Activities of Vicky FORD related to 2010/0207(COD)
Plenary speeches (1)
Deposit guarantee schemes (debate)
Shadow reports (1)
REPORT on the proposal for a directive of the European Parliament and of the Council on Deposit Guarantee Schemes (recast) PDF (753 KB) DOC (1 MB)
Amendments (33)
Amendment 111 #
Proposal for a directive
Recital 9
Recital 9
(9) Although, in principle, all credit institutions should be members of a Deposit Guarantee Scheme, it should be recognised that there are systems which protect the credit institution itself (Institutional Protection Schemes) and, in particular, ensure its liquidity and solvency. Such schemes guarantee protection for depositors beyond that provided by a Deposit Guarantee Scheme. If such schemes are separate from Deposit Guarantee Schemes, their additional safeguard role of systems should be taken into account when the contributions of its members to Deposit Guarantee Schemes are determined. The harmonised level of coverage should not affect schemes protecting the credit institution itself unless they repay depositors. Depositors should have a claim against all schemes, in particular if protection by a Mutual Guarantee Scheme cannot be ensured. No scheme or system should thus be excluded from this Directive. Schemes with an obligation on the members to provide assistance, over and above the covered value of deposits, should not automatically qualify for zero risk weighting under article 80.8 of directive 2006/48/EC
Amendment 114 #
Proposal for a directive
Recital 10
Recital 10
(10) Institutional protection schemes are defined in Article 80(8) 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 business of credit institutions (recast)17 and may be recognizsed as Deposit Guarantee Schemes by the competent authorities if they fulfil all criteria laid down in that Article and in this Directive. Schemes with an obligation on members to provide assistance over and above the value of the covered deposits should not automatically qualify for zero risk weighting under article 80.8 of directive 2006/48/EC;
Amendment 122 #
Proposal for a directive
Recital 21 a (new)
Recital 21 a (new)
(21a) Member States may decide to implement schemes that are either funded ex-ante or ex-post, subject to an observation period until 2015 to allow Member States to reassess the benefits of ex-ante or ex-post schemes in light of Basel periods for liquidity. If, following or during the observation period a scheme that has been partly or fully funded ex- post becomes ex-ante the 10 year funding period shall start from the date of conversion to ex-ante;
Amendment 136 #
Proposal for a directive
Recital 38 a (new)
Recital 38 a (new)
(38a) Given the different structures, concentrations and risks of the retail banking sector in each Member State a "one size fits all" approach to funding of schemes is not appropriate. There should be an observation period for the implementation of this Deposit Guarantee Scheme Directive (recast) ending in 2015 in which the impacts of the Deposit Guarantee Scheme funding options in Article 9 (1) shall be assessed in line with the Basel Committee recommended observation periods for the Net Stable Funding Ratio and the Liquidity Coverage Ratio;
Amendment 137 #
Proposal for a directive
Recital 38 b (new)
Recital 38 b (new)
(38b) Scheme funds are able to be used to finance the use of resolution tools. Member States should avoid the moral hazard implications of using scheme funds to avoid a institutions failure by providing capital, solvency or liquidity assistance;
Amendment 142 #
Proposal for a directive
Article 2 – paragraph -1 a (new)
Article 2 – paragraph -1 a (new)
-1a. ‘Preventive and support measures’ means measures adopted by Deposit Guarantee Scheme operators to prevent bank failure of the affiliated credit institutions. Such measures may include, inter alia: (i) rights to verify the economic situation and the risk position of the affiliated credit institutions or, where an institution is being newly established, the basic plans, and with regard to a member of the company where a change occurs in a majority, facilitating control over the institution; (ii) obligations for the affiliated credit institutions to provide information on the economic situation and the risk position, their development and intended changes to the business model; (iii) the imposition of conditions to limit the volume of deposits guaranteed or to limit certain business operations (wholly or partially) where on the basis of an audit or drawing on other sources there are indications that there may be an impending or acute danger of resort to the Deposit Guarantee Scheme; (iv) the levying of contributions geared to the individual risk position of the institution; (v) rights to information from the competent supervisory authorities and exemption from any obligations of confidentiality which may exist vis-à-vis these supervisory authorities; (vi) granting of guarantees, loans and all types of liquidity and capital assistance, including satisfying third-party claims, subject however that schemes with an obligation on the members to provide such assistance, over and above the covered value of deposits, should not automatically qualify for zero risk weighting under article 80.8 of directive 2006/48/EC
Amendment 146 #
Proposal for a directive
Article 2 – paragraph 1 – point h
Article 2 – paragraph 1 – point h
(h) ‘target level’ means an amount of no less than 1.50% of eligiblecovered deposits for the coverage of which a Deposit Guarantee Sreached over a period of 10 years. Member States may decide to implement schemes that are either funded ex-ante or ex-post, subject to an observation period until 2015 to allow Member States to reassess the benefits of ex-ante or ex-post schemes is responsibln light of Basel observation periods. If, following or during the observation period a scheme that has been partly or fully funded ex-post becomes ex- ante the 10 year funding period shall start from the date of conversion to ex-ante;
Amendment 151 #
Proposal for a directive
Article 2 – paragraph 1 – point i
Article 2 – paragraph 1 – point i
(i) ‘available financial means’ means cash, deposits and low-risk assets with a residual term to final maturity of 24 months or less, which can be liquidated within a time limit not exceeding the limit set by Article 7(1);, pledged assets and, for an ex-post scheme, includes guarantees or commercial lending arrangements and lending facilities from public institutions (including from Member States), provided that the terms and conditions for lending offered by those facilities are based on commercial grounds; or that the Member state should be able to demonstrate that measures are in place to provide adequate alternative funding to the scheme.
Amendment 154 #
Proposal for a directive
Article 2 – paragraph 1 – point i a (new)
Article 2 – paragraph 1 – point i a (new)
(ia) "Pledged assets" means payment commitments which are duly backed by high quality collateral and subject to the following conditions: - The collateral consists of low risk assets unencumbered by any third party rights, at the free disposal of the Deposit Guarantee Scheme which assumes full legal title of the assets. -A credit institution will be entitled to the yield on the assets pledged by that credit institution as collateral -The collateral will be subject to regular mark to market analysis, credit institutions will need to ensure the mark to market valuation of collateral is at least equal to that credit institutions commitment to the scheme.
Amendment 163 #
Proposal for a directive
Article 3 – paragraph 6 – subparagraph 3
Article 3 – paragraph 6 – subparagraph 3
The European Banking Authority shall periodically conduct peer reviews pursuant to Article 15 of the [EBA regulation] in this regard, such peer reviews are to include inter-alia corporate governance practices under article 3.7 a. Deposit Guarantee Schemes shall be bound to professional secrecy referred to in Article 56 of that Regulation when exchanging information with the European Banking Authority.
Amendment 165 #
Proposal for a directive
Article 3 – paragraph 7 a (new)
Article 3 – paragraph 7 a (new)
Amendment 172 #
Proposal for a directive
Article 4 – paragraph 1 – point i
Article 4 – paragraph 1 – point i
(i) deposits by pension and retirement funds, except those held in personal pension schemes or in occupational pension schemes of an employer which is not a large company;
Amendment 175 #
Proposal for a directive
Article 4 – paragraph 2 a (new)
Article 4 – paragraph 2 a (new)
2a. Member States shall ensure that deposits by local authorities are excepted from Article 4(1)(j)
Amendment 176 #
Proposal for a directive
Article 5 – paragraph 1 a (new)
Article 5 – paragraph 1 a (new)
1a. In addition, Member States shall ensure that the following deposits are fully protected: (a) deposits resulting from real estate transactions relating to private residential properties for up to 3 months (or longer at the Member State discretion but in any event not longer than 12 months) after the amount has been credited; (b) deposits that serve social purposes defined in national law and are linked to particular life events such as marriage, divorce, retirement, dismissal, invalidity or decease of a depositor, for up to 3 months (or longer at the Member State discretion but in any not longer than 12 months) after the amount has been credited; (c) deposits that serve purposes defined in national law and are based on the payment of insurance benefits or compensation, for up to 3 months (or longer at the Member State discretion but in any event not longer than 12 months) after the amount has been credited. Subject however that where amounts under (a) and (c) are unable to be legally moved (due to, for example, probate conditions) the 3 month period shall only commence from the date from which the funds can legally be moved
Amendment 179 #
Proposal for a directive
Article 5 – paragraph 3 a (new)
Article 5 – paragraph 3 a (new)
Amendment 197 #
Proposal for a directive
Article 7 – paragraph 1 a (new)
Article 7 – paragraph 1 a (new)
1a. Member States may decide that until 31 December 2016 a time limit for payout of 20 working days should apply, provided that after a thorough examination the competent supervisory authority establishes that the Deposit Guarantee Schemes are not yet in a position to guarantee a time limit of seven days for payout. After 31 December 2016 a time limit for payout of 7 days should apply.
Amendment 198 #
Proposal for a directive
Article 7 – paragraph 1 b (new)
Article 7 – paragraph 1 b (new)
1b. Repayment or payout as referred to in 7.1 may be deferred in the following cases: (i) The eligible claimant is the beneficiary of an account held on their behalf by another person (ii) It is uncertain whether a person is legally entitled to receive a repayment or the deposit is subject to legal dispute (iii) The deposit is subject to economic sanctions imposed by national governments or international bodies (iv) The account is dormant. (v) The account is maintained in a foreign currency (vi) The amount is deemed part of a temporary high balance as defined in Article 5.1 (a)
Amendment 199 #
Proposal for a directive
Article 7 – paragraph 1 – subparagraph 3 a (new)
Article 7 – paragraph 1 – subparagraph 3 a (new)
If Member States have adopted a longer time limit for payout of 20 working days until 31 December 2016, depositors shall upon request receive a payout of up to EUR 5 000 from the Deposit Guarantee Scheme within seven days on their deposit eligible for reimbursement.
Amendment 203 #
Proposal for a directive
Article 7 – paragraph 1 – subparagraph 1 a (new)
Article 7 – paragraph 1 – subparagraph 1 a (new)
Member States may decide that, for the purposes of the payout referred to in paragraph 1, the deposits of a depositor with the same credit institution should not be aggregated in so far as the law of the Member State permits credit institutions to operate under different brand names. Deposits with the same credit institution under the same brand name shall be aggregated, and the coverage level laid down in Article 5(1) shall apply to them. If this calculation leads to a larger amount of covered deposits per depositor and per credit institution than provided for by Article 5, the contributions to the Deposit Guarantee Scheme calculated pursuant to Article 9 and 11 shall be increased accordingly. Should a Member State decide not to allow separate deposit protection across brands within the same credit institution, then the Member State must introduce appropriate information and disclosure requirements so that it is clear which institution is the license holder and that brands are not separately guaranteed.
Amendment 210 #
Proposal for a directive
Article 9 – paragraph 1 – subparagraph 1
Article 9 – paragraph 1 – subparagraph 1
Member States shall ensure that Deposit Guarantee Schemes have in place adequate systems to determine their potential liabilities. The available financial means of Deposit Guarantee Schemes shall be proportionate to these liabilities. Member States may decide to implement schemes that are either funded ex-ante or ex-post, subject to an observation period until 2015 to allow Member States to reassess the benefits of ex-ante or ex-post schemes in light of Basel periods for liquidity. If, following or during the observation period a scheme that has been partly or fully funded ex-post becomes ex-ante the 10 year funding period shall start from the date of conversion to ex-ante;
Amendment 213 #
Proposal for a directive
Article 9 – paragraph 1 – subparagraph 2
Article 9 – paragraph 1 – subparagraph 2
Deposit Guarantee Schemes shall raise the available financial means byeither a) by a fund financed through regular contributions from their members on 30 June and 30 December ofat least once each year. This shall not prevent additional financing from other sources. One-off entry fees may not be requested; or (b) a system of post-funding capable of meeting the scheme’s liabilities under the Directive; or (c) a combination of the above.
Amendment 224 #
Proposal for a directive
Article 9 – paragraph 1 – subparagraph 3
Article 9 – paragraph 1 – subparagraph 3
The available financial means shall at least reach the target level. Where the financing capacity falls short of the target level, the payment of contributions or posting of guarantees or loans shall resume at least until the target level is reached again. Where the available financial means amount to less than two thirds of the target level, the regular contribution shall not be less than 0.25% of eligible deposits.
Amendment 232 #
Proposal for a directive
Article 9 – paragraph 3
Article 9 – paragraph 3
3. If the available financial means of a Deposit Guarantee Scheme are insufficient to repay depositors when deposits become unavailable, then either a) its members shall pay extraordinary contributions not exceeding 0.5% of their eligiblecovered deposits per calendar year. That payment shall be executed one day before the time limit referred to in Article 7(1); or b) schemes have in place adequate alternative funding arrangements to enable them to obtain further funding to cover their liabilities under the Directive. These arrangements may include commercial lending arrangements and lending facilities from public institutions (including from Member States), provided that the terms and conditions for lending offered by those facilities are based on commercial grounds.
Amendment 248 #
Proposal for a directive
Article 9 – paragraph 5 – subparagraph 3 – introductory part
Article 9 – paragraph 5 – subparagraph 3 – introductory part
Member States may allow Deposit Guarantee Schemes to use their financial means in order to avoid a bank failure without being restricted to financing the transfer of deposits to another credit ifor resolution tools, including deposit book transfer, up to the net cost of compensatitution, provided that the following conditions are met:ng covered deposits of that failed institution.
Amendment 249 #
Proposal for a directive
Article 9 – paragraph 5 – subparagraph 3 – point a
Article 9 – paragraph 5 – subparagraph 3 – point a
Amendment 251 #
Proposal for a directive
Article 9 – paragraph 5 – subparagraph 3 – point b
Article 9 – paragraph 5 – subparagraph 3 – point b
Amendment 253 #
Proposal for a directive
Article 9 – paragraph 5 – subparagraph 4
Article 9 – paragraph 5 – subparagraph 4
Amendment 259 #
Proposal for a directive
Article 9 – paragraph 7 – subparagraph 1
Article 9 – paragraph 7 – subparagraph 1
Member States shall monthannually inform the European Banking Authority of the amount of eligible deposits and covered deposits in their Member State and of the amount of the available financial means of their Deposit Guarantee Schemes. This information shall be confirmed by the competent authorities and shall, accompanied by this confirmation, transmitted within 10 day4 months from the end of each monthyear to the European Banking Authority.
Amendment 279 #
Proposal for a directive
Article 11 – paragraph 2
Article 11 – paragraph 2
Amendment 284 #
Proposal for a directive
Article 11 – paragraph 3
Article 11 – paragraph 3
Amendment 287 #
Proposal for a directive
Article 11 – paragraph 3 a (new)
Article 11 – paragraph 3 a (new)
3a. By derogation from the standardised approach in paragraphs 1 and 2, Deposit Guarantee Schemes may use their own risk-based methods to determine the degree of risk incurred by members and calculate contributions by member bodies to the Deposit Guarantee Scheme. Calculation of the contributions shall be proportional to the commercial risk of the institute in question and take due consideration of the risk profiles of the various business models. The procedures may also calculate the contribution base from the assets side of the balance sheet and consider capital adequacy, the quality of the assets and liquidity at least as risk indicators. The European Banking Authority shall conduct a review of compliance with the guidelines whenever the scheme is changed and at periodic intervals of at least every five years.
Amendment 288 #
Proposal for a directive
Article 11 – paragraph 4
Article 11 – paragraph 4
Amendment 304 #
Proposal for a directive
Article 14 – paragraph 2
Article 14 – paragraph 2
2. Information to intending depositors shall be made available before entering into a contract on deposit-taking and shall be countersigned by intending depositors. The template in Annex III shall be used.