82 Amendments of Kay SWINBURNE related to 2012/0242(CNS)
Amendment 56 #
Draft legislative resolution
Citation 2 a (new)
Citation 2 a (new)
- having regard to Articles 5, 6 and 7 of the Protocol on the Application of the Principles of Subsidiarity and Proportionality annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union,
Amendment 60 #
Proposal for a regulation
Title 1
Title 1
Proposal for a COUNCIL REGULATION conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions in the Euro area
Amendment 65 #
Proposal for a regulation
Citation 1 a (new)
Citation 1 a (new)
- having regard to Articles 5, 6 and 7 of the Protocol on the Application of the Principles of Subsidiarity and Proportionality annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union,
Amendment 71 #
Proposal for a regulation
Recital 1
Recital 1
(1) Over the past decades, and in line with the principle of free movement of capital and services, the Union has made considerable progress in creating an internal market for banking services. Consequently, in many Member States, especially the new Member States outside of the Euro area, banking groups with their headquarters established in other Member States hold a significant market share, and credit institutions have geographically diversified their business, especially within, mainly the European systemically important financial institutions (E-SIFIs) and domestic systemically important financial institutions (D-SIFIs)), have geographically diversified their business, including lending activities, both within and outside of the Euro area.
Amendment 78 #
Proposal for a regulation
Recital 2
Recital 2
(2) Maintaining and deepening the efficiency and competitiveness of an internal market for banking services is essential in order to foster economic recovery in the Unionand job creation in the Union as a whole and, in particular, in the banking sector. However this proves increasingly challenging. Evidence shows that the integration of banking markets in the Union is coming to a halt and banks deleveraging post the 2008 crisis ahead of increased capital requirements is negatively impacting economic growth.
Amendment 85 #
Proposal for a regulation
Recital 3
Recital 3
(3) At the same time national and EU level supervisors must step up their supervisory scrutiny to take account of the lessons of the financial crisis in recent years, and be able to oversee highly complex and inter-connected markets and systemically important financial institutions.
Amendment 87 #
Proposal for a regulation
Recital 4
Recital 4
(4) Competence for supervision of individual banks in the Union remains mostly at national level. This limitsmay set limitations on the effectiveness of supervision and the ability of supervisors to reach a common understanding of the soundness of the banking sector throughout the Union. In order to preserve and increase the positive effects of market integration on growth and welfare, coordination between national and EU level supervisors and, specifically in the Euro area, integration of supervisory responsibilities where appropriate, should therefore be enhanced.
Amendment 94 #
Proposal for a regulation
Recital 4 a (new)
Recital 4 a (new)
(4 a) The ECB should incorporate the expertise and best practices of national competent authorities when undertaking its responsibilities and tasks as outlined in this Regulation.
Amendment 97 #
Proposal for a regulation
Recital 5
Recital 5
(5) The solidity of domestic credit institutions, unlike cross-border banks, is in many instances still closely linked to the creditworthiness of the individual Member States in which they are established or depends on the financial stability of the Euro area as a whole. Doubts about the sustainability of public debt, economic growth prospects, and the viability of credit institutions have been creating negative, mutually reinforcing market trends and spill over effects between the Euro area and non-Euro area Member States. This may lead to risks for the viability of some credit institutions as well as for the stability of the financial system, and may impose a heavy burden for already strained public finances of the Member States concerned. The problem poses specific risks within the eEuro area where the single currency increases the likelihood that negative developments in one Member State can create risks for economic development and the stability of the Euro area as a whole.
Amendment 110 #
Proposal for a regulation
Recital 8
Recital 8
(8) The European Council conclusions of 29 June 2012 invited the President of the European Council to develop a road map for the achievement of a genuine Economic and Monetary Union. On the same day, the Euro area Heads of State or Government Summit pointed out that when an effective single Euro area supervisory mechanism is established involving the ECB for banks in the euro area, the ESM could, following a regular decision, have the possibility to recapitalize banks directly which would rely on appropriate conditionality, including compliance with state aid rules.
Amendment 112 #
Proposal for a regulation
Recital 8 a (new)
Recital 8 a (new)
(8 a) The progress towards a genuine Economic and Monetary Union and, to this end the creation of the single Euro area supervisory mechanism (SEASM), should respect both the right of those Member States that have an opt-out from having to introduce the euro and the democratic legitimacy of those Member States that choose to retain their respective national currencies.
Amendment 113 #
Proposal for a regulation
Recital 9
Recital 9
(9) A Europeangenuine banking union should therefore be set up, underpinned by a true, on the one hand, by the existing EBA single rulebook for financial services for the Single Market as a whole and, on the other hand, composed of a single Euro area supervisory mechanism for the Euro area, and a common deposit insurance and resolution framework. . I for the Euro area, including provisions for other non-Euro area Member States to voluntarily opt-in to these arrangements. Therefore, in view of the close links and interactions between Member States participating in the common currency, the banking union should apply at least to all Euro area Member States. With a view to maintaining and deepening the internal market, and to the extent that this is institutionally possible, the banking union should also be open to the voluntary participation of other Member States.
Amendment 127 #
Proposal for a regulation
Recital 9 a (new)
Recital 9 a (new)
(9 a) The banking union should be underpinned by proper checks and balances and accountability mechanisms between political institutions at an EU and national level and those bodies exercising supervisory responsibilities at both the EU and the national level.
Amendment 129 #
Proposal for a regulation
Recital 9 b (new)
Recital 9 b (new)
(9 b) The implementation of the banking union should at all its different stages ensure that due consideration be given to the potential mutual spill-over effects of the banking union in the euro area for non-euro area members. To this aim, appropriate preventive measures should be put in place to avoid possible disruption of the single market. In particular, the ECB should be required to ensure that it performs its supervisory tasks over the Euro area in a manner that is non-discriminatory and is consistent with the proper functioning of the internal market.
Amendment 130 #
Proposal for a regulation
Recital 9 c (new)
Recital 9 c (new)
(9 c) The supervision of credit institutions in non-Euro area Member States that will not opt-into the single Euro area supervisory mechanism should continue to be ensured at the national level by their respective national competent authorities. In view of preventing or mitigating systemic risks, the national supervisors of these Member States should for the purpose of sound macroprudential supervision coordinate their supervision tasks with the relevant Agency of the European System of Financial Supervision (ESFS).
Amendment 134 #
Proposal for a regulation
Recital 10
Recital 10
(10) As a first step towards the banking union, a single Euro area supervisory mechanism should ensure that the Union's policy relating to the prudential supervision of credit institutions is implemented in a coherent and effective way, that the EBA single rulebook for financial services is applied equally to credit institutions in all Member States concerned, and that those credit institutions are subject to supervision of the highest quality, unfettered by other, non- prudential considerations. A singleTo this aim, the independence and competences of national competent authorities and the ECB should be enhanced or maintained. A single Euro area supervisory mechanism is to be understood as the basis for the next steps towards the banking union. This reflects the principle that any introduction of common intervention mechanisms for the Euro area in case of crises should be preceded by common controls to reduce the likelihood that intervention mechanisms will have to be used.
Amendment 150 #
Proposal for a regulation
Recital 11
Recital 11
(11) As the Euro area's central bank with extensive expertise in macroeconomic and financial stability issues, the ECB is well placed to carry out supervisory tasks with a focus on protecting the stability of Europe's financial system. Indeed in many Euro area Member States Central Banks of the Eurosystem are already responsible for banking supervision. The ECB should therefore be conferred specific tasks concerning policies relating to the supervision of credit institutions within the Euro area.
Amendment 154 #
Proposal for a regulation
Recital 12
Recital 12
(12) The ECB should be conferred those specific supervisory tasks which are crucial to ensure a coherent and effective implementation of the Union's policy relating to the prudential supervision of credit institutions, while other tasks should remain with national authorities of the participating Member States in the single Euro area supervisory mechanism. The ECB's tasks should includeconsist of measures taken in pursuance of macro-prudential stability of the Euro area as a whole.
Amendment 169 #
Proposal for a regulation
Recital 13
Recital 13
(13) Safety and soundness of large banks is essential to ensure the stability of the financial system. However, recent experience shows that smaller banks can also pose a threat to financial stability at the national level and/or within the Euro area. Therefore, the ECB should be able to exercise supervisory tasks in relation to all banks of participating Member StatesEuro area Member States and other participating Member States that have voluntarily opted in the Euro area supervisory mechanism.
Amendment 185 #
Proposal for a regulation
Recital 14
Recital 14
(14) Prior authorisation for taking up the business of credit institutions is a key prudential technique to ensure that only operators with a sound economic basis, an organisation capable of dealing with the specific risks inherent to deposit taking and credit provision, and suitable directors carry out those activities. The ECB should therefore have the task to authorise credit institutions operating in the Euro area and should be responsible for the withdrawal of authorisations in duly justified cases and after consultation with the national competent authority of the given Euro area Member State where the credit institution concerned has its headquarters.
Amendment 195 #
Proposal for a regulation
Recital 15
Recital 15
(15) In addition to the conditions set out in Union legislative acts for authorisation of credit institutions and the cases for withdrawal of such authorisations, Member States may currently provide for further conditions for authorisation and cases for withdrawal of authorisation. The ECB should therefore carry out its task to authorise credit institutions of the Euro area and to withdraw the authorisation in case of non- compliance with national law upon a proposal by the relevant national competent authority, which assesses compliance with the relevant conditions set out by national law.
Amendment 201 #
Proposal for a regulation
Recital 16
Recital 16
(16) An assessment of the suitability of any new owner prior to the purchase of a significant stake in a credit institution of the Euro area is an indispensable tool to ensure the continuous suitability and financial soundness of credit institutions' owners. The ECB as a Union institution is well-placed to carry out such an assessment without imposing undue restrictions to the internal market. The ECB should have the task to assess the acquisition and disposal of significant holdings in credit institutions of the Euro area.
Amendment 211 #
Proposal for a regulation
Recital 17
Recital 17
(17) Compliance with Union rules requiring credit institutions to hold certain levels of capital against risks inherent to the business of credit institutions, to limit the size of exposures to individual counterparties, to publicly disclose information on a credit institutions' financial situation, to dispose of sufficient liquid assets to withstand situations of market stress, and to limit leverage is a prerequisite for credit institutions' prudential soundness. The ECB should have the task to ensure compliance with those rules and to set higher prudential requirements and apply additional measures to credit institutions of the Euro area in the cases specifically set out in Union acts.
Amendment 216 #
Proposal for a regulation
Recital 18
Recital 18
(18) Additional capital buffers, including a capital conservation buffer and a countercyclical capital buffer to ensure that credit institutions accumulate during periods of economic growth a sufficient capital base to absorb losses in stressed periods, are key prudential tools to ensure the availability of adequate loss absorbency. The ECB should have the task to impose such buffers and ensure credit institutions of the Euro area comply with them.
Amendment 224 #
Proposal for a regulation
Recital 19
Recital 19
(19) The safety and soundness of a credit institution depend also on the allocation of adequate internal capital, having regard to the risks to which it may be exposed, and on the availability of appropriate internal organisation structures and corporate governance arrangements. The ECB should therefore have the task to apply for credit institutions of the Euro area requirements ensuring that credit institutions have in place robust governance arrangements, processes and mechanisms, including strategies and processes for assessing and maintaining the adequacy of their internal capital. In case of deficiencies it should also have the task to impose appropriate measures including specific additional own funds requirements, specific publication requirements, and specific liquidity requirements.
Amendment 232 #
Proposal for a regulation
Recital 20
Recital 20
(20) Risks for the safety and soundness of a credit institution can arise both at the level of an individual credit institution and at the level of a banking group or of a financial conglomerate. Specific supervisory arrangements to mitigate these risks are important to ensure the safety and soundness of credit institutions. In addition to supervision of individual credit institutions of the Euro area, the ECB's tasks should include supervision of banking groups or of financial conglomerates at the consolidated level, supplementary supervision, supervision of financial holding companies and supervision of mixed financial holding companies.
Amendment 236 #
Proposal for a regulation
Recital 21
Recital 21
(21) In order to preserve financial stability, the deterioration of an Euro area credit institution's financial and economic situation must be remedied before that institution reaches a point at which authorities have no other alternative than to resolve it. The ECB should have the task to carry out early intervention actions as defined in relevant Union law applicable to credit institutions of the Euro area. It should however coordinate its early intervention action with the relevant resolution authorities in the Euro area Member State where the credit institution concerned is established / headquartered prior to any intervention. Pending the conferral of resolution powers for the Euro area on a European body, the ECB should moreover coordinate appropriately with the national authorities of the Euro area Members States concerned to ensure a common understanding about respective responsibilities in case of crises, in particular in the context of the cross border crisis management groups and the future resolution colleges established for these purposes.
Amendment 244 #
Proposal for a regulation
Recital 22
Recital 22
(22) Supervisory tasks over Euro area credit institutions not conferred on the ECB should remain with national authorities. Those tasks should include the power to receive notifications from credit institutions in relation to the right of establishment and the free provision of services, to supervise bodies which are not covered by the definition of credit institutions under Union law but which are supervised as credit institutions under national law, to supervise credit institutions from third countries establishing a branch or providing cross-border services in the Union, to supervise payments services, to carry out day-to-day verifications of credit institutions, to carry out the function of competent authorities over credit institutions in relation to markets in financial instruments and the prevention of the use of the financial system for the purpose of money laundering and terrorist financing.
Amendment 252 #
Proposal for a regulation
Recital 23
Recital 23
(23) The ECB should carry out the tasks conferred on it with a view to ensuring the safety and soundness of credit institutions of the Euro area and the stability of the financial system of the Union and the unity and integrity of the Internal Market, thereby ensuring also the protection of depositors and improving the functioning of the Internal Market, in accordance with the EBA single rulebook for financial services in the Union.
Amendment 258 #
Proposal for a regulation
Recital 24
Recital 24
(24) The conferral of supervisory tasks on the ECB for some of theEuro area credit institutions and credit institutions of the opting-in Member States should be consistent with the framework of the European System of Financial Supervision (ESFS) set up in 2010 and its underlying objective to develop the single rulebook and enhance convergence of supervisory practices across the whole Union. Cooperation between the banking supervisors and the supervisors of insurance and securities markets is important to deal with issues of joint interest and to ensure proper supervision of credit institutions operating also in the insurance and securities sectors. The ECB should therefore be required to cooperate closely with the EBA, the European Securities and Markets Authority and the European Insurance and Occupational Pensions Authority, within the framework of the EFSF.
Amendment 267 #
Proposal for a regulation
Recital 25
Recital 25
(25) In order to ensure consistency between the Euro area supervisory responsibilities conferred on the ECB and decision making within the EBA, the ECB should coordinate a common position amongst representatives of the national authorities of the participating Member States in the single Euro area supervisory mechanism in relation to matters falling within its competence. ; A fair balance of power and voting rights should be ensured with respect to the decision making procedures within EBA to prevent any discrimination of those Member States that have not opted into the single Euro area supervisory mechanism. For decisions impacting on the Union as a whole, provisions should be laid down within the amended EBA Regulation to ensure the possibility of a blocking minority for those Member States remaining outside the single Euro area supervisory mechanism.
Amendment 273 #
Proposal for a regulation
Recital 26
Recital 26
(26) The ECB should carry out its tasksupervisory tasks for Euro area credit institutions subject to and in compliance with any Union law rule including the whole of primary and secondary Union law, Commission decisions in the area of State aids, competition rules and merger control and the single rulebook applying to all Member States. The EBA is entrusted with developing draft technical standards and guidelines and recommendations ensuring supervisory convergence and consistency of supervisory outcomes within the Union. The ECB should not replace the exercise of these tasks by the EBA, and should therefore exercise powers to adopt regulations in accordance with Article 132 TFEU only where Union acts adopted by the European Commission upon drafts developed by the EBA or guidelines and recommendations issued by the EBA do not deal with certain aspects necessary for the proper exercise of the ECB's tasks or do not deal with them in sufficient detail.
Amendment 275 #
Proposal for a regulation
Recital 27
Recital 27
(27) In order to ensure that supervisory rules and decisions are applied by credit institutions, financial holding companies and mixed financial holding companies, effective, proportionate and dissuasive sanctions should be imposed in case of breaches. In accordance with Article 132(3) TFEU and Council Regulation (EC) No. 2532/98 of 23 November 1998 concerning the powers of the European Central Bank to impose sanctions, the ECB is entitled to impose fines or periodic penalty payments on undertakings for failure to comply with obligations under its regulations and decisions. Moreover, in order to enable the ECB as part of the single Euro area supervisory mechanism to effectively carry out its tasks relating to the enforcement of supervisory rules set out in directly applicable Union law, the ECB should be empowered to impose pecuniary sanctions on credit institutions, financial holding companies and mixed financial holding companies for breaches of such rules. National authorities of the participating Member States in the single Euro area supervisory mechanism should remain able to apply sanctions in case of failure to comply with obligations stemming from national law transposing Union Directives. Where the ECB considers it appropriate for the fulfilment of its tasks that a sanction is applied for such breaches, it should be able to refer the matter to national authorities for those purposes.
Amendment 281 #
Proposal for a regulation
Recital 28
Recital 28
(28) National supervisors have important and long-established expertise in the supervision of credit institutions within their territory and their economic, organisational and cultural specificities. They have established a large body of dedicated and highly qualified staff for these purposes. Therefore, in order to ensure high quality European supervision national supervisors of the participating Member States in the single Euro area supervisory mechanism should assist the ECB in the preparation and implementation of any acts relating to the exercise of the ECB supervisory tasks in the Euro area. This should include in particular the ongoing day-to-day assessment of a bank's situation and related on site verifications.
Amendment 298 #
Proposal for a regulation
Recital 30
Recital 30
(30) In order to carry out its tasks, the ECB should have appropriate supervisory powers over credit institutions of the Euro area. Union law on the prudential supervision of credit institutions provides for certain powers to be conferred on competent authorities designated by the Member States for those purposes. To the extent that these powers fall within the scope of the supervisory tasks conferred on the ECB, for participating Member States the ECB should be considered the competent authority and should have the powers conferred on competent authorities by Union law. This includes powers conferred by those acts on the competent authorities of the home and the host Member States and the powers conferred on designated authorities.
Amendment 302 #
Proposal for a regulation
Recital 31
Recital 31
(31) In order to carry out its taskssupervisory tasks in the Euro area effectively, the ECB should be able to require all necessary information, and to conduct investigations and on-site inspections. These powers should apply to supervised entities, persons involved in the activities of those entities and related third parties, third parties to whom those entities have outsourced operational functions or activities and persons otherwise closely and substantially related or connected to the activities of those entities, including the staff of a supervised entity who are not directly involved in its activities but who, due to their function within the entity, may hold important information on a specific matter and firms which have provided services to those entities. The ECB should be able to require information by simple request under which the addressee is not obliged to provide the information but, in the event that it does so voluntarily, the information provided should not be incorrect or misleading and should be made available without delay. The ECB should also be able to require information by decision.
Amendment 311 #
Proposal for a regulation
Recital 33
Recital 33
(33) In its decision-making procedures, the ECB should be bound by Union rules and general principles on due process and transparency. The right of the addressees of the ECB's decisions to be heard in national and EU courts should be fully respected.
Amendment 316 #
Proposal for a regulation
Recital 34
Recital 34
(34) The conferral of supervisory tasks implies a significant responsibility for the ECB to safeguard financial stability in the Euro area and avoid systemic risks in the Union, and to use its supervisory powers in the most effective and proportionate way. The ECB should therefore be accountable for the exercise of these tasks towards the European Parliament and the Council of Ministers respectively the Eurogroup as democratically legitimised institutions representing the European people and the Member States. That should include regular reporting and responding to questions. Where national supervisors take action under this Regulation, accountability arrangements provided under national law should continue to apply.
Amendment 321 #
Proposal for a regulation
Recital 34 a (new)
Recital 34 a (new)
(34 a) The ECB should also regularly exchange information on its supervisory tasks as part of the single Euro area supervisory mechanism with all members of the European System of Central Banks (ESCB) and the ESFS in order to ensure exchange of best practices and peer review.
Amendment 328 #
Proposal for a regulation
Recital 35
Recital 35
(35) The ECB is responsible for carrying out monetary policy functions in the Euro area with a view to maintaining price stability in accordance with Article 127(1) TFEU. The exercise of supervisory tasks in the Euro area has the objective to protect the safety and soundness of credit institutions and the stability of the financial system. In order to avoid conflicts of interests and to ensure that each function is exercised in accordance with the applicable objectives, the ECB should ensure they are carried out in full separation in terms of decision making, staffing and budget, etc.
Amendment 332 #
Proposal for a regulation
Recital 36
Recital 36
(36) In particular, a supervisory board of the single Euro area supervisory mechanism (hereafter Euro area supervisory board) responsible for preparing decisions on Euro area supervisory matters should be set up with the ECB encompassing the specific expertise of national supervisors of the Euro area. The board should therefore be chaired by a Chair and a Vice-Chair elected by the ECB Governing Council and composed, in addition, of representatives from the ECB and from national authorities. In order to allow for an appropriate rotation while ensuring the full independence of the Chair and the Vice- Chair, their term should not exceed five years and should not be renewable. In order to ensure full coordination with the activities of the EBA and with the prudential policies of the Union, the EBA and the European Commission should be observers in the Euro area supervisory board. The performance of the supervisory tasks conferred upon the ECB requires the adoption of a large number of technically complex acts and decisions, including decisions on individual credit institutions. In order to effectively carry out those tasks in accordance with the principle of separation from tasks relating to monetary policy, the ECB Governing Council of the ECB should be able to delegate certain clearly defined supervisory tasks and related decisions to the Euro area supervisory board, subject to the oversight and responsibility of the Governing Council, which can give instructions and directions to that body. The Euro area supervisory board may be supported by a steering committee with a more limited composition.
Amendment 346 #
Proposal for a regulation
Recital 36 a (new)
Recital 36 a (new)
(36a) The head of the single Euro area supervisory mechanism should be different from the head of the ECB and ESRB and he/she should be appointed after a hearing, and confirmation by, the European Parliament based upon a shortlist of suitably diverse candidates selected from across the EU banking sector and not exclusively the central banks.
Amendment 350 #
Proposal for a regulation
Recital 36 b (new)
Recital 36 b (new)
(36b) Due consideration should be given to both the expertise, gender and geographical diversity of members of the Euro area supervisory board.
Amendment 355 #
Proposal for a regulation
Recital 38
Recital 38
(38) In order to carry out its supervisory tasks as part of the single Euro area supervisory mechanism effectively, the ECB should exercise the supervisory tasks conferred on it in full independence, in particular from undue political influence and from both industry and special interest groups interference which would affect its operational independence.
Amendment 359 #
Proposal for a regulation
Recital 39
Recital 39
(39) In order to carry out its supervisory tasks effectively, the ECB should dispose of adequate resources. Those resources should be obtained in a way that ensures the ECB's independence from undue influences by national competent authorities, industry and special interest groups and market participants, and separation between monetary policy and supervisory tasks. TSupervision is a public good and the costs of supervision should be primarily borne byfairly shared between the entities subject to it. Therefore, the exercise of supervisory tasks by the ECB should be financed at least partly by fees charged to credit institutions. In view of the transfer of significant supervisory tasks from national authorities of the Euro area to the ECB it is expected that any supervisory fees due at national level can be reduced as appropriate.
Amendment 364 #
Proposal for a regulation
Recital 40
Recital 40
(40) Highly motivated, well-trained and impartial staff is indispensable to effective supervision. In order to create a truly integrated supervisory mechanism, appropriate exchange and secondment of staff with and among national supervisors of the Member States participating in the single Euro area supervisory mechanism and the ECB should be provided for. Where necessary to avoid conflicts of interest, particularly in the supervision of large banks, the ECB should be able to request that national supervisory teams of the single Euro area supervisory mechanism involve also staff from competent authorities of other participating Member States.
Amendment 368 #
Proposal for a regulation
Recital 41
Recital 41
(41) Given the globalisation of banking services and the increased importance of international standards, the ECB should carry out its tasks as part of the single Euro area supervisory mechanism in respect of international standards and in dialogue and close cooperation with supervisors outside the Union, without duplicating the international role of the EBA. It should be empowered to develop contacts and enter into administrative arrangements with the supervisory authorities and administrations of third countries and with international organisations, subject to coordination with the EBA and while fully respecting the existing roles and respective competences of the Member States and the Union institutions. The ECB should inform the European Parliament in its annual report on details of all administrative contacts with third country agencies and international agencies.
Amendment 372 #
Proposal for a regulation
Recital 41 a (new)
Recital 41 a (new)
(41a) The ECB should inform the European Parliament in its annual report about any contacts it has developed and administrative arrangements it has entered into with the supervisory authorities and administrations of third countries and with international organisations.
Amendment 383 #
Proposal for a regulation
Recital 44
Recital 44
(44) In order to ensure that credit institutions are subject to supervision of the highest quality, unfettered by other, non- prudential considerations and that the negative mutually reinforcing impacts of market developments concerns banks and Member States is addressed in a timely and effective way, the ECB should start carrying out specific supervisory tasks as part of the single Euro area supervisory mechanism as soon as possible. However, the transfer of supervisory tasks from national supervisors of the Euro area to the ECB requires a certain amount of preparation. Therefore, an appropriate phasing-in period should be provided for. The number of banks subject to the supervision of the ECB as part of the single Euro area supervisory mechanism should increase progressively, taking into account the relevance of the supervision of those Euro area banks to ensure financial stability. As a first step the ECB should be able to apply its supervisory tasks to any Euro area banks, in particular to banks which have received or requested public financial assistance. As a second step, banks of European systemic importance as reflected in their total exposures and their cross-jurisdictional activities should be covered. Total exposures should be calculated in light of the methodologies defined in the Basel III accord of the Basel Committee on Banking Supervisors on the calculation of the leverage ratio and on the definition of common equity tier 1 capital. The phasing- in process should be completed within onetwo years from the entry into force of this Regulation at the latest.
Amendment 387 #
Proposal for a regulation
Recital 45
Recital 45
(45) The current framework of prudential requirements for credit institutions and the supplementary supervision of financial conglomerates is formed by Directives providing for a significant number of options and discretions for Member States when circumscribing the powers of competent authorities. Pending the adoption of new Union legislative acts which spell out the powers which competent authorities shall have directly and without reference to Member States' options or discretions, the ECB can therefore not take any decisions directly applicable to credit institutions of the Euro area, financial holding companies or mixed financial holding companies. In this transitional phase, the ECB should therefore exercise its tasks only by instructing national competent authorities of Member States participating in the single Euro area supervisory mechanism to act.
Amendment 392 #
Proposal for a regulation
Recital 47
Recital 47
(47) Since the objectives of this Regulation, namely setting up an efficient and effective framework for the exercise of specific supervisory tasks over credit institutions of the Euro area by a Union institution, and ensuring the consistent application of the single rulebook to credit institutions, cannot be sufficiently achieved at the Member State level and can therefore, by reason of the pan-Unioncross-border structure of the banking market and the impact of bank failures on other Euro area Member States, be better achieved at the Union level, the UnionEuro area may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives.
Amendment 397 #
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
This Regulation confers on the ECB specific tasks concerning policies relating to the prudential supervision of credit institutions in the Euro area, with a view to directly promoting the safety and soundness of these credit institutions and indirectly the stability of the financial system of the Union, with due regard for the unity and integrity of the internal market. When carrying its tasks the ECB should pay due regard to: - the desirability of performing the tasks as transparently as possible; - the need to act proportionately; - the need to ensure effective coordination with Member States national competent authorities. - the unity and integrity of the internal market; - the international competitiveness of the internal market, - the potential impact of its decisions on the stability of the financial systems of participating Member States; - the potential impact of its decisions on growth in the participating Member States; - accountability to the European Parliament; In accordance with the principles set out in this article, the ECB shall not seek to constrain in any way the freedom of establishment of credit institutions or the provision of banking services in any currency in any Member State. In addition, the ECB shall not seek to influence through the adoption of regulations or otherwise the location of any credit institution, including as regards the location of outsourced critical operational functions or activities.
Amendment 414 #
Proposal for a regulation
Article 2 – paragraph 1 – point 1
Article 2 – paragraph 1 – point 1
(1) ‘"participating Member State’" means a Member State whose currency is the euro, including a non-Euro area Member State that has opted in the single Euro area supervisory mechanism (hereafter the 'opt-in Member State');
Amendment 417 #
Proposal for a regulation
Article 2 – paragraph 1 – point 1 a (new)
Article 2 – paragraph 1 – point 1 a (new)
(1a) "non participating Member State" means a Member State whose currency is not the euro and that has not opted in the single Euro area supervisory mechanism;
Amendment 438 #
Proposal for a regulation
Article 3 – paragraph 1
Article 3 – paragraph 1
The ECB shall cooperate closely with the European Banking Authority, the European Securities and Markets Authority, the European Insurance and Occupational Pensions Authority and the European Systemic Risk Board, which form part of the European System of Financial Supervision established by Article 2 of Regulations (EU) No. 1093/2010, (EU) No 1094/2010, and (EU) No 1095/2010 and all national competent authorities.
Amendment 501 #
Proposal for a regulation
Article 4 – paragraph 1 – point l
Article 4 – paragraph 1 – point l
Amendment 538 #
Proposal for a regulation
Article 5 – title
Article 5 – title
National authorities of participating Member States
Amendment 546 #
Proposal for a regulation
Article 5 – paragraph 1
Article 5 – paragraph 1
1. The ECB shall carry out its tasks within a single Euro area supervisory mechanism composed of the ECB and national competent authorities of the participating Member States.
Amendment 606 #
Proposal for a regulation
Article 6 – title
Article 6 – title
Close cooperation with the competent authorities of non participating Member States not having the euro (hereafter the 'opt-in Member States')
Amendment 611 #
Proposal for a regulation
Article 6 – paragraph 1 – subparagraph 1
Article 6 – paragraph 1 – subparagraph 1
1. Within the limits set out in this Article, the ECB shall carry out the tasks in the areas referred to in Article 4 (1) and (2) in relation to credit institutions established in a Member State whose currency is not the euro that has opted in the single Euro area supervisory mechanism, where a close cooperation has been established between the ECB and the national competent authority of such Member State in accordance with this Article.
Amendment 616 #
Proposal for a regulation
Article 6 – paragraph 1 – subparagraph 2
Article 6 – paragraph 1 – subparagraph 2
To that end, the ECB may address guidelines or requests to the national competent authority of the non participatopt-ing Member State.
Amendment 622 #
Proposal for a regulation
Article 6 – paragraph 2 – introductory part
Article 6 – paragraph 2 – introductory part
2. The close cooperation between the ECB and the national competent authority of a non participatn opt-ing Member State shall be established, by a decision adopted by the ECB, where the following conditions are met:
Amendment 640 #
Proposal for a regulation
Article 6 – paragraph 3
Article 6 – paragraph 3
3. The decision referred to in paragraph 2 shall determine, in compliance with the Statute of ESCB and of the ECB, the conditions under which representatives of the competent authorities of the Member States which established a close cooperation in accordance with this Article shall take part to the activities of the Euro area Supervisory Board.
Amendment 648 #
Proposal for a regulation
Article 6 – paragraph 5 a (new)
Article 6 – paragraph 5 a (new)
5a. Where a Member State chooses to terminate the close cooperation with the ECB, the Member State concerned shall notify the ECB, the other Member States, the Commission and EBA and the decision shall be published in the Official Journal of the European Union. The decision shall indicate the date from which it applies taking due consideration of supervisory effectiveness and legitimate interests of credit institutions.
Amendment 660 #
Proposal for a regulation
Article 7 – paragraph 1
Article 7 – paragraph 1
Without prejudice to the respective competences of the Member States and the other Union institutions, in relation to the tasks conferred on the ECB by this Regulation, the ECB may develop contacts and enter into administrative arrangements with supervisory authorities, international organisations and the administrations of third countries, subject to the appropriate coordination procedures within the EBA. Those arrangements shall not create legal obligations in respect of the Union and its Member States.
Amendment 675 #
Proposal for a regulation
Article 8 a (new)
Article 8 a (new)
Article 8a (1) The ECB shall determine its procedures in relation to the exercise of the tasks set out in Article 4(1) and (2). These procedures must be designed to secure, among other things, that decisions concerning disciplinary measures are taken by a person not directly involved in establishing the evidence upon which that decision is based. (2) The ECB shall publish guidance which may be regularly updated concerning the procedural arrangements put in place as a result of this provision.
Amendment 684 #
Proposal for a regulation
Article 9 – paragraph 1 – introductory part
Article 9 – paragraph 1 – introductory part
1. The ECB may by simple request or by decision require the following legal or natural persons of the participating Member States to provide all information that is necessary in order to carry out the tasks conferred upon it by this Regulation, including information to be provided at recurring intervals and in specified formats for supervisory and related statistical purposes:
Amendment 691 #
Proposal for a regulation
Article 10 – paragraph 1 – introductory part
Article 10 – paragraph 1 – introductory part
1. In order to carry out the tasks conferred upon it by this Regulation, the ECB may conduct all necessary investigations of persons of participating Member States referred to in Article 9 (1) (a) to (g). To that end, the ECB shall have the right to:
Amendment 778 #
Proposal for a regulation
Article 17 – paragraph 1
Article 17 – paragraph 1
(1) The ECB shall be accountable to the European Parliament and to the Council for the implementation of this Regulation, in accordance with this Chapter (1a) The ECB shall, at the request of the European Parliament, the Council or a Member State arrange for an independent person to conduct an inquiry where, in the opinion of the person requesting the inquiry events have occurred in relation to a credit institution falling within the ECB's supervisory remit: (a) which posed or could have posed a serious threat to the stability of, or confidence in, the financial system of one or more Member States; (b) indicate or may indicate a significant supervisory failure on the part of the ECB; (c) had or could have had a significant adverse effect on competition in one or more Member States; or (d) caused or could have caused detriment to costumers of a credit institution. (1b) On the completion of an inquiry, the person holding the inquiry shall make a written report to the European Parliament and the Council: (a) setting out the results of the inquiry, and (b) making such recommendations, if any, as the person considers appropriate.
Amendment 795 #
Proposal for a regulation
Article 19 – title
Article 19 – title
Euro area Supervisory board (EASB)
Amendment 798 #
Proposal for a regulation
Article 19 – paragraph 1
Article 19 – paragraph 1
1. The planning and execution of the tasks conferred upon the ECB, shall be undertaken by an internal body composed of four representatives of the ECB appointed by the Executive Board of the ECB and one representative of the national authority competent for the supervision of credit institutions in each participating Member State (hereinafter ‘"Euro area supervisory board’").
Amendment 869 #
Proposal for a regulation
Article 19 – paragraph 7 a (new)
Article 19 – paragraph 7 a (new)
7a. The composition of the Euro area Supervisory Board (EASB) and of the Steering Committee shall be sufficiently diverse with regards to expertise, gender and geographical balance.
Amendment 894 #
Proposal for a regulation
Article 21 – paragraph 4
Article 21 – paragraph 4
4. The ECB shall reply orally or in writing to questions put to it by the European Parliament or, by the Eurogroup or any Member State.
Amendment 901 #
Proposal for a regulation
Article 21 – paragraph 4 a (new)
Article 21 – paragraph 4 a (new)
4a. This report shall include a statement as to the extent to which, in the opinion of the ECB, it has advanced its objective(s) in performing its supervisory tasks and had regard to the matters referred to in Article 1a.
Amendment 905 #
Proposal for a regulation
Article 21 – paragraph 4 b (new)
Article 21 – paragraph 4 b (new)
4b. Reports produced in accordance with this Article shall be made public.
Amendment 916 #
Proposal for a regulation
Article 24 – paragraph 2
Article 24 – paragraph 2
2. The amount of a fee levied on a credit institution of any of the participating Member States shall be proportionate to the importance and risk profile of the credit institution concerned.
Amendment 917 #
Proposal for a regulation
Article 24 – paragraph 2 a (new)
Article 24 – paragraph 2 a (new)
2a. The ECB shall publish a policy statement which may be regularly updated with respect to the amount of fees to be levied in accordance with this Article.
Amendment 920 #
Proposal for a regulation
Article 24 – paragraph 2 b (new)
Article 24 – paragraph 2 b (new)
2b. Before issuing each policy statement the ECB shall consult on its draft policy statement.
Amendment 924 #
Proposal for a regulation
Article 25 – paragraph 1
Article 25 – paragraph 1
1. The ECB shall ensure an appropriate exchange and secondment of staff with and among national competent authorities of the participating Member States.
Amendment 947 #
Proposal for a regulation
Article 26 – paragraph 1 – point c a (new)
Article 26 – paragraph 1 – point c a (new)
(ca) the interaction between the ECB and the national competent authorities of non participating Member States;
Amendment 963 #
Proposal for a regulation
Article 27 – paragraph 1
Article 27 – paragraph 1
1. From the 1st of July 2013, the ECB shall carry out the supervisory tasks conferred on it also in relation to the most significant credit institutions, in the participating Member States, including financial holding companies and mixed financial holding companies of European systemic importance at the highest level of consolidation, based on their size as reflected in, the sum of exposure values of all assets and off-balance sheet liabilities not deducted when determining the common equity tier 1 capital for regulatory purposes, and their cross-border activity as reflected in cross-jurisdictional claims such as deposits and other assets in respect of customers or other financial operators located in another country and cross- jurisdictional liabilities such as loans and notes in respect of customers or other financial operators located in another country, which together cover at least half of the banking sector in the Euro area as a whole, on 1 January 2013. The ECB shall adopt and make public the list of those institutions before 1 March 2013.
Amendment 984 #
Proposal for a regulation
Article 28 – paragraph 1
Article 28 – paragraph 1
This Regulation shall enter into force on 1 January 2013.4