2016/0364(COD) Capital Requirements Directive: exempted entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers and capital conservation measures
Lead committee dossier:
Progress: Procedure completed
| Role | Committee | Rapporteur | Shadows |
|---|---|---|---|
| Lead | ECON |
SIMON Peter ( S&D)
|
KARAS Othmar ( PPE),
FOX Ashley ( ECR),
NAGTEGAAL Caroline ( ALDE),
LAMBERTS Philippe ( Verts/ALE),
VALLI Marco ( EFDD),
ZANNI Marco ( ENF)
|
Lead committee dossier:
Legal Basis:
TFEU 053-p1
Legal Basis:
TFEU 053-p1Subjects
Events
2023/06/26
EC - Follow-up document
Documents
2019/08/08
EC - Commission response to text adopted in plenary
Documents
2019/06/07
Final act published in Official Journal
Details
PURPOSE: to strengthen the banking sector and resolve outstanding financial stability issues.
LEGISLATIVE ACT: Directive (EU) 2019/878 of the European Parliament and of the Council amending Directive 2013/36/EU as regards exempted entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers and capital conservation measures.
CONTENT: this Directive amends Directive 2013/36/EU on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms with a view to strengthening and refining existing EU legal acts which ensure uniform prudential requirements for institutions throughout the Union.
The Directive is part of a comprehensive package of legislative measures that will reduce risks in the banking sector and further strengthen banks' ability to withstand potential shocks.
This package contains amendments to the legislation on capital requirements ( Regulation (EU) No 575/2013 and Directive 2013/36/EU ) that strengthen banks' capital and liquidity positions. It also consolidates the framework for the recovery of banks in difficulty and the resolution of their failures ( Directive 2014/59/EU and Regulation (EU) No 806/2014).
The measures adopted implement reforms agreed at the international level following the 2007-2008 financial crisis with the aim of strengthening the banking sector and addressing outstanding financial stability issues. They include elements approved by the Basel Committee on Banking Supervision and the Financial Stability Board (FSB).
The Directive contains the following key measures:
- the need to provide for a specific approval procedure and direct supervisory powers over certain financial holding companies and mixed financial holding companies in order to ensure that such holding companies can be held directly responsible for ensuring compliance with consolidated prudential requirements, without subjecting them to additional prudential requirements on an individual basis;
- a leverage ratio requirement for all institutions as well as a leverage ratio buffer for all global systemically important institutions;
- a net stable funding requirement;
- the requirement for Global Systemically Important Institutions (G-SIIs) to hold minimum levels of capital and other instruments which bear losses in resolution. This requirement, known as 'Total Loss-Absorbing Capacity' or TLAC), will be integrated into the existing MREL (Minimum Requirement for own funds and Eligible Liabilities) system, which is applicable to all banks;
- the consideration of the size, structure and internal organisation of institutions and the nature, scope and complexity of their activities in the prudential supervision and assessment process; the competent authorities may take into account the risks specific to each institution or modify the institution-specific nature of the measures imposed;
- the obligation for establishments to apply the principle of equal pay for men and women for the same work or work of equal value;
- the possibility for competent authorities to communicate to an institution, in the form of guidance any adjustment to the amount of capital in excess of the relevant minimum own funds requirements, the relevant additional own funds requirement and, as relevant, the combined buffer requirement or the leverage ratio buffer requirement that they expect such an institution to hold in order to deal with forward looking stress scenarios;
- the systematic integration by the competent authorities of money laundering and terrorist financing considerations into their relevant supervisory activities.
The European Systemic Risk Board (ESRB) shall play a key role of the European Systemic Risk Board (ESRB) in coordinating macroprudential measures and in transmitting information on planned macroprudential measures in the Member States, in particular through the publication of adopted macroprudential measures on its website and through information sharing across authorities following the notifications of planned macroprudential measures.
ENTRY INTO FORCE: 27.6.2019.
TRANSPOSITION: from 28.12.2020.
APPLICATION: from 29.12.2020.
2019/05/20
CSL - Draft final act
Documents
2019/05/20
CSL - Final act signed
2019/05/20
EP - End of procedure in Parliament
2019/05/14
EP/CSL - Act adopted by Council after Parliament's 1st reading
2019/05/14
CSL - Council Meeting
2019/04/16
EP - Results of vote in Parliament
Documents
2019/04/16
EP - Decision by Parliament, 1st reading
Details
The European Parliament adopted by 483 votes to 53, with 114 abstentions, a legislative resolution on the proposal for a directive of the European Parliament and of the Council amending Directive 2013/36/EU as regards exempted entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers and capital conservation measures.
Parliament adopted its position at first reading in accordance with the ordinary legislative procedure.
The proposal to amend Directive 2013/36/EU of the European Parliament and of the Council (Capital Requirements Directive) provides for a binding leverage ratio, designed to prevent institutions from excessive leverage, and a binding net stable funding ratio.
It strengthens risk-sensitive capital requirements in particular in the area of market risk, counterparty credit risk, and for exposures to central counterparties (CCPs). In addition, it requires for Global Systemically Important Institutions (G-SIIs) to hold minimum levels of capital and other instruments which bear losses in resolution. This requirement, known as 'Total Loss-Absorbing Capacity' or TLAC), will be integrated into the existing MREL (Minimum Requirement for own funds and Eligible Liabilities) system, which is applicable to all banks.
The amendments to the Commission's proposal place particular emphasis on:
- the need to provide for a specific approval procedure and direct supervisory powers over certain financial holding companies and mixed financial holding companies in order to ensure that such holding companies can be held directly responsible for ensuring compliance with consolidated prudential requirements, without subjecting them to additional prudential requirements on an individual basis;
- the obligation for establishments to apply the principle of equal pay for men and women for the same work or work of equal value;
- the consideration of the size, structure and internal organisation of institutions and the nature, scope and complexity of their activities in the supervisory review and evaluation procedure; competent authorities may take into account the specific risks affecting each institution nor alter the institution-specific nature of the measures imposed;
- the capital add-on requirement to be imposed by the competent authorities should be determined according to the particular situation of an institution and be duly justified. These requirements should be above the applicable minimum capital requirements and below the overall capital cushion requirement or the leverage ratio cushion requirement, as the case may be, in the sequencing of the corresponding capital requirements;
- the additional own funds requirement to be imposed by competent authorities should be set in relation to the specific situation of an institution and should be duly justified. Those requirements should be positioned in the relevant stacking order of own funds requirements above the relevant minimum own funds requirements and below the combined buffer requirement or the leverage ratio buffer requirement, as relevant;
- the possibility for competent authorities to communicate to an institution, in the form of guidance any adjustment to the amount of capital in excess of the relevant minimum own funds requirements, the relevant additional own funds requirement and, as relevant, the combined buffer requirement or the leverage ratio buffer requirement that they expect such an institution to hold in order to deal with forward looking stress scenarios;
- the systematic integration by the competent authorities of money laundering and terrorist financing considerations into their relevant supervisory activities;
- the possibility for Member States to implement measures in national law to enhance the resilience of the financial system, such as, in particular, limits on the loan-to-value ratio, debt-to-income limits, debt service-to-income limits and other instruments addressing lending standards;
- the calculation by institutions of their specific buffers as equal to the weighted average of the countercyclical buffer rates applicable in the countries in which they have credit exposures. Each Member State should therefore designate an authority to set the countercyclical buffer rate for exposures located in that Member State;
- the possibility for Member States to require certain institutions to hold, in addition to a capital conservation buffer and a countercyclical capital buffer, a systemic risk buffer in order to prevent and mitigate macroprudential or systemic risks;
- the key role of the European Systemic Risk Board (ESRB) in coordinating macroprudential measures and in transmitting information on planned macroprudential measures in the Member States, in particular through the publication of adopted macroprudential measures on its website and through information sharing across authorities following the notifications of planned macroprudential measures;
- the possibility for the competent authorities or designated authorities to determine the level(s) of application of the other systemically important institutions (O-SIIs) buffer, on the basis of the nature and distribution of the risks embedded in the structure of the group;
- the development by the European Banking Authority (EBA) of draft regulatory technical standards to specify the additional identification methodology for global systemically important institutions (G-SIIs) to allow the recognition of the specificities of the integrated European resolution framework within the context of the SRM.
Documents
2019/04/15
EP - Debate in Parliament
Documents
2019/02/25
EP - Approval in committee of the text agreed at 1st reading interinstitutional negotiations
Documents
2019/02/15
CSL - Coreper letter confirming interinstitutional agreement
Documents
2019/02/15
EP - Text agreed during interinstitutional negotiations
Documents
2018/07/04
EP - Committee decision to enter into interinstitutional negotiations confirmed by plenary (Rule 71)
2018/07/02
EP - Committee decision to enter into interinstitutional negotiations announced in plenary (Rule 71)
2018/06/28
EP - Committee report tabled for plenary, 1st reading
Details
The Committee on Economic and Monetary Affairs adopted the report by Peter SIMON (S&D, DE) on the proposal for a directive of the European Parliament and of the Council amending Directive 2013/36/EU as regards exempted entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers and capital conservation measures.
The committee responsible recommended that the European Parliament’s position adopted at first reading under the ordinary legislative procedure should amend the Commission proposal as follows.
The proposal to amend Directive 2013/36/EU of the European Parliament and of the Council (Capital Requirements Directive) provides for a binding leverage ratio , designed to prevent institutions from excessive leverage, and a binding net stable funding ratio.
It strengthens risk-sensitive capital requirements in particular in the area of market risk, counterparty credit risk, and for exposures to central counterparties (CCPs). In addition, it requires for Global Systemically Important Institutions (G-SIIs) to hold minimum levels of capital and other instruments which bear losses in resolution. This requirement, known as 'Total Loss-Absorbing Capacity' or TLAC), will be integrated into the existing MREL (Minimum Requirement for own funds and Eligible Liabilities) system, which is applicable to all banks.
The amendments focus on:
the importance of streamlining the coordination mechanism between authorities, simplifying the activation of macroprudential policy tools and enhancing the macroprudential toolbox to enable authorities to respond to systemic risks in an efficient and timely manner; the revision of the respective competences of macro-prudential authorities established at Member State and Union level, so as to better delineate responsibilities for risk assessment and policy development, including coordination and reporting procedures between authorities; the pivotal role that the European Systemic Risk Council (ESRC) should play in coordinating macro-prudential measures and in transmitting information on planned macro-prudential measures to the Member States, in particular by publishing on its website the macro-prudential measures adopted and by sharing information between authorities after notification of planned macro-prudential measures; consistent application by credit institutions and investment firms of the principle of equal pay for equal work by demonstrating that their remuneration policies are non-discriminatory between women and men; the use of own funds add-ons imposed by the competent authorities to cover the risks incurred by certain institutions as a result of their activities. However, these requirements should not conflict with the specific treatment provided for in Regulation (EU) No 575/2013 to avoid unintended impacts on financial stability, credit supply and the real economy; the introduction of a leverage ratio adjustment for global systemically important institutions (G-SIIs) to be set at 50% of a G-SIIs risk-weighted higher-loss absorbency requirements; the need to take into account the size, structure and internal organisation of institutions and the nature, scope and complexity of their activities in the context of supervisory review and evaluation; the possibility for competent authorities to tailor the method of application of the review and evaluation process to capture the common characteristics and risks of institutions with a comparable risk profile. However, such tailoring should not prevent the competent authorities from taking into account the specific risks affecting each institution, nor alter the institution-specific nature of the measures imposed; the importance of the completion of banking union for the smooth functioning of cross-border markets and for bank customers to benefit from the positive effects that result from a harmonised and integrated European banking market ensuring a level playing field for European banks. The Commission should therefore, after close consultation with the European Central Bank (ECB), the ESRB and the European Banking Authority (EBA), review the current framework, while maintaining a balanced and prudentially sound approach towards home and host countries and taking into account potential benefits and risks for Member States and regions.
The amended text provides that where two or more institutions in the Union, which are part of the same group of third countries, they shall be required to have a single intermediate parent undertaking established in the Union . Competent authorities may allow institutions to have two intermediate EU parent companies under certain conditions. The provisions relating to the exercise of supervision on a consolidated basis are specified.
Lastly, an amendment stresses that sovereign bonds play a crucial role in providing high-quality liquid assets for investors and stable funding sources for governments. However, in some Member States financial institutions have overly invested in bonds issued by their own governments. Banks should continue their effort towards more diversified sovereign bond portfolios.
Documents
2018/06/19
EP - Vote in committee, 1st reading
2018/06/19
EP - Committee decision to open interinstitutional negotiations with report adopted in committee
2018/05/25
CSL - Council Meeting
2018/02/02
EP - Amendments tabled in committee
Documents
2018/02/02
EP - Amendments tabled in committee
Documents
2018/01/15
IT_SENATE - Contribution
Documents
2017/11/16
EP - Committee draft report
Documents
2017/11/08
ECB - European Central Bank: opinion, guideline, report
Details
OPINION of the European Central Bank (ECB) on amendments to the Union framework for capital requirements of credit institutions and investment firms
The ECB supports the Commission’s banking reform package , which will implement important elements of the global regulatory reform agenda in Union legislation. The Commission’s proposal is expected to substantially strengthen the regulatory architecture, thereby contributing to the reduction of risks in the banking sector.
The ECB addresses issues of particular importance to the ECB, which have been divided into two sections: (1) changes to the existing Union regulatory and supervisory framework ; and (2) implementation of internationally agreed supervisory standards .
The amendments which it proposes to the implementation of the Pillar 2 requirements of the Basel III framework in the Capital Requirements Directive (CRD) seek to achieve greater supervisory convergence in the Union
The ECB makes, inter alia, the following observations:
the proposal to develop regulatory technical standards on additional own funds requirements is not the appropriate tool for achieving the objective of supervisory convergence. The ECB supports a risk-based approach that takes into account the diversity of risk profiles of institutions; supervisory authorities should retain the power to set a composition requirement for additional own funds and to require that additional own funds requirements must be met solely with Common Equity Tier 1 capital; the proposed amendments to the CRD should reflect more clearly the need for flexibility in the determination of Pillar 2 guidance. In addition, it should be clarified that, where a stress test identifies additional types of credit risk in a hypothetical situation and these are part of the Pillar 2 requirements, competent authorities retain the ability to apply measures addressing such risks in the Pillar 2 guidance; the proposed amendments limiting the power of competent authorities to require credit institutions to provide additional or more frequent information should be deleted; competent authorities should be allowed to impose own funds requirements whenever interest rate risk is a material source of concern and not only when risks exceed a certain predefined threshold; the proposal for formal consultation of resolution authorities prior to determining additional own fund requirements or providing guidance as specified in the CRD would prove unnecessarily burdensome and unduly formalistic in practice.
The ECB is generally supportive with regard to removing Pillar 2 as an instrument from the macroprudential toolkit, but reiterates its view that removing Pillar 2 requirements should not result in authorities having insufficient tools to carry out their mandate and achieve their policy objectives.
Pending an in-depth review of the macroprudential framework, the ECB suggests a number of adjustments to improve the operational efficiency of the current macroprudential framework , such as withdrawing the present hierarchy for the sequencing of the activation mechanism, and streamlining the wide variety of notification and activation procedures for macroprudential measures.
The ECB welcomes the requirement to establish intermediate EU parent undertakings for third-country banking groups with two or more institutions established in the Union, provided that certain criteria are met or thresholds are exceeded. However, certain aspects of the proposed amendments to the CRD require further clarification in order to avoid regulatory arbitrage.
With respect to proportionality in reporting , the ECB suggests that, instead of reducing the frequency of regulatory reporting, the scope of reporting for smaller institutions could be amended.
The consolidated and solo supervision of large cross-border, bank-like investment firms in the Union warrants further consideration, to ensure prudent and consistent supervisory standards commensurate with the risks these firms can pose. One of the possible options would be to amend the CRD/CRR in order to ensure that large cross-border investment firms are considered as credit institutions.
The ECB recommends that Union law should be amended to include a definition of key function holders and to clarify the definition of senior management . Moreover, in order to harmonise national approaches, a provision should be introduced on the powers of competent authorities when assessing key function holders in significant institutions.
Lastly, the ECB proposes to expand the list of infringements subject to sanctions.
Documents
2017/03/22
RO_SENATE - Contribution
Documents
2017/03/08
ES_PARLIAMENT - Contribution
Documents
2017/03/07
PT_PARLIAMENT - Contribution
Documents
2017/03/01
FR_SENATE - Contribution
Documents
2017/01/19
EP - Committee referral announced in Parliament, 1st reading
2016/11/24
EP - SIMON Peter (S&D) appointed as rapporteur in ECON
2016/11/23
EC - Document attached to the procedure
Documents
2016/11/23
EC - Document attached to the procedure
Documents
2016/11/23
EC - Legislative proposal published
Details
PURPOSE: to reduce financial institutions’ leverage, and strengthen their stable funding and trading book capital requirements.
PROPOSED ACT: Regulation of the European Parliament and of the Council.
ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with Council.
BACKGROUND: in response to the financial crisis that unfolded in 2007-2008, the EU implemented a substantial reform of the financial services regulatory framework to enhance the resilience of institutions (i.e. credit institutions and investment firms) operating in the EU financial sector, largely based on global standards agreed with the EU’s international partners.
However, the adoption of the Basel III framework at international level did not mark the end of the post-crisis reform. Work continued on several elements that were left outstanding at the time. While the reforms have rendered the financial system more stable and resilient against many types of possible future shocks and crises, they do not yet comprehensively address all identified problems.
The Commission recognised the need for further risk reduction in its Communication of 24 November 2015 entitled "Towards the completion of the Banking Union" and committed to bring forward a legislative proposal that builds on the international agreements.
IMPACT ASSESSMENT: the Regulatory Scrutiny Board issued a positive opinion in September 2016 on a resubmitted impact assessment, following a negative opinion. The modelling has shown that public resources required to support the banking system in case of a financial crisis of the size similar to 2007 – 2008 would decrease by 32% – a decline from EUR 51 billion to EUR 34 billion.
CONTENT: the proposal amending Directive 2013/36/EU of the European Parliament and of the Council on the Capital Requirements Directive (CRD) aims to complete the reform agenda by tackling remaining weaknesses and implementing some outstanding elements of the reform that are essential to ensure the institutions' resilience but have only recently been finalised by the Basel Committee on Banking Supervision and the Financial Stability Board (FSB).
more risk-sensitive capital requirements , in particular in the area of market risk, counterparty credit risk, and for exposures to central counterparties (CCPs); implementing methodologies that are able to reflect more accurately the actual risks to which banks are exposed; a binding Leverage Ratio to prevent institutions from excessive leverage; a binding Net Stable Funding Ratio (NSFR) to address the excessive reliance on short-term wholesale funding and to reduce long-term funding risk. a requirement for Global Systemically Important Institutions (G-SIIs) to hold minimum levels of capital and other instruments which bear losses in resolution. This requirement, known as 'Total Loss-Absorbing Capacity' or TLAC), will be integrated into the existing MREL (Minimum Requirement for own funds and Eligible Liabilities) system, which is applicable to all banks, and will strengthen the EU's ability to resolve failing G-SIIs while protecting financial stability and minimising risks for taxpayers.
It is expected that the proposed amendments will start entering into force in 2019 at the earliest.
These proposed amendment to Directive 2013/36/EU (the Capital Requirements Directive or CRD) is part of a legislative package that includes also amendments to Regulation (EU) No 575/2013 (the Capital Requirements Regulation), to Directive 2014/59/EU (the Bank Recovery and Resolution Directive), and to Regulation (EU) No 806/2014 (the Single Resolution Mechanism Regulation).
Documents
Documents
- Follow-up document: COM(2023)0344
- Follow-up document: EUR-Lex
- Commission response to text adopted in plenary: SP(2019)440
- Final act published in Official Journal: Directive 2019/878
- Final act published in Official Journal: OJ L 150 07.06.2019, p. 0253
- Final act published in Official Journal: Corrigendum to final act 32019L0878R(03)
- Final act published in Official Journal: OJ L 212 03.07.2020, p. 0020
- Draft final act: 00016/2019/LEX
- Results of vote in Parliament: Results of vote in Parliament
- Decision by Parliament, 1st reading: T8-0370/2019
- Debate in Parliament: Debate in Parliament
- Approval in committee of the text agreed at 1st reading interinstitutional negotiations: PE636.104
- Approval in committee of the text agreed at 1st reading interinstitutional negotiations: GEDA/A/(2019)001585
- Coreper letter confirming interinstitutional agreement: GEDA/A/(2019)001585
- Text agreed during interinstitutional negotiations: PE636.104
- Committee report tabled for plenary, 1st reading: A8-0243/2018
- Amendments tabled in committee: PE616.798
- Amendments tabled in committee: PE616.830
- Contribution: COM(2016)0854
- Committee draft report: PE613.410
- European Central Bank: opinion, guideline, report: CON/2017/0046
- European Central Bank: opinion, guideline, report: OJ C 034 31.01.2018, p. 0005
- Contribution: COM(2016)0854
- Contribution: COM(2016)0854
- Contribution: COM(2016)0854
- Contribution: COM(2016)0854
- Document attached to the procedure: EUR-Lex
- Document attached to the procedure: SWD(2016)0377
- Document attached to the procedure: EUR-Lex
- Document attached to the procedure: SWD(2016)0378
- Legislative proposal published: COM(2016)0854
- Legislative proposal published: EUR-Lex
- Document attached to the procedure: EUR-Lex SWD(2016)0377
- Document attached to the procedure: EUR-Lex SWD(2016)0378
- European Central Bank: opinion, guideline, report: CON/2017/0046 OJ C 034 31.01.2018, p. 0005
- Committee draft report: PE613.410
- Amendments tabled in committee: PE616.798
- Amendments tabled in committee: PE616.830
- Coreper letter confirming interinstitutional agreement: GEDA/A/(2019)001585
- Text agreed during interinstitutional negotiations: PE636.104
- Draft final act: 00016/2019/LEX
- Commission response to text adopted in plenary: SP(2019)440
- Follow-up document: COM(2023)0344 EUR-Lex
- Contribution: COM(2016)0854
- Contribution: COM(2016)0854
- Contribution: COM(2016)0854
- Contribution: COM(2016)0854
- Contribution: COM(2016)0854
Votes
A8-0243/2018 - Peter Simon - Am 2rev 16/04/2019 12:30:12.000 #
2019/04/16 Outcome: +: 483, 0: 114, -: 53
NI
GUE/NGLA8-0243/2018 - Peter Simon - Am 2rev #
2019/04/16 Outcome: +: 483, 0: 114, -: 53
| Amendments | Dossier |
| 380 |
2016/0364(COD)
2018/02/02
ECON
380 amendments...
Amendment 100 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point d Directive 2013/36/EU Article 2 – paragraph 7 By [5 years after entry into force], the
Amendment 101 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point d Directive 2013/36/EU Article 2 – paragraph 7 Amendment 102 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point d Directive 2013/36/EU Article 2 – paragraph 7 By [5 years after entry into force], the Commission shall review the list set out in Article 2(5) by considering whether the reasons that led to the inclusion of entities in the list are still valid, the national legal framework and supervision applicable to the entities in the list,
Amendment 103 #
Proposal for a directive Article 1 – paragraph 1 – point 2 – point a Directive 2013/36/EU Article 3 – point 64 a (new) (64a) Gender neutral remuneration policy in a credit institution or investment firm means a remuneration policy based on equal pay for women and men for equal work or work of equal value.
Amendment 104 #
Proposal for a directive Article 1 – paragraph 1 – point 3 a (new) Directive 2013/36/EU Article 8 – paragraph 1 (3a) Article 8, paragraph 1 is amended as follows: "Member States shall require credit institutions to obtain authorisation from competent authorities before commencing their activities including those listed in Annex 1. Without prejudice to Articles 10 to 14,
Amendment 105 #
Proposal for a directive Article 1 – paragraph 1 – point 5 Directive 2013/36/EU Article 9 – paragraph 2 Amendment 106 #
Proposal for a directive Article 1 – paragraph 1 – point 5 Directive 2013/36/EU Article 9 – paragraph 2 – point e (e) entities referred to in Article 2(5), Article 2(5a) and Article 2(5b), the activity of which is governed by national law.
Amendment 107 #
Proposal for a directive Article 1 – paragraph 1 – point 5 (e) entities referred to in Article 2(5) and Article 2(5a), the activity of which is governed by national law..
Amendment 108 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b Amendment 109 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 1 1. Member States shall require that two or more institutions or third country branches in the Union, which are part of the same third country group, have an intermediate EU parent undertaking that is established in the Union.
Amendment 110 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 1 1. Subject to paragraph 1a, Member States shall require that
Amendment 111 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 1 1. Subject to paragraph 7, Member States shall require that two or more institutions in the Union, which are part of the same third country group, have an intermediate EU parent undertaking that is established in the Union.
Amendment 112 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 1 1.
Amendment 113 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 1 1.
Amendment 114 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 1 a (new) 1 a. By way of derogation from paragraph 1, competent authorities may allow the institutions referred to in paragraph 1 to have two intermediate EU parent undertakings where the establishment of a single intermediate EU parent undertaking would: (i) conflict with the legal or regulatory framework that requires a separation of activities in the third country in which the ultimate parent undertaking of the third country group has its head office or (ii) render resolvability less efficient or impinge on financial stability according to an assessment carried out by the competent resolution authority of the intermediate EU parent undertaking in close coordination with the resolution authority of the parent undertaking of the intermediate EU parent undertaking.
Amendment 115 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 1 a (new) 1 a. Competent authorities may require the institutions referred to in paragraph 1 to have two or more intermediate EU parent undertakings, where the competent authorities ascertain that a single intermediate EU parent undertaking would be incompatible with a mandatory requirement for separation of activities in accordance with rules of the third country where the ultimate parent undertaking of the third country group has its head office, or that it would be appropriate to facilitate effective supervision or resolution of the institution.
Amendment 116 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 1 a (new) 1 a. Competent authorities may allow the institutions referred to in paragraph 1 to have two intermediate EU parent undertakings where the competent authorities is certain that a single intermediate EU parent undertaking would be incompatible with a mandatory requirement for separation of activities in accordance with the rules of the third country where the ultimate parent undertaking of the third country group has its head office or where it will facilitate the effective resolution of the institution.
Amendment 117 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 1 a (new) 1 a. Competent authorities may allow the institutions referred to in paragraph 1 to have two intermediate EU parent undertakings where the competent authorities ascertain that a single intermediate EU parent undertaking would be operationally incompatible with a mandatory requirement for separation of activities in accordance with the rules of the third country where the ultimate parent undertaking of the third country group has its head office.
Amendment 118 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 1 a (new) 1 a. Competent authorities may allow the institutions referred to in paragraph 1 to have two intermediate EU parent undertakings where the competent authorities ascertain that a single intermediate EU parent undertaking would be incompatible with a mandatory requirement for separation of activities in accordance with the law of the third country where the ultimate parent undertaking of the third country group has its head office.
Amendment 119 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 1 b (new) 1 b. By derogation from paragraphs 1 and 1a, competent authorities may allow an institution in the Union which is part of the same third country group as other institutions in the Union to sit outside of the intermediate parent undertaking, or intermediate parent undertakings where it has determined the effect of the requirement(s) in paragraphs 1 and 1a on the structure of the institution(s) in question may have disproportionate impacts relative to benefits for supervision and resolution.
Amendment 120 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 2 2.
Amendment 121 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 2 2.
Amendment 122 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 2 2.
Amendment 123 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 2 2. Member States shall require an intermediate EU parent undertaking in the Union to obtain authorisation as a
Amendment 124 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 2 2. Member States shall require
Amendment 125 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 2 a (new) 2 a. In addition to paragraph 2, an intermediate EU parent undertaking shall be allowed to obtain authorisation as an investment firm in accordance with Article 5 of Directive 2014/65/EU, if no credit institutions or systemic investment firms are part of the same third country group.
Amendment 126 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 3 3. Paragraphs 1 and 2 shall not apply where the total value of assets in the Union of the third country group is lower than EUR 30 billion
Amendment 127 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 3 3. Paragraphs 1 and 2 shall not apply where the total value of assets in the Union of the third country group is lower than EUR
Amendment 128 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 3 3. Paragraphs 1 and 2 shall not apply where the total value of assets in the Union of the third country group is lower than EUR 30 billion,
Amendment 129 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 3 3. Paragraphs 1, 1a and 2 shall not apply where the total value of assets in the Union of the third country group is lower than EUR
Amendment 130 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 3 3. Paragraphs 1, 1a, 1b and 2 shall not apply where the total value of assets in the Union of the third country group is lower than EUR
Amendment 131 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 3 3. Paragraphs 1, 1a and 2 shall not apply where the total value of assets in the Union of the third country group is lower than EUR 30 billion, unless the third country group is a non-EU G-SII.
Amendment 132 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 3 3. Paragraphs 1, 2 and 2a shall not apply where the total value of assets in the Union of the third country group is lower than EUR 30 billion, unless the third country group is a non-EU G-SII.
Amendment 133 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 4 4. For the purposes of this Article, the total value of subsidiarised assets in the Union of the third country group shall
Amendment 134 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21 – paragraph 4 – introductory part 4. For the purposes of this Article, the total value of assets in the Union of the third country group shall include the
Amendment 135 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 4 – introductory part 4. For the purposes of this Article, the total value of assets in the Union of the third country group shall
Amendment 136 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 4 – point a (a) the amount of total assets of each institution in the Union of the third country group, as resulting from their consolidated balance sheet or as resulting from their individual balance sheet, where an institution's balance sheet is not consolidated; and
Amendment 137 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 4 – point b Amendment 138 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 4 – point b Amendment 139 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 4 – point b (b) the amount of total assets of each branch of the third country group authorised to operate in the Union in accordance with Article 47.
Amendment 140 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 4 – point b (b) the total assets of each branch of
Amendment 141 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 4 a (new) 4 a. Where paragraphs 1 or 2 apply, Member States shall require that each third country branch of the third country group is re-established either as a credit institution or as a branch of a credit institution established in the Union.
Amendment 142 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 4 a (new) 4 a. Where paragraphs 1 or 2 apply, Member States shall require that each third country branch of the third country group is re-established either as an institution or as branch of an institution in the Union.
Amendment 143 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 4 a (new) 4 a. For the purposes of this Article, the total value of assets in the Union of the third country group shall be the sum of: (a) the amount of total assets of each institution in the Union of the third country group, as resulting from their consolidated balance sheet or as resulting from their individual balance sheet, where an institution's balance sheet is not consolidated; and (b) the amount of total assets of each branch of the third country group authorised to operate in the Union in accordance with Article 47.
Amendment 144 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 5 5. Competent authorities shall notify to the EBA every authorisation granted pursuant to paragraph 2
Amendment 145 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 5 a (new) 5 a. the names and amount of total assets of supervised institutions belonging to a third country group and the types of activities which they are authorised to carry out;
Amendment 146 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 5 b (new) 5 b. the names and amount of total assets corresponding to branches authorised in that Member State pursuant to Article 47;
Amendment 147 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 5 c (new) 5 c. the name and legal form of any intermediate EU parent undertaking set- up in that Member State and the name of the third country group of which it is part.
Amendment 148 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 6 – subparagraph 1 EBA shall publish on its website the list of all
Amendment 149 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 6 – subparagraph 2 Competent authorities shall ensure that each institution under their jurisdiction that is part of a third country group meets one of the following conditions: (a) it has there is a single an intermediate EU parent undertaking
Amendment 150 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 6 – subparagraph 2 Competent authorities shall ensure that there is a single intermediate EU parent undertaking for all institutions that are part of the same third country group
Amendment 151 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 6 – subparagraph 2 Competent authorities shall ensure that
Amendment 152 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 6 – subparagraph 2 Competent authorities shall ensure that the
Amendment 153 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/63/EU Article 21b – paragraph 6 – subparagraph 2 Competent authorities shall ensure that there is a
Amendment 154 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 6 a (new) 6 a. By way of derogation from paragraph 1, groups operating through more than one institution in the Union and with total value of assets exceeding EUR 30 billion on date of entry into force of this directive subject to this Article shall have an intermediate EU parent undertaking or, as per paragraph 7, two or more intermediate EU parent undertakings from date of application of Directive + four years.
Amendment 155 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 6 a (new) 6 a. Within four years after the entry into force of this Directive, the Commission shall review the requirements imposed on institutions by this article and, after consulting the EBA, submit a report to the European Parliament and the Council. Following the publication of this report, the Commission shall, if appropriate, bring forward any necessary legislative amendments. This report shall consider: (a) whether the requirements of this Article are operable, necessary and proportionate and whether other measures would be more appropriate; (b) whether other jurisdictions apply requirements which are similar to this Article and, if so, the nature and effect of those requirements, whether they are consistent with the requirements of this Article and the impact of different asset thresholds in those jurisdictions; (c) the impact of structural separation requirements in other jurisdictions.
Amendment 156 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 6 a (new) 6 a. Third country groups operating through more than one institution in the Union on [date of entry into force of this directive] and that are subject to this Article shall have an intermediate EU parent undertaking or, in the case referred to in paragraph 1a, two intermediate EU parent undertakings by four years from the date of application of Directive.
Amendment 157 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 6 a (new) 6 a. Where the law or regulation of the home jurisdiction of a group requires structural separation of different activities, competent authorities shall permit the establishment of two intermediate EU parent undertakings provided: (a) the relevant resolution authorities are satisfied that the existence of two holding companies does not constitute an obstacle to resolution of the activities of the group headed by those holding companies and any requisite restructuring of those activities post-resolution; (b) the relevant supervisory authorities are satisfied that the existence of two holding companies does not constitute an obstacle to supervision of the activities of the group headed by those holding companies; (c) at least one of the parent undertakings is, or is a holding company in respect of, a credit institution.
Amendment 158 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 6 a (new) 6 a. By way of derogation from paragraph 1, groups operating through more than one institution in the Union and with total value of assets exceeding EUR 30 billion on [date of entry into force of this directive] shall have an intermediate EU parent undertaking or, in the case referred to in paragraph 1a, two intermediate EU parent undertakings by [date of application of Directive + three years].".
Amendment 159 #
Proposal for a directive Article 1 – paragraph 1 – point 9 6 a. By derogation from paragraph 6, third country groups that are subject to national laws or regulations requiring the structural separation of activities may have more than one intermediate EU parent undertaking Such intermediate EU parent undertakings shall be consistent with the structural separation of activities that the banking group is required to undertake.
Amendment 160 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 6 b (new) 6 b. Within three years after the entry into force of this Directive, the Commission shall review the requirements imposed on institutions by this article and, after consulting the EBA, submit a report to the European Parliament and the Council. Following the publication of this report, the Commission shall, if appropriate, bring forward any necessary legislative amendments. This report shall consider: (a) whether the requirements of this Article are operable, necessary and proportionate and whether other measures would be more appropriate; (b) whether other jurisdictions apply requirements which are similar to this Article and, if so, the nature and effect of those requirements, whether they are consistent with the requirements of this Article and the impact of different asset thresholds in those jurisdictions; (c) the impact of structural separation requirements in other jurisdictions.
Amendment 161 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 6 b (new) 6 b. By way of derogation from paragraph 1, groups operating through more than one institution in the Union and with total value of assets exceeding EUR 30 billion on [date of entry into force of this Directive] shall have an intermediate EU parent undertaking or, in the case referred to in paragraph 1a, two intermediate EU parent undertakings by [date of application of this Directive + three years].
Amendment 162 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 6 b (new) 6 b. Where two intermediate parent undertakings are permitted under this Article, they shall together be treated as a group subject to consolidated supervision in accordance with Chapter 3 of Title VII of this Directive, and the consolidating supervisor shall be determined according to those provisions.
Amendment 163 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 6 c (new) 6 c. Where two intermediate parent undertakings are permitted under this Article, they shall be regarded as a group for the purposes of Directive 2014/59/EU, a group resolution authority shall be designated in accordance with the provisions of that directive, and that group resolution authority shall have all of the powers and authorities as regards the IPUs as it would have had they constituted a group with an EU parent.
Amendment 164 #
Proposal for a directive Article 1 – paragraph 1 – point 9 Directive 2013/36/EU Article 21b – paragraph 6 d (new) 6 d. By way of derogation from paragraph 1, groups operating through more than one institution in the Union and with total value of assets exceeding EUR 30 billion on [date of entry into force of this directive] shall have an intermediate EU parent undertaking or, in the case referred to in paragraph 7, two intermediate EU parent undertakings by [date of application of Directive + four years].".
Amendment 165 #
Proposal for a directive Article 1 – paragraph 1 – point 11 a (new) Directive 2013/36/EU Article 56 – point f a (new) and point f b (new) (11a) In Article 56 points (fa) and (fb) are added: "(fa) competent authorities referred to in Article 48 of the amended Directive (EU) 2015/849 of the European Parliament and of the Council; (fb) competent authorities or bodies responsible for the application of rules on structural separation within a banking group. "
Amendment 166 #
Proposal for a directive Article 1 – paragraph 1 – point 11 a (new) Directive 2013/36/EU Article 56 – point f a (new) and point f b (new) (11a) In Article 56 points (fa) and (fb) are added: “(fa) competent authorities referred to in Article 48 of Directive (EU) 2015/849 of the European Parliament and of the Council1a; (fb) competent authorities or bodies responsible for the application of rules on structural separation within a banking group.” __________________ 1a Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC (OJ L 141, 5.6.2015, p. 73)
Amendment 167 #
Proposal for a directive Article 1 – paragraph 1 – point 11 a (new) Directive 2013/36/EU Article 56 – point f a (new) and point f b (new) (11a) In Article 56 points (fa) and (fb) are added: "(fa) competent authorities referred to in Article 48 of Directive (EU) 2015/849 of the European Parliament and of the Council; (fb) competent authorities or bodies responsible for the application of rules on structural separation within a banking group.”
Amendment 168 #
Proposal for a directive Article 1 – paragraph 1 – point 11 b (new) Directive 2013/36/EU Article 63 – paragraph 1 – subparagraph 2 a (new) (11b) In Article 63, the following subparagraph is added at the end: "Member States shall provide that the competent authorities may, as a minimum, require the replacement of a person referred to in the first subparagraph if that person acts in breach of their obligations under the first subparagraph."
Amendment 169 #
Proposal for a directive Article 1 – paragraph 1 – point 11 b (new) Directive 2013/36/EU Article 67 – paragraph 1 – point p a (new) to point p d (new) Amendment 170 #
Proposal for a directive Article 1 – paragraph 1 – point 11 a (new) Directive 2013/36/EU Article 74 Amendment 171 #
Proposal for a directive Article 1 – paragraph 1 – point 11 a (new) Directive 2013/36/EU Article 74 (11a) Article 74 is amended as follows: "1. Institutions shall have robust governance arrangements, which include a clear organisational structure with well- defined ,transparent and consistent lines of responsibility, effective processes to identify, manage, monitor and report the risks they are or might be exposed to, adequate internal control mechanisms, including sound administration and accounting procedures, and remuneration policies and practices that are consistent with and promote sound and effective risk management. Those remuneration policies and practices shall be gender neutral. .2. The arrangements, processes and mechanisms referred to in paragraph 1 shall be comprehensive and proportionate to the nature, scale and complexity of the risks inherent in the business model and the institution's activities. The technical criteria established in Articles 76 to95 shall be
Amendment 172 #
Proposal for a directive Article 1 – paragraph 1 – point 12 Directive 2013/36/EU Article 75 – paragraph 1 1. Competent authorities shall collect the information disclosed in accordance with the criteria for disclosure established in points (g), (h), (i) and (k) of Article 450(1) of Regulation (EU) No 575/2013 a
Amendment 173 #
Proposal for a directive Article 1 – paragraph 1 – point 12 a (new) Directive 2013/36/EU Article 75 – paragraph 3 Amendment 174 #
Proposal for a directive Article 1 – paragraph 1 – point 12 b (new) Directive 2013/36/EU Article 75 – paragraph 3 a (new) Amendment 175 #
Proposal for a directive Article 1 – paragraph 1 – point 12 c (new) Directive 2013/36/EU Article 76 – paragraph 3 – subparagraph 4 a (new) Amendment 176 #
Proposal for a directive Article 1 – paragraph 1 – point 12 c (new) Directive 2013/36/EU Article 78 – para 4 (13a) Paragraph 4 of Article 78 is replaced by the following: "4. Where particular institutions diverge significantly from the majority of their peers or where there is little commonality in approach leading to a wide variance of results, competent authorities shall investigate the reasons therefor and, if it can be clearly identified that an institution's approach leads to an underestimation of own funds requirements which is not attributable to differences in the underlying risks of the exposures or positions, shall take corrective action.
Amendment 177 #
Proposal for a directive Article 1 – paragraph 1 – point 13 Directive 2013/36/EU Article 84 – paragraph 1 1. Competent authorities shall ensure that institutions implement internal systems or use the standardised methodology to identify, evaluate, manage and mitigate the risks arising from potential changes in interest rates that affect both the economic value of equity and the net interest income of an institution's non-trading book activities. By way of derogation, small and non-complex institutions as defined in Article 430a of Regulation (EU) No 575/2013 shall be required to use the standardised methodology only if the competent authority comes to the conclusion that the internal systems are not sufficient.
Amendment 178 #
Proposal for a directive Article 1 – paragraph 1 – point 13 Directive 2013/36/EU Article 84 – paragraph 2 2. Competent authorities shall ensure that institutions implement systems to assess and monitor the risks arising from potential changes in credit spreads that a
Amendment 179 #
Proposal for a directive Article 1 – paragraph 1 – point 13 Directive 2013/36/EU Article 84 – paragraph 3 3. Competent authorities may require on a case by case basis an institutions to use the standardised methodology referred to in paragraph 1 where the internal systems implemented by th
Amendment 180 #
Proposal for a directive Article 1 – paragraph 1 – point 13 Directive 2013/36/EU Article 84 – paragraph 3 3.
Amendment 181 #
Proposal for a directive Article 1 – paragraph 1 – point 13 Directive 2013/36/EU Article 84 – paragraph 3 3. Competent authorities may require institutions to use the standardised methodology referred to in paragraph 1 as a fall-back where the internal
Amendment 182 #
Proposal for a directive Article 1 – paragraph 1 – point 13 Directive 2013/36/EU Article 84 – paragraph 4 – subparagraph 1 EBA shall develop draft regulatory technical standards to specify, for the purposes of this Article, the details of a standardised methodology that institutions may use for the purpose of evaluating the risks referred to in paragraph 1
Amendment 183 #
Proposal for a directive Article 1 – paragraph 1 – point 13 Directive 2013/36/EU Article 84 – paragraph 4 – subparagraph 1 EBA shall develop draft regulatory technical standards to specify, for the purposes of this Article, the
Amendment 184 #
Proposal for a directive Article 1 – paragraph 1 – point 13 a (new) Directive 2013/36/EU Article 84 a (new) The following Article 84a is added: "Article 84a Environmental-related risks The EBA shall investigate the introduction of environmental-related risks as a new risk category with a view to assess inter alia the possible material sources and effects of environmental specific risks on institutions, taking existing sustainability reporting by institutions into account. By the [date of entry into force + 1 year] the EBA shall submit a report on its findings to the Commission. On the basis of this report, the Commission shall, if appropriate, submit to the European Parliament and the Council, a legislative proposal."
Amendment 185 #
Proposal for a directive Article 1 – paragraph 1 – point 13 a (new) Directive 2013/36/EU Article 84 a (new) Amendment 186 #
Proposal for a directive Article 1 – paragraph 1 – point 13 a (new) Directive 2013/36/EU Article 84 a (new) Amendment 187 #
Proposal for a directive Article 1 – paragraph 1 – point 13 a (new) Amendment 188 #
Proposal for a directive Article 1 – paragraph 1 – point 14 Directive 2013/36/EU Article 85 – paragraph 1 1. Competent authorities shall ensure that institutions implement policies and
Amendment 189 #
Proposal for a directive Article 1 – paragraph 1 – point 14 a (new) Directive 2013/36/EU Article 85 a (new) (14a) The following Article 85a is added: 'Article 85a Conduct risk 1. Competent authorities shall ensure that institutions identify as conduct risk any risk arising from providing services or performing activities in a manner which is not in line with regulatory requirements or standards and which exposes the institution to potential fines, penalties, sanctions or damages (“misconduct”). Conduct risk shall be identified in respect of any misconduct attained by an act or omission, preparatory or final, wilful or negligent, which has been performed by an institution’s employee or a third party to which operational functions or activities have been outsourced or which has been approved by the institution’s management body. 2. Competent authorities shall ensure that institutions implement policies and processes to identify, evaluate and manage their exposures to conduct risk. Institutions shall articulate what constitutes conduct risk for the purposes of those policies and processes. 3. Authorities designated under Union legislation applicable to institutions to supervise regulatory requirements and standards referred to in paragraph 1 shall inform without undue delay the competent authority responsible for the prudential supervision of an institution of any investigation concerning that institution’s potential misconduct. This information shall remain confidential in accordance with Title VII, Section II of this Directive.'
Amendment 190 #
Proposal for a directive Article 1 – paragraph 1 – point 14 a (new) Directive 2013/36/EU Article 85 a (new) Amendment 191 #
Proposal for a directive Article 1 – paragraph 1 – point 14 b (new) Directive 2013/36/EU Article 88 – paragraph 1 – subparagraph 3 a (new) (14b) In Article 88, the following subparagraph is inserted at the end: Member States shall at least ensure that management bodies of an institution monitor loans to related parties on an ongoing basis and notify such loans to the competent authority. Competent authorities shall have the power to prohibit or limit such loans if they give rise to any conflicts of interest. "
Amendment 192 #
Proposal for a directive Article 1 – paragraph 1 – point 14 b (new) Directive 2013/36/EU Article 88 – paragraph 2 – subparagraph 5 Amendment 193 #
Proposal for a directive Article 1 – paragraph 1 – point 14 c (new) Directive 2013/36/EU Article 89 Amendment 194 #
Proposal for a directive Article 1 – paragraph 1 – point 14 c (new) Directive 2013/36/EU Article 91 – paragraph 1 Amendment 195 #
Proposal for a directive Article 1 – paragraph 1 – point 14 d (new) Directive 2013/36/EU Article 91 – paragraph 1 (14d) In Article 91, paragraph 1 is replaced by the following: "Article 91 Management body 1. Members of the management body shall at all times be of sufficiently good repute and possess sufficient knowledge, skills and experience to perform their duties. The overall composition of the management body shall reflect an adequately broad range of experiences.
Amendment 196 #
Proposal for a directive Article 1 – paragraph 1 – point 14 d (new) Directive 2013/36/EU Article 91 – paragraph 7 (14d) In Article 91, paragraph 7 is amended as follows: "7. The management body shall possess adequate collective knowledge, skills and experience to be able to understand the institution's activities, including the main risks.
Amendment 197 #
Proposal for a directive Article 1 – paragraph 1 – point 14 e (new) Directive 2013/36/EU Article 91 – paragraph 8 (14e) In Article 91, paragraph 8 is replaced by the following: "8. Each member of the management body shall act with honesty, integrity and independence of mind to effectively assess and challenge the decisions of the senior management where necessary and to effectively oversee and monitor management decision-making.
Amendment 198 #
Proposal for a directive Article 1 – paragraph 1 – point 14 f (new) Directive 2013/36/EU Article 91 – paragraph 13 a (new) (14f) The following paragraph 13a shall be added in Article 91: '13a. Notwithstanding Article 13 (1) of this Directive, competent authorities may assess, at their discretion, institutions’ compliance with the requirements according to Article 91 (1) to (8) of this Directive regarding the management body in its supervisory function before or after the appointment of one of its members."
Amendment 199 #
Proposal for a directive Article 1 – paragraph 1 – point 14 g (new) Directive 2013/36/EU Article 91 a (new) (14g) The following Article 91a is inserted: Article 91a Key function holders 1. Institutions shall have the primary responsibility for ensuring that key function holders are at all times of sufficiently good repute and possess sufficient knowledge, skills and experience to perform their duties to the highest ethical standards taking into account the legitimate expectations of all stakeholders of the institution. Key function holders shall, in particular, fulfil the requirements set out in Article 91(2) and (8) on an ongoing basis. Institutions shall establish internal policies and procedures to adequately conduct and report these assessments. 2. Institutions shall provide the competent authorities with all relevant documentation on their relevant internal policies and make public the assessments of key function holders with respect to the matters mentioned in paragraph 1. 3. Member States shall ensure that competent authorities have, for institutions that are significant within the meaning of Directive 2013/36/EU, the power to assess and take supervisory measures, including the power to remove a key function holder where they no longer comply with the requirements of the paragraph 1.
Amendment 200 #
Proposal for a directive Article 1 – paragraph 1 – point 15 – point a Directive 2013/36/EU Article 92 – paragraph 1 Amendment 201 #
Proposal for a directive Article 1 – paragraph 1 – point 15 – point a Directive 2013/36/EU Article 92 – paragraph 1 Amendment 202 #
Proposal for a directive Article 1 – paragraph 1 – point 15 – point b Directive 2013/36/EU Article 92 – paragraph 2 – introductory phrase Amendment 203 #
Proposal for a directive Article 1 – paragraph 1 – point 15 – point b Directive 2013/36/EU Article 92 – paragraph 2 – introductory phrase Competent authorities shall ensure that, when establishing and applying the total remuneration policies, inclusive of salaries and discretionary pension benefits, for categories of staff whose professional activities have a material impact on their risk profile, including senior management, risk takers, staff engaged in control functions and any employee
Amendment 204 #
Proposal for a directive Article 1 – paragraph 1 – point 15 – point b Directive 2013/36/EU Article 92 – paragraph 2 – introductory phrase Competent authorities shall ensure that, when establishing and applying the total remuneration policies, inclusive of salaries and discretionary pension benefits, for categories of staff whose professional activities have a material impact on their risk profile, including senior management, risk takers, staff engaged in control functions and any employee receiving total remuneration that takes them into the same remuneration bracket as senior management and risk takers,
Amendment 205 #
Proposal for a directive Article 1 – paragraph 1 – point 15 – point b Directive 2013/36/EU Article 92 – paragraph 2 – introductory phrase Competent authorities shall ensure that, when establishing and applying the total remuneration policies, inclusive of salaries and discretionary pension benefits, for categories of staff
Amendment 206 #
Proposal for a directive Article 1 – paragraph 1 – point 15 – point b Directive 2013/36/EU Article 92 – paragraph 2 – introductory phrase Competent authorities shall ensure that,
Amendment 207 #
Proposal for a directive Article 1 – paragraph 1 – point 15 – point b Directive 2013/36/EU Article 92 – paragraph 2 – introductory phrase Competent authorities shall ensure that, when establishing and applying the total remuneration policies, inclusive of salaries and discretionary pension benefits, for categories of staff whose professional activities have a material impact on their risk profile, including senior management, risk takers, staff engaged in control functions and any employee receiving total remuneration that takes them into the same remuneration bracket as senior management
Amendment 208 #
Proposal for a directive Article 1 – paragraph 1 – point 15 – point b a (new) Directive 2013/36/EU Article 92 – paragraph 2 – point a a (new) (ba) In paragraph 2, the following point (aa) is inserted: (aa) the remuneration policy is gender neutral: female and male workers will be equally remunerated for equal work or work of equal value.
Amendment 209 #
Proposal for a directive Article 1 – paragraph 1 – point 15 a – point b a (new) Directive 2013/36/EU Article 92 – paragraph 2 – point c (ba) In paragraph 2, point c is amended as follows: (c) the institution' s management body in its supervisory function freely design adopts and periodically reviews the general principles
Amendment 210 #
Proposal for a directive Article 1 – paragraph 1 – point 15 – point b a (new) Directive 2013/36/EU Article 92 – paragraph 2 – point c a (new) (ba) In paragraph 2, the following point ca is inserted: (ca) Competent authorities shall ensure that the maximum pay ratio between the highest total remuneration in the institution and the average annual remuneration of all the employees with the exception of board does not exceed 20 times.
Amendment 211 #
Proposal for a directive Article 1 – paragraph 1 – point 15 – point b a (new) Directive 2013/36/EU Article 92 – paragraph 2 – point c a (new) (ba) in paragraph 2, the following point ca is inserted: (ca) the highest remuneration in the institution does not exceed 30 times the average remuneration of the lowest paid 5 percent of employees
Amendment 212 #
Proposal for a directive Article 1 – paragraph 1 – point 15 – point b b (new) Directive 2013/36/EU Article 92 – paragraph 2 – point c b (new) (bb) in paragraph 2, the following point cb is inserted: (cb) a pay ratio of 1 to 20 between the average total remuneration and the highest total remuneration within the same institution is respected.
Amendment 213 #
Proposal for a directive Article 1 – paragraph 1 – point 16 – introductory part Article 94 (16) Article 94 is
Amendment 214 #
Proposal for a directive Article 1 – paragraph 1 – point 16 – point -a (new) Directive 2013/36/EU Article 94 – paragraph 1 – point g – point iii a (new) Amendment 215 #
Proposal for a directive Article 1 – paragraph 1 – point 16 – point a a (new) Directive 2013/36/EU Article 94 – paragraph 1 – point m (aa) in paragraph 1, point m is amended as follows: "(m) a substantial portion, and in any event at least 40 %, of the variable remuneration component is deferred over a period which is not less than
Amendment 216 #
Proposal for a directive Article 1 – paragraph 1 – point 16 – point b Directive 2013/36/EU Article 94 – paragraph 3 – introductory part By way of derogation from paragraph 1, the principles set out in points (l), (m) and
Amendment 217 #
Proposal for a directive Article 1 – paragraph 1 – point 16 – point b Directive 2013/36/EU Article 94 – paragraph 3 – introductory part By way of derogation from paragraph 1, the principles set out
Amendment 218 #
Proposal for a directive Article 1 – paragraph 1 – point 16 – point b Directive 2013/36/EU Article 94 – paragraph 3 – introductory part By way of derogation from paragraph 1, the principles set out in points (g), (l), (m) and in the second subparagraph of point (o) shall, at a minimum, not apply to:
Amendment 219 #
Proposal for a directive Article 1 – paragraph 1 – point 16 – point b Directive 2013/36/EU Article 94 – paragraph 3 – point a Amendment 220 #
Proposal for a directive Article 1 – paragraph 1 – point 16 – point b Directive 2013/36/EU Article 94 – paragraph 3 – point a (a) an institution on an individual basis, which may also be subject to prudential consolidation or part of a banking group, the value of the assets of which is on average equal to or less than EUR
Amendment 221 #
Proposal for a directive Article 1 – paragraph 1 – point 16 – point b Directive 2013/36/EU Article 94 – paragraph 3 – point a (a) an institution the value of the assets of which
Amendment 222 #
Proposal for a directive Article 1 – paragraph 1 – point 16 – point b Directive 2013/36/EU Article 94 – paragraph 3 – point a (a) an institution the value of the assets of which is on average equal to or less than EUR 15 billion over the four-year period immediately preceding the current financial year;
Amendment 223 #
Proposal for a directive Article 1 – paragraph 1 – point 16 – point b Directive 2013/36/EU Article 94 – paragraph 3 – point a (a) an institution
Amendment 224 #
Proposal for a directive Article 1 – paragraph 1 – point 16 – point b Directive 2013/36/EU Article 94 – paragraph 3 – point a a) an institution the value of the assets of which is on average equal to or less than EUR 15 billion over the four-year period immediately preceding the current financial year;
Amendment 225 #
Proposal for a directive Article 1 – paragraph 1 – point 16 – point b Directive 2013/36/EU Article 94 – paragraph 3 – point a a (new) (aa) an institution which is part of a banking group and the value of whose assets was on average equal to or less than EUR 15 billion over the four-year period immediately preceding the current financial year;
Amendment 226 #
Proposal for a directive Article 1 – paragraph 1 – point 16 – point b Directive 2013/36/EU Article 94 – paragraph 3 – point b Amendment 227 #
Proposal for a directive Article 1 – paragraph 1 – point 16 – point b Directive 2013/36/EU Article 94 – paragraph 3 – point b b) a staff member whose annual variable remuneration does not exceed EUR 50 000 and does not represent more than one fourth of the staff member's annual total remuneration. None of the provisions of Article 94 shall apply to an institution that is a subsidiary of a large banking group which applies all the provisions of Article 94 on a consolidated basis and whose quarterly asset value averages EUR 15 billion or less in the current financial year.
Amendment 228 #
Proposal for a directive Article 1 – paragraph 1 – point 16 – point b Directive 2013/36/EU Article 94 – paragraph 3 – point b (b) a staff member whose annual variable remuneration
Amendment 229 #
Proposal for a directive Article 1 – paragraph 1 – point 16 – point b Directive 2013/36/EU Article 94 – paragraph 3 – point b (b) a staff member whose annual variable remuneration does not exceed EUR
Amendment 230 #
Proposal for a directive Article 1 – paragraph 1 – point 16 – point b Directive 2013/36/EU Article 94 – paragraph 3 – subparagraph 2 Amendment 231 #
Proposal for a directive Article 1 – paragraph 1 – point 16 – point b Directive 2013/36/EU Article 94 – paragraph 3– subparagraph 2 By way of derogation from point (a), a
Amendment 232 #
Proposal for a directive Article 1 – paragraph 1 – point 16 – point b Directive 2013/36/EU Article 94 – paragraph 3 – subparagraph 2 By way of derogation from point (a), a competent authority may decide that institutions on an individual basis, which may also be subject to prudential consolidation or part of a banking group, whose total asset value is below the threshold referred to in point (a) are not subject to the derogation because of the nature and scope of their activities, their internal organisation or, if applicable, the characteristics of the group to which they belong.
Amendment 233 #
Proposal for a directive Article 1 – paragraph 1 – point 16 – point b Directive 2013/36/EU Article 94 – paragraph 3 – subparagraph 3 Amendment 234 #
Proposal for a directive Article 1 – paragraph 1 – point 16 – point b Directive 2013/36/EU Article 94 – paragraph 3 – subparagraph 3 By way of derogation from point (b), a
Amendment 235 #
Proposal for a directive Article 1 – paragraph 1 – point 16 – point b Directive 2013/36/EU Article 94 – paragraph 3 a (new) 3 a. Member States may lower the thresholds set out in paragraph three.
Amendment 236 #
Proposal for a directive Article 1 – paragraph 1 – point 16 a (new) Directive 2013/36/EU Article 95 Amendment 237 #
Proposal for a directive Article 1 – paragraph 1 – point 17 Directive 2013/36/EU Article 97 – paragraph 1 – point b Amendment 238 #
Proposal for a directive Article 1 – paragraph 1 – point 17 Directive 2013/36/EU Article 97 – paragraph 4 a (new) (17)
Amendment 239 #
Proposal for a directive Article 1 – paragraph 1 – point 17 a (new) Directive 2013/36/EU Article 97 – paragraph 2 (17a) In Article 97, paragraph 2 is replaced by the following: "2. The scope of the review and evaluation referred to in paragraph 1 shall cover all requirements, of this Directive, including Article 104b, and of Regulation (EU)
Amendment 240 #
Proposal for a directive Article 1 – paragraph 1 – point 17 b (new) Directive 2013/36/EU Article 97 – paragraph 4 (17b) In Article 97, paragraph 4 is replaced by the following: "4. Competent authorities shall establish the frequency and intensity of the review and evaluation referred to in paragraph 1 having regard to the size, systemic importance, nature, scale and complexity of the activities of the institution concerned and taking into account the principle of proportionality. The review and evaluation shall be updated
Amendment 241 #
Proposal for a directive Article 1 – paragraph 1 – point 17 c (new) Directive 2013/36/EU Article 97 a (new) (17c) The following new Article 97a shall be inserted: 'Article 97a Derogation for small and non-complex institutions In derogation to Article 97, competent authorities may decide on the basis of a supervisory assessment with respect to the relevant institution to not apply Articles 97 and 98 if the institution is small and non-complex as defined in Article 430a of Regulation (EU) No 575/2013. The supervisory assessment shall be reviewed every three years and when the competent authority identifies the emergence of new risks.'
Amendment 242 #
Proposal for a directive Article 1 – paragraph 1 – point 18 – point a Directive 2013/36/EU Article 98 – paragraph 1 – point j Amendment 243 #
Proposal for a directive Article 1 – paragraph 1 – point 18 – point a a (new) Directive 2013/36/EU Article 98 – paragraph 1 – point j a (new) (aa) in paragraph 1, point ja is added; (ja) the assessment of the integration of environmental, social and governance (ESG) factors and risks in the institution’s risk-management system;
Amendment 244 #
Proposal for a directive Article 1 – paragraph 1 – point 18 – point a a (new) Directive 2013/36/EU Article 98 – paragraph 1 – point j a (new) Amendment 245 #
Proposal for a directive Article 1 – paragraph 1 – point 18 – point a a (new) Directive 2013/36/EU Article 98 – paragraph 3 a (new) (aa) The following paragraph 3a is inserted: 3a. Competent authorities shall monitor each credit institution’s exposures to shadow banking entities, as defined in point 144 a (new) of Article 4 (1) of Regulation (EU) No 575/2013, taking into account the information provided under Article 449a (new) of Regulation (EU) No 575/2013, and, if necessary, take appropriate measures, including setting out lower limits on the credit institution’s individual exposure to a shadow banking entity as referred to in Article 395 (1) of Regulation (EU) No 575/2013, or mitigation measures to address potential risks stemming from situations where interconnectedness between shadow banking entities and the institution cannot be determined.
Amendment 246 #
Proposal for a directive Article 1 – paragraph 1 – point 18 – point a b (new) Directive 2013/36/EU Article 98 – paragraph 3 b (new) (ab) The following paragraph 3b is inserted: 3b. Competent authorities shall monitor the risks associated with the use of leverage created synthetically by credit institutions, taking into account the information provided under 443b (new) of Regulation (EU) No575/2013, and, if necessary, take appropriate measures, to limit it. EBA shall develop draft regulatory technical standards to specify the monitoring tools to assess the risks associated with the use of leverage created synthetically as well as the set of measures to limit it when appropriate, as referred to in the first subparagraph. EBA shall submit those draft regulatory technical standards to the Commission by 1 February 2020. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the second subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
Amendment 247 #
Proposal for a directive Article 1 – paragraph 1 – point 18 – point a c (new) Directive 2013/36/EU Article 98 – paragraph 3 c (new) (ac) The following paragraph 3c is inserted: 3c. By 1 December 2021, competent authorities shall conduct constant screening and monitoring of complex structured finance transactions, as referred to in Article 449b (new) of Regulation (EU) No 575/2013, with the aim of identifying transactions structured to potentially produce significant tax benefits. They shall notify to the Commission any transaction so identified as posing a risk of significant tax benefits.
Amendment 248 #
Proposal for a directive Article 1 – paragraph 1 – point 18 – point b Directive 2013/36/EU Article 98 – paragraph 5 Amendment 249 #
Proposal for a directive Article 1 – paragraph 1 – point 18 – point b Directive 2013/36/EU Article 98 – paragraph 5 5. The review and evaluation performed by competent authorities shall include the exposure of institutions to the interest rate risk arising from non-trading book activities. Supervisory measures shall be required at least in the case of institutions whose economic value of equity referred to in Article 84(1) declines by more than 15 % of their Tier 1 capital as a result of a sudden and unexpected change in interest rates as set out in any of six supervisory shock scenarios applied to interest rates
Amendment 250 #
Proposal for a directive Article 1 – paragraph 1 – point 18 – point b Directive 2013/36/EU Article 98 – paragraph 5 5. The review and evaluation performed by competent authorities shall include the exposure of institutions to the interest rate risk arising from non-trading book activities.
Amendment 251 #
Proposal for a directive Article 1 – paragraph 1 – point 18 – point b Directive 2013/36/EU Article 98 – paragraph 5 5. The review and evaluation performed by competent authorities shall include the exposure of institutions to the interest rate risk arising from non-trading
Amendment 252 #
Proposal for a directive Article 1 – paragraph 1 – point 18 – point b Directive 2013/36/EU Article 98 – paragraph 5 5. The review and evaluation performed by competent authorities shall include the exposure of institutions to the interest rate risk arising from non-trading book activities. Supervisory measures shall be required at least in the case of institutions whose economic value of equity referred to in Article 84(1) declines by more than
Amendment 253 #
Proposal for a directive Article 1 – paragraph 1 – point 18 – point b Directive 2013/36/EU Article 98 – paragraph 5 5. The review and evaluation performed by competent authorities shall include the exposure of institutions to the interest rate risk arising from non-trading book activities. Supervisory measures
Amendment 254 #
Proposal for a directive Article 1 – paragraph 1 – point 18 – point b Directive 2013/36/EU Article 98 – paragraph 5 5. The review and evaluation performed by competent authorities shall include the exposure of institutions to the interest rate risk arising from non-trading
Amendment 255 #
Proposal for a directive Article 1 – paragraph 1 – point 18 – point c Directive 2013/36/EU Article 98 – paragraph 5a Amendment 256 #
Proposal for a directive Article 1 – paragraph 1 – point 18 – point c Directive 2013/36/EU Article 98 – paragraph 5a – introductory part EBA shall develop draft regulatory technical standards, in line with international standards, to specify for the purpose of paragraph 5:
Amendment 257 #
Proposal for a directive Article 1 – paragraph 1 – point 18 – point c Directive 2013/36/EU Article 98 – paragraph 5a – point a (a) six supervisory shock scenarios, including two parallel scenarios, to be applied to interest rates for every
Amendment 258 #
Proposal for a directive Article 1 – paragraph 1 – point 18 – point c Directive 2013/36/EU Article 98 – paragraph 5a – point b (b) common modelling and parametric assumptions, including behavioural assumptions, that institutions shall reflect in their calculation of the economic value of equity under paragraph 5;
Amendment 259 #
Proposal for a directive Article 1 – paragraph 1 – point 18 – point c Directive 2013/36/EU Article 98 – paragraph 5a – point c Amendment 260 #
Proposal for a directive Article 1 – paragraph 1 – point 18 – point c Directive 2013/36/EU Article 98 – paragraph 5a – point c (c)
Amendment 261 #
Proposal for a directive Article 1 – paragraph 1 – point 18 – point c a (new) Directive 2013/36/EU Article 98 – paragraphs 7 a (new) and 7 b (new) (ca) the following paragraphs 7a and 7b are inserted: 7 a. For the purpose of point (ja) and for Article 448a of Regulation (EU) No 575/2013, EBA shall by 1 June 2020 issue guidelines in accordance with Article 16 of Regulation (EU) No 1093/2010 to specify further details of the supervisory review and evaluation process regarding the integration of ESG factors and risks including risks related to the depreciation of assets due to regulatory change. The evaluation process shall integrate, as appropriate, specific qualitative and quantitative criteria and metrics for assessing whether the overall business strategy and investment policy of the institution is aligned with the Paris targets and EU related ESG goals. 7b. Taking into account the experience acquired in the application of the guidelines referred to in paragraph 7a, EBA shall develop draft regulatory technical standards for developing a methodological standard for identifying and measuring sustainability risks and factors within the capital adequacy framework relying on clearly demonstrated risks. EBA shall submit those draft regulatory technical standards to the Commission by 1 July 2022. Power is conferred on the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
Amendment 262 #
Proposal for a directive Article 1 – paragraph 1 – point 18 – point c a (new) Directive 2013/36/EU Article 98 – paragraph 7 a (new) (ca) The following paragraph 7a is inserted: "7 a. With a view to the proportional application of the requirements laid down in this Directive and Regulation (EU) No 575/2013, when conducting the supervisory review and evaluation process the competent authorities shall outline in detail how they have taken account of the size and scope of the business operations of an institution as well as of the complexity of the risks stemming from the institution's business model."
Amendment 263 #
Proposal for a directive Article 1 – paragraph 1 – point 18 – point c a (new) Directive 2013/36/EU Article 98 – paragraph 7 c (new) (cb) The following paragraph 7c is inserted: 7 c. For the purpose of paragraph 3 c (new), EBA shall by 1 June 2021 issue guidelines in accordance with Article 16 of Regulation (EU) No 1093/2010 to specify qualitative and quantitative criteria and metrics for identifying transactions structured to potentially produce significant tax benefits. Taking into account the experience acquired in the application of the guidelines referred to in subparagraph 1, EBA shall develop draft regulatory technical standards for developing a methodological standard for identifying transactions structured to potentially produce significant tax benefits. EBA shall submit those draft regulatory technical standards to the Commission by 1 July 2022. Power is conferred on the Commission to adopt the regulatory technical standards referred to subparagraph 2 in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
Amendment 264 #
Proposal for a directive Article 1 – paragraph 1 – point 19 Directive 2013/36/EU Article 99 – paragraph 2 – point b Amendment 265 #
Proposal for a directive Article 1 – paragraph 1 – point 19 a (new) Directive 2013/36/EU Article 102 – paragraph 1 – point a (19a) In Article 102, point a is replaced by the following: "(a) the institution does not meet the requirements of this Directive, including Article 104(b), or of Regulation (EU) No 575/2013;
Amendment 266 #
Proposal for a directive Article 1 – paragraph 1 – point 19 b (new) Directive 2013/36/EU Article 102 – paragraph 1 – point b (19b) In Article 102, point b is replaced by the following: "(b) the competent authorities have evidence that the institution is likely to breach the requirements of this Directive, including Article 104(b), or of Regulation (EU) No 575/2013 within the following 12 months.
Amendment 267 #
Proposal for a directive Article 1 – paragraph 1 – point 20 Directive 2013/36/EU Article 103 Amendment 268 #
Proposal for a directive Article 1 – paragraph 1 – point 20 Directive 2013/36/EU Article 103 Amendment 269 #
Proposal for a directive Article 1 – paragraph 1 – point 20 Directive 2013/36/EU Article 103 Amendment 270 #
Proposal for a directive Article 1 – paragraph 1 – point 20 Directive 2013/36/EU Article 103 Amendment 271 #
Proposal for a directive Article 1 – paragraph 1 – point 21 – point a Directive 2013/36/EU Article 104 – paragraph 1 – introductory part 1. For the purposes of Article 92(2)(b), Article 97, Article 98(4), Article 101(4) and Article 102 and the application of Regulation (EU) No 575/2013, competent authorities shall have at least the following powers:
Amendment 272 #
Proposal for a directive Article 1 – paragraph 1 – point 21 – point a Directive 2013/36/EU Article 104 – paragraph 1 – point a (a) to require institutions to have additional own funds in excess of the requirements set out in Regulation (EU) No 575/2013,
Amendment 273 #
Proposal for a directive Article 1 – paragraph 1 – point 21 – point a Directive 2013/36/EU Article 104 – paragraph 1 – point c (c) to require institutions to present a plan to restore compliance with supervisory requirements, pursuant to this Directive and to Regulation (EU) No 575/2013 and set a deadline which shall not exceed one year for its implementation, including improvements to that plan regarding scope and deadline;
Amendment 274 #
Proposal for a directive Article 1 – paragraph 1 – point 21 – point a Directive 2013/36/EU Article 104 – paragraph 1 – point d (d) to require institutions to apply a specific provisioning policy or treatment of assets or off-balance sheet items in terms of own funds requirements or, when the applicable accounting framework allows for flexibility in selecting policies or requires subjective estimations, and the specific implementation chosen by the institution is not adequate or sufficiently prudent from a supervisory point of view, to require institutions to apply specific provisions, deductions or filters for the calculation of own funds only;
Amendment 275 #
Proposal for a directive Article 1 – paragraph 1 – point 21 – point a Directive 2013/36/EU Article 104 – paragraph 1 – point g (g) to require institutions to limit variable remuneration as a percentage of net revenues where it is inconsistent with the maintenance of a sound capital base; and, to require credit institutions and investment firms to comply with the guidelines issued by EBA on gender neutral remuneration policies.
Amendment 276 #
Proposal for a directive Article 1 – paragraph 1 – point 21 – point a Directive 2013/36/EU Article 104 – paragraph 1 – point l (l) to require additional disclosures
Amendment 277 #
Proposal for a directive Article 1 – paragraph 1 – point 21 – point a Directive 2013/36/EU Article 104 – paragraph 1 – point l (l) to require additional disclosures
Amendment 278 #
Proposal for a directive Article 1 – paragraph 1 – point 21 – point a Directive 2013/36/EU Article 104 – paragraph 2 – introductory part For the purposes of paragraph 1(j), competent authorities
Amendment 279 #
Proposal for a directive Article 1 – paragraph 1 – point 21 – point a Directive 2013/36/EU Article 104 – paragraph 2 – point c (c) the additional information is required for the duration of the institution's supervisory examination programme in accordance with Article 99 or for the purpose of the supervisory review and evaluation process as referred to in Article 97.
Amendment 280 #
Proposal for a directive Article 1 – paragraph 1 – point 21 – point a Directive 2013/36/EU Article 104 – paragraph 2 – subparagraph 2 Amendment 281 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104a – paragraph 1 – introductory part Competent authorities shall impose the additional own funds requirement referred to in Article 104(1)(a) only in those circumstances where, on the basis of the reviews carried out in accordance with Articles 97 and 101, they ascertain any of the following situations for an individual institution:
Amendment 282 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104a – paragraph 1 – introductory part Competent authorities shall impose the additional own funds requirement referred to in Article 104(1)(a)
Amendment 283 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104a – paragraph 1 – introductory part Competent authorities shall impose the additional own funds requirement referred to in Article 104(1)(a)
Amendment 284 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104a – paragraph 1 – introductory part Competent authorities shall impose the additional own funds requirement referred to in Article 104(1)(a)
Amendment 285 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104a – paragraph 1 – point a a (new) (aa) the institution has reached a size and level of complexity such that its failure would lead to significant disruptions of the economy of the Member State or parts of it;
Amendment 286 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104a – paragraph 1 – point b (b) the institution does not meet the requirements set out in Articles 73 and 74 of this Directive or in Article 393 of Regulation (EU) No 575/2013 and the sole application of other administrative measures
Amendment 287 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104a – paragraph 1 – point b (b) the institution does not meet the requirements set out in Articles 73 and 74
Amendment 288 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104a – paragraph 1 – subparagraph 2 Amendment 289 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104a – paragraph 1 – subparagraph 2 Amendment 290 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104a – paragraph 1 – subparagraph 2 The competent authorities shall
Amendment 291 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104a – paragraph 2 – subparagraph 1 For the purposes of paragraph 1(a), risks or elements of risk shall
Amendment 292 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104a – paragraph 2 – subparagraph 1 For the purposes of paragraph 1(a), risks or elements of risk shall only be considered as not covered
Amendment 293 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104a – paragraph 2 – subparagraph 2 Amendment 294 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104 a – paragraph 2 – subparagraph 2 For the purposes of the first subparagraph,
Amendment 295 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104a – paragraph 2 – subparagraph 2 For the purposes of the first subparagraph, the capital considered adequate shall cover all material financial risks or elements of such risks that are not
Amendment 296 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104a – paragraph 2 – subparagraph 2 For the purposes of the first subparagraph, the capital considered adequate shall cover all material risks or elements of such risks that are not subject to a specific own funds requirement.
Amendment 297 #
Proposal for a directive Article 1 – paragraph 1 – point 22 For the purposes of the first subparagraph, the capital considered adequate shall cover all material risks of loss or elements of such risks of loss that are not subject to a specific own funds requirement.
Amendment 298 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104a – paragraph 2 – subparagraph 2 For the purposes of the first subparagraph, the capital considered adequate shall cover all material risks or elements of such risks that are not subject to a specific own funds requirement. This
Amendment 299 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104a – paragraph 2 – subparagraph 3 Amendment 300 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104a – paragraph 2 – subparagraph 3 Interest rate risk arising from non-trading positions shall
Amendment 301 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104a – paragraph 4 – introductory part The competent authority shall require institution
Amendment 302 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104a – paragraph 4 – point b a (new) (ba) Competent authorities may require institutions to meet the additional own funds requirements referred to in Article 104(1)(a) with CET 1 capital.
Amendment 303 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104a – paragraph 4 – subparagraph 2 Own funds used to meet the additional own funds requirement referred to in Article 104(1)(a) shall not be used towards meeting any of the own funds requirements set out in points (a), (b), (c) and (
Amendment 304 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104a – paragraph 4 – subparagraph 3 Amendment 305 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104a – paragraph 5 5. The competent authority shall
Amendment 306 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104a – paragraph 6 Amendment 307 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104a – paragraph 6 Amendment 308 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104a – paragraph 6 Amendment 309 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104a – paragraph 6 Amendment 310 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104b – paragraph 1 – introductory part 1. Pursuant to the strategies and processes referred to in Article 73 and after consulting the competent authority, institutions shall establish an adequate level of own funds that is sufficiently above the requirements set out in Parts Three, Four, Five and Seven of Regulation (EU) No 575/2013 and in this Directive, including the additional own funds requirements imposed by the competent authorities in accordance with Article 104(1)(a), in order t
Amendment 311 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104b – paragraph 1 – introductory part 1. Pursuant to the strategies and processes referred to in Article 73 and after consulting the competent authority, institutions shall establish an adequate level of own funds that the competent authority is satisfied by and is sufficiently above the requirements set out in Parts Three, Four, Five and Seven of Regulation (EU) No 575/2013 and in this Directive, including the additional own funds requirements imposed by the competent authorities in accordance with Article 104(1)(a),
Amendment 312 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104b – paragraph 1 – introductory part 1. Pursuant to the strategies and processes referred to in Article 73 and after consulting the competent authority, institutions shall establish an adequate
Amendment 313 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104b – paragraph 1 – point a (a)
Amendment 314 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104b – paragraph 1 – point b (b)
Amendment 315 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104b – paragraph 3 3. Competent authorities shall communicate to institutions the outcome of the review provided for in paragraph 2. Where appropriate, competent authorities may communicate to institutions any expectation for adjustments to the level of own funds established in accordance with paragraph 1 and on top of the combined buffers. Due to the nature of the guidance of additional own funds, this guidance shall remain confidential.
Amendment 316 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104b – paragraph 3 3. Competent authorities shall communicate to institutions the outcome of the review provided for in paragraph 2. Where appropriate, competent authorities may communicate to institutions any expectation for adjustments to the level of own funds established in accordance with paragraph 1. Such a communication shall include the date by which the competent authority requires the adjustment to be completed.
Amendment 317 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104b – paragraph 3 3. Competent authorities shall communicate to institutions the outcome of the review provided for in paragraph 2.
Amendment 318 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104b – paragraph 3 a (new) 3 a. Own funds used to meet the level of additional own funds under paragraph 1 of this Article shall not be used towards meeting any of the own funds requirements set out in points (a), (b), (c) and (d) of Article 92(1) of Regulation (EU) No575/2013, the requirement of Article 104a or the combined buffer requirement defined in Article 128(6) of this Directive.
Amendment 319 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104b – paragraph 4 Amendment 320 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Amendment 321 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104b – paragraph 4 Amendment 322 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104b – paragraph 5 5. An institution that fails to meet the expectations set out in paragraph 3 shall
Amendment 323 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104b – paragraph 5 5.
Amendment 324 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104b – paragraph 5 5. An institution that fails to meet the expectations set out in paragraph 3
Amendment 325 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104b – paragraph 5 a (new) 5 a. The EBA shall review and report to the Commission on the application of this Article, including paragraph 1 (a) and (b) within the three years following the entry into force of this Directive. On the basis of this report the Commission shall, if appropriate, submit a legislative proposal to the European Parliament and the Council.
Amendment 326 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104b – paragraph 5 a (new) 5 a. The guidance on additional own funds under Article 104b shall not be subject to mandatory disclosure pursuant to Article 17-1 of the Regulation (EU) N°596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse.
Amendment 327 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104c – paragraph 1 1. Competent authorities shall
Amendment 328 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104c – paragraph 1 1. Competent authorities shall consult resolution authorities prior to determining any additional own funds requirement referred to in Article 104(1)(a) and
Amendment 329 #
Proposal for a directive Article 1 – paragraph 1 – point 22 Directive 2013/36/EU Article 104c – paragraph 2 2. Competent authorities shall inform the relevant resolution authorities about the additional own funds requirement imposed on institutions pursuant to Article 104(1)(a) and
Amendment 330 #
Proposal for a directive Article 1 – paragraph 1 – point 23 Directive 2013/36/EU Article 105 – point d (23)
Amendment 331 #
Proposal for a directive Article 1 – paragraph 1 – point 25 Directive 2013/36/EU Article 109 – paragraph 3 3. Obligations resulting from Section II of this Chapter concerning subsidiary undertakings, not themselves subject to this Directive, shall not apply if the EU parent institution can demonstrate to the competent authorities that the application of Section II is unlawful under the laws of the third country where the subsidiary is established; the subsidiary undertaking is an asset management company in the meaning of Article 4 (1) (19) of Regulation (EU) No 575/2013.
Amendment 332 #
Proposal for a directive Article 1 – paragraph 1 – point 25 Directive 2013/36/EU Article 109 – paragraph 3 a (new) 3 a. The remuneration requirements laid down in Articles 92, 94 and 95 shall not apply on a consolidated basis to either of the following: (a) Subsidiary undertakings established in the Union where those are subject to specific remuneration requirements in accordance with instruments of Union law; (b) Subsidiary undertakings established in a third country where these would be subject to specific remuneration requirements in accordance with applicable local regulations. (c) Subsidiary undertakings developing technology-enabled innovation in financial services that could result in new business models, applications, processes or products with an associated material effect on the provision of financial services.
Amendment 333 #
Proposal for a directive Article 1 – paragraph 1 – point 25 Directive 2013/36/EU Article 109 – paragraph 3 a (new) 3 a. The remuneration requirements laid down in Articles 92, 94 and 95 shall not apply on a consolidated basis to either of the following: (a) subsidiary undertakings established in the Union where those are subject to specific remuneration requirements in accordance with other instruments of Union law; (b) subsidiary undertakings established in a third country where those would be subject to specific remuneration requirements in accordance with other instruments of Union law if they were established in the Union.
Amendment 334 #
Proposal for a directive Article 1 – paragraph 1 – point 25 a (new) Directive 2013/63/EU Article 111 – paragraph 6 a (new) (25 a) In Article 111, the following paragraph 6a is added: ' Where, without prejudice to paragraphs,1, 2, 3, 4 and 5, two or more institutions in the Union which are part of the same third country group, have an intermediate EU parent undertaking that is established as a financial holding company or mixed financial holding company, supervision on a consolidated basis shall be exercised by the competent authority of the credit institution as defined in point (a) under point (2) of Article 4(1) of Regulation (EU) No 575/2016 with the largest balance sheet total. '
Amendment 335 #
Proposal for a directive Article 1 – paragraph 1 – point 26 Directive 2013/36/EU Article 113 – paragraph 1 – point c Amendment 336 #
Proposal for a directive Article 1 – paragraph 1 – point 26 Directive 2013/36/EU Article 113 – paragraph 1 a (new) 1 a. The consolidating supervisor shall inform the competent authorities responsible for the supervision of subsidiaries of an EU parent institution, an EU parent financial holding company or an EU parent mixed financial holding company in a Member State of on any expectation for adjustments to the consolidated level of own funds in accordance with Article 104b(3).
Amendment 337 #
Proposal for a directive Article 1 – paragraph 1 – point 29 a (new) (29 a) In Article 125, the following paragraph 1a is added: ' 1a. Where pursuant to Article 111 the consolidating supervisor of a group with a parent mixed financial holding company is different from the coordinator determined in accordance with Article 10 of Directive 2002/87/EC, the two authorities shall cooperate for the purpose of the application of this Directive and Regulation (EU) 575/2013 on a consolidated basis. In order to facilitate and establish effective cooperation the consolidating supervisor and the coordinator shall have written coordination and cooperation arrangements in place. '
Amendment 338 #
Proposal for a directive Article 1 – paragraph 1 – point 29 a (new) Directive 2013/36/EU Article 129 – paragraph 1 (29 a) Article 129, paragraph 1 is replaced by the following: 1. Member States shall require institutions to maintain in addition to the Common Equity Tier 1 capital maintained to meet the own funds requirement imposed by Article 92 of Regulation (EU) No 575/2013, a capital conservation buffer
Amendment 339 #
Proposal for a directive Article 1 – paragraph 1 – point 29 a (new) Directive 2013/36/EU Article 129 – paragraph 1 (29 a) In Article 129, paragraph 1 is replaced by the following “1. Member States shall require institutions to maintain in addition to the Common Equity Tier 1 capital maintained to meet the own funds requirement imposed by Article 92 of Regulation (EU) No 575/2013 and Articles 104a and 104b of this Directive, a capital conservation buffer of Common Equity Tier 1 capital equal to 2,5 % of their total risk exposure amount calculated in accordance with Article 92(3) of that Regulation on an individual and consolidated basis, as applicable in accordance with Part One, Title II of that Regulation.
Amendment 340 #
Proposal for a directive Article 1 – paragraph 1 – point 29 b (new) Directive 2013/36/EU Article 129 – paragraph 2 – subparagraph 3 (29 b) In Article 129(2), subparagraph 3 is replaced by the following "Member States which decide to apply such an exemption shall notify the ESRB. The ESRB shall forward the notifications to the Commission
Amendment 341 #
Proposal for a directive Article 1 – paragraph 1 – point 29 c (new) Directive 2013/36/EU Article 129 – paragraph 5 Amendment 342 #
Proposal for a directive Article 1 – paragraph 1 – point 29 d (new) Directive 2013/36/EU Article 129 – paragraph 6 (29 d) In Article 129, paragraph 6 is replaced by the following: "6. Where an institution fails to meet
Amendment 343 #
Proposal for a directive Article 1 – paragraph 1 – point 29 e (new) (29 e) In Article 130(2), subparagraph 3 is replaced by the following: "Member States which decide to apply such an exemption shall notify the ESRB. The ESRB shall forward the notifications to the Commission
Amendment 344 #
Proposal for a directive Article 1 – paragraph 1 – point 29 f (new) Directive 2013/36/EU Article 130 – paragraph 5 (29 f) In Article 130, paragraph 5 is replaced by the following: "5. Institutions shall meet the requirement imposed by paragraph 1 with Common Equity Tier 1 capital, which shall be additional to any Common Equity Tier 1 capital maintained to meet the own funds requirement imposed by Article 92 of Regulation (EU) No 575/2013, the requirement to maintain a capital conservation buffer under Article 129 of this Directive and any requirement imposed under Article 104, 104a and 104b of this Directive.
Amendment 345 #
Proposal for a directive Article 1 – paragraph 1 – point 29 g (new) Directive 2013/36/EU Article 130 – paragraph 6 (29 g) In Article 130, paragraph 6 is replaced by the following: "6. Where an institution fails to meet
Amendment 346 #
Proposal for a directive Article 1 – paragraph 1 – point 30 a (new) Directive 2013/36/EU Article 131 – paragraphs 2 and 3 (30 a) In Article 131, paragraphs 2 and 3 are replaced by the following: "2. The identification methodology for
Amendment 347 #
Proposal for a directive Article 1 – paragraph 1 – point 30 a (new) Directive 2013/36/EU Article 131 – paragraph 2 – point e (
Amendment 348 #
Proposal for a directive Article 1 – paragraph 1 – point 30 b (new) Directive 2013/36/EU Article 131 – paragraph 3 – point c (
Amendment 349 #
Proposal for a directive Article 1 – paragraph 1 – point 30 a (new) Directive 2013/36/EU Article 131 – paragraph 3 – subparagraph 2 Amendment 350 #
Proposal for a directive Article 1 – paragraph 1 – point 30 c (new) Directive 2013/36/EU Article 131 – paragraph 3 – subparagraph 2 (30 c) In Article 131, subparagraph 2 of paragraph 3 is replaced by the following: ‘EBA, after consulting the ESRB, shall publish updated guidelines by 1 January 20
Amendment 351 #
Proposal for a directive Article 1 – paragraph 1 – point 30 a (new) Directive 2013/63/EU Article 131 – paragraph 3 a (new) (30 a) In Article 131, the following paragraph 3a is inserted: ' 3a. Where, without prejudice to paragraphs 1, 2 and 3, the competent authority or the designated authority, in the exercise of sound supervisory judgement, reclassifies an O-SII as non- systemic, such reclassification shall take effect as from the second financial year after the date on which this decision is taken. '
Amendment 352 #
Proposal for a directive Article 1 – paragraph 1 – point 30 a (new) Directive 2013/36/EU Article 131 – paragraph 5 (30 a) In Article 131, paragraph 5 is replaced by the following: ‘5. The competent authority or designated authority may require each O- SII, on a consolidated or sub-consolidated
Amendment 353 #
Proposal for a directive Article 1 – paragraph 1 – point 30 a (new) Directive 2013/36/EU Article 131 – paragraph 5 (30 a) In Article 131, paragraph 5 is replaced by the following: "5. The competent authority or designated authority may require each O- SII, on a consolidated or sub
Amendment 354 #
Proposal for a directive Article 1 – paragraph 1 – point 30 a (new) Directive 2013/36/EU Article 131 – paragraph 5 (30 a) In Article 131, paragraph 5 is replaced by the following: "5. The competent authority or designated authority may require each O- SII, on a consolidated or sub-consolidated or individual basis, as applicable, to maintain an O-SII buffer of up to
Amendment 355 #
Proposal for a directive Article 1 – paragraph 1 – point 30 a (new) Directive 2013/36/EU Article 131 – paragraph 5 (30 a) In Article 131, paragraph 5 is replaced by the following: "5. The competent authority or designated authority may require each O- SII, on a consolidated or sub-consolidated or individual basis, as applicable, to maintain an O-SII buffer of
Amendment 356 #
Proposal for a directive Article 1 – paragraph 1 – point 30 b (new) Directive 2013/36/EU Article 131 – paragraph 7 – introductory part (30 b) In Article 131(7), introductory part is replaced by the following: "7. Before setting or resetting an O-SII buffer, the competent authority or the designated authority shall notify the ESRB one month before the publication of the decision referred to in paragraph 5. The ESRB shall forward the notifications to the Commission, the
Amendment 357 #
Proposal for a directive Article 1 – paragraph 1 – point 30 c (new) Directive 2013/36/EU Article 131 – paragraph 8 (30 c) In Article 131, paragraph 8 is replaced by the following: "8. Without prejudice to Article 133 and paragraph 5 of this Article, where an O-SII is a subsidiary of either a G-SII or an O- SII which is an EU parent institution and subject to an O-SII buffer on a consolidated basis, the buffer that applies at individual or sub-consolidated level for
Amendment 358 #
Proposal for a directive Article 1 – paragraph 1 – point 30 b (new) Directive 2013/36/EU Article 131 – paragraph 9 (30 b) In Article 131, paragraph 9 is replaced by the following: "9. There shall be at least five subcategories of G-SIIs. The lowest boundary and the boundaries between each subcategory shall be determined by the scores under the identification methodology. The cut-off scores between adjacent sub-categories shall be defined clearly and shall adhere to the principle that there is a constant linear increase of systemic significance, between each sub- category resulting in a linear increase in the requirement of additional Common Equity Tier 1 capital, with the exception of the
Amendment 359 #
Proposal for a directive Article 1 – paragraph 1 – point 30 b (new) Directive 2013/36/EU Article 131 – paragraph 11 (30 b) In Article 131, paragraph 11 is replaced by the following: ' 11. Where the competent authority or the designated authority takes a decision in accordance with paragraphs 3(a) or 10(b), it shall notify EBA accordingly, providing reasons. '
Amendment 360 #
Proposal for a directive Article 1 – paragraph 1 – point 30 d (new) Directive 2013/36/EU Article 131 – paragraph 12 (30 d) In Article 131, paragraph 12 is replaced by the following: "12. The competent authority or the designated authority shall notify the names of the G-SIIs and O-SIIs and the respective sub-category to which each G-SII is allocated, to the
Amendment 361 #
Proposal for a directive Article 1 – paragraph 1 – point 30 e (new) Directive 2013/36/EU Article 131 – paragraph 14 Amendment 362 #
Proposal for a directive Article 1 – paragraph 1 – point 30 b (new) (30 b) In Article 133, paragraph 1 is replaced by the following: "1. Each Member State may introduce a systemic risk buffer of Common Equity Tier 1 capital for
Amendment 363 #
Proposal for a directive Article 1 – paragraph 1 – point 30 c (new) Directive 2013/36/EU Article 133 – paragraph 1 (30 c) In Article 133, paragraph 1 is replaced by the following: ' 1. Each Member State may introduce a systemic risk buffer of Common Equity Tier 1 capital for the financial sector or one or more subset
Amendment 364 #
Proposal for a directive Article 1 – paragraph 1 – point 30 f (new) Directive 2013/36/EU Article 133 – paragraph 1 Amendment 365 #
Proposal for a directive Article 1 – paragraph 1 – point 30 g (new) Directive 2013/36/EU Article 133 – paragraph 1 a (new) (30 g) In Article 133, the following paragraph 1a is inserted: '1a. The cumulative systemic risk buffer is the sum of the systemic risk buffer applied on all exposures, calculated on the basis of the total risk exposure amount, and one or several systemic risk buffers applied on a subset of exposures, calculated on the basis of the relevant risk exposure amount, according to paragraph 8 of this Article.'
Amendment 366 #
Proposal for a directive Article 1 – paragraph 1 – point 30 c (new) Directive 2013/36/EU Article 133 – paragraph 3 (30 c) In Article 133, paragraph 3 is replaced by the following: "3. For the purpose of paragraph 1 of this Article, institutions may be required to maintain, in addition to the Common Equity Tier 1 capital maintained to meet the own funds requirements imposed by Article 92 of Regulation (EU) No 575/2013, a systemic risk buffer of
Amendment 367 #
Proposal for a directive Article 1 – paragraph 1 – point 30 h (new) Directive 2013/36/EU Article 133 – paragraph 3 Amendment 368 #
Proposal for a directive Article 1 – paragraph 1 – point 30 i (new) Directive 2013/36/EU Article 133 – paragraph 4 (30 i) In Article 133, paragraph 4 is replaced by the following: "4. Institutions shall not use Common Equity Tier 1 capital that is maintained to meet the requirement under paragraph 3 to meet any requirements imposed under
Amendment 369 #
Proposal for a directive Article 1 – paragraph 1 – point 30 j (new) Directive 2013/36/EU Article 133 – paragraph 6 Amendment 370 #
Proposal for a directive Article 1 – paragraph 1 – point 30 d (new) Directive 2013/36/EU Article 133 – paragraph 9 (30 d) In Article 133, paragraph 9 is replaced by the following: "9. The systemic risk buffer shall apply to all institutions, or one or more subsets of those institutions, for which the authorities of the Member State concerned are competent in accordance with this Directive and shall be set in gradual or accelerated steps of adjustment
Amendment 371 #
Proposal for a directive Article 1 – paragraph 1 – point 30 k (new) Amendment 372 #
Proposal for a directive Article 1 – paragraph 1 – point 30 l (new) Directive 2013/36/EU Article 133 – paragraph 11 (30 l) In Article 133, paragraph 11 is replaced by the following: "11. Before setting or resetting a systemic risk buffer rate of up to 3 %, the competent authority or the designated authority shall notify the Commission, the ESRB, EBA and the competent and designated authorities of the Member States concerned one month before the publication of the decision referred to in paragraph 16. The ESRB shall forward the notifications to the Commission, EBA and the competent and designated authorities of the Member States concerned within a set timeframe. If the buffer applies to exposures located in third countries the competent authority or the designated authority shall also notify the ESRB and the ESRB shall forward the notification to the supervisory authorities of those third- countries. That notification shall describe in detail:
Amendment 373 #
Proposal for a directive Article 1 – paragraph 1 – point 30 d (new) Directive 2013/36/EU Article 133 – paragraph 11 – point e (
Amendment 374 #
Proposal for a directive Article 1 – paragraph 1 – point 30 m (new) Directive 2013/36/EU Article 133 – paragraph 12 (30 m) In Article 133, paragraph 12 is replaced by the following "12. Before setting or resetting a systemic risk buffer rate of above 3 %, the competent authority or the designated
Amendment 375 #
Proposal for a directive Article 1 – paragraph 1 – point 30 e (new) Directive 2013/36/EU Article 133 – paragraph 12 – point e (
Amendment 376 #
Proposal for a directive Article 1 – paragraph 1 – point 30 n (new) Directive 2013/36/EU Article 133 – paragraph 14 Amendment 377 #
Proposal for a directive Article 1 – paragraph 1 – point 30 o (new) Directive 2013/36/EU Article 133 – paragraph 16 (30 o) In Article 133, paragraph 16 is replaced by the following: "16. Each competent authority or designated authority shall announce the setting of the systemic risk buffer by publication on an appropriate website. The announcement shall include at least the following information: (a) the systemic risk buffer rate or rates; (b) the institutions to which the systemic risk buffer applies; (ba) the exposures on which the systemic risk buffer rate applies; (c) a justification for the systemic risk buffer; (d) the date from which the institutions must apply the setting or resetting of the systemic risk buffer; and (e) the names of the countries where exposures located in those countries are recognised in the systemic risk buffer. If the publication referred to in point (c) could jeopardise the stability of the financial system, the information under point (c) shall not be included in the announcement.
Amendment 378 #
Proposal for a directive Article 1 – paragraph 1 – point 30 p (new) Directive 2013/36/EU Article 133 – paragraph 17 (30 p) In Article 133, paragraph 17 is replaced by the following: "17. Where an institution fails to meet
Amendment 379 #
Proposal for a directive Article 1 – paragraph 1 – point 30 q (new) Directive 2013/36/EU Article 134 – paragraph 2 (30 q) In Article 134, paragraph 2 is replaced by the following: "2. If Member States recognise the systemic risk buffer rate for domestically authorised institutions they shall notify the ESRB. The ESRB shall forward the notifications to the Commission
Amendment 380 #
Proposal for a directive Article 1 – paragraph 1 – point 30 a (new) Directive 2013/36/EU Article 136 – paragraph 3 – introductory part Amendment 381 #
Proposal for a directive Article 1 – paragraph 1 – point 30 r (new) Directive 2013/36/EU Article 136 – paragraph 3 – introductory part Amendment 382 #
Proposal for a directive Article 1 – paragraph 1 – point 30 b (new) Directive 2013/36/EU Article 136 – paragraph 7 – introductory part (30 b) Article 136(7), introductory part is replaced by the following: "Each designated authority shall announce the quarterly
Amendment 383 #
Proposal for a directive Article 1 – paragraph 1 – point 30 s (new) Directive 2013/36/EU Article 136 – paragraph 7 (30 s) In Article 136, paragraph 7 is replaced by the following: "7. Each designated authority shall announce the quarterly
Amendment 384 #
Proposal for a directive Article 1 – paragraph 1 – point 30 c (new) Directive 2013/36/EU Article 136 – paragraph 7 – subparagraph 3 (30 c) In Article 136, paragraph 7, subparagraph 3 is amended as follows: "Designated authorities shall notify
Amendment 385 #
Proposal for a directive Article 1 – paragraph 1 – point 31 Directive 2013/36/EU Article 141 – paragraph 1 1. An institution that meets the combined buffer requirement shall not make a distribution in connection with Common Equity Tier 1 capital or make payments on Additional Tier 1 instruments to an extent that would decrease its Common Equity Tier 1 capital to a level where the combined buffer requirement is no longer met.
Amendment 386 #
Proposal for a directive Article 1 – paragraph 1 – point 31 Directive 2013/36/EU Article 141 – paragraph 1 1.
Amendment 387 #
Proposal for a directive Article 1 – paragraph 1 – point 31 Directive 2013/36/EU Article 141 – paragraph 2 – subparagraph 1 and subparagraph 2 (introductory part) 2.
Amendment 388 #
Proposal for a directive Article 1 – paragraph 1 – point 31 Directive 2013/36/EU Article 141 – paragraph 3 3. Where an institution fails to meet or exceed its combined buffer requirement, it shall not distribute more than the MDA calculated in accordance with paragraph 4 through any action referred to in points (a), (b) and (c) of the second subparagraph of paragraph 2.
Amendment 389 #
Proposal for a directive Article 1 – paragraph 1 – point 31 Directive 2013/36/EU Article 141 – paragraph 3 3.
Amendment 390 #
Proposal for a directive Article 1 – paragraph 1 – point 31 4.
Amendment 391 #
Proposal for a directive Article 1 – paragraph 1 – point 31 2013/36 Article 141 – paragraph 5 – first point a (a) interim profits not included in Common Equity Tier 1 capital pursuant to Article 26(2) of Regulation (EU) No 575/2013
Amendment 392 #
Proposal for a directive Article 1 – paragraph 1 – point 31 (a) interim profits not included in Common Equity Tier 1 capital pursuant to Article 26(2) of Regulation (EU) No 575/2013
Amendment 393 #
Proposal for a directive Article 1 – paragraph 1 – point 31 Directive 2013/36/EU Article 141 – paragraph 5 – second point a (a) year-end profits not included in Common Equity Tier 1 capital pursuant to Article 26(2) of Regulation (EU) No 575/2013
Amendment 394 #
Proposal for a directive Article 1 – paragraph 1 – point 31 Directive 2013/36/EU Article 141 – paragraph 5 – second point a (a) year-end profits not included in Common Equity Tier 1 capital pursuant to Article 26(2) of Regulation (EU) No 575/2013
Amendment 395 #
Proposal for a directive Article 1 – paragraph 1 – point 32 Directive 2013/36/EU Article 141a Amendment 396 #
Proposal for a directive Article 1 – paragraph 1 – point 32 Directive 2013/36/EU Article 141a – paragraph 1 – introductory part 1. An institution shall be considered as failing to meet the combined buffer requirement for the purposes of Article 141 where it does not have own funds and eligible liabilities in an amount and of the quality needed to meet at the same time the requirement defined in Article 128(6) (b) and (c) and each of the following requirements in:
Amendment 397 #
Proposal for a directive Article 1 – paragraph 1 – point 32 Directive 2013/36/EU Article 141a – paragraph 1 – point a (a) Article 92(1)(a) of Regulation (EU) No 575/2013 and the requirements in Articles 104(1)(a), 104a and 104b of this Directive;
Amendment 398 #
Proposal for a directive Article 1 – paragraph 1 – point 32 Directive 2013/36/EU Article 141a – paragraph 1 – point b (b) Article 92(1)(b) of Regulation (EU) No 575/2013 and the requirements in Articles 104(1)(a), 104a and 104b of this Directive;
Amendment 399 #
Proposal for a directive Article 1 – paragraph 1 – point 32 Directive 2013/36/EU Article 141a – paragraph 1 – point c (c) Article 92(1)(c) of Regulation (EU) No 575/2013 and the requirements in Articles 104(1)(a), 104a and 104b of this Directive;
Amendment 400 #
Proposal for a directive Article 1 – paragraph 1 – point 32 (new) Directive 2013/36/EU Article 141a – paragraph 1 – point c a (new) (c a) Article 92(1)(d) of Regulation(EU) No 575/2013 and the requirements in Articles 104(1)(a), 104a and 104b of this Directive;
Amendment 401 #
Proposal for a directive Article 1 – paragraph 1 – point 32 Directive 2013/36/EU Article 141 – paragraph 1 – point d Amendment 402 #
Proposal for a directive Article 1 – paragraph 1 – point 32 (d) Article 92a(1)(a) of Regulation (EU) No 575/2013 and in Articles 45c and 45d of Directive 2014/59/EU when calculated in accordance with point (a) of Article 45(2) of that Directive.
Amendment 403 #
Proposal for a directive Article 1 – paragraph 1 – point 32 Directive 2013/36/EU Article 141a – paragraph 1 – point d (d) Article 92a of Regulation
Amendment 404 #
Proposal for a directive Article 1 – paragraph 1 – point 32 1 a. Own funds maintained to meet the requirement under Article128(6) shall not be used to also meet the requirements defined in Article 45c, 45d and 45e of Directive 2014/59/EU).
Amendment 405 #
Proposal for a directive Article 1 – paragraph 1 – point 32 Directive 2013/36/EU Article 141a – paragraph 2 Amendment 406 #
Proposal for a directive Article 1 – paragraph 1 – point 32 Directive 2013/36/EU Article 141a – paragraph 2 Amendment 407 #
Proposal for a directive Article 1 – paragraph 1 – point 32 Directive 2013/36/EU Article 141a – paragraph 2 Amendment 408 #
Proposal for a directive Article 1 – paragraph 1 – point 32 Directive 2013/36/EU Article 141a – paragraph 2 Amendment 409 #
Proposal for a directive Article 1 – paragraph 1 – point 32 Directive 2013/36/EU Article 141a – paragraph 2 – introductory part 2.
Amendment 410 #
Proposal for a directive Article 1 – paragraph 1 – point 32 Directive 2013/36/EU Article 141a – paragraph 2 – point a Amendment 411 #
Proposal for a directive Article 1 – paragraph 1 – point 32 (a) the institution meets the combined buffer requirement defined in Article 128(6)
Amendment 412 #
Proposal for a directive Article 1 – paragraph 1 – point 32 Directive 2013/36/EU Article 141a – paragraph 2 – point b Amendment 413 #
Proposal for a directive Article 1 – paragraph 1 – point 32 Directive 2013/36/EU Article 141a – paragraph 2 – point b (b) the failure to meet the combined buffer requirement defined in Article 128(6) when considered in addition to the requirement
Amendment 414 #
Proposal for a directive Article 1 – paragraph 1 – point 32 Directive 2013/36/EU Article 141a – paragraph 2 – point c Amendment 415 #
Proposal for a directive Article 1 – paragraph 1 – point 32 Directive 2013/36/EU Article 141a – paragraph 2 – point c Amendment 416 #
Proposal for a directive Article 1 – paragraph 1 – point 32 Directive 2013/36/EU Article 141a – paragraph 2 – point c Amendment 417 #
Proposal for a directive Article 1 – paragraph 1 – point 32 Directive 2013/36/EU Article 141a – paragraph 2 – point c Amendment 418 #
Proposal for a directive Article 1 – paragraph 1 – point 32 Directive 2013/36/EU Article 141a – paragraph 2 a (new) 2 a. An institution that does not have own funds and eligible liabilities in a an amount and of the quality needed to meet at the same time the requirement defined in article 128.6 (b) and (c) and each of the requirements in Article 92a of Regulation (EU) No 575/2013 and in Articles 45c and 45d of Directive 2014/59/EU, but which meets each of the requirement of paragraph 1 above, shall be considered as facing a substantive impediment to resolvability. The institution shall therefore propose to the competent authorities possible measures to address or remove the substantive impediments in accordance with the procedure set out in Article 17(3) of Directive 2014/59/EU. The competent authorities shall assess these measures before to adopt the measures referred in article 45 (k) of Directive 2014/59/EU.
Amendment 419 #
Proposal for a directive Article 1 – paragraph 1 – point 32 2 a. The institution shall report without delay to the resolution authority and the competent authority where it considers that the conditions referred to in paragraph 2 are met.
Amendment 420 #
Proposal for a directive Article 1 – paragraph 1 – point 32 (new) Directive 2013/36/EU Article 141a – paragraph 2 b (new) 2 b. After the conditions referred to in paragraph 2 are met for more than 12 months, the competent authority may at any time, on the basis of the circumstances that have led to the inability of the institution to issue liabilities that meet the eligibility or maturity criteria laid down in Articles 72b and 72c of Regulation (EU) No 575/2013 or to replace liabilities that no longer meet said eligibility or maturity criteria and of the measures proposed by the institution referred to in Article 17(3) of Directive 2014/59/EU, after consulting the resolution authority, determine that the institution shall be considered as failing to meet the combined buffer requirement for the purposes of Article 141.
Amendment 421 #
Proposal for a directive Article 1 – paragraph 1 – point 32 a (new) Directive 2013/36/EU Chapter 4 a (new) Amendment 422 #
Proposal for a directive Article 1 – paragraph 1 – point 35 10 a. By [one year after entry into force of this Directive] the Commission shall submit a report to the European Parliament and the Council thoroughly reviewing and analysing the feasibility of different approaches to EU sovereign bond concentration risks aimed at incentivising a reduction in the exposure of credit institutions to the debt of their Member State of establishment while simultaneously increasing the incentives for institutions to hold a well-diversified portfolio of the debt issued by Member States other than that in which they are established. The report shall specifically address the feasibility of an approach that assigns a zero risk weight to holdings of EU sovereign debt of which the relative proportions conform to a benchmark representing a well-diversified portfolio and a positive risk weight to holdings that deviate significantly from such a benchmark. The report shall be followed by legislative proposals for any approaches judged feasible in the report.
Amendment 423 #
Proposal for a directive Article 1 – paragraph 1 – point 35 Directive 2013/36/EU Article 161 – paragraph 10 a (new) 10 a. By mid-2020 the Commission shall issue, in cooperation with the ESRB and also in recognition of the work of the BCBS, a report to the European Parliament and the Council on the feasibility and effectiveness of an approach that assigns a non-zero risk weight to credit institutions' holdings of Member States' sovereign debt, with the aim of gradually and cautiously implementing a risk-based regulatory treatment of these exposures as well as of recognizing and addressing the systemic risk entailed in large holdings by credit institutions of sovereign exposures.
Amendment 424 #
Proposal for a directive Article 1 – paragraph 1 – point 35 Directive 2013/36/EU Article 161 – paragraph 10 a (new) 10 a. The Commission shall submit to the European Parliament six months after entry into force of this directive a report on regulatory instruments to mitigate sovereign exposure risks, as discussed by the Basel Committee on Banking Supervision in its 2017 discussion paper "The regulatory treatment of sovereign exposures".[1] This report shall give a thorough assessment of the functionality and effectiveness of these instruments to incentivise financial institutions to take proper account of the risks inherent in certain sovereign exposures in their asset portfolios. [1] Basel Committee on Banking Supervision (2017): The regulatory treatment of sovereign exposures, Bank for International Settlement discussion paper, December 2017.
Amendment 425 #
Proposal for a directive Article 1 – paragraph 1 – point 35 Directive 2013/36/EU Article 161 – paragraph 10 b (new) 10 b. By [one year after entry into force of this Directive] the Commission shall submit a report to the European Parliament and the Council comprehensively reviewing and analysing: - existing evidence, including that produced by EBA in the course of its regular benchmarking exercises and other supervisory sources, on the variability of internal model specification, calibation and outputs for a representative sample of exposures EU institutions are faced with, that cannot be explained in terms of the risk of exposures. The report should also assess the impact of such variability on the confidence interval around individual institutions' capital requirement estimates and the capitalisation of the banking system overall; - the feasibility of different approaches, including but not limited to those under discussion in international standard setting bodies such as using floors based on standardised models, for establishing prudential limits to the variability of capital requirements estimated through internal approaches that cannot be explained in terms of the risk of exposures; - a roadmap for addressing material underestimation of capital requirements resulting for such variability. Where the report identifies a requirement for changes to the existing prudential framework, it shall be accompanied by legislative proposals.
Amendment 426 #
Proposal for a directive Article 1 – paragraph 1 – point 35 Directive 2013/36/EU Article 161 – paragraph 10 c (new) 10 c. By December 2022, the Commission shall, in close cooperation with EBA, submit a report to the European Parliament and to the Council, together with a legislative proposal if appropriate, on complex structured finance transactions which are structured to potentially produce significant tax benefits - as referred to in Article 449b (new) of Regulation (EU) No 575/2013 - as well as on recommendations to address such situation.
Amendment 427 #
Proposal for a directive Article 3 – paragraph 1 This Directive shall enter into force on the twentieth day following that of its
Amendment 48 #
Proposal for a directive Recital 1 (1) Directive 2013/36/EU8 of the European Parliament and of the Council and Regulation (EU) No 575/20139 of the European Parliament and of the Council have been adopted in response to the financial crises that unfolded in 2007-2008. These legislative measures have substantially contributed to strengthening the financial system in the Union and rendered institutions more resilient to possible future shocks. Although extremely comprehensive, these measures did not address all identified weaknesses affecting institutions. Deposit taking should have been separated from risky banking business, or dealing on own account or other high-risk trading activities should have been transferred to a separate entity, where these accounted for a significant share of a bank’s business. If risky activities were based within their own entity, they would no longer be supported by deposits. Also, some of the initially proposed measures have been subjected to review clauses or have not been sufficiently specified to allow for their smooth implementation. __________________ 8 Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC (OJ L 176, 27.6.2013, p. 338). 9 Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements
Amendment 49 #
Proposal for a directive Recital 2 a (new) Amendment 50 #
Proposal for a directive Recital 4 a (new) (4a) The regulation and supervision of credit institutions as well as the corresponding own funds requirements and reporting obligations should continue to depend solely on a credit institution’s underlying risk. This rules out taking account of unrelated criteria such as environmental or social considerations in determining the own funds requirements and the corresponding reporting obligations in these sectors.
Amendment 51 #
Proposal for a directive Recital 6 a (new) (6a) The principle of equal pay for male and female workers for equal work or work of equal value is laid down in art 157 TFEU. This needs to be applied in a consistent way by credit institutions and investment firms. Therefore they should demonstrate a gender neutral remuneration policy.
Amendment 52 #
Proposal for a directive Recital 9 (9) Own funds add-ons imposed by competent authorities should be set in relation to the specific situation of an institution and should be duly justified. These requirements should
Amendment 53 #
Proposal for a directive Recital 9 a (new) (9a) Well-capitalised institutions support economic growth rather than hamper it. Significant risk reduction can only be achieved when institutions are not able to pose systemic threats to the economies of the Union or the Member States and when orderly failure is possible without the socialisation of losses. It is therefore appropriate to increase capital buffers for institutions that are classified as O-SIIs and G-SIIs so that possible losses which may occur can be absorbed by the owners of such institutions.
Amendment 54 #
Proposal for a directive Recital 9 a (new) (9a) In addition to the capital buffers, risks linked to the systemic importance of an institution should also be taken into account when calculating the leverage ratio in accordance with the Basel Committee decision on a buffer for globally systemically important banks. For that reason, a leverage ratio adjustment for global systemically important institutions (G-SIIs) should be introduced which should be set at 50% of a G-SIIs risk-weighted higher-loss absorbency requirements.
Amendment 55 #
Proposal for a directive Recital 12 a (new) (12a) Institutions operate under a nexus of regulatory requirements and standards aiming to ensure the protection of retail customers and consumer, the level playing field in the single market, the protection of human rights, tax justice and the avoidance of money laundering. Non-observance of those requirements and standards by institutions has significant negative societal consequences but it may also affect those institutions’ capital requirements and, potentially, overall financial stability. There is, therefore, a need to single out conduct as a distinguished parameter of operational risk and to ensure that institutions and competent authorities identify, evaluate and monitor this risk adequately in the context of the institutions’ internal capital. It is also necessary to set out that information relating to investigations of institutions’ misconduct is communicated promptly from the authorities monitoring conduct-of-business, anti-money laundering, consumer, competition and other frameworks to the competent authorities responsible for prudential supervision.
Amendment 56 #
Proposal for a directive Recital 12 b (new) Amendment 57 #
Proposal for a directive Recital 16 Amendment 58 #
Proposal for a directive Recital 20 a (new) (20a) Directive2009/138/EC of the European Parliament and the Council (Solvency II), harmonizing the rules that apply to insurance and reinsurance undertakings, had introduced modifications aiming to grant financial stability and equity, in pursuit the fundamental objective of stabilizing the markets. However it should be taken into consideration the presence, in the Member States, of insurance undertakings with listed shares in a regulated market, under the control of the competent supervisory Authorities of the Member States, performing insurance activities according to a low risk business model implying a moderate financial leverage exploitation (not higher than 5 times) a low risk-taking attitude in investments and a high percentage of profits represented by the insurance core business ;therefore, such undertakings result to have a more contained risk profile compared to similar institutions with a broad variety of business models, also with financial content. It has been noted that, in the European union, insurances result to be less exposed to systemic risk, also by virtue of a more conservative investment policy and that the effects of the financial and markets crisis, following 2008, which has driven financial institution’s income statement downwards, has not substantially affected insurance undertakings, generally remaining positive, with relatively stable profit margins. Such stability has been reflected by the last years insurance companies stock market performances of listed shares in regulated markets of the European union, that, compared to financial institutions, although in the context of a general recessive trend of the markets after 2008, have reduced significantly the downward trends in shares value. Non control holdings in such insurance undertakings operating according to a low financial risk business model, can therefore be assimilated to other equity/industrial holdings, and consequently to the specific discipline in matter of deduction of items from Core Tier 1capital, provided for by the supervisory Authorities of the Member States with reference to other industrial undertakings.
Amendment 59 #
Proposal for a directive Recital 20 a (new) (20a) The Basel Committee on banking supervision's oversight body, the Group of Central Bank Governors and Heads of Supervision, has endorsed on 7 December 2017 a set of measures to strengthen the Basel III framework. This set of measures revise approaches for calculating the risk weighted exposure amounts for credit risk, operational risk and the own fund requirements for credit valuation adjustment risk and introduce an aggregate output floor. This set of measures also revises the leverage ratio measurement and introduces a new leverage ratio buffer for global systemically important institutions. The provisions of the finalised Basel II framework should be incorporated into Regulation (EU) No 575/2013 in due course so as to enhance the risk- sensitivity of capital requirements for banks using standardized approaches and to reduce the variability of risk weighted exposures amounts, in particular for banks using the internal or advanced approaches. Being aligned with these new rules should also enhance the international level playing field for EU institutions operating outside the Union. In order to ensure that the implementation in the EU of this set of measures would not have negative consequences on the banking sector or on the financing of the economy, and to ensure that it takes into account in an appropriate manner the specificities of the EU banking sector, a comprehensive impact assessment should be conducted, as soon as possible, by the EBA to inform the Commission, before any legislative proposal is made.
Amendment 60 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point a – point -1 (new) Directive 2013/36/EU Article 2 – paragraph 5 – introductory part (-1) Article 2, paragraph 5, introductory part, is amended as follows: This Directive shall not apply only to the following:
Amendment 61 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point a – point 2 a (new) Directive 2013/36/EU Article 2 – paragraph 5 – point 24 a (new) (2a) the following point (24a) is added ‘(24a) In Malta, the "Malta Development Bank";’
Amendment 62 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b – introductory part Directive 2013/36/EU Article 2 – paragraph 5a and 5b (b) the following paragraph
Amendment 63 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5a Amendment 64 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5a Amendment 65 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5a Amendment 66 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5a Amendment 67 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5a Amendment 68 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5a – introductory part Amendment 69 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5a – introductory part This Directive shall not apply to an institution or a unit of a credit institution where the Commission establishes in a delegated act adopted pursuant to Article 148, on the basis of information available to it that the institution or a unit of the institution fulfils all of the following conditions, without prejudice to the application of state aid rules:
Amendment 70 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5a – introductory part This Directive shall not apply to an institution or a unit of a credit institution where the Commission establishes in a delegated act adopted pursuant to Article 148, on the basis of information available to it that the institution or a unit of a credit institution fulfils all of the following conditions
Amendment 71 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5a – point a (a) it has been established
Amendment 72 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5a – point b (b) laws and provisions governing the institution confirm that its
Amendment 73 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5a – point c (c) it is subject to a
Amendment 74 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5a – point d (d) the central government, regional government or local authority, as applicable, has an obligation to protect the institution's viability or directly or indirectly guarantees at least
Amendment 75 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5a – point e e) it is
Amendment 76 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5a – point e e) it
Amendment 77 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5a – point e (e) it is
Amendment 78 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5a – point e (e) it is
Amendment 79 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5a – point e (e) it is precluded from accepting
Amendment 80 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5a – point f (f) if the institution has been established by a regional government or a local authority, the majority of its activities are confined to the Member State where its head office is
Amendment 81 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5a – point g (g) in the case of institutions whose own fund requirements, financing needs or exposures are guaranteed at less than 75% either directly or indirectly by a member State's central government or a regional or local authority in accordance with letter d, the total value of the institution's assets is below EUR 30 billion;
Amendment 82 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5a – point g (g) the total value of the institution's assets is below EUR 30 billion or a Member State’s central government or a regional or local authority in accordance with letter (d) guarantees the institution’s own fund requirements, financing needs and exposures at a level of 100% either directly or indirectly;
Amendment 83 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5a – point g g) the total value of the institution's assets not guaranteed by the central government or a regional or local authority is below EUR 30 billion;
Amendment 84 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5a – point h (h) the ratio of the institution's total assets over the GDP of the Member State concerned is less than
Amendment 85 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5a – point i Amendment 86 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5b Amendment 87 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5b Amendment 88 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5b – introductory part Amendment 89 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5b – point d (d) they are only permitted to accept deposits or repayable funds from their
Amendment 90 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5b – point d (d) they are only permitted to accept deposits or repayable funds from their members
Amendment 91 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5b – point g Amendment 92 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5b – point g (g) the aggregate value of the assets of this category of institutions does not exceed 3% of the GDP of the Member State concerned
Amendment 93 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point b Directive 2013/36/EU Article 2 – paragraph 5b a (new) 5b a. This Directive shall not apply to an institution that the Commission includes in the list set out in Article 2(5) through a delegated act adopted pursuant to Article 148.
Amendment 94 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point c Directive 2013/36/EU Article 2 – paragraph 6 a (new) Member States shall ensure publication of a list of the entities excluded from the application of this Directive under paragraph 5a and 5b, together with information about the extent of any deposit protection.
Amendment 95 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point d Directive 2013/36/EU Article 2 – paragraph 7 Amendment 96 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point d Directive 2013/36/EU Article 2 – paragraph 7 Amendment 97 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point d Directive 2013/36/EU Article 2 – paragraph 7 Amendment 98 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point d Directive 2013/36/EU Article 2 – paragraph 7 Amendment 99 #
Proposal for a directive Article 1 – paragraph 1 – point 1 – point d Directive 2013/36/EU Article 2 – paragraph 7 By [5 years after entry into force], the Commission shall review
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