Activities of Ramon TREMOSA i BALCELLS related to 2018/0060(COD)
Plenary speeches (1)
Minimum loss coverage for non-performing exposures (debate)
Shadow reports (1)
REPORT on the proposal for a regulation of the European Parliament and of the Council on amending Regulation (EU) No 575/2013 as regards minimum loss coverage for non-performing exposures PDF (671 KB) DOC (70 KB)
Amendments (5)
Amendment 62 #
Proposal for a regulation
Recital 1
Recital 1
(1) The establishment of a comprehensive strategy to address the issue of non-performing exposures (NPEs) is a priority for the Union. While addressing NPEs is primarily the responsibility of banks and Member States, there is also a clear Union dimension to reduce the current high stocks of NPEs, as well as to prevent any excessive build-up of NPEs in the future. Given the interconnectedness of the banking and financial systems across the Union where banks operate in multiple jurisdictions and Member States, there is significant potential for spill-over effects for Member States and the Union at large, both in terms of economic growth and financial stability.
Amendment 63 #
Proposal for a regulation
Recital 1 a (new)
Recital 1 a (new)
(1 a) Consumers should not be deemed exclusively responsible of the cause of the severe build-up of NPLs during the years of the financial crisis. In some Member States, housing bubbles were caused by irresponsible lending practices, and an over-reliance on the growth of house prices. An incorrect implementation and transposition of Directive 2011/7/EU of the European Parliament and of the Council of 16 February 2011 on combating late payment in commercial transactions (Late Payments Directive) was also at the roots of the NPLs’ increase, as several small and medium- size enterprises (SMEs) could not attend their dues when facing a late payment. The Union therefore acknowledges that consumers are not to be deemed responsible for the severe increase of the NPL portfolio in the EU.
Amendment 66 #
Proposal for a regulation
Recital 2
Recital 2
(2) An integrated financial system will enhance the resilience of the European Monetary Union to adverse shocks by facilitating private cross-border risk- sharing, while at the same time reducing the need for public risk-sharing. In order to achieve these objectives, the Union should complete the Banking Union and further develop a Capital Markets Union. Addressing the current high stocks of NPEs and their possible future accumulation is essential to completing the Banking Union as it is essential for ensuring competition in the banking sector, preserving financial stability and encouraging lending so as to create jobs and growth within the Union.
Amendment 103 #
Proposal for a regulation
Recital 10 a (new)
Recital 10 a (new)
(10 a) The prudential backstop for non- performing exposures should not result in any changes in the requirements for institutions’ own estimates of the loss given default (LGD) in the case of institutions that have been authorised to use their own LGD estimates for their exposures.
Amendment 362 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Regulation (EU) No 575/2013
Article 47c – paragraph 5 – subparagraph 1
Article 47c – paragraph 5 – subparagraph 1
EBA shall assess the range of practices applied for the valuation of secured non- performing exposures and may develop guidelines to specify the scope, the level, a common methodology, including possible minimum requirements for re-valuation in terms of timing and ad hoc methods, for the prudential valuation of eligible forms of funded and unfunded credit protection, in particular regarding assumptions pertaining to their recoverability and enforceability. When developing these guidelines, EBA shall take into account also the effects of the provisioning standards, and harmonisation of supervisory practices. EBA may include additional considerations in its guidelines if deemed necessary.