28 Amendments of Peter SIMON related to 2011/0202(COD)
Amendment 216 #
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, savings banks 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. The Commission and EBA should draft the regulatory technical standards in such a way that they take proper account of the nature, scale and complexity of the institutions and can be implemented by all the institutions concerned.
Amendment 372 #
Proposal for a regulation
Article 25 – title
Article 25 – title
Capital instruments of mutuals, cooperative societies, savings banks or similar institutions in Common Equity Tier 1 items
Amendment 377 #
Proposal for a regulation
Article 25 – paragraph 1 – point a
Article 25 – paragraph 1 – point a
(a) the institution is of a type that is defined under applicable national law and which competent authorities consider to qualify as a mutual, cooperative society, savings banks or a similar institution for the purposes of this Part;
Amendment 381 #
Proposal for a regulation
Article 25 – paragraph 1 – point b
Article 25 – paragraph 1 – point b
(b) the conditions laid down in Articles 26 and 27 are met, taking account of its specific statutes and legal form;
Amendment 398 #
Proposal for a regulation
Article 27 – title
Article 27 – title
Capital instruments issued by mutuals, cooperative societies, savings banks and similar institutions
Amendment 404 #
Proposal for a regulation
Article 27 – paragraph 1
Article 27 – paragraph 1
1. Capital instruments issued by mutuals, cooperative societies, savings banks and similar institutions shall qualify as Common Equity Tier 1 instruments only if the conditions laid down in Article 26 and this Article are met.
Amendment 471 #
Proposal for a regulation
Article 46 – paragraph 3 – point b – point i
Article 46 – paragraph 3 – point b – point i
Amendment 480 #
Proposal for a regulation
Article 46 – paragraph 3 – point b – point v
Article 46 – paragraph 3 – point b – point v
v) the institution draws up andthe reports to the competent authorities the consolidated balance sheet referred to in point (e) of Article 108(7) no less frequently than own funds requirements are required to be reported under in accordance with point (e) of Article 108(7) and demonstrates that there is neither multiple gearing of elements eligible for the calculation of own funds nor any inappropriate creation of own funds between institutions and reports these documents to the competent authorities no less frequently than stipulated under point (e) of Article 95; 108(7);
Amendment 506 #
Proposal for a regulation
Article 59 – paragraph 1 – point b a (new)
Article 59 – paragraph 1 – point b a (new)
(ba) prudential reserves linked to the fact that exposures are being shown at a lower value, in accordance with Article 37(2) of Directive 86/635/EEC.
Amendment 618 #
Proposal for a regulation
Article 111 – paragraph 4
Article 111 – paragraph 4
4. Exposures to public-sector entities may be treated as exposures to the central government in whose jurisdiction they are established, or to the relevant regional government or local authorities, where there is no difference in risk between such exposures because of the existence of an appropriate guarantee by the central government or the relevant regional government or local authorities.
Amendment 630 #
Proposal for a regulation
Article 115 – paragraph 3 a (new)
Article 115 – paragraph 3 a (new)
3a. Exposures to promotional banks made available in the context of public programmes or in accordance with the statutes of the promotional bank shall be assigned a risk weight pursuant to Article 109.
Amendment 640 #
Proposal for a regulation
Article 118 – paragraph 1 – introductory part
Article 118 – paragraph 1 – introductory part
Exposures that comply with the following criteria shall be assigned a risk weight of 750 %:
Amendment 658 #
Proposal for a regulation
Article 118 – paragraph 1 a (new)
Article 118 – paragraph 1 a (new)
An exposure which meets the criteria laid down in paragraph 1(a) and (b) shall be assigned a risk weight of 75 % if, to the institution’s knowledge, the total amount owed to the institution and to the parent company and its subsidiaries by the client or group of connected clients, including defaulted exposure, but excluding claims or contingent claims secured on residential property collateral, is more than EUR 1 million but does not exceed EUR 5 million. The institution shall take reasonable steps to confirm this situation.
Amendment 677 #
Proposal for a regulation
Article 120 – paragraph 3 – introductory part
Article 120 – paragraph 3 – introductory part
3. Institutions may derogate from paragraph 1 and point (b) in paragraph 2 for exposures fully and completely secured by mortgages on residential property which is situated within the territory of a Member State, where the competent authority of that Member State gives its approval and has published evidence showing that a well-developed and long- established residential property market is present in that territory with loss rates which do not exceed the following limits:
Amendment 687 #
Proposal for a regulation
Article 121 – paragraph 3 – introductory part
Article 121 – paragraph 3 – introductory part
3. Institutions may derogate from paragraph 1 and point (b) in paragraph 2 for exposures fully and completely secured by mortgages on commercresidential property which is situated within the territory of a Member State, where the competent authority of that Member State gives its approval and has published evidence showing that a well-developed and long- established commercial immovableresidential property market is present in that territory with loss rates which do not exceed the following limits:
Amendment 731 #
Proposal for a regulation
Article 142 – paragraph 5 – subparagraph 1 – point a – point ii
Article 142 – paragraph 5 – subparagraph 1 – point a – point ii
ii) to a small or medium sized enterprise, provided in the latter case that the total amount owed to the institution and parent undertakings and its subsidiaries, including any past due exposure, by the obligor client or group of connected clients, but excluding claims or contingent claims secured on residential property collateral, shall not, to the knowledge of the institution, which shall have taken reasonable steps to confirm the situation, exceed EUR 15 million;
Amendment 744 #
Proposal for a regulation
Article 149 – paragraph 1
Article 149 – paragraph 1
1. The risk-weighted exposure amounts for retail exposures pursuant to Article 142(5)(a)(i) and for retail exposures pursuant to Article 142(5)(a)(ii) in respect of which the total amount owed does not exceed EUR 1 million shall be calculated according to the following formulae: Risk-weighted exposure amount = RW exposure value where the risk weight RW is defined as follows: (i) if PD = 0, RW shall be 0; ii) if PD = 1, i.e., for defaulted exposures, RW shall be RW = max{0,12.5 ⋅ (LGD − ELBE )}; where ELBE shall be the institution's best estimate of expected loss for the defaulted exposure according to Article 177(1)(h); iii) if PD ∈ ]0%;100%[ , i.e., for any value other than under (i) or (ii) 1 ⋅ G (PD ) + ⋅ G (0 .999 ) − LGD ⋅ PD ⋅ 12.5 ⋅ 1.06 R RW = LGD ⋅ N ⋅ 12 . 5 ⋅ 0 .7619 1− R 1− R where N(x) = the cumulative distribution function for a standard normal random variable (i.e. the probability that a normal random variable with mean zero and variance of one is less than or equal to x); the inverse cumulative distribution function for a standard normal random variable (i.e. the value x such that N(x) z); denotes the coefficient of correlation, is defined as b = 1 − e −35⋅PD 1 − e −35⋅PD R = 0.03 ⋅ + 0 . 16 ⋅ 1 − 1 − e − 35 1 − e − 35
Amendment 746 #
Proposal for a regulation
Article 149 – paragraph 1a (new)
Article 149 – paragraph 1a (new)
1 a. The risk-weighted exposure amounts for retail exposures pursuant to Article 142(5)(a)(ii) in respect of which the total amount owed is more than EUR 1 million but does not exceed EUR 5 million shall be calculated according to the following formulae Risk-weighted exposure amount = RW exposure value where the risk weight RW is defined as follows: (i) if PD = 0, RW shall be 0; ii) if PD = 1, i.e., for defaulted exposures, RW shall be RW = max{0,12.5 ⋅ (LGD − ELBE )}; where ELBE shall be the institution's best estimate of expected loss for the defaulted exposure according to Article 177(1)(h); iii) if PD ∈ ]0%;100%[ , i.e., for any value other than under (i) or (ii) 1 ⋅ G (PD ) + ⋅ G (0.999 ) − LGD ⋅ PD ⋅ 12.5 ⋅ 1.06 R RW = LGD ⋅ N 1− R 1− R where N(x) denotes the cumulative distribution function for a standard normal random variable (i.e. the probability that a normal random variable with mean zero and variance of one is less than or equal to x); G(z) denotes the inverse cumulative distribution function for a standard normal random variable (i.e. the value x such that N(x) z) R = denotes the coefficient of correlation, is defined as b = 1 − e −35⋅PD 1 − e −35⋅PD R = 0.03 ⋅ + 0 .16 ⋅ 1 − 1 − e − 35 1 − e − 35
Amendment 949 #
Proposal for a regulation
Article 404 – paragraph 1 – subparagraph 1 – point b
Article 404 – paragraph 1 – subparagraph 1 – point b
(b) transferable assets that are of extremely high liquidity and credit quality;
Amendment 965 #
Proposal for a regulation
Article 404 – paragraph 1 – subparagraph 1 – point d
Article 404 – paragraph 1 – subparagraph 1 – point d
(d) transferable assets that are of high liquidity and credit quality.
Amendment 988 #
Proposal for a regulation
Article 404 – paragraph 1 – subparagraph 2
Article 404 – paragraph 1 – subparagraph 2
Pending a uniform definition in accordance with Article 481(2) of high and extremely high liquidity and credit quality, institutions shall identify themselves in a given currency transferable assets that are respectively of high or extremely high liquidity and credit quality. Pending a uniform definition, competent authorities may, taking into account the criteria listed in Article 481(2), provide general guidance that institutions shall follow in identifying assets of high and extremely high liquidity and credit quality. In the absence of such guidance, institutions shall use transparent and objective criteria to this end, including some or all of the criteria listed in Article 481(2).
Amendment 1325 #
Proposal for a regulation
Article 436
Article 436
Amendment 1524 #
Proposal for a regulation
Article 481 – paragraph 2 – introductory part
Article 481 – paragraph 2 – introductory part
2. EBA and EMSA 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. EBquality 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. In particular, steps should be taken to determine whether gold, shares, covered or guaranteed bonds, mortgage bonds and corporate bonds and funds based on such assets can be regarded as eligible assets within the meaning of Article 404(3), how volatile such assets are compared to other assets and what haircuts are possible. In addition, the effectiveness and adequacy in stress situations of contractual and non- contractual precautions to safeguard the liquidity of groups should be assessed. EBA and ESMA shall in particular test the adequacy of the following criteria and the appropriate levels for such definitions:
Amendment 1568 #
Proposal for a regulation
Article 482 – paragraph 1
Article 482 – paragraph 1
1. TOn the basis of the EBA report provided for in paragraph 2, 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, 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.
Amendment 1576 #
Proposal for a regulation
Article 482 – paragraph 2 – point f
Article 482 – paragraph 2 – point f
(f) whether theat frequency and format of the disclosure of items referred to in Article 436 are adequate;
Amendment 1582 #
Proposal for a regulation
Article 482 – paragraph 2 – point g a (new)
Article 482 – paragraph 2 – point g a (new)
(ga) whether, in view of the differences in accounting standards and financing and refinancing arrangements, the introduction of a standard international leverage ratio would be appropriate;
Amendment 1589 #
Proposal for a regulation
Article 482 – paragraph 2 – point i
Article 482 – paragraph 2 – point i
(i) whether introducing the leverage ratio as a requirement for institutions would effectively constrain the risk of excessive leverage on the part of those institutions and, if so, whether the level for the leverage ratio should be the same for all institutions or should differ for different types and sizes of institution and, in the latter for different business models and, in such cases, what additional calibrations would be required.
Amendment 1594 #
Proposal for a regulation
Article 482 – paragraph 3 – point a – point iii
Article 482 – paragraph 3 – point a – point iii
(iii) business models and balance-sheet structures of institutions; in particular as regards low-risk areas of business, such as start-up loans, municipal loans, financing of residential property and other low-risk areas regulated under national law;