21 Amendments of Sven GIEGOLD related to 2016/0360B(COD)
Amendment 26 #
Draft legislative resolution
Citation 6 a (new)
Citation 6 a (new)
- having regard to the Standard on regulatory treatment of accounting provisions - interim approach and transitional arrangements of March 2017 by Basel Committee on Banking Supervision,
Amendment 27 #
Draft legislative resolution
Citation 6 b (new)
Citation 6 b (new)
- having regard to the European Parliament resolution of 6 October 2016 on International Financial Reporting Standards: IFRS 92, _______________________ 2 P8-TA(2016)0381.
Amendment 28 #
Draft legislative resolution
Citation 6 c (new)
Citation 6 c (new)
- having regard to the Report on results from the EBA impact assessment of IFRS 9 of 10 November 2016 by the European Banking Authority,
Amendment 29 #
Draft legislative resolution
Citation 6 d (new)
Citation 6 d (new)
- having regard to the Opinion of the European Banking Authority on transitional arrangements and credit risk adjustments due to the introduction of IFRS 9 (EBA/OP/2017/02) of 6 March 2017,
Amendment 30 #
Draft legislative resolution
Citation 6 e (new)
Citation 6 e (new)
- having regard to the Opinion of the ECB Supervisory Board on IFRS 9 as expressed by its Chair in the Hearing of the ECON Committee of the European Parliament on 25 April 2017,
Amendment 31 #
Draft legislative resolution
Citation 6 f (new)
Citation 6 f (new)
- having regard to the Answer of the Chair of the ECB Supervisory Board to a letter of MEP Danuta Maria Hübner of 1 June 2017,
Amendment 41 #
Proposal for a regulation
Recital 50 a (new)
Recital 50 a (new)
(50a) The global financial crisis brought the role played by international financial reporting standards (IFRS) in financial stability and growth, in particular the rules regarding the recognition of losses incurred in the banking system, onto the G20 and EU agendas. The G20 and the de Larosière report highlighted key issues with respect to accounting standards ahead of the crisis, including pro- cyclicality related to the mark-to-market principle and profit and loss recognition, the underestimation of risk accumulation during cyclical upturns and the lack of a common and transparent methodology for the valuation of illiquid and impaired assets. The International Accounting Standards Board (IASB) issued IFRS 9 – Financial Instruments as a key response to some aspects of the financial crisis and to its impact on the banking sector. The IFRS 9 constitutes an improvement on IAS 39 insofar as the move from an ‘incurred loss’ to an ‘expected loss’ impairment model addresses the problem of ‘too little, too late’ in the credit loss recognition procedure. The entry into force of IFRS 9 was in that context expected by all stakeholders and the EU credit institutions have already had time to adapt to the new framework and to identify the changes required for the transition to the new standard.
Amendment 46 #
Proposal for a regulation
Recital 51
Recital 51
(51) The application of the expected credit loss provisioning introduced by the revised international accounting standards on financial instruments “IFRS9”, may lead to a sudden significant increase (“cliff-effect”) in the capital ratios of institutions. While discussions are on- going on the appropriate prudential treatment of the impact of increased expected credit losses and to prevent an unwarranted detrimental effect on lending by credit institutions, the incremental provisioning for credit risk of IFRS9 should be phased in. The phase in should address the “cliff-effect” on the first date of application of IFRS9 and spread the impact on capital at that date over three years. In line with the Standard on regulatory treatment of accounting provisions - interim approach and transitional arrangements of March 2017 by Basel Committee on Banking Supervision, the impact of the expected credit loss provisions on CET1 capital should not be fully neutralised during the transition period.
Amendment 52 #
Proposal for a regulation
Recital 51 a (new)
Recital 51 a (new)
(51a) Mandatory application by all institutions of the IFRS transitional provisions would ensure maximum harmonisation and a consistent transition to IFRS 9 among EU institutions as well as comparability of financial disclosures, and would also address any unintended discrimination against institutions (‘the stigma effect’).
Amendment 53 #
Proposal for a regulation
Recital 51 b (new)
Recital 51 b (new)
(51b) A proper quantitative impact assessment for IFRS 9 is currently missing due in part to a lack of reliable data. The Commission should proceed to such quantitative impact assessment as soon as sufficient reliable data is available and to the extent possible no latter that by 2019.
Amendment 54 #
Proposal for a regulation
Recital 51 c (new)
Recital 51 c (new)
(51c) The accounting treatment under IFRS 9 of certain financial instruments held directly or indirectly as long-term investments, in particular equity, may have a negative overall aim of promoting long-term investment which is instrumental for sustainable economic growth.
Amendment 55 #
Proposal for a regulation
Recital 51 d (new)
Recital 51 d (new)
(51d) The Commission has cooperated closely with the European Supervisory Agencies (ESAs), the SSM, the European Systemic Risk Board (ESRB) and EFRAG ahead of the entry into force of the IFRS 9 standard and should closely and regularly monitor the implementation of IFRS 9 in the Union and its financial stability implications in cooperation with the abovementioned bodies in order to make sure that IFRS 9 serves the Union’s long-term investment strategy, reduces pro-cyclicality and incentives for excessive risk-taking.
Amendment 56 #
Proposal for a regulation
Recital 51 e (new)
Recital 51 e (new)
(51e) Credit institutions using the Standardised Approach (SA) which are also instrumental for providing long-term financing notably for SMEs might be the most seriously affected by a reduction in their Core Equity Tier 1 capital as loss provisions in the framework of the Standardized Approach are based on provisions for impaired assets and do not include an expected loss rationale for calculating those provisions. Although more heavily affected by increased provisions under IFRS 9, credit institutions using the SA would not be able to recognise any part of their accounting provisions in Tier 2 capital if all provisions were considered specific. In contrast, institutions using the Internal Ratings Based (IRB) approach to measure credit risk might have regulatory expected losses exceeding accounting provisions under IAS 39, which could reduce the negative impact on CET1 (or even result in no impact) under IFRS 9, and they would be able to recognise in their Tier 2 capital any excess accounting provisions. The IFRS 9 transitional provisions should therefore provide for a differentiated treatment for institutions using the IRB approach and those implementing the SA.
Amendment 88 #
Proposal for a regulation
Article 1 – paragraph 1 – point 119
Article 1 – paragraph 1 – point 119
Regulation (EU) No 575/2013
Article 473a – paragraph 1
Article 473a – paragraph 1
1. Until [date of application of this Article + 5 years]31 December 2020, institutions that prepare their accounts in conformity with the international accounting standards adopted in accordance with the procedure laid down in Article 6(2) of Regulation (EC) No 1606/2002 may, and institutions that are required pursuant to Article 24(2) of this Regulation to effect the valuation of assets and off-balance sheet items and the determination of own funds in accordance with international accounting standards, shall, by way of derogation from Article 50 of this Regulation, add to their Common Equity Tier 1 capital the amount calculated in accordance with paragraph 2 of this Article multiplied by the applicable factor laid down in paragraph 3.
Amendment 97 #
Proposal for a regulation
Article 1 – paragraph 1 – point 119
Article 1 – paragraph 1 – point 119
Regulation (EU) No 575/2013
Article 473a – paragraph 2
Article 473a – paragraph 2
2. 2. The amount referred to in paragraph 1 shall be calculated asthe greater of the following: (a) zero (b) the after-tax amount calculated in accordance with point (i) reduced by the amount calculated in accordance with point (ii): (i) the sum of the twelve -month expected credit losses determined in accordance with paragraph 5.5.5 of the Annex to Commission Regulation (EU) No …. / 2016 (32 )2016/2067 and the amount of the loss allowance for financial instruments equal to the lifetime expected lolifetime expected losses determined in accordance with paragraph 5.5.3 of the Annex to that Regulation for financial assets that are not credit- impaired as defined in Appendix A to IFRS 9 as at 1 January 2018 or on the date of the first application of IFRS 9; (ii) the total amount of impairment losses on loans and receivables, held to maturity investments and available for sale assets determined in accordance with paragraph 5.5.3 ofs 63, 67 and 68 of IAS 39 adopted in the Union by Commission Regulation (EUC) No …. / 2016 (1). _________________ 32 …./2016 of .. …… 2016 adopting certain international accounting standards in accordance with1126/2008 as at 31 December 2017 or on the day before the first application of IFRS 9, reduced by the total amount of the loss allowances for lifetime expected losses of credit impaired financial assets determined in accordance with paragraph 5.5.3 of the Annex to Regulation (ECU) No 1606/20022016/2067 as at 1 January 2018 or ofn the European Parliament and of the Council (OJ L , ……, p. ).date of the first application of IFRS 9. Commission Regulation (EU) No
Amendment 101 #
Proposal for a regulation
Article 1 – paragraph 1 – point 119 (new)
Article 1 – paragraph 1 – point 119 (new)
Regulation (EU) No 575/2013
Article 473a – paragraph 2 a (new)
Article 473a – paragraph 2 a (new)
2a. For financial assets that are exposures subject to risk weighting in accordance with Chapter 3 of Title II of Part Three, institutions shall reduce the amount of expected credit losses for non- defaulted assets calculated in accordance with point (b)(i) of paragraph 2 of this Article by the expected loss amounts calculated in accordance with Article 158(5), (6) and (10). Where the reduction would result in a negative amount it shall be calculated as zero.
Amendment 112 #
Proposal for a regulation
Article 1 – paragraph 1 – point 119
Article 1 – paragraph 1 – point 119
Regulation (EU) No 575/2013
Article 473a – paragraph 3 – point a
Article 473a – paragraph 3 – point a
(a) 10,75 in the period from [date of application of this Article] to [ date of application of this Article + 1 year - 1 day]1 January 2018 to 31 December 2018 ;
Amendment 120 #
Proposal for a regulation
Article 1 – paragraph 1 – point 119
Article 1 – paragraph 1 – point 119
Regulation (EU) No 575/2013
Article 473a – paragraph 3 – point b
Article 473a – paragraph 3 – point b
(b) 0,85 in the period from [date of application of this Article + 1 year] to [date of application of this Article + 2 years - 1 day]1 January 2019 to 31 December 2019;
Amendment 131 #
Proposal for a regulation
Article 1 – paragraph 1 – point 119
Article 1 – paragraph 1 – point 119
Regulation (EU) No 575/2013
Article 473a – paragraph 3 – point c
Article 473a – paragraph 3 – point c
(c) 0,625 in the period from [date of application of this Article +2 years] to [date of application of this Article +3 years - 1 day]1 January 2020 to 31 December 2020;
Amendment 137 #
Proposal for a regulation
Article 1 – paragraph 1 – point 119
Article 1 – paragraph 1 – point 119
Regulation (EU) No 575/2013
Article 473a – paragraph 3 – point d
Article 473a – paragraph 3 – point d
Amendment 148 #
Proposal for a regulation
Article 1 – paragraph 1 – point 119
Article 1 – paragraph 1 – point 119
Regulation (EU) No 575/2013
Article 473a – paragraph 3 – point e
Article 473a – paragraph 3 – point e