Activities of Vicky FORD related to 2011/0202(COD)
Shadow reports (1)
REPORT on the proposal for a regulation of the European Parliament and of the Council on prudential requirements for credit institutions and investment firms PDF (2 MB) DOC (3 MB)
Amendments (164)
Amendment 147 #
Proposal for a regulation
Recital 7 a (new)
Recital 7 a (new)
(7a) Having regard to work of the Basel Committee of Banking Supervisors' Standards Implementation Group in monitoring and reviewing member countries' implementation of the Basel regulatory capital framework, the Commission should provide update reports on an ongoing basis, and at least following the publication of each Progress Report on Basel III implementation by the Basel Committee on Banking Supervisors, on the implementation and domestic adoption of Basel III in other major jurisdictions, including an assessment of the consistency of other countries' legislation or regulations with the international minimum standard to identify differences that could raise level playing field concerns.
Amendment 176 #
Proposal for a regulation
Recital 54
Recital 54
(54) For the purposes of strengthening market discipline and enhancing financial stability it is necessary to introduce more detailed requirements for disclosure of the form and nature of regulatory capital and, prudential adjustments and secured funding made in order to ensure that investors and depositors are sufficiently well informed about the solvency of credit institutions and investment firms.
Amendment 183 #
Proposal for a regulation
Recital 67
Recital 67
(67) In December 2010, the BCBS published guidelines defining the methodology for calculating the leverage ratio. These rules foresee an observation period that will run from 1 January 2013 until 1 January 2017 during which the leverage ratio, its components and its behaviour relative to the risk-based requirement will be monitored. Based on the results of the observation period the BCBS intends to make any final adjustments to the definition and calibration of the leverage ratio in the first half of 2017, with a view to migrating to a binding requirement on 1 January 2018 based on appropriate review and calibration. The BCBS guidelines also foresee themake clear that institution level disclosure of the leverage ratio and its components starting fromwill start on 1 January 2015.
Amendment 225 #
Proposal for a regulation
Part 1 – article 1 – paragraph 1
Part 1 – article 1 – paragraph 1
1. This Regulation lays down uniform rules concerning general prudential requirements that all institutions supervised under Directive [inserted by OP] must meet in relation to the following items: (a) own funds requirements relating to2012/.../EU of the European Parliament and of the Council of ... [on the access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms] must meet for the purposes of mitigating the following types of risks to which an individual institution may be exposed: (a) entirely quantifiable, uniform and standardised elements of credit risk, market risk, and operational risk; (b) requirements limiting large exposure risks; (c) after the delegated act referred to in Article 444 has entered into force, liquidity requirements relating to entirely quantifiable, uniform and standardised elements of liquidity risk; (d) reporting requirements related to points (a) to (c) and to leverage; (e) publication requirements.
Amendment 228 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
This Regulation also lays down uniform rules concerning reporting and publication requirements related to the risks in points (a) to (c) and to leverage. Article 299 applies to central counterparties.
Amendment 229 #
Proposal for a regulation
Article 1 – paragraph 3
Article 1 – paragraph 3
This Regulation does not govern publication requirements for competent authorities in the field of prudential regulation and supervision of institutions as set out in Directive [inserted by OP2012/.../EU of the European Parliament and of the Council of ... [on the access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms].
Amendment 231 #
Proposal for a regulation
Article 1 – paragraph 3 a (new)
Article 1 – paragraph 3 a (new)
This Regulation does not concern systemic risk to the financial system within a Member State or across Member States, in relation to which measures may be imposed in accordance with Chapter 3A of Directive [inserted by OP].
Amendment 242 #
Proposal for a regulation
Article 4 – paragraph 1 – point 8 – point c
Article 4 – paragraph 1 – point 8 – point c
(c) firms which are only authorised to: i) provide the service of investment advice or; ii) provide portfolio management without holding money or securities belonging to their clients and which for that reason may not at any time place themselves in debt with those clients; or iii) receive and transmit orders from investors without holding money or securities belonging to their clients and which for that reason may not at any time place themselves in debt with those clients;.
Amendment 265 #
Proposal for a regulation
Article 7 – paragraph 1 – introductory part
Article 7 – paragraph 1 – introductory part
1. The competent authorities shallmay waive in full or in part the application of Article 401 to a parent institution and to all or some of its subsidiaries in the European Union and supervise them as a single liquidity sub- group so long as they fulfil all of the following conditions:
Amendment 274 #
Proposal for a regulation
Article 7 – paragraph 1 – point c
Article 7 – paragraph 1 – point c
(c) The institutions have entered into contracts to the satisfaction of competent authorities that provide for the free movement of funds between them to enable them to meet their individual and joint obligations as they come due;
Amendment 311 #
Proposal for a regulation
Article 18 – paragraph 1 – subparagraph 1 – point b
Article 18 – paragraph 1 – subparagraph 1 – point b
Amendment 316 #
Proposal for a regulation
Article 18 – paragraph 2 – subparagraph 1 – point b
Article 18 – paragraph 2 – subparagraph 1 – point b
Amendment 319 #
Proposal for a regulation
Article 18 – paragraph 3 – point b
Article 18 – paragraph 3 – point b
Amendment 324 #
Proposal for a regulation
Article 18 – paragraph 4 – subparagraph 1
Article 18 – paragraph 4 – subparagraph 1
In the absence of a joint decision between the competent authorities within six months, the consolidating supervisor shall make its own decision on paragraph 1(a) and 1(b). The decision of the consolidating supervisor on paragraph 1(b) shall not limit the powers of the competent authorities under Article 102.
Amendment 330 #
Proposal for a regulation
Article 18 – paragraph 7 – subparagraph 1
Article 18 – paragraph 7 – subparagraph 1
EBA shall develop draft implementing technical standards to specify the joint decision process referred to in paragraph 1(a), with regard to the applications for permissions referred to in Articles 138(1), 146(9), 301(2), 277, 352, and for the liquidity intra-group treatment referred to in paragraph 1(b) with a view to facilitating joint decisions.
Amendment 349 #
Proposal for a regulation
Article 19 a (new)
Article 19 a (new)
Article 19 a Competence of home and host supervisors Host Member States shall, pending further coordination, retain responsibility in cooperation with the competent authorities of the home Member State for the supervision of the liquidity of the branches of credit institutions. Without prejudice to the measures necessary for the reinforcement of the European Monetary System, host Member States shall retain complete responsibility for the measures resulting from the implementation of their monetary policies. Such measures may not provide for discriminatory or restrictive treatment based on the fact that a credit institution is authorised in another Member State.
Amendment 354 #
Proposal for a regulation
Article 24 – paragraph 1 – point a
Article 24 – paragraph 1 – point a
(a) capital instrumentshares, provided the conditions laid down in Article 26 are met;
Amendment 374 #
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 : (i) a mutual, cooperative society or a; (ii) a co-operative society (iii) a similar institution, or (iv) a credit institution which is a subsidiary of a mutual, co-operative society or similar institution, provided that, and for as long as, 100% of the ordinary shares in issue in the credit institution is held, directly or indirectly, by the mutual, co-operative society or similar institution, in each case, for the purposes of this Part;
Amendment 387 #
Proposal for a regulation
Article 26 – paragraph 1 – introductory part
Article 26 – paragraph 1 – introductory part
1. CShares and the capital instruments referred to in Article 25(1) shall qualify as Common Equity Tier 1 instruments only if all the following conditions are met:
Amendment 409 #
Proposal for a regulation
Article 27 – paragraph 3
Article 27 – paragraph 3
3. The capital instruments may include a cap or restriction on the maximum level of distributions only where that cap or restriction is set out under applicable national law or the statute of the institution. Where such a cap or restriction is permitted, individual issues of capital instruments may include differing levels of cap or restriction.
Amendment 414 #
Proposal for a regulation
Article 27 – paragraph 6 – subparagraph 2
Article 27 – paragraph 6 – subparagraph 2
EBA shall submit those draft regulatory technical standards to the Commission byas soon as possible and in any event no later than 1 January 2013.
Amendment 449 #
Proposal for a regulation
Article 46 – paragraph 1 – subparagraph 1
Article 46 – paragraph 1 – subparagraph 1
Amendment 453 #
Proposal for a regulation
Article 46 – paragraph 1 – subparagraph 2
Article 46 – paragraph 1 – subparagraph 2
Amendment 456 #
Proposal for a regulation
Article 46 – paragraph 1 – subparagraph 2 a (new)
Article 46 – paragraph 1 – subparagraph 2 a (new)
Where an institution applies method 1, 2 or 3 of Annex I to Directive 2002/87/EC pursuant to sub-paragraph 2, the institution shall disclose: (a) its capital ratio as calculated according to Article 87(2)(a) following the application of method 1, 2 or 3 of Annex I to Directive 2002/87/EC pursuant to sub- paragraph 2; and (b) its capital ratio as calculated according to Article 87(2)(a) had the holdings of the institution in the Common Equity Tier 1 instruments of insurance undertakings, reinsurance undertakings and insurance holding companies in which the institution has a significant investment been deducted.
Amendment 460 #
Proposal for a regulation
Article 46 – paragraph 2
Article 46 – paragraph 2
2. FCompetent authorities may provide that for the purposes of calculating own funds on a stand-alonen individual basis, institutions subject to supervision on a consolidated basis in accordance with Chapter 2 of Title II of Part One shall not deduct holdings referred to in points (h) and (i) of Article 33(1) in relevant entities included in the scope of consolidated supervision.
Amendment 492 #
Proposal for a regulation
Article 49 – paragraph 1 – point p a (new)
Article 49 – paragraph 1 – point p a (new)
(pa) the provisions governing the instruments require the principal amount of the Additional Tier 1 instruments to be either permanently written down to zero or converted into Common Equity Tier 1 instruments upon a determination by the competent authority under Article 51a(1), unless the Member State in which the institution was established or authorised has in effect a legal regime that would require an equivalent write-down or conversion and that Member State has not required the institution to include similar provisions in its regulatory capital instruments.
Amendment 498 #
Proposal for a regulation
Article 50 – paragraph 1 – point b
Article 50 – paragraph 1 – point b
Amendment 505 #
Proposal for a regulation
Article 51 a (new)
Article 51 a (new)
Article 51 a Write down or conversion of Additional Tier 1 instruments upon determination by the competent authority (1) For the purposes of point (q) (new) of Article 49(1), the write-down or conversion shall occur when: (a) the competent authority makes a determination that, unless the relevant Additional Tier 1 instruments are written down or converted, the institution will no longer be viable; (b) a decision has been made in a Member State to provide own funds, or equivalent support, to the institution or a parent undertaking of the institution and the competent authority makes a determination that without the provision of such support the institution would no longer be viable; or (c) if the relevant Additional Tier 1 instruments are recognised for the purposes of meeting the own funds requirements of the institution or its parent undertaking on a consolidated basis, when the competent authority of the Member State of the consolidating supervisor has made a determination that unless those instruments are written down or converted, the consolidated group will no longer be viable. (2) Upon a determination under point (1) the principal amount of the Additional Tier 1 instruments shall be permanently written down to zero or converted into Common Equity Tier 1 instruments. (3)An institution issuing Additional Tier 1 instruments shall maintain at all times the necessary prior authorisation to issue the Common Equity Tier 1 instruments into which the Additional Tier 1 instruments would convert upon a determination under point (1); (4) An institution issuing Additional Tier 1 instruments shall ensure that there are no procedural impediments to the conversion of the Additional Tier 1 instruments into Common Equity Tier 1 instruments by virtue of its instruments of incorporation or statutes. (5) The terms of the Additional Tier 1 instruments must require any write-down or conversion to occur prior to the provision of any Member State own funds or equivalent support.
Amendment 511 #
Proposal for a regulation
Article 60 – paragraph 1 – point n a (new)
Article 60 – paragraph 1 – point n a (new)
(na) the provisions governing the instruments require the principal amount of the Tier 2 instruments to be either permanently written down to zero or converted into Common Equity Tier 1 instruments upon a determination by the competent authority under Article 60a(1), unless the Member State in which the institution was established or authorised has in effect a legal regime that would require an equivalent write-down or conversion and that Member State has not required the institution to include similar provisions in its regulatory capital instruments.
Amendment 513 #
Proposal for a regulation
Article 60 a (new)
Article 60 a (new)
Article 60a Write down or conversion of Tier 2 instruments upon determination by the competent authority (1) For the purposes of point (o) of Article 60(1), the write-down or conversion shall occur when: (a) the competent authority makes a determination that, unless the relevant Tier 2 instruments are written down or converted, the institution will no longer be viable; (b) a decision has been made in a Member State to provide own funds, or equivalent support, to the institution or a parent undertaking of the institution and the competent authority makes a determination that without the provision of such support the institution would no longer be viable; or (c)if the relevant Tier 2 instruments are recognised for the purposes of meeting the own funds requirements of the institution or its parent undertaking on a consolidated basis, when the competent authority of the Member State of the consolidating supervisor has made a determination that unless those instruments are written down or converted, the consolidated group will no longer be viable. (2) Upon a determination under paragraph 1 the principal amount of the Tier 2 instruments shall be permanently written down to zero or converted into Common Equity Tier 1 instruments. (3) An institution issuing Tier 2 instruments shall maintain at all times the necessary prior authorisation to issue the Common Equity Tier 1 instruments into which the Tier 2 instruments would convert upon a determination under paragraph 1; (4) An institution issuing Tier 2 instruments shall ensure that there are no procedural impediments to the conversion of the Tier 2 instruments into Common Equity Tier 1 instruments by virtue of its instruments of incorporation or statutes. (5) The terms of the Tier 2 instruments must require any write-down or conversion to occur prior to the provision of any Member State own funds or equivalent support.
Amendment 606 #
Proposal for a regulation
Article 108 – paragraph 7 – subparagraph 2
Article 108 – paragraph 7 – subparagraph 2
Where the institution, in accordance with this paragraph, decides not to apply the requirements of paragraph 1, it shall assign a risk weight of 20 %.
Amendment 607 #
Proposal for a regulation
Article 108 – paragraph 8 a (new)
Article 108 – paragraph 8 a (new)
8a. EBA shall develop draft regulatory technical standards to specify the content of the reports referred to in paragraph 7(e), and any additional matters on which the institutional protection scheme must report. EBA shall submit those draft regulatory technical standards to the Commission by 1 January 2013. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first sub-paragraph in accordance with the procedure laid down in Articles 10-14 of Regulation (EU) No 1093/2010.
Amendment 608 #
Proposal for a regulation
Article 108 – paragraph 8 b (new)
Article 108 – paragraph 8 b (new)
8 b. EBA may develop draft regulatory technical standards to increase the risk weight referred to at the end of paragraph 7. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first sub-paragraph in accordance with the procedure laid down in Articles 10-14 of Regulation (EU) No 1093/2010.
Amendment 610 #
Proposal for a regulation
Article 109 – paragraph 4
Article 109 – paragraph 4
4. Exposures to Member States' central governments and central banks denominated and funded in the domestic currency of that central government and central bank shall be assigned a risk weight of 0 %, provided that the relevant Member State is in compliance with its obligations under Article 126 of TFEU, taking into account the Protocols of TFEU that relate thereto.
Amendment 653 #
Proposal for a regulation
Article 118 – paragraph 1 – point c
Article 118 – paragraph 1 – point c
(c) the total amount owed to the institution and parent undertakings and its subsidiaries, including any exposure in default, 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, exceed EUR 12 million. The institution shall take reasonable steps to acquire this knowledge.
Amendment 675 #
Proposal for a regulation
Article 120 – paragraph 2 – point b
Article 120 – paragraph 2 – point b
(b) the risk of the borrower does not materially depend upon changes in the performance or the value of the underlying property or project, but on the underlying capacity of the borrower to repay the debt from other sources, and as a consequence, the repayment of the facility does not materially depend on any cash flow generated by the underlying property serving as collateral. For those other sources, institutions shall determine maximum loan-to-income ratio as part of their lending policy and obtain suitable evidence of the relevant income when granting the loan. Where the borrower does not intend to occupy the home the institution may take into account reasonable projected rental income when determining the underlying capacity of the borrower to repay the debt.
Amendment 678 #
Proposal for a regulation
Article 121
Article 121
Amendment 685 #
Proposal for a regulation
Article 121 – paragraph 3
Article 121 – paragraph 3
Amendment 686 #
Proposal for a regulation
Article 121 – paragraph 3 – introductory part
Article 121 – paragraph 3 – introductory part
3. Institutions may derogate from point (b) in paragraph 2 for exposures fully and completely secured by mortgages on commercial property which is situated within the territory of a Member State, where the competent authority of that Member State has published evidence showing that a well-developed and long- established commercial immovable property market is present in that territory withand it expects that long run average annual loss rates which doill not exceed the following limits over a representative mix of good and bad years:
Amendment 688 #
Proposal for a regulation
Article 121 – paragraph 3 – point a
Article 121 – paragraph 3 – point a
(a) losses stemming from lending collateralised by commercial immovable property up to 50 % of the market value or 60 % of the mortgage lending value (unless otherwise determined under Article 119(2)) do not exceed 0,3 % of the outstanding loans collateralised by commercial immovable property in any givenover a representative mix of good and bad years;
Amendment 692 #
Proposal for a regulation
Article 121 – paragraph 3 – point b
Article 121 – paragraph 3 – point b
(b) overall losses stemming from lending collateralised by commercial immovable property do not exceed 0,5 % of the outstanding loans collateralised by commercial immovable property in any givenover a representative mix of good and bad years.
Amendment 694 #
Proposal for a regulation
Article 121 – paragraph 4
Article 121 – paragraph 4
Amendment 695 #
Proposal for a regulation
Article 121 a (new)
Article 121 a (new)
Article 121 a Exposures fully and completely secured by infrastructure Unless otherwise decided by the competent authority, exposures fully and completely secured by mortgages on critical infrastructure projects in the European Union in the fields of transport, energy and communications shall be treated as follows: a) where the exposure is of a long dated maturity of 5 years or more and the institution co-invests with the European Investment Bank, the exposure may be assigned a risk weight of 50% of what the risk weight would otherwise be under this regulation; b) where the exposure is of a long dated maturity of 5 years or more the exposure may be assigned a risk weight of 75% of what the risk weight would otherwise be under this Regulation.
Amendment 701 #
Proposal for a regulation
Article 123 – paragraph 2 – point a
Article 123 – paragraph 2 – point a
(a) equity investments in venture capital firms;
Amendment 704 #
Proposal for a regulation
Article 123 – paragraph 2 – point b
Article 123 – paragraph 2 – point b
(b) equity investments in alternative investment funds as defined by Article 4(1)(1) of Directive [inserted by OP - Directive on Alternative Investment Fund Managers];
Amendment 712 #
Proposal for a regulation
Article 124 – paragraph 3 – introductory part
Article 124 – paragraph 3 – introductory part
3. Covered bonds for which a credit assessment by a nominated ECAI is available shall be assigned a risk weight according to Table 6a which corresponds to the credit assessment of the eligible ECAI in accordance with Article 131, provided however that up to date portfolio information is disclosed and made readily available to investors on an ongoing basis, at least quarterly, otherwise the risk weight associated with credit quality step 6 according to Table 6a shall automatically apply.
Amendment 715 #
Proposal for a regulation
Article 124 – paragraph 5 a (new)
Article 124 – paragraph 5 a (new)
5a. For the avoidance of doubt, covered bonds with underlying assets that include other securitisations or covered bonds as collateral (a "repackaging") shall not be eligible for preferential treatment.
Amendment 725 #
Proposal for a regulation
Article 139 – paragraph 1 – subparagraph 1 – point g a (new)
Article 139 – paragraph 1 – subparagraph 1 – point g a (new)
(ga) An institution which is allowed to use the IRB approach shall submit to its competent authority on a yearly basis calculations of risk weights using their internal model of a standard portfolio.
Amendment 726 #
Proposal for a regulation
Article 139 – paragraph 2 a (new)
Article 139 – paragraph 2 a (new)
2a. Competent authorities shall require institutions to benchmark at least annually their IRB approach using a standard portfolio. EBA, in consultation with competent authorities, shall develop regulatory technical standards defining a standard portfolio and benchmarking. EBA shall submit those draft regulatory technical standards to the Commission by 31 December 2013. Power is delegated to the Commission to adopt the regulatory technical standards referred to in sub-paragraph 1 of this paragraph in accordance with the procedure laid down in Article 15 of Regulation (EU) No 1093/2010.
Amendment 742 #
Proposal for a regulation
Article 148 – paragraph 4
Article 148 – paragraph 4
4. For exposures to companies where the total annual sales for the consolidated group of which the firm is a part is less than EUR 570 million, institutions may use the following correlation formula in paragraph 1 (iii) for the calculation of risk weights for corporate exposures. In this formula S is expressed as total annual sales in millions of Euros with EUR 5 million ≤ S ≤ EUR 570 million. Reported sales of less than EUR 5 million shall be treated as if they were equivalent to EUR 5 million. For purchased receivables the total annual sales shall be the weighted average by individual exposures of the pool.
Amendment 743 #
Proposal for a regulation
Article 149 - paragraph 1
Article 149 - paragraph 1
1. The risk-weighted exposure amounts for retail exposures to small and medium sized enterprises 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 ⋅ 0.7619⋅⋅1.06 R RW = LGD ⋅ N 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); G (Z) = the inverse cumulative distribution function for a standard normal random variable (i.e. the value x such that N(x) z); R= the coefficient of correlation defined as 1 − e −35⋅PD 1 − e −35⋅PD R = 0.03 ⋅ + 0 .16 ⋅ 1 − 1 − e − 35 1 − e − 35
Amendment 760 #
Proposal for a regulation
Article 174 – paragraph 1 – subparagraph 1 – point b
Article 174 – paragraph 1 – subparagraph 1 – point b
(b) the obligor is past due more than 90 days on any material credit obligation to the institution, the parent undertaking or any of its subsidiaries. , except in the case of retail exposures fully and completely secured by mortgages on residential property, where the institution shall, with the consent of the competent authority, set a number of days past due of between 90 days and 180 days.
Amendment 776 #
Proposal for a regulation
Article 195 – paragraph 8 – subparagraph 1 – point a
Article 195 – paragraph 8 – subparagraph 1 – point a
(a) there are liquid markets, evidenced by frequent transactions, for the disposal of the collateral in an expeditious and economically efficient manner. Institutions shall carry out the assessment of this condition periodically and where information indicates material changes in the market;
Amendment 778 #
Proposal for a regulation
Article 195 – paragraph 8 – subparagraph 1 – point b
Article 195 – paragraph 8 – subparagraph 1 – point b
(b) there are well-established, publicly available market prices for the collateral. IThe institutions may consider market prices as well-established where they come from reliable sources of information such as public indices and reflect the price of the transactions under normal conditions. Institutions may consider market prices as publicly available, where these priceust be able to demonstrate that there is no evidence that the net prices it receives when collateral is are disclosed, easily accessible, and obtainable regularly and without any undue administrative or financial burden;alised deviate significantly from these market prices.
Amendment 779 #
Proposal for a regulation
Article 195 – paragraph 8 – subparagraph 1 – point c
Article 195 – paragraph 8 – subparagraph 1 – point c
Amendment 780 #
Proposal for a regulation
Article 195 – paragraph 8 – subparagraph 1 – point d
Article 195 – paragraph 8 – subparagraph 1 – point d
Amendment 782 #
Proposal for a regulation
Article 195 – paragraph 8 – subparagraph 3
Article 195 – paragraph 8 – subparagraph 3
After the entry into force of the implementing technical standards referred to in paragraph 10, competent authorities shall permit institutions to use only those types of other physical collaterals that are included infulfil the requirements of those standards.
Amendment 784 #
Proposal for a regulation
Article 195 – paragraph 10 – subparagraph 1
Article 195 – paragraph 10 – subparagraph 1
EBA shall develop draft implementing technical standards to specify twhen a types of physical collaterals for which the conditions referred to in points (a) and (b) of paragraph 8 are met, based on the criteria set out in those points. This shall take into account the specific role that physical collateral plays in lease exposures.
Amendment 791 #
Proposal for a regulation
Article 225 – paragraph 2 – introductory part
Article 225 – paragraph 2 – introductory part
2. The applicable LGD* and required collateralisation levels for the secured parts of exposures are set out in Table 5 of this paragraph. Table 5 Minimum LGD for secured parts of exposures LGD* LGD* for Required Required for senior subordinate minimum minimum claims or d claims or collateralisati collateralisation continge contingent on level of level of the nt claims claims the exposure exposure (C**) (C*) Receivables 35 % 65 % 0% 125 % Residential 35 % 65 % 30 % 140 % real estate/comme rcial real estate Ot, including leased real estate, where the ownership is conferred on the lessor Other 40 % 70 % 30 % 140 % collateral , including leased equipment, where the ownership is conferred on the lessor
Amendment 792 #
Proposal for a regulation
Article 225 – paragraph 3
Article 225 – paragraph 3
Amendment 837 #
Proposal for a regulation
Article 372 – paragraph 3
Article 372 – paragraph 3
3. Transactions with a central counterparty are excluded from the own funds requirements for CVA risk, and transactions with non- financial companies where the total annual sales for the consolidated group of which the firm is a part is less than EUR 70 million and the transactions are objectively measurable as reducing risks directly related to the commercial or treasury financing activities of the non- financial companies, are excluded from the own funds requirements for CVA risk. Institutions shall substitute total assets of the consolidated group for total annual sales when total annual sales are not a meaningful indicator of firm size and total assets are a more meaningful indicator than total annual sales.
Amendment 845 #
Proposal for a regulation
Article 373 – paragraph 1 – subparagraph 2
Article 373 – paragraph 1 – subparagraph 2
An institution shall use its internal model for determining the own funds requirements for specific risk associated with traded debt positions and shall apply a 99 percent confidence interval and a 10 day equivalent holding period. The internal model shall be used in such way that it simulates changes in the credit spreads of counterparties, but does not model the sensitivity of CVA to changes in other market factors, including changes in the value of the reference asset, commodity, currency or interest rate of a derivative. For non-financial counterparties referred to in Article xx of EMIR (inserted by OP), changes in credit spreads could use credit derivative spreads, bond spreads or loan spreads of the counterparty or a similar counterparty, or another appropriate methodology for simulating credit spread as agreed with the Competent Authority.
Amendment 846 #
Proposal for a regulation
Article 373 – paragraph 1 – subparagraph 2 a (new)
Article 373 – paragraph 1 – subparagraph 2 a (new)
Where an institution has permission to use the IMM to calculate the exposure value pursuant to the requirements of in this Article, trades with such non- financial counterparties as referred to in Article xx of EMIR (inserted by OP) should be excluded from the Stressed Value-at-Risk component of the own funds requirements for CVA risk under sub-paragraph 5(b).
Amendment 847 #
Proposal for a regulation
Article 373 – paragraph 1 – subparagraph 2 b (new)
Article 373 – paragraph 1 – subparagraph 2 b (new)
For a non-financial counterparty as referred to in Article xx of EMIR (inserted by OP), where the PD = 1, no CVA is required.
Amendment 848 #
Proposal for a regulation
Article 373 – paragraph 1 – subparagraph 3
Article 373 – paragraph 1 – subparagraph 3
The own funds requirements for CVA risk for each counterparty shall be calculated in accordance with the following formula: T s ⋅t si ⋅ t i EE i −1 ⋅ Di −1 −+ EE i ⋅ Di CVA = LGD MKT ⋅ ∑ max 0, exp − i −1 i −1 − exp − ⋅ i =1 LGD MKT LGD MKT 2 where: ti = the time of the i-th revaluation, starting from t0=0; tT = the longest contractual maturity across the netting sets with the counterparty; si = is the credit spread of the counterparty at tenor ti, used to calculate the CVA of the counterparty. Where the credit default swap spread of the counterparty is available, an institution shall use that spread. Where such a credit default swap spread is not available, an institution shall use a proxy spread that is appropriate having regard to the rating, industry and region of the counterparty; LGDMKT = the loss given default of the counterparty that shall be based on the spread of a market instrument of the counterparty if a counterparty instrument is available. Where a counterparty instrument is not available, it shall be based on the proxy spread that is appropriate having regard to the rating, industry and region of the counterparty. The first factor within the formula represents an approximation of the market implied marginal probability of a default occurring between times ti-1 and ti; EEi = the expected exposure to the counterparty at revaluation time ti, as defined in point 19 of Article 267, where exposures of different netting sets for such counterparty are added, and where the longest maturity of each netting set is given by the longest contractual maturity inside the netting set; An institution shall apply the treatment referred to in paragraph 2 in the case of margined trading, if the institution uses the EPE measure referred to in point (a) or (b) of Article 279(1) for margined trades; Di = the default risk-free discount factor at time ti, where D0 =1.
Amendment 849 #
Proposal for a regulation
Article 373 – paragraph 2 – point (a)
Article 373 – paragraph 2 – point (a)
(a) where the model is based on credit spread sensitivities for specific tenors, an institution shall base each credit spread sensitivity ('Regulatory CS01') on the following formula: s ⋅t EEi −1 ⋅ Di −1 −+ EEi +1 ⋅ Di +1 Regulatory CS01i = 0.0001 ⋅ t i ⋅ exp − i i ⋅ ; LGDMKT 2
Amendment 850 #
Proposal for a regulation
Article 373 – paragraph 2 – point (b)
Article 373 – paragraph 2 – point (b)
(b) where the model uses credit spread sensitivities to parallel shifts in credit spreads, an institution shall use the following formula: T si ⋅ t i s ⋅t EE i −1 ⋅ Di −1 −+ EE i ⋅ D Regulatory CS01i = 0.0001 ⋅ ∑ t i ⋅ exp − − t i −1 ⋅ exp − i −1 i −1 ⋅ i =1 LGD MKT LGD MKT 2 ;
Amendment 855 #
Proposal for a regulation
Article 374 – paragraph 2
Article 374 – paragraph 2
Counterparty ‘i’ shall be mapped to one of the seven weights wi based on an external credit assessment by a nominated ECAI, as set out in Table 1, except that where a counterparty is a non-financial counterparty as referred to in Article xx of EMIR (inserted by OP), the weights applicable to counterparty 'i' should be taken from Table 2. For a counterparty for which a credit assessment by a nominated ECAI is not available:
Amendment 856 #
Proposal for a regulation
Article 374 – paragraph 2 – Table 1
Article 374 – paragraph 2 – Table 1
Table 1 Credit quality step Weight wi 1 0.7% 2 0.8% 3 1.0% 4 2.0% 5 3.0% 6 10.0%
Amendment 892 #
Proposal for a regulation
Article 393 – paragraph 1
Article 393 – paragraph 1
Titles II and III shall apply to new securitisations, and, where appropriate, covered bonds, issued on or after 1 January 2011. Titles II and III shall, after 31 December 2014, apply to existing securitisations, and, where appropriate, covered bonds, where new underlying exposures are added or substituted after that date.
Amendment 899 #
Proposal for a regulation
Article 394 – paragraph 4 – point b a (new)
Article 394 – paragraph 4 – point b a (new)
(ba) Until 31 December 2017, positions in syndicated loans where the borrower is a non-financial corporate referred to in Article xx of EMIR [inserted by OP] held by collateralised loan obligation (CLO), and the syndicated loan was entered into by the borrower prior to 30 June 2008 or is a refinancing of a loan held by the CLO and the original loan was entered into by the borrower prior to 30 June 2008 where the CLO does not increase its exposure to the borrower, and the refinancing does not permit an increase the total debt of the borrower at the time of the refinancing.
Amendment 902 #
Proposal for a regulation
Article 395 – paragraph 1 – subparagraph 1 – introductory part
Article 395 – paragraph 1 – subparagraph 1 – introductory part
Before investing, and as appropriate thereafter, institutions, shall be able to demonstrate to the competent authorities for each of their individual securitisation positions and covered bond guarantees and positions, that they have a comprehensive and thorough understanding of and have implemented formal policies and procedures appropriate to their trading book and non-trading book and commensurate with the risk profile of their investments in securitised or covered bond positions for analysing and recording:
Amendment 903 #
Proposal for a regulation
Article 395 – paragraph 1 – subparagraph 1 – point b
Article 395 – paragraph 1 – subparagraph 1 – point b
(b) the risk characteristics of the individual securitisation or covered bond position;
Amendment 904 #
Proposal for a regulation
Article 395 – paragraph 1 – subparagraph 1 – point c
Article 395 – paragraph 1 – subparagraph 1 – point c
(c) the risk characteristics of the exposures underlying the securitisation or covered bond position;
Amendment 905 #
Proposal for a regulation
Article 395 – paragraph 1 – subparagraph 1 – point d
Article 395 – paragraph 1 – subparagraph 1 – point d
(d) the reputation and loss experience in earlier securitisations or covered bonds of the originators or sponsors in the relevant exposure classes underlying the securitisation or covered bond position;
Amendment 906 #
Proposal for a regulation
Article 395 – paragraph 1 – subparagraph 1 – point e
Article 395 – paragraph 1 – subparagraph 1 – point e
(e) the statements and disclosures made by the originators or sponsors, or their agents or advisors, about their due diligence on the securitised or covered bond exposures and, where applicable, on the quality of the collateral supporting the securitised or covered bond exposures;
Amendment 907 #
Proposal for a regulation
Article 395 – paragraph 1 – subparagraph 1 – point f
Article 395 – paragraph 1 – subparagraph 1 – point f
(f) where applicable, the methodologies and concepts on which the valuation of collateral supporting the securitised or covered bond exposures is based and the policies adopted by the originator or sponsor to ensure the independence of the valuer;
Amendment 908 #
Proposal for a regulation
Article 395 – paragraph 1 – subparagraph 1 – point g
Article 395 – paragraph 1 – subparagraph 1 – point g
(g) all the structural features of the securitisation or covered bond that can materially impact the performance of the institution's securitisation or covered bond position.
Amendment 909 #
Proposal for a regulation
Article 395 – paragraph 1 – subparagraph 2
Article 395 – paragraph 1 – subparagraph 2
Institutions shall regularly perform their own stress tests appropriate to their securitisation or covered bond positions. To this end, institutions may rely on financial models developed by an ECAI provided that institutions can demonstrate, when requested, that they took due care prior to investing to validate the relevant assumptions in and structuring of the models and to understand methodology, assumptions and results.
Amendment 910 #
Proposal for a regulation
Article 395 – paragraph 2 – subparagraph 1
Article 395 – paragraph 2 – subparagraph 1
Institutions, other than when acting as originators or sponsors or original lenders, shall establish formal procedures appropriate to their trading book and non- trading book and commensurate with the risk profile of their investments in securitised or covered bond positions to monitor and make public on an ongoing basis and in a timely manner performance information on the exposures underlying their securitisation or covered bond positions. Where relevant, this shall include the exposure type, the percentage of loans more than 30, 60 and 90 days past due, default rates, prepayment rates, loans in foreclosure, collateral type and occupancy, and frequency distribution of credit scores or other measures of credit worthiness across underlying exposures, industry and geographical diversification, frequency distribution of loan to value ratios with band widths that facilitate adequate sensitivity analysis. Where the underlying exposures are themselves securitisation or covered bond positions, institutions shall have the information set out in this subparagraph not only on the underlying securitisation or covered bond tranches, such as the issuer name and credit quality, but also on the characteristics and performance of the pools underlying those securitisation or covered bond tranches.
Amendment 911 #
Proposal for a regulation
Article 395 – paragraph 2 – subparagraph 2
Article 395 – paragraph 2 – subparagraph 2
Institutions shall have a thorough understanding of all structural features of a securitisation or covered bond transaction that would materially impact the performance of their exposures to the transaction such as the contractual waterfall and waterfall related triggers, credit enhancements, liquidity enhancements, market value triggers, and deal-specific definition of default.
Amendment 912 #
Proposal for a regulation
Article 398 – paragraph 1
Article 398 – paragraph 1
Sponsor and originator institutions shall disclose to investors the level of their commitment under Article 394 to maintain a net economic interest in the securitisation or covered bond. Sponsor and originator institutions shall ensure that prospective investors have readily available access to all materially relevant data on an ongoing basis, at least quarterly, on the credit quality and performance of the individual underlying exposures, cash flows and collateral supporting a securitisation or covered bond exposure as well as such information that is necessary to conduct comprehensive and well informed stress tests on the cash flows and collateral values supporting the underlying exposures. For that purpose, materially relevant data shall be determined as at the date of the securitisation or covered bond and where appropriate due to the nature of the securitisation or covered bond thereafter.
Amendment 914 #
Proposal for a regulation
Article 400 – paragraph 1 – point 2
Article 400 – paragraph 1 – point 2
(2) ‘Retail deposit’ means a liability to a natural person or to a smf less than 1 million EUR or to firm where the totall and medium sized enterprise where the aggregate liability to such clients or group of connected clients is less than 1 million EURnual sales for the consolidated group of which the firm is a part is less than EUR 70 million. Institutions shall substitute total assets of the consolidated group for total annual sales when total annual sales are not a meaningful indicator of firm size and total assets are a more meaningful indicator than total annual sales.
Amendment 1017 #
Proposal for a regulation
Article 404 – paragraph 2 – point b a (new)
Article 404 – paragraph 2 – point b a (new)
(ba) securitisations and covered bonds that do not meet the criteria of Article 398.
Amendment 1131 #
Proposal for a regulation
Article 410 – paragraph 4 – subparagraph 1 – point a
Article 410 – paragraph 4 – subparagraph 1 – point a
(a) by the depositor in order to obtain clearing, custody or cash management or other equivalent transmission services from the institution;
Amendment 1138 #
Proposal for a regulation
Article 410 – paragraph 4 – subparagraph 3
Article 410 – paragraph 4 – subparagraph 3
Clearing, custody or cash management or other equivalent transmission services referred to in point (a) only covers such services to the extent that they are rendered in the context of an established relationship on which the depositor has substantial dependency. They shall not merely consist in correspondent banking or prime brokerage services and the institution shall have objective evidence that the client is unable to withdraw those amounts over a 30 day horizon without compromising its operational functioning. An established operational relationship in this context refers to clearing, custody or cash management or other equivalent transmission relationships in which the customer is reliant on the bank to perform these services as an independent third party intermediary in order to fulfil its normal banking activities over the next 30 days. These deposits have to be by- products of the underlying services provided by the banking organisation, not sought out in the wholesale market in the sole interests of offering interest income. Such deposits must be priced below the market in comparison to deposits of a similar duration and held in specifically designated accounts.
Amendment 1178 #
Proposal for a regulation
Article 412 – paragraph 3 – point c
Article 412 – paragraph 3 – point c
(c) they have not been providedexplicitly excluded use for the purpose of replacing funding of the client in situations where he is unable to obtain its funding requirements in the financial markets.
Amendment 1236 #
Proposal for a regulation
Article 413 a (new)
Article 413 a (new)
Article 413 a Consistency of liquidity requirements with the recommendations of the BCBS EBA may amend the percentages in Articles 405(1)(b), 406, 407(2)(a), 409(1), 409(2), 410, 411, 412 and 413 in accordance with the published recommendations of the Basel Committee on Banking Supervision.
Amendment 1287 #
Proposal for a regulation
Article 416 – paragraph 8 – point b
Article 416 – paragraph 8 – point b
(b) the specific credit risk adjustment for all othermedium/low risk trade related off-balance- sheet items listed inreferred to in the first indent of paragraph 3(i) of Annex I is 1020%.;
Amendment 1289 #
Proposal for a regulation
Article 416 – paragraph 8 – point b a (new)
Article 416 – paragraph 8 – point b a (new)
(b a) for the confirming bank, the specific credit risk adjustment for medium risk off-balance sheet items referred to in the first indent of paragraph 2 of Annex 1 is 50%;
Amendment 1290 #
Proposal for a regulation
Article 416 – paragraph 8 – point b b (new)
Article 416 – paragraph 8 – point b b (new)
(b b) the specific credit-risk adjustment for all other off-balance sheet items listed in Annex 1 is 100%.
Amendment 1296 #
Proposal for a regulation
Article 417 a (new)
Article 417 a (new)
Article 417a Minimum Leverage Ratio 1. From 1 January 2018, institutions shall at all times maintain a minimum leverage ratio of 3%. 2. Following the review referred to in Article 482, EBA may develop draft regulatory technical standards to increase or decrease the leverage ratio specified in paragraph 1 or to specify different ratios for different kinds of institutions, taking into account the findings of the review and developments in relevant international standards. 3. Power is conferred on the Commission to adopt the regulatory technical standards referred to in the first sub- paragraph in accordance with the procedure laid down in Articles 10-14 of Regulation (EU) No 1093/2010.
Amendment 1301 #
Proposal for a regulation
Article 420 – paragraph 1
Article 420 – paragraph 1
Institutions shall publish the disclosures required by this Part at least on an annual basis. e following Articles at least on a quarterly basis: Article 424 (own funds) Article 425 (own funds requirements) Article 426 (exposure to counterparty credit risk) Article 427 (capital buffers) Article 428 (credit risk adjustments) Article 429 (use of ECAIs) Article 430 (exposure to market risk) Article 432 (exposures in equities not included in the trading book) Article 433 (exposure to interest rate risk on positions not included in the trading book) Article 434 (exposures to securitisation positions) Article 436 (leverage)
Amendment 1303 #
Proposal for a regulation
Article 420 – paragraph 1 a (new)
Article 420 – paragraph 1 a (new)
Institutions shall publish the disclosures required by the following at least on an annual basis: Article 422 (risk management objectives and policies) Article 423 (scope of application) Article 435 (remuneration policy)
Amendment 1304 #
Proposal for a regulation
Article 420 – paragraph 2
Article 420 – paragraph 2
Amendment 1306 #
Proposal for a regulation
Article 420 – paragraph 3
Article 420 – paragraph 3
Institutions shall assess the need to publish some or all disclosures more frequently than annually in the light of the relevant characteristics of their business such as scale of operations, range of activities, presence in different countries, involvement in different financial sectors, and participation in international financial markets and payment, settlement and clearing systems. That assessment shall pay particular attention to the possible need for more frequent disclosure of items of information laid down in Article 424, and points (b) to (e) of Article 425, and information on risk exposure and other items prone to rapid change.
Amendment 1312 #
Proposal for a regulation
Article 422 – paragraph 1 – point f
Article 422 – paragraph 1 – point f
(f) a concise risk statement approved by the management body succinctly describing the institution's overall risk profile associated with the business strategy. This statement shall include key ratios and figures providing external stakeholders with a concise but comprehensive view of howthe institution's management of risk, including how the risk profile of the institution interacts with the risk tolerance set by the management body.
Amendment 1331 #
Proposal for a regulation
Article 436 – paragraph 1 – introductory part
Article 436 – paragraph 1 – introductory part
1. Institutions shall publicly disclose the following information regarding their leverage ratio as defined in Article 416 and their management of the risk of excessive leverage as defined in point (B) of Article 4(2) of Directive [inserted by OP]:
Amendment 1332 #
Proposal for a regulation
Article 436 – paragraph 1 – point a
Article 436 – paragraph 1 – point a
(a) the leverage ratio and explanation of material changes to the leverage ratio;
Amendment 1333 #
Proposal for a regulation
Article 436 – paragraph 1 – point c
Article 436 – paragraph 1 – point c
(c) a description of the processes and reporting requirements used to manage the risk of excessive leverage;
Amendment 1341 #
Proposal for a regulation
Article 443 – title
Article 443 – title
Prudential requirements established at national level
Amendment 1348 #
Proposal for a regulation
Article 443 – paragraph 1 – point a
Article 443 – paragraph 1 – point a
Amendment 1350 #
Proposal for a regulation
Article 443 – paragraph 1 – point b
Article 443 – paragraph 1 – point b
Amendment 1351 #
Proposal for a regulation
Article 443 – paragraph 1 – point c
Article 443 – paragraph 1 – point c
Amendment 1352 #
Proposal for a regulation
Article 443 – paragraph 1 – point d
Article 443 – paragraph 1 – point d
Amendment 1353 #
Proposal for a regulation
Article 443 – paragraph 1 – point e
Article 443 – paragraph 1 – point e
Amendment 1354 #
Proposal for a regulation
Article 443 – paragraph 1 – point f
Article 443 – paragraph 1 – point f
Amendment 1355 #
Proposal for a regulation
Article 443 – paragraph 1 – point g
Article 443 – paragraph 1 – point g
Amendment 1356 #
Proposal for a regulation
Article 443 – paragraph 1 – point h
Article 443 – paragraph 1 – point h
Amendment 1357 #
Proposal for a regulation
Article 443 – paragraph 1 – point i
Article 443 – paragraph 1 – point i
Amendment 1358 #
Proposal for a regulation
Article 443 – paragraph 1 – point j
Article 443 – paragraph 1 – point j
Amendment 1359 #
Proposal for a regulation
Article 443 – paragraph 1 – point k
Article 443 – paragraph 1 – point k
Amendment 1374 #
Proposal for a regulation
Article 443 – paragraph 2
Article 443 – paragraph 2
Amendment 1379 #
Proposal for a regulation
Article 443 – paragraph 1 – introductory part
Article 443 – paragraph 1 – introductory part
Amendment 1402 #
Proposal for a regulation
Article 446
Article 446
Amendment 1404 #
Proposal for a regulation
Article 448 – paragraph 1 – introductory part
Article 448 – paragraph 1 – introductory part
1. By way of derogation from points (a) and (b) of Article 87(1), institutions shall satisfy the following own funds requirementscompetent authorities shall determine:
Amendment 1405 #
Proposal for a regulation
Article 448 – paragraph 1 – point a – introductory part
Article 448 – paragraph 1 – point a – introductory part
(a) the levels of the Common Equity Tier 1 and Tier 1 capital ratios that institutions shall satisfy at all times during the period from 1 January 2013 to 31 December 2013:, within the following ranges: (i) a Common Equity Tier 1 capital ratio of a level that falls within a range with a lowest value of 3.5% and a highest value of 4.5%; (ii) a Tier 1 capital ratio of a level that falls within a range with a lowest value of 4.5 % and a highest value of 6%;
Amendment 1411 #
Proposal for a regulation
Article 448 – paragraph 1 – point b – introductory part
Article 448 – paragraph 1 – point b – introductory part
(b) at all times during the period from 1 January 2014 to 31 December 2014:the levels of the Common Equity Tier 1 and Tier 1 capital ratios that institutions shall satisfy at all times during the period from 1 January 2014 to 31 December 2014, within the following ranges: (i) a Common Equity Tier 1 capital ratio of a level that falls within a range of 4 % to 4.5 %; (ii) a Tier 1 capital ratio of a level that falls within a range of 4.5 % to 6%.
Amendment 1420 #
Proposal for a regulation
Article 448 – paragraph 2 – introductory part
Article 448 – paragraph 2 – introductory part
2. Competent authorities shall: publish the determination made in accordance with paragraph 1.
Amendment 1421 #
Proposal for a regulation
Article 448 – paragraph 2 – point a
Article 448 – paragraph 2 – point a
Amendment 1422 #
Proposal for a regulation
Article 448 – paragraph 2 – point b
Article 448 – paragraph 2 – point b
Amendment 1424 #
Proposal for a regulation
Article 449 – paragraph 1
Article 449 – paragraph 1
1. By way of derogation from Article 32, during the period from 1 January 2013 to 31 December 2017 competent authorities shall determine the applicable percentage of unrealised losses measured at fair value that institutions shall include in the calculation of their Common Equity Tier 1 items only the applicable percentage of unrealised losses measured at fair value, excluding those referred to in Article 30.
Amendment 1425 #
Proposal for a regulation
Article 449 – paragraph 2 – introductory part
Article 449 – paragraph 2 – introductory part
2. The applicable percentage for the purposes of paragraph 1 shall fall within following ranges:Competent authorities shall determine the applicable percentage the applicable percentage for the purposes of paragraph 1 within the following ranges: (a) 0 % to 100 % during the period from 1 January 2013 to 31 December 2013; (b) 20 % to 100 % during the period from 1 January 2014 to 31 December 2014; (c) 40 % to 100 % during the period from 1 January 2015 to 31 December 2015; (d) 60 % to 100 % during the period from 1 January 2016 to 31 December 2016; and (e) 80 % to 100 % for the period from1 January 2017 to 31 December 2017.
Amendment 1426 #
Proposal for a regulation
Article 449 – paragraph 3 – introductory part
Article 449 – paragraph 3 – introductory part
3. Competent authorities shall: publish the determination made in accordance with paragraphs 1 and 2.
Amendment 1427 #
Proposal for a regulation
Article 449 – paragraph 3 – point a
Article 449 – paragraph 3 – point a
Amendment 1428 #
Proposal for a regulation
Article 449 – paragraph 3 – point b
Article 449 – paragraph 3 – point b
Amendment 1429 #
Proposal for a regulation
Article 450 – paragraph 1
Article 450 – paragraph 1
1. By way of derogation from Article 32, during the period from 1 January 2013 to 31 December 2017, institutions shall not remove from their Common Equity Tier 1 itemscompetent authorities shall determine the applicable percentage of unrealised gains measured at fair value that institutions shall not remove from their Common Equity Tier 1 items, excluding those referred to in Article 30. The resulting residual amount shall be removed from Common Equity Tier 1 items.
Amendment 1430 #
Proposal for a regulation
Article 450 – paragraph 2 – introductory part
Article 450 – paragraph 2 – introductory part
2. For the purposes of paragraph 1, the applicable percentage shall be 0 % during the period from 1 January 2013 to 31 December 2013, and shall, after that date, fall within the following ranges:. After that date, competent authorities shall determine the applicable percentage within the following ranges: (a) 0 % to 20 % during the period from 1 January 2014 to 31 December 2014; (b) 0 % to 40 % during the period from 1 January 2015 to 31 December 2015; (c) 0 % to 60 % during the period from 1 January 2016 to 31 December 2016; (d) 0 % to 80 % for the period from 1 January 2017 to 31 December 2017.
Amendment 1433 #
Proposal for a regulation
Article 450 – paragraph 4 – introductory part
Article 450 – paragraph 4 – introductory part
4. Competent authorities shall: publish the determinations made in accordance with paragraph 2 and 3.
Amendment 1434 #
Proposal for a regulation
Article 450 – paragraph 4 – point a
Article 450 – paragraph 4 – point a
Amendment 1435 #
Proposal for a regulation
Article 450 – paragraph 4 – point b
Article 450 – paragraph 4 – point b
Amendment 1436 #
Proposal for a regulation
Article 458 – paragraph 1 – introductory part
Article 458 – paragraph 1 – introductory part
1. The applicable percentage for the purposes of points (a) and (c) of Article 451(1),For the purposes of points (a) and (c) of Article 451(1), point (a) of Article 454 and point (a) of Article 456, competent authorities shall determine the applicable percentage in the ranges specified in paragraph 2 for each of the following: (i) the items referred to in points (a) to (h) of Article 33(1), excluding deferred tax assets that rely on future profitability and arise from temporary differences; (ii) deferred tax assets that rely on future profitability and arise from temporary differences and the items referred to in point (i) of Article 33(1); (iii) the items referred to in points (a) to (d) of Article 454 and53; (iv) the items referred to in points (a) to (d) of Article 456shall fall within the following ranges: 63. Competent authorities shall determine the applicable percentage referred to in paragraph 1within the following ranges: (a) 0 % to 100 % for the period from 1 January 2013 to 31 December 2013; (b) 20 % to 100 % for the period from 1 January 2014 to 31 December 2014; (c) 40 % to 100 % for the period from 1 January 2015 to 31 December 2015; (d) 60 % to 100 % for the period from 1 January 2016 to 31 December 2016; (e) 80 % to 100 % for the period from 1 January 2017 to 31 December 2017.
Amendment 1437 #
Proposal for a regulation
Article 458 – paragraph 2 – introductory part
Article 458 – paragraph 2 – introductory part
2. Competent authorities shall: publish the determination made in accordance with paragraphs 1 and 2.
Amendment 1438 #
Proposal for a regulation
Article 458 – paragraph 2 – point a – introductory part
Article 458 – paragraph 2 – point a – introductory part
Amendment 1439 #
Proposal for a regulation
Article 458 – paragraph 2 – point a – point iii
Article 458 – paragraph 2 – point a – point iii
Amendment 1440 #
Proposal for a regulation
Article 458 – paragraph 2 – point a – point iv
Article 458 – paragraph 2 – point a – point iv
Amendment 1441 #
Proposal for a regulation
Article 458 – paragraph 2 – point b
Article 458 – paragraph 2 – point b
Amendment 1444 #
Proposal for a regulation
Article 459 – paragraph 3 – introductory part
Article 459 – paragraph 3 – introductory part
3. For the purposes of paragraph 2, competent authorities shall determine the applicable percentages shall fall within the following ranges: (a) 0 % to 100 % for the period from 1 January 2013 to 31 December 2013; (b) 0 % to 80 % for the period from 1 January 2014 to 31 December 2014; (c) 0 % to 60 % for the period from 1 January 2015 to 31 December 2015; (d) 0 % to 40 % for the period from 1 January 2016 to 31 December 2016; (e) 0 % to 20% for the period from 1 January 2017 to 31 December 2017.
Amendment 1445 #
Proposal for a regulation
Article 459 – paragraph 4 – introductory part
Article 459 – paragraph 4 – introductory part
4. Competent authorities shall: publish the determination made in accordance with paragraph 3.
Amendment 1446 #
Proposal for a regulation
Article 459 – paragraph 4 – point a
Article 459 – paragraph 4 – point a
Amendment 1447 #
Proposal for a regulation
Article 459 – paragraph 4 – point b
Article 459 – paragraph 4 – point b
Amendment 1448 #
Proposal for a regulation
Article 460 – paragraph 2 – introductory part
Article 460 – paragraph 2 – introductory part
2. For the purposes of paragraph 1, competent authorities shall determine the applicable factor shall fall within the following ranges: (a) 0 to 1 in the period from 1 January 2013 to 31 December 2013; (b) 0.2 to 1 in the period from 1 January 2014 to 31 December 2014; (c) 0.4 to 1 in the period from 1 January 2015 to 31 December 2015; (d) 0.6 to 1 in the period from 1 January 2016 to 31 December 2016; and (e) 0.8 to 1 in the period from 1 January 2017 to 31 December 2017.
Amendment 1449 #
Proposal for a regulation
Article 460 – paragraph 3 – introductory part
Article 460 – paragraph 3 – introductory part
3. Competent authorities shall: publish the determination made in accordance with paragraph 2.
Amendment 1450 #
Proposal for a regulation
Article 460 – paragraph 3 – point a
Article 460 – paragraph 3 – point a
Amendment 1451 #
Proposal for a regulation
Article 460 – paragraph 3 – point b
Article 460 – paragraph 3 – point b
Amendment 1455 #
Proposal for a regulation
Article 462 – paragraph 1 – point a
Article 462 – paragraph 1 – point a
(a) the instruments were issued prior to 20 July12 September 20110;
Amendment 1461 #
Proposal for a regulation
Article 462 – paragraph 3
Article 462 – paragraph 3
3. Instruments that qualified in accordance with the national transposition measures for point (ca) of Article 57 and for Article 66(1) of Directive 2006/48/EC, and was issued by a mutual, co-operative society or a similar institution, shall qualify as Additional Tier 1 instruments notwithstanding the conditions laid down in Article 49(1) not being met.
Amendment 1483 #
Proposal for a regulation
Article 475 a (new)
Article 475 a (new)
Article 475a Application of liquidity coverage requirement Article 401 shall apply from 1 January 2013.
Amendment 1487 #
Proposal for a regulation
Article 476 – paragraph 1 – introductory part
Article 476 – paragraph 1 – introductory part
1. Until 31 December 20157 or until the introduction of the binding leverage ratio, whichever is sooner, institutions calculating risk-weighted exposure amounts in accordance with Part Three, Title II, Chapter 3 and institutions using the Advanced Measurement Approaches as specified in Part Three, Title III, Chapter 4 for the calculation of their own funds requirements for operational risk shall meet both of the following requirements:
Amendment 1492 #
Proposal for a regulation
Article 476 – paragraph 2
Article 476 – paragraph 2
Amendment 1499 #
Proposal for a regulation
Article 478 – paragraph 1
Article 478 – paragraph 1
The Commission shall, by 31 December 20152 and after consulting the EBA, report to the Parliament and the Council, together with any appropriate proposals, whether the risk weights laid down in Article 124 and the own funds requirements for specific risk in Article 325(5) are adequate for all the instruments that qualify for these treatments and whether the criteria in Article 124 should be made stricter.
Amendment 1503 #
Proposal for a regulation
Article 478 – paragraph 1 a (new)
Article 478 – paragraph 1 a (new)
2. The report and proposals referred to in paragraph 1 shall have regard to: (a) the extent to which the current regulatory capital requirements applicable to covered bonds adequately differentiate between variances in the credit quality of covered bonds and the collateral against which they are secured, including the extent of variations across member states; (b) the transparency of the covered bond market and the extent to which this facilitates comprehensive internal analysis by investors in respect of the credit risk of covered bonds and the collateral against which they are secured; (c) the extent to which covered bond issuance by a credit institution impacts on the credit risk to which other creditors of the issuing institution are exposed; and (d) the incentives created for credit institutions by the interaction of the preferential capital treatment of covered bonds and their treatment as liquid assets for the purposes of Article 404, including any potential consequences for the resilience of credit institutions.
Amendment 1526 #
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. EB, 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. EBA and ESMA shall assess whether gold and other highly liquid commodities including oil and/or other natural resources; retail mortgage backed securities; covered bonds and equities can be considered eligible assets under Article 404 (3), the volatility of these assets compared to other assets, and which haircuts can be applied. EBA and ESMA shall in particular test the adequacy of the following criteria and the appropriate levels for such definitions:
Amendment 1548 #
Proposal for a regulation
Article 481 – paragraph 3 – subparagraph 1
Article 481 – paragraph 3 – subparagraph 1
By 31 December 2015, EBA shall report to the Commission on whether and how it would be appropriatethe introduction of a binding Net Stable Funding Ratio to ensure that institutions use stable sources of funding, including an assessment of the impact on the business and risk profile of Union institutions or on financial markets or the economy and bank lending, with a particular focus on lending to small and medium enterprises and on trade financing, including lending under official export credit insurance schemes.
Amendment 1552 #
Proposal for a regulation
Article 481 – paragraph 3 – subparagraph 2
Article 481 – paragraph 3 – subparagraph 2
By 31 December 2016, the Commission shall, on the basis of these reports, submit a report, and if appropriate referred to in sub-paragraph 1, submit a legislative proposal to the European Parliament and Council to introduce a binding Net Stable Funding Ratio by 1 January 2018.
Amendment 1558 #
Proposal for a regulation
Article 481 – paragraph 3 a (new)
Article 481 – paragraph 3 a (new)
3 a. By 31 December 2016 the Commission shall, on the basis of the reports referred to in paragraphs 1 and 2, submit a report, and if appropriate, a legislative proposal to the European Parliament and Council.
Amendment 1565 #
Proposal for a regulation
Article 482 – paragraph 1
Article 482 – paragraph 1
1. The Commission shall submit by 31 DecemberJuly 20167 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 lThe report shall consider whether the ratio level of 3% as set out in article 415A (Minimum Leverage rRatio that institutions would be required to meet, suggesting an adequate calibration for those levels and) is appropriate, including whether it is appropriate for different kinds of institution, and shall consider any appropriate adjustments to the capital measure and the total exposure measure as defined in Article 416.
Amendment 1572 #
Proposal for a regulation
Article 482 – paragraph 2 – point a
Article 482 – paragraph 2 – point a
(a) whether the requirements laid out in Articles 75 and 85 of Directive [inserted by OP] in accordance with Articles 72 and 92 of Directive [inserted by OP] for addressing the risk of excessive leverage are sufficient to ensure sound management of this risk by institutions and, if not, which further enhancement theys are needed in order to ensure these objectives;
Amendment 1573 #
Proposal for a regulation
Article 482 – paragraph 2 – point b
Article 482 – paragraph 2 – point b
(b) whether – and if so, which - changes to the calculation methodology of the capital measure and the total exposure detailed in Article 416 would bare necessary to ensure that the leverage ratio can be used as an appropriate indicator of an institution's risk of excessive leverage;
Amendment 1574 #
Proposal for a regulation
Article 482 – paragraph 2 – point e
Article 482 – paragraph 2 – point e
(e) whether the 10% conversion factor for commitments that are unconditionally cancellable is appropriately conservative based on the evidence collected during the observation period and, if not, which further changes are needed to ensure that the conversion factor is appropriately conservative;
Amendment 1575 #
Proposal for a regulation
Article 482 – paragraph 2 – point f
Article 482 – paragraph 2 – point f
(f) whether the frequency and format of the disclosure of items referred to in Article 436 are adequate and, if not, which further changes are needed to ensure that the frequency and format of disclosure of these items are adequate;
Amendment 1610 #
Proposal for a regulation
Article 486 a (new)
Article 486 a (new)
Amendment 1623 #
Proposal for a regulation
Article 487 – paragraph 1
Article 487 – paragraph 1
1. Subject to paragraph 2, this Regulation shall apply fromenter into force on 1 January 2013.
Amendment 1626 #
Proposal for a regulation
Article 487 – paragraph 2
Article 487 – paragraph 2
2. Article 436(1) shall apply fromenter into force on 1 January 2015.