BETA

18 Amendments of Gabriel MATO related to 2015/0270(COD)

Proposal for a regulation
Recital 5

(5) In June 2015, the Five Presidents Report on Completing Europe’s Economic and Monetary Union pointed out that a single banking system can only be truly single if confidence in the safety of bank deposits is the same irrespective of the Member State in which a bank operates. This requires single bank supervision, single bank resolution and single deposit insurance. The Five Presidents report therefore proposed to complete the Banking Union by establishing a European Deposit Insurance Scheme (EDIS), the third pillar of a fully-fledged Banking Union alongside bank supervision and resolution. Concrete steps in that direction should already be taken as a priority, with a reco-insurance system at the European level for the national deposit guarantee schemes as a first step towards a fully mutualised approach. The scope of this reco-insurance system should coincide with that of the SSM.

2016/12/20
Committee: ECON

Proposal for a regulation
Recital 13

(13) This Regulation applies only in respect of banks and credit unions whose home supervisor is the ECB or the national competent authority in Member States whose currency is the euro or in Member States whose currency is not the euro which have established a close cooperation in accordance with Article 7 of Regulation (EU) No 1024/2013. The scope of application of this Regulation is linked to the scope of application of Regulation (EU) No 1024/2013. Indeed, bearing in mind the significant level to which the supervisory tasks attributed to the SSM and deposit guarantee actions are interwoven, the establishment of a centralised system of supervision operated under Article 127(6) of the Treaty on the Functioning of the European Union is fundamentally important to the process of harmonisation of deposit guarantee in participating Member States. The fact of being subject to supervision by the SSM constitutes a specific attribute that places the entities falling within the scope of application of Regulation (EU) No 1024/2013 in an objectively and characterised distinct position for deposit guarantee purposes. It is necessary to adopt measures to create a single deposit insurance scheme for all Member States participating in the SSM in order to facilitate the proper and stable functioning of the internal market.

2016/12/20
Committee: ECON

Proposal for a regulation
Recital 17

(17) EDIS should progressively evolve from a reco-insurance scheme into a fully mutualised ~~co-~~full insurance scheme over a number of years. In the context of efforts to deepen the EMU, together with the work on the establishment of bridge-financing arrangements for the Single Resolution Fund (SRF) and on developing a common fiscal backstop, this step is necessary to reduce the bank/sovereign links in individual Member States by means of steps towards risk sharing among all the Member States in the Banking Union, and thereby to reinforce the Banking Union in achieving its key objective. However, such risk sharing implied by steps to reinforce Banking Union must proceed in parallel with risk reducing measures designed to break the bank-sovereign link more directly.

2016/12/20
Committee: ECON

Proposal for a regulation
Recital 18

(18) EDIS should be established in t~~hree~~wo sequential stages, first a ~~reinsurance scheme that covers a share of the liquidity shortfall and of the excess losses of participating DGSs, followed by a~~ co- insurance scheme that covers a gradually increasing share of the liquidity shortfall and losses of participating DGSs and eventually resulting in a full insurance scheme that covers all liquidity needs and losses of participating deposit guarantee schemes.

2016/12/20
Committee: ECON

Proposal for a regulation
Recital 19

(19) In the reinsurance stage, and in order to limit the liability for the European Deposit Insurance Fund (“the Deposit Insurance Fund”) and to reduce moral hazard risk at the national level, assistance from the Deposit Insurance Fund can only be requested if the national DGS has raised ex-ante contributions in accordance with a precise funding path, and if it first depletes these funds. However, to the extent that a national DGS has collected funds over and above that which is required by the funding path, it only needs to use up the funds it had to collect to comply with the funding path before being able to receive coverage by EDIS. Therefore, DGSs which have collected more funds than is needed to comply with the funding path should not be in a worse position than those which have collected funds not exceeding the levels set out in the funding path.deleted

2016/12/20
Committee: ECON

Proposal for a regulation
Recital 20

(20) As the Deposit Insurance Fund, in the re-insurance stage, would only provide an additional source of funding and would only weaken the link between banks and their national sovereign, without however ensuring that all depositors in the Banking Union enjoy an equal level of protection, the reinsurance stage should, after three years, gradually progress into a co-insurance scheme and ultimately into a fully mutualised deposit insurance scheme.deleted

2016/12/20
Committee: ECON

Proposal for a regulation
Recital 21

(21) ~~While the reinsurance and~~An initial phase of four years for the co-insurance stages would ~~share many common features,~~ ensur~~ing~~e a smooth gradual evolution, pay-outs under the co- insurance stage would be shared between national DGS and the Deposit Insurance Fund as of the first euro of loss. The relative contribution from the Deposit Insurance Fund would gradually increase to 100 percent, resulting in the full mutualisation of depositor risk across the Banking Union after four years.

2016/12/20
Committee: ECON

Proposal for a regulation
Recital 26

(26) Contributions would be directly levied on banks to finance the Deposit Insurance Fund. The Board would collect the contributions and administer the Deposit Insurance Fund, while national DGSs would continue to collect national contributions and administer national funds. In order to ensure fair and harmonised contributions for participating banks and provide incentives to operate under a model which presents less risk, both contributions to EDIS and to national DGS should be calculated on the basis of covered deposits and a risk-adjustment factor per bank. During the re-insurance period the risk-adjustment factor should consider the degree of risk incurred by a bank relative to all other banks affiliated to the same participating DGS. Once the stage of co-insurance is reachedstage of co- insurance, the risk- adjustment factor should consider the degree of risk incurred by a bank relative to all other banks established in the participating Member States. This would ensure that, overall, EDIS is cost-neutral for banks and national DGSs and avoid any redistribution of contributions during the build-up phase of the Deposit Insurance Fund.

2016/12/20
Committee: ECON

Proposal for a regulation
Recital 29

(29) The initial and final target level of the Deposit Insurance Fund should be established as a percentage of the total minimum target levels of participating DGS. It should progressively reach ~~20% of four ninth of the total minimum target levels by the end of the reinsurance period and~~ the sum of all minimum target levels by the end of the co-insurance period. The possibility to apply for approval to authorise a lower target level in accordance with Article 10(6) of Directive 2014/49/EU should not be considered when setting the initial or final target levels of the Deposit Insurance Fund. An appropriate time frame should be set to reach the target level for the Deposit Insurance Fund.

2016/12/20
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 2

Regulation (EU) No 806/2014
Article 1 – paragraph 2 – subparagraph 1 – indent 1

~~- a reinsurance scheme that, to a certain extent, provides funding and covers a share of the losses of participating deposit guarantee schemes in accordance with Article 41a;~~deleted

2016/12/20
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 3

Regulation (EU) No 806/2014
Article 2 – paragraph 2 – subparagraph 1 – point a

(a) credit institutions and unions established in a participating Member State;

2016/12/20
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 10

Regulation (EU) No 806/2014
Part IIa – title I – chapter 1

~~[...]~~Chapter 1 deleted Reinsurance

2016/12/21
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 10

Regulation (EU) No 806/2014
Article 41d – paragraph 1

1. As from the ~~end of the re- insurance period~~date of application set out in Article 99(5a), the participating DGS shall be co-insured by EDIS in accordance with this Chapter for a period of four years (‘~~co-~~reinsurance period’).

2016/12/21
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 10

Regulation (EU) No 806/2014
Article 41i – paragraph 1 – introductory part

1. A participating DGS shall not be covered by EDIS in the ~~reinsurance,~~ co- insurance or full insurance phase, if the Commission, acting on its own initiative or upon a request of the Board or a participating Member State, decides and informs the Board accordingly that at least one of the following disqualifying conditions is met:

2016/12/21
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 b – paragraph 1

1. By the end of the reinsurance period the available financial means of the DIF shall reach an initial target level of 20% of four ninth of the sum of the minimum target levels that participating DGSs shall reach in accordance with the first subparagraph of Article 10(2) of Directive 2014/49/EU.deleted

2016/12/21
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 b – paragraph 4

4. After the target level specified in paragraph 2 has been reached for the first time and where the available financial means have subsequently been reduced to less than two-thirds of the target level, the contributions calculated in accordance with Article 74c shall be set at a level allowing to reach the target level within ~~six~~four years.

2016/12/21
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 806/2014
Article 74 c – paragraph 1

1. Each year during the ~~reinsurance and~~ co-insurance period, the Board shall, after consulting the ECB and the national competent authority and in close cooperation with the participating DGSs and designated authorities, determine for each participating DGS the total amount of ex- ante contributions that it may claim from the credit institutions affiliated to the respective participating DGS in order to reach the target levels provided for in Article 74b. The total amount of contributions shall not exceed the target levels provided for in Article 74b (1) and (2).

2016/12/21
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 37

Regulation (EU) No 806/2014
Article 77 a – paragraph 1

~~1. During the reinsurance period the Board shall use the DIF to provide the funding in accordance with Article 41a(2) and cover a share of the excess loss in accordance with Article 41a(3).~~deleted

2016/12/21
Committee: ECON