Activities of Diogo FEIO related to 2011/0203(COD)
Plenary speeches (1)
Credit institutions and prudential supervision - Prudential requirements for credit institutions and investment firms (debate)
Amendments (10)
Amendment 57 #
Proposal for a directive
Recital 51 a (new)
Recital 51 a (new)
(51a) The CRD framework, being one of the pillars upon which the overreliance on external credit rating was built, should take into account the G20 conclusions, FSB principles and the proposals of the European Commission amending Regulation (EC) No 1060/2009 on credit rating agencies and amending Directive 2009/65/EC on the coordination of laws, regulations and administrative provisions relating to UCITS and Directive 2011/61/EU on Alternative Investment Fund Managers, regarding the excessive reliance on external credit ratings. Therefore banks should be encouraged to use internal rather than external credit ratings even for purposes of calculating regulatory capital requirements.
Amendment 58 #
Proposal for a directive
Recital 51 b (new)
Recital 51 b (new)
(51b) Overreliance on external credit ratings should be reduced and all the automatic effects deriving from ratings should be gradually eliminated. Regulation should, therefore, require credit institutions and investment firms to put in place sound credit granting criteria and credit decision processes. External credit ratings may be used as one factor among others in this process but they should not rely solely or mechanistically on external ratings and these should not prevail.
Amendment 59 #
Proposal for a directive
Recital 51 c (new)
Recital 51 c (new)
(51c) The recognition of a Credit Rating Agency as an External Credit Assessment Institution (ECAI) should not increase the foreclosure of a market already dominated by three main undertakings. EBA and Central Banks, without making the process easier or less demanding, should provide for the recognition of more Credit Rating Agencies as ECAI as a way to open the market to other undertakings.
Amendment 223 #
Proposal for a directive
Article 76 – paragraph 1 a (new)
Article 76 – paragraph 1 a (new)
1a. Competent authorities shall ensure that internal ratings used by institutions do not rely solely or mechanistically on external credit ratings and that these do not prevail over internal assessment.
Amendment 230 #
Proposal for a directive
Article 77 – point b
Article 77 – point b
(b) Institutions have internal methodologies that enable them to assess the credit risk of exposures to individual borrowers, securities or counterparties as well as credit risk at the portfolio level. In particular, internal methodologies shall not rely solely or mechanistically on external ratings. Where own funds requirements are based on a rating by an External Credit Assessment Institution (ECAI) or based on the fact that an exposure is unrated, institutions shall use their own methodologies in order to assess the appropriateness of the rank-ordering of credit risk implicit in those own funds requirements and take the result into account in their allocation of internal capital;
Amendment 455 #
Proposal for a directive
Article 124 – paragraph 2
Article 124 – paragraph 2
2. Institutions shall meet the requirement imposed by paragraph 1 with Common Equity Tier 1 capital or other loss absorbing items such as provisions in excess over expected losses, additional tier 1 or alternatively with equivalent contingent capital insofar as this constitutes other fully loss absorbing capital, which shall be additional to any Common Equity Tier 1 capital maintained to meet the own funds requirement imposed by Article 87 of Regulation [inserted by OP(EU) No. .../2012 of ... [on prudential requirements for credit institutions and investment firms], the requirement to maintain a Capital Conservation Buffer under Article 123 and any requirement imposed under Article 100.
Amendment 504 #
Proposal for a directive
Article 127 – paragraph 1
Article 127 – paragraph 1
1. Where a designated authority, in accordance with Article 126(5), or a relevant third country authority has set a countercyclical buffer rate in excess of 2.5% of the total risk exposure amount referred to in Article 87(3) of Regulation [inserted by OP(EU) No. .../2012 of ... [on prudential requirements for credit institutions and investment firms], the other designated authorities mayshall recognise that buffer rate for the purposes of the calculation by domestically authorised institutions of their institution specific countercyclical capital buffers.
Amendment 510 #
Proposal for a directive
Article 127 – paragraph 2 a (new)
Article 127 – paragraph 2 a (new)
2a. Where a designated authority or a relevant third country authority has set a countercyclical buffer rate in excess of 2.5% of the total risk exposure amount referred to in Article 127(1), the ESRB shall evaluate that specific buffer rate and, if appropriate, issue a recommendation to the designated authorities concerning the appropriate countercyclical buffer rate for exposures to that third country, in accordance to Article 128(3).
Amendment 511 #
Proposal for a directive
Article 127 – paragraph 2 b (new)
Article 127 – paragraph 2 b (new)
2b. In accordance with Article 128(3), after a recommendation made by the ESRB to any designated authority to set out a different countercyclical buffer rate, as foreseen in paragraph 2a, all other designated authorities shall apply the same recognized rate.
Amendment 540 #
Proposal for a directive
Article 150 – paragraph 2 a (new)
Article 150 – paragraph 2 a (new)
2a. EBA in cooperation with EIOPA and ESMA shall ensure an effective reduction on reliance on external ratings and shall gradually provide for the elimination of all mechanistic and automatic effects of an external credit rating still existing in Union law.