
data ODBLv1.0
site content CC-By-Sa-3.0

ParlTrack - 2011-2024

© European Union, 2011 – Source: European Parliament
Hosted by AS250.net Foundation