2021/0342(COD) | [ParlTrack]

Proposal for a regulation
Recital 2

(2) To address those problems, provide legal certainty and signal our commitment to our international partners in the G20, it is of utmost importance to implement the outstanding elements of the Basel III reform faithfully. At the same time, the implementation should ~~avoid a~~lead to no significant increase in overall capital requirements for the EU banking system on the whole and take ~~into~~due account of specificities of the EU economy, as stressed in the European Parliament resolution1a of 23 November 2016 on the finalisation of Basel III. Where possible, adjustments to the international standards should be applied on a transitional basis. The implementation should help avoid competitive disadvantages for EU institutions, in particular in the area of trading activities, where EU institutions directly compete with their international peers. Furthermore, the proposed approach should be coherent with the logic of the Banking Union and ~~avoid further fragmentation of~~harmonise the Single Market for banking. Finally, it should ensure proportionality of the rules and aim at further reducing compliance and reporting costs, in particular for smaller and non-complex institutions, without loosening the prudential standards~~. (See European Parliament resolution of 23 November 2016 on the finalisation of Basel III~~, in line with the EBA Cost of Compliance Study1b targeting a reduction of reporting costs of 10% to 20%. __________________ 1a P8_TA(2016)0439 1b EBA/Rep/2021/15 Or. en and EBA Study of the cost of compliance with supervisory reporting requirement EBA/Rep/2021/15.)

Amendment 314 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Recital 2

(2) To address those problems, provide legal certainty and signal our commitment to our international partners in the G20, it is of utmost importance to implement the outstanding elements of the Basel III reform faithfully. At the same time, the implementation should avoid a significant increase in overall capital requirements for the EU banking system on the whole and take into account specificities of the EU economy. Where possible, adjustments to the international standards should be applied on a transitional basis. The implementation should ~~help~~ avoid competitive disadvantages for EU institutions, in particular in the area of trading activities, where EU institutions directly compete with their international peers. It should take into full account the different financial structures prevailing outside the Union, especially but not only with regards to the mortgage market. Furthermore, the proposed approach should be coherent with the logic of the Banking Union and avoid further fragmentation of the Single Market for banking. Finally, it should ensure proportionality of the rules and aim at further reducing compliance costs, in particular for smaller institutions, and the economies of the smaller Member States, without loosening the prudential standards.

Amendment 315 #

Proposal for a regulation
Recital 2

Amendment 316 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL, Engin EROGLU

Proposal for a regulation
Recital 2

(2) To address those problems, provide legal certainty and signal our commitment to our international partners in the G20, it is of utmost importance to implement fairly, fully and timely the outstanding elements of the Basel III reform ~~faithfully~~. At the same time, the implementation should avoid a significant increase in overall capital requirements for the EU banking system on the whole and take into account specificities of the EU economy. Where possible, adjustments to the international standards should be applied on a transitional basitake into account specificities of the EU economy, where there is sufficient and robust evidence that the international framework does not capture these specificities. The implementation should help avoid competitive disadvantages for EU institutions, in particular in the area of trading activities, where EU institutions directly compete with their international peers. Furthermore, the proposed approach should be coherent with the logic of the Banking Union and avoid further fragmentation of the Single Market for banking. Finally, it should ensure proportionality of the rules and aim at further reducing compliance costs, in particular for smaller institutions, without loosening the prudential standards.

Amendment 317 #

Proposal for a regulation
Recital 3

(3) Regulation (EU) No 575/2013 enables institutions to calculate their capital requirements either by using standardised approaches, or by using internal model approaches. Internal model approaches, approved by national competent authorities, allow institutions to estimate most or all the parameters required to calculate capital requirements on their own, whereas standardised approaches require institutions to calculate capital requirements using fixed parameters, which are based on relatively conservative assumptions and laid down in Regulation (EU) No 575/2013. The Basel Committee decided in December 2017 to introduce an aggregate output floor. That decision was based on an analysis carried out in the wake of the financial crisis of 2008-2009, which revealed that internal models tend to underestimate the risks that institutions are exposed to, especially for certain types of exposures and risks, and hence, tend to result in insufficient capital requirements. Compared to capital requirements calculated using the standardised approaches, internal models produce, on average, lower capital requirements for the same exposures.

Amendment 318 #

Gilles BOYER, Stéphanie YON-COURTIN, Olivier CHASTEL

Proposal for a regulation
Recital 5

Amendment 319 #

Proposal for a regulation
Recital 5

(5) In order to avoid fragmentation of the internal market for banking, the approach for the output floor should be coherent with the principle of risk aggregation across different entities within the same banking group and the logic of consolidated supervision. At the same time, the output floor should add, the output floor should address risks stemming from internal models in both home and host Member States. In order to ensure that own funds are appropriately distributed and available to protect savings where needed, the output floor requirements should apply at all levels of consolidation, until strong progress is made at Union level on the implementation of a European Deposit Guarantee framework that provides sufficient levels of confidence to host Member States. The EBA shall assess by 31 December 2027 and at least every three years thereafter, the developments in the Union deposit guarantee framework and publish an opinion on the level of progress achieved. Once sufficient progress ris~~ks stemming from internal models in both home and host Member States~~ made at the Union level the Commission may adopt a legislative proposal to amend the level of application of the output floor. The output floor should the~~refore~~n be calculated at the highest level of consolidation in the Union, whereas subsidiaries located in other Member States than the EU parent should calculate, on a sub-consolidated basis, their contribution to the output floor requirement of the entire banking group. That approach ~~should~~would be coherent with the principle of risk aggregation across different entities within the same banking group and the logic of consolidated supervision while avoiding unintended impacts and ensure a fair distribution of the additional capital required by the application of the output floor between group entities in home and host Member States according to their risk profile.

Amendment 320 #

Proposal for a regulation
Recital 5

Amendment 321 #

Proposal for a regulation
Recital 5

(5) In order to ~~avoid fragmentation of~~harmonise the internal market for banking, the approach for the output floor should be coherent with the principle of risk aggregation across different entities within the same banking group and the logic of consolidated supervision. At the same time, the output floor should address risks stemming from internal models in both home and host Member States. The output floor should therefore be calculated at the highest level of consolidation in the Union, whereas ~~subsidiaries located in other Member States than the EU parent should calculate, on a sub-consolidated basis, their contribution to the output floor requirement of the entire banking group~~banks and competent authorities should ensure that the capitalisation of standalone entities is adequate, in accordance with SCO 10 of the Basel principles. Thatis approach should avoid unintended impacts and ensure a fair distribution of the additional capital required by the application of the output floor between group entities in home and host Member States according to their risk profileis not only in line with the objectives of the banking union, but also avoids complexities, administrative burden and adverse effects for risk management within banking groups.

Amendment 322 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Recital 8

(8) For subordinated debt and equity exposures, a more granular and stringent risk weight treatment is necessary to reflect the higher loss risk of subordinated debt and equity exposures when compared to debt exposures, and to prevent regulatory arbitrage between the banking book and the trading book. Union institutions have long-standing, strategic equity investments in financial and non-financial corporates. As the standard risk weight for equity exposures increases over a 5-year transition period, existing strategic equity holdings in corporates and insurance undertakings under significant influence of the institution should be grandfathered to avoid disruptive effects and to preserve the role of Union institutions as long-standing, strategic equity investors. Given the prudential safeguards and supervisory oversight to foster financial integration of the financial sector, however, for equity holdings in other institutions within the same group or covered by the same institutional protection scheme, the current regime should be maintained. In addition, to reinforce private and public initiatives to provide long-term equity to EU corporates, be they listed or unlisted, investments should not be considered as speculative where they are made with the firm intention of the institution’s senior management to hold it for three or more years.

Amendment 323 #

Proposal for a regulation
Recital 8

(8) For subordinated debt and equity exposures, a more granular and stringent risk weight treatment is necessary to reflect the higher loss risk of subordinated debt and equity exposures when compared to debt exposures, and to prevent regulatory arbitrage between the banking book and the trading book. Union institutions have long-standing, strategic equity investments in financial and non-financial corporates. ~~As the standard risk weight for equity exposures increases over a 5-year transition period, existing s~~Strategic equity holdings in corporates and insurance undertakings under significant influence of the institution should be ~~grandfathered~~treated under a preferential treatment to avoid disruptive effects and to preserve the role of Union institutions as long-standing, strategic equity investors. Given the prudential safeguards and supervisory oversight to foster financial integration of the financial sector, however, for equity holdings in other institutions within the same group or covered by the same institutional protection scheme, the current regime should be maintained for institutions using the standardised approach, and, as a consequence, in order to ensure a level playing field, should be adequately adapted for banks using the IRB Approach. In addition, to reinforce private and public initiatives to provide long-term equity to EU corporates, be they listed or unlisted, investments should not be considered as speculative where they are made with the firm intention of the institution’s senior management to hold it for three or more years.

Amendment 324 #

Proposal for a regulation
Recital 8

Amendment 325 #

Proposal for a regulation
Recital 10

(10) Corporate lending in the Union is predominantly provided by institutions which use the internal ratings based (IRB) approaches for credit risk to calculate their capital requirements. With the implementation of the output floor, those institutions will also need to apply the SA- CR, which relies on credit assessments by external credit assessment institutions (‘ECAI’) to determine the credit quality of the corporate borrower. For this purpose institutions can use all eligible ECAI credit assessments. The mapping between external ratings and risk weights applicable to rated corporates should be more granular, to bring such mapping in line with the international standards on that matter.

Amendment 326 #

Proposal for a regulation
Recital 10

(10) Corporate lending in the Union is predominantly provided by institutions which use the internal ratings based (IRB) approaches for credit risk to calculate their capital requirements. With the implementation of the output floor, those institutions will also need to apply the SA- CR, which relies on credit assessments by external credit assessment institutions (‘ECAI’) to determine the credit quality of the corporate borrower. TWhile remaining proportionate, the mapping between external ratings and risk weights applicable to rated corporates should be more granular, to bring such mapping in line with the international standards on that matter.

Amendment 327 #

Joachim SCHUSTER, Csaba MOLNÁR, Niels FUGLSANG, René REPASI

Proposal for a regulation
Recital 11

Amendment 328 #

Proposal for a regulation
Recital 11

(11) Most EU corporates, however, do not seek external credit ratings, in particular due to cost considerations. To avoid disruptive impacts on bank lending to unrated corporates and to provide enough time to establish public or private initiatives aimed at increasing the coverage of external credit ratings, it is necessary to provide for a transitional period for such increase in the coverage. During that transitional period, institutions using IRB approaches should be able to apply a favourable treatment when calculating their output floor for investment grade exposures to unrated corporates~~, whilst initiatives to foster widespread use of credit ratings should be established. Tha~~. In order to enhance competition in the market for credit tra~~nsitional arrangement should be coupled with a report prepared by the European Banking Authority (‘EBA’). After the transition period, institut~~ting agencies and support the development of an European market, the Commissions should be able to refer to credit assessments by ECAIs to calculate the capital requirements for most of their corporate exposures. To inform any future initiative on the set-up of public or private rating schemes, the European Supervisory Authorities (ESAs) should be requested to prepare a report on the impediments to the availability of external credit ratings by ECAIs, in particular for corporates, and on possible measures to address those impedimentfoster the availability of credit assessments by nominated ECAIs and assess how public and or private initiatives could be expanded and how oligopolies in the CRA market could be addressed, and where appropriate, submit to European Parliament and to the Council additional legislative proposals. The Commission should also assess the possibility of the creation of a European public credit rating agency as an impartial and trusted alternative to existing agencies. After the transition period, institutions should be able to refer to credit assessments by ECAIs to calculate the capital requirements for most of their corporate exposures. In the meanwhile, the European Commission stands ready to provide technical support to Member States via its Technical Support Instrument in this area, e.g. to formulate strategies on increasing the rating-penetration of their unlisted corporates or to explore best practices on setting up entities capable of providing ratings or providing related guidance to corporates.

Amendment 329 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Recital 11

Amendment 330 #

Paul TANG, René REPASI

Proposal for a regulation
Recital 11

(11) Most EU corporates, however, do not seek external credit ratings, in particular due to cost considerations. To avoid disruptive impacts on bank lending to unrated corporates and to provide enough time to establish public or private initiatives aimed at increasing the coverage of external credit ratings, it is necessary to provide for a transitional period for such increase in the coverage. During that transitional period, institutions using IRB approaches should be able to apply a favourable treatment when calculating their output floor for investment grade exposures to unrated corporates, whilst initiatives to foster widespread use of credit ratings should be established. ~~That transitional arrangement should be coupled with a report prepared by the European Banking Authority (‘EBA’).~~ After the transition period, institutions should be able to refer to credit assessments by ECAIs to calculate the capital requirements for most of their corporate exposures. To inform any future initiative on the set-up of public or private rating schemes, the European Supervisory Authorities (ESAs) should be requested to prepare a report on the impediments to the availability of external credit ratings by ECAIs, in particular for corporates, and on possible measures to address those impediments. In the meanwhile, the European Commission stands ready to provide technical support to Member States via its Technical Support Instrument in this area, e.g. to formulate strategies on increasing the rating- penetration of their unlisted corporates or to explore best practices on setting up entities capable of providing ratings or providing related guidance to corporates. The transition period should not be prolonged or extended indefinitely.

Amendment 331 #

Proposal for a regulation
Recital 11

(11) Most EU corporates, however, do not seek external credit ratings, in particular due to cost considerations. To avoid disruptive impacts on bank lending to unrated corporates and to provide enough time to establish public or private initiatives aimed at increasing the coverage of external credit ratings, it is necessary to provide for a transitional period for such increase in the coverage. During that transitional period, institutions using IRB approaches should be able to apply a favourable treatment when calculating their output floor for investment grade exposures to unrated corporates, whilst initiatives to foster widespread use of credit ratings should be established. That transitional arrangement should be coupled with a report prepared by the European Banking Authority (‘EBA’). After the transition period, institutions should be able to refer to credit assessments by ECAIs to calculate the capital requirements for most of their corporate exposures. To inform any future initiative on the set-up of public or private rating schemes, the European Supervisory Authorities (ESAs) should be requested to prepare a report on the impediments to the availability of external credit ratings by ECAIs, in particular for corporates, and on possible measures to address those impediments. Member States, in close cooperation with their central bank, should assess whether a request for the recognition of their central bank as ECAI in accordance with Article 2 of Regulation (EC) 1060/2009 and the provision of corporate ratings by the central bank for the purposes of this Regulation may be desirable in order to increase the coverage of external ratings. In the meanwhile, the European Commission stands ready to provide technical support to Member States via its Technical Support Instrument in this area, e.g. to formulate strategies on increasing the rating- penetration of their unlisted corporates or to explore best practices on setting up entities capable of providing ratings or providing related guidance to corporates.

Amendment 332 #

Luis GARICANO, Esther de LANGE, Caroline NAGTEGAAL, Luděk NIEDERMAYER

Proposal for a regulation
Recital 11

(11) Most EU corporates, however, do not seek external credit ratings, in particular due to cost considerations. To avoid disruptive impacts on bank lending to unrated corporates and to provide enough time to establish public or private initiatives aimed at increasing the coverage of external credit ratings, it is necessary to provide for a transitional period for such increase in the coverage. During that transitional period, institutions using IRB approaches should be able to apply a favourable treatment when calculating their output floor for investment grade exposures to unrated corporates, whilst initiatives to foster widespread use of credit ratings should be established. That transitional arrangement should be coupled with a report prepared by the European Banking Authority (‘EBA’). After the transition period, institutions should be able to refer to credit assessments by ECAIs to calculate the capital requirements for most of their corporate exposures. To inform any future initiative on the set-up of public or private rating schemes, the European Supervisory Authorities (ESAs) should be requested to prepare a report on the impediments to the availability of external credit ratings by ECAIs, in particular for corporates, and on possible measures to address those impediments. In the meanwhile, the European Commission stands ready to provide technical support to Member States via its Technical Support Instrument in this area, e.g. to formulate strategies on increasing the rating- penetration of their unlisted corporates or to explore best practices on setting up entities capable of providing ratings or providing related guidance to corporates. Meanwhile, further efforts should be made to promote the creation of a pan- European credit rating agency.

Amendment 333 #

Proposal for a regulation
Recital 15

(15) To ensure that the impacts of the output floor on low-risk residential mortgage lending by institutions using IRB approaches are spread over a sufficiently long period and thus avoid disruptions to that type of lending that could be caused by sudden increases in own funds requirements, it is necessary to provide for a specific transitional arrangement. For the duration of the arrangement, when calculating the output floor, IRB institutions should be able to apply a lower risk weight to the part of their residential mortgage exposures that is considered secured by residential property under the revised SA-CR. To ensure that the transitional arrangement is available only to low-risk mortgage exposures, appropriate eligibility criteria, based on established concepts used under the SA-CR, should be set. The compliance with those criteria should be verified by competent authorities. Because residential real estate markets may differ from one Member States to another, the decision on whether to activate the transitional arrangement should be left to individual Member States. The use of the transitional arrangement should be monitored by EBA.deleted

Amendment 334 #

Johan VAN OVERTVELDT, Michiel HOOGEVEEN, Eugen JURZYCA

Proposal for a regulation
Recital 15

Amendment 335 #

Proposal for a regulation
Recital 15

Amendment 336 #

Proposal for a regulation
Recital 15

Amendment 337 #

Paul TANG, René REPASI

Proposal for a regulation
Recital 15

(15) To ensure that the impacts of the output floor on low-risk residential mortgage lending by institutions using IRB approaches are spread over a sufficiently long period and thus avoid disruptions to that type of lending that could be caused by sudden increases in own funds requirements, it is necessary to provide for a specific transitional arrangement. For the duration of the arrangement, when calculating the output floor, IRB institutions should be able to apply a lower risk weight to the part of their residential mortgage exposures that is considered secured by residential property under the revised SA-CR and that fulfil the EU's climate ambitions. To ensure that the transitional arrangement is available only to low-risk mortgage exposures, appropriate eligibility criteria, based on established concepts used under the SA- CR should be set. To determine whether residential property fulfil the EU's climate ambitions, Regulation (EU) 2019/852 and its Delegation Regulation (EU) 2021/2139, specifically chapter 7 of Annex I and chapter 7 of Annex II of that Delegated Regulation, should be usetd. The compliance with those criteria should be verified by competent authorities. Because residential real estate markets may differ from one Member States to another, the decision on whether to activate the transitional arrangement should be left to individual Member States. ~~The use of the transitional arrangement should be monitored by EBA.~~

Amendment 338 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Recital 15

(15) To ensure that the impacts of the output floor on low-risk residential mortgage lending by institutions using IRB approaches are spread over a sufficiently long period and thus avoid disruptions to that type of lending that could be caused by sudden increases in own funds requirements, it is necessary to provide for a specific transitional arrangement. For the duration of the arrangement, when calculating the output floor, IRB institutions should be able to apply a lower risk weight to the part of their residential mortgage exposures that is considered secured by residential property under the revised SA-CR. To ensure that the transitional arrangement is available only to low-risk mortgage exposures, appropriate eligibility criteria, based on established concepts used under the SA- CR, should be set. The compliance with those criteria should be verified by competent authorities. ~~Because residential real estate markets may differ from one Member States to another, the decision on whether to activate the transitional arrangement should be left to individual Member States.~~ The use of the transitional arrangement should be monitored by EBA.

Amendment 339 #

Proposal for a regulation
Recital 15

(15) To ensure that the impacts of the output floor on low-risk residential mortgage lending by institutions using IRB approaches are spread over a sufficiently long period and thus avoid disruptions to that type of lending that could be caused by sudden increases in own funds requirements, it is necessary to provide for a specific ~~transitional arrangement. For the duration of the arrangement, w~~arrangement. When calculating the output floor, IRB institutions should be able to apply a lower risk weight to the part of their residential mortgage exposures that is considered secured by residential property under the revised SA-CR. To ensure that the ~~transitional~~ arrangement is available only to low-risk mortgage exposures, appropriate eligibility criteria, based on established concepts used under the SA- CR, should be set. The compliance with those criteria should be verified by competent authorities. Because residential real estate markets may differ from one Member States to another, the decision on whether to activate the ~~transitional~~specific arrangement should be left to individual Member States. The use of the ~~transitional~~specific arrangement should be monitored by EBA.

Amendment 340 #

Proposal for a regulation
Recital 17

(17) It is important to reduce the impact of cyclical effects on the valuation of property securing a loan and to keep capital requirements for mortgages more stable. A property’s value recognised for prudential purposes should therefore not exceed the ~~average~~ value of ~~a comparabl~~the property measured over a sufficiently long monitoring period, unless modifications to that property unequivocally increase its value. To avoid unintended consequences for the functioning of the covered bond markets, competent authorities may allow institutions to revalue immovable property on a regular basis without applying those limits to value increaseswhen the institution first acquired this exposure. Modifications that improve the energy efficiency of buildings and housing units should be considered as value increasing.

Amendment 341 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Recital 19

(19) While the new standardised treatment for unrated specialised lending exposures laid down in Basel III standards is more granular than the current standardised treatment of exposures to corporates under this Regulation, the former is not sufficiently risk-sensitive to reflect the effects of comprehensive security packages and pledges usually associated with these exposures in the Union, which enable lenders to control the future cash flows to be generated over the life of the project or asset. Due to the lack of external rating coverage of specialised lending exposures in the Union, the treatment for unrated specialised lending exposures laid down in Basel III standards may also create incentives for institutions to stop financing certain projects or take on higher risks in otherwise similarly treated exposures which have different risk profiles. Whereas the specialised lending exposures are mostly financed by institutions using the IRB approach that have in place internal models for these exposures, the impact may be particularly significant in the case of ‘object finance’ exposures, which could be at risk for discontinuation of the activities, in the particular context of the application of the output floor. To avoid unintended consequences of the lack of risk- sensitivity of the Basel treatment for unrated object finance exposures, object finance exposures that comply with a set of criteria capable to lower their risk profile to ‘high quality’ standards compatible with prudent and conservative management of financial risks, should benefit from a reduced risk weight. EBA shall be entrusted to develop draft regulatory technical standards specifying the conditions for institutions to assign an object finance specialised lending exposure to the ‘high quality’ category with a risk weight similar to ‘high quality’ project finance exposures under the SA- CR. Institutions established in jurisdictions that allow the use of external ratings should assign to their specialised lending exposures the risk weights determined only by the issue- specific external ratings, as provided by the Basel III framework.

Amendment 342 #

Proposal for a regulation
Recital 27

(27) Specialised lending exposures have risk characteristics that differ from general corporate exposures. It is thus appropriate to ~~provide for a transitional period during which~~adjust the LGD input floor applicable to specialised lending exposures i~~s reduced~~n order to reflect the lower risk of these exposures.

Amendment 343 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Recital 29

(29) To ensure a consistent approach for all RGLA-PSE exposures, a new RGLA- PSA exposure class should be created, independent from both sovereign and institutions exposure classes~~, and which should all be subject to the input floors provided by the new rules~~.

Amendment 344 #

Billy KELLEHER, Gilles BOYER

Proposal for a regulation
Recital 30 a (new)

(30 a) In the context of removing unwarranted variability in capital requirements, existing discounting rules applied to artificial cash flows should be clarified in order to remove any unintended consequences. It has been shown that the current rules on the treatment of artificial cashflows for exposures that return to non-default status have the effect of inflating credit institutions Loss Given Default (LGD) calculations, and, in turn, Risk Weighted Assets(RWAs), and contributes to the variability in own fund requirements amongst financial institutions. These costs are ultimately reflected in the cost of banking services and borne by the customer thereby impacting the competitiveness of certain EU banks as well as the real economy. Restructuring arrangements are a viable and prudent option for debtors in arrears and should not be inadvertently penalised by the calculation methodology for LGD. Therefore, for the purpose of calculating artificial cashflows for cases which return to non-default status, the total amount to be discounted should only cover the actual period of default up to the time of cure.

Amendment 345 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Recital 30 a (new)

(30 a) The introduction of the output floor could have a significant impact on own funds requirements for securitisation positions held by institutions using the Securitisation Internal Ratings Based Approach(SEC-IRBA). Although such positions are generally small relative to other exposures, the introduction of the output floor could affect the economic viability of the securitisation operation because of an insufficient prudential benefit of the transfer of risk. This would come at a juncture where the development of the securitisation market is part of the action plan on Capital Markets Union and also where originating banks might need to use securitisation more extensively in order to manage more actively their portfolios if they become bound by the output floor. This impact should therefore be mitigated by providing for a specific arrangement increasing the risk-sensitivity of the standardized approach of the purpose of the calculation of the output floor.

Amendment 346 #

Gilles BOYER, Stéphanie YON-COURTIN, Olivier CHASTEL

Proposal for a regulation
Recital 36

(36) The new standardised approach for operational risk introduced by the BCBS combines an indicator that relies on the size of the business of an institution with an indicator that takes into account the loss history of that institution. The revised Basel standards envisage a number of discretions on how the indicator that takes into account the loss history of an institution may be implemented. Jurisdictions may disregard historical losses for the calculation of operational risk capital for all relevant institutions, or may take historical loss data into account even for institutions below a certain business size. To ensure a level playing fielTo increase the risk sensitivity of the framework and to incentivise institutions to better manage and wmit~~hin the Union and to simplify the calculation of operational risk capital~~igate their risks, those dhis~~cretions should be exercised in a harmonised manner for the minimum own funds requirements by disregarding historical operational loss data for all institutions~~torical loss factor should be implemented in the EU.

Amendment 347 #

Proposal for a regulation
Recital 36

(36) The new standardised approach for operational risk introduced by the BCBS combines an indicator that relies on the size of the business of an institution with an indicator that takes into account the loss history of that institution. The revised Basel standards envisage a number of discretions on how the indicator that takes into account the loss history of an institution may be implemented. Jurisdictions may disregard historical losses for the calculation of operational risk capital for all relevant institutions, or may take historical loss data into account even for institutions below a certain business size. ~~To ensure a level playing field w~~In order to incentivise credith in ~~the Union and to simplify the calculation of operational risk capital, those discretions should be exercised in a harmonised manner for th~~stitutions to maintain a robust operational risk management framework it is appropriate to take min~~imum own funds requirements by disregarding historical operational loss data for all institution~~to account credit institutions' historical losses in the calculation of their operational risk minimum own funds requirements.

Amendment 348 #

Proposal for a regulation
Recital 36 a (new)

(36 a) When measuring capital requirements for operational risk, insurance policies should be allowed to be used as effective risk mitigation techniques. To that end, within 6 months after the entry into force of the Regulation EBA shall report to the Commission on a standardized formula, based on specific criteria, to be used for the calculation of operational risk capital requirements. The Commission should be empowered to submit a legislative proposal within the following 12 months, to the European Parliament and Council of the EU taking into account insurance policies for the calculation of capital requirements on operational risk. EBA should identify eligible insurance contracts.

Amendment 349 #

Proposal for a regulation
Recital 38

(38) It is necessary to reduce the compliance burden for disclosure purposes and to enhance the comparability of disclosures. EBA should therefore establish a centralised web-based platform that enables the disclosure of information and data submitted by institutions. That centralised web-platform should serve as a single access point on institutions’ disclosures, while ownership of the information and data and the responsibility for their accuracy should remain with the institutions that produce it. The centralisation of the publication of disclosed information should be fully consistent with the Capital Market Union Action Plan and represents further step towards the development of an EU-wide single access point for companies’ financial ~~and sustainable investment- related~~ information.

Amendment 350 #

Proposal for a regulation
Recital 40

(40) To ensure convergence across the Union and a uniform understanding of the environmental, social and governance (ESG) factors and risks, general definitions should be laid down. The exposure to ESG risks is not necessarily proportional to an institution’s size and complexity. Level of exposures across the Union are also quite heterogeneous, with some countries showing potential mild transitional impacts and others showing potential high transitional impacts on exposures related to activities that have a significant negative impact on the environment. The transparency requirements that institutions are subject and the sustainability reporting requirements laid down in other pieces of existing legislation in the Union will provide more granular data in a few years. However, to properly assess the ESG risks that institutions may face, it is imperative that markets and supervisors obtain adequate data from all entities exposed to those risks, independently of their size. In order to ensure that competent authorities have at their disposal data that are granular, comprehensive and comparable for an effective supervision, information on exposures to ESG risks should be included in the supervisory reporting of institutions. The scope and granularity of that information should be consistent with the principle of proportionality, having regard to the size and complexity of the institutions.deleted

Amendment 351 #

Proposal for a regulation
Recital 41

Amendment 352 #

Paul TANG, René REPASI, Csaba MOLNÁR

Proposal for a regulation
Recital 41

(41) As the transition of the Union economy towards a sustainable economic model is gaining momentum, sustainability risks become more prominent and will potentially require further consideration. It is therefore necessary ~~to bring forward by 2 years EBA’s mandate to assess and report on whether a dedicated prudential treatment of exposures related to~~for banks to apply the large exposure regime as stipulated in Part Four of this Regulation to any financed emissions that are above an institution's target for financed emissions as sets o~~r activities substantially associated with environmental or social objectives would be justif~~ut in its plan to limit transition risks as stipulated by Article 76 of Directive 2013/36/EU. To allow for annual variations in the financed emissions of an institution, a 5% leeway shall be applied.

Amendment 353 #

Proposal for a regulation
Recital 41

(41) As the transition of the Union economy towards a sustainable economic model is gaining momentum, sustainability risks become more prominent and will ~~potentially~~ require further consideration. It is therefore necessary to bring forward by 2 years EBA’s mandate to assess and report on whether a dedicated prudential treatment of exposures related to assets or activities substantially associated with environmental or social objectives would be justified from a risk-based perspective. However, only after the completion of this accelerated report and the ongoing climate stress tests would it be justified to potentially propose a dedicated prudential treatment for these exposures.

Amendment 354 #

Proposal for a regulation
Recital 41

Amendment 355 #

Proposal for a regulation
Recital 41 a (new)

(41 a) According to the International Energy Agency, to reach the carbon neutrality objective by 2050, no new fossil fuel exploration and expansion can take place. This means that fossil fuel exposures represent a higher risk both at micro level, as the value of such assets is set to decrease over time, and at macro level as financing fossil fuel activities jeopardises the objective of maintaining the global rise of temperature below 1.5°C and therefore threatens the financial stability. The higher risks embedded in such exposure should be reflected in the prudential framework, as of now. Therefore, higher risk weights are set for exposures to existing fossil fuel exposures and exposures to new fossil fuel activities should be entirely equity funded.

Amendment 356 #

Proposal for a regulation
Recital 41 a (new)

(41 a) The EU updated industrial strategy included Social Economy in the 14 industrial ecosystems where robust and consistent policies are needed to drive the transformation towards a more sustainable, digital, resilient and globally competitive economy. A better alignment of banks’ prudential framework with the still constructing policy framework on Social Economy contributes to a better inclusion of ESG risks into the banks’ prudential framework. It enhances consistency between several EU policies’ areas.

Amendment 357 #

Elisabetta GUALMINI, Brando BENIFEI, Patrizia TOIA, Alessandra MORETTI, Simona BONAFÈ

Proposal for a regulation
Recital 41 b (new)

(41 b)) Some banks, by the legal form and by the business model they operate, are Social Economy entities. They fill all the boxes defining social economy entities as outlined in the Commission Communication. It is of the utmost importance that those banks and the business model they operate are recognised also in the supervisory and prudential framework as social economy entities. That recognition is consistent with the strategy that aims at putting green and sustainable financing at the heart of the financial system. It helps regulators and supervisors better understand their business model and develop consistent policies and supervisory approach and tools to deal with them. It improves the overall access to funding for social economy entities, and consequently revitalise the rural areas and proximity to the local communities, favouring the green and digital transition and the creation of job.

Amendment 358 #

Proposal for a regulation
Recital 41 a (new)

(41 a) A better alignment of banks’ prudential framework with the EU policy framework on Social Economy will contribute to a better inclusion of ESG requirements risks into the banks’ framework. Some banks have a specific legal nature, different characteristics, a unique "mutualistic" model that should be taken into account. It is therefore important that those banks are defined as "social economy entities", according to the conditions specified in Art. 4 point 146 (a). As a result, prudential and supervisory requirements should be made in a more proportionate and appropriate way.

Amendment 359 #

Elisabetta GUALMINI, Brando BENIFEI, Patrizia TOIA, Alessandra MORETTI, Simona BONAFÈ

Proposal for a regulation
Recital 41 b (new)

(41 b) The creation of the new category of social economy entities is consistent and will help to fulfil the strategy that puts green and sustainable financing at the heart of the EU financial system. It will help regulators and supervisors to better understand their business model and develop consistent policies and a more proportionate supervisory approach to deal with them. It will also help to improve the overall access to funding for social economy entities, which consequently will help revitalise the rural areas and proximity to the local communities, favouring the green and digital transition and the creation of new jobs.

Amendment 360 #

Proposal for a regulation
Recital 41 c (new)

(41 c) From a prudential and supervisory perspective, recognising some banks and business models as Social Economy entities and social economy oriented does not jeopardize the risk-based requirements underpinning the framework. To the contrary, it enriches dimensions by which risks are assessed. As a result, requirements can be made in a more proportionate and appropriate way.

Amendment 361 #

Paul TANG, René REPASI

Proposal for a regulation
Recital 41 a (new)

(41 a) To ensure that any adjustments for exposures to small and medium-sized enterprises and for infrastructure do not undermine the EU's climate ambitions, departure from the risk-based approach of the banking framework should only take place when such exposures contribute to the EU's climate ambitions as set out in Regulation (EU) 2019/852.

Amendment 362 #

Proposal for a regulation
Recital 41 a (new)

(41 a) The infrastructure supporting factor has been proven successful and should thus be maintained in its current form.

Amendment 363 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Recital 42

(42) It is essential for supervisors to have the necessary empowerments to assess and measure in a comprehensive manner the risks to which a banking group is exposed at a consolidated level and to have the flexibility to adapt their supervisory approach to new sources of risks. It is important to avoid loopholes between prudential and accounting consolidation which may give rise to transactions aimed at moving assets out of the scope of prudential consolidation, even though risks remain in the banking group. The lack of coherence in the definition of “parent undertaking”, “subsidiary” and “control” concepts, and the lack of clarity in the definition of “ancillary services undertaking”, “financial holding company” and “financial institution” make it more difficult for supervisors to apply the applicable rules consistently in the Union and to detect and appropriately address risks at a consolidated level. Those definitions should therefore be amended and further clarified as a matter of priority. In addition, it is deemed appropriate for EBA to investigate further whether these empowerments of the supervisors might be unintendedly constrained by any remaining discrepancies or loopholes in the regulatory provisions or in their interaction with the applicable accounting framework.

Amendment 364 #

Proposal for a regulation
Recital 43 a (new)

(43 a) Under the final Basel III reforms, the very short-term nature of SFTs is not well reflected in the Standardised Approach for credit risk, leading to own funds requirements calculated under that approach that could be excessively higher than own funds requirements calculated under the IRB approach and consequently affecting the liquidity of debt and securities markets, including the sovereign debt markets. The standardised approach is therefore adjusted in order to reflect the short-term nature of these exposures and mitigate the impact on the real economy and, in particular, on the financing of sovereigns.

Amendment 365 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Recital 46

(46) However, the actual CVA risk of the exempted transactions may be a source of significant risk for banks applying those exemptions; if those risks materialise, the banks concerned could suffer significant losses. As EBA highlighted in their report on CVA from February 2015, the CVA risks of the exempted transactions raise prudential concerns that are not being addressed under CRR. To help supervisors monitor the CVA risk arising from the exempted transactions, institutions should report the calculation of capital requirements for CVA risks of the exempted transactions that would be required if those transactions were not exempted. In addition, EBA should develop guidelines to help supervisors identify excessive CVA risk and to improve the harmonisation of supervisory actions in this area across the EU.deleted

Amendment 366 #

Proposal for a regulation
Recital 46

Amendment 367 #

Proposal for a regulation
Recital 46

Amendment 368 #

Proposal for a regulation
Recital 46

Amendment 369 #

Michiel HOOGEVEEN

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point a a (new)

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 1 – point b

(a a) Article 4 paragraph 1 point (1) is replaced by the following "(1) ‘credit institution’ means an undertaking the business of which consists of any of the following: (a) to take deposits or other repayable funds from the public and to grant credits for its own account; (b) to carry out any of the activities referred to in points (3) and (6) of Section A of Annex I to Directive 2014/65/EU of the European Parliament and of the Council ~~( 6 )~~, where one of the following applies, but the undertaking is not a commodity and emission allowance dealer, a collective investment undertaking or an insurance undertaking, and where the consolidating supervisor, in consultation with the supervisory college, so decides in order to address potential risks for the financial stability of the Union or, for the purpose of point (iii), potential risks of circumvention: (i) the total value of the consolidated assets of the undertaking is equal to or exceeds EUR 30 billion; (ii) the total value of the assets of the undertaking is less than EUR 30 billion, and the undertaking is part of a group in which the total value of the consolidated assets of all undertakings in that group that individually have total assets of less than EUR 30 billion and that carry out any of the activities referred to in points (3) and (6) of Section A of Annex I to Directive 2014/65/EU is equal to or exceeds EUR 30 billion; or (iii) the total value of the assets of the undertaking is less than EUR 30 billion, and the undertaking is part of a group in which the total value of the consolidated assets of all undertakings in the group that carry out any of the activities referred to in points (3) and (6) of Section A of Annex I to Directive 2014/65/EU is equal to or exceeds EUR 30 billion, where the consolidating supervisor, in consultation with the supervisory college, so decides in order to address potential risks of circumvention and potential risks for the financial stability of the Union; for the purposes of points (b)(ii) and (b)(iii), where the undertaking is part of a third-country group, the total assets of each branch of the third-country group authorised in the Union shall be included in the combined total value of the assets of all undertakings in the group; " Or. en (https://eur-lex.europa.eu/legal-content/EN/AUTO/?uri=celex:32019R2033)

Amendment 370 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point b

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 18 – introductory part

(18) ‘ancillary services undertaking’ means an undertaking that is not an SSPE or a CIU the principal activity of which, whether provided to undertakings inside the group or to clients outside the group, is ancillary to the principal activity of one or more institutions and the competent authority considers to be any of the following:

Amendment 371 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point b

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 18 – introductory part

(18) ‘ancillary services undertaking’ means an undertaking the principal activity of which, whether provided to undertakings inside the group or to clients outside the group, ~~the competent authority considers to be~~is any of the following:

Amendment 372 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point b

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 18 – point b

(b) ~~operational leasing,~~ factoring, the management of unit trusts, the ownership or management of property, the provision of data processing services or any other activity that is ancillary to banking; those activities are taken into account if the activity is mainly provided to the parent undertaking;

Amendment 373 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point b

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 18 – point b

(b) ~~operational leasing,~~ factoring, the management of unit trusts, the ownership or management of property, the provision of data processing services or any other activity that is ancillary to banking, these activities are concerned if the activity is mainly provided to the parent undertaking;

Amendment 374 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point b

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 18 – point b

(b) ~~operational leasing,~~ factoring, the management of unit trusts, the ownership or management of property, the provision of data processing services or any other activity that is ancillary to banking. These activities are concerned if the activity is mainly provided to the parent undertaking;

Amendment 375 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point b

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 18 – point b

(b) operational leasing, factoring, the management of unit trusts, ~~the ownership or management of property,~~ the provision of data processing services or any other activity that is ancillary to banking;

Amendment 376 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point b

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 18 – point b

Amendment 377 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point b

Amendment 378 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point b

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 18 – point c

~~(c) any other activity considered similar by EBA to those mentioned in points (a) and (b);;~~deleted

Amendment 379 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point b

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 18 – point c

~~(c) any other activity considered similar by EBA to those mentioned in points (a) and (b);;~~deleted

Amendment 380 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point b

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 18 – point c

~~(c) any other activity considered similar by EBA to those mentioned in points (a) and (b);;~~deleted

Amendment 381 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point b

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 18 – point c

~~(c) any other activity considered similar by EBA to those mentioned in points (a) and (b);;~~deleted

Amendment 382 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point e

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 26 – point a

(a) the undertaking is not an institution, a pure industrial holding company, an insurance holding company, an owner or manager of property, or a mixed- activity insurance holding company as defined in Article 212(1), points (f) and (g), of Directive 2009/138/EC; ;

Amendment 383 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point g

Regulation (EU) No 575/2013
Article 4 – paragraph 1– point 27 – point g

(g) in point (27), point (c) isand (g) are deleted;

Amendment 384 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point k

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 52

(52) ‘operational risk’ means the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events, including, but not limited to, legal risk, model risk and ICT risk, but not strategic and reputational risk;;

Amendment 385 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point k

Regulation (EU) No 575/2013
Article 4 ¬ paragraph 1 ¬ point 52

Amendment 386 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point k

Regulation (EU) No 575/2013
Article 4 – paragraph 1– point 52

(52) ‘operational risk’ means the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events, including but not limited to legal risk, model risk and ICT risk, but not strategic and reputational risk;;

Amendment 387 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 52a

(52a) ‘legal risk’ means losses, including expenses, fines, penalties or punitive damages, caused by events that result in legal proceedings, including the following: (a) supervisory actions and private settlements; (b) necessary to comply with a legal obligation; (c) with a legal obligation; (d) events that arise from wilful or negligent misconduct, including inappropriate supply of financial services; (e) non-compliance with any requirement derived from national or international statutory or legislative provisions; (f) non-compliance with any requirement derived from contractual arrangements, or with internal rules and codes of conduct established in accordance with national or international norms and practices; (g) non-compliance with ethical rules. Legal risk does not comprise refunds to third parties or employees and goodwill payments due to business opportunities, where no breach of any rules or ethical conduct has occurred and where the institution has fulfilled its obligations on a timely basis; and external legal costs where the event giving rise to those external costs is not an operational risk event.deleted failure to act where action is action taken to avoid compliance misconduct events, which are

Amendment 388 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

(52a) ‘legal risk’ means the risk of losses, including, but not limited to, expenses, fines, penalties or punitive damages, ~~caused by~~which an institution may incur as a consequence of events that result in legal proceedings, including the following:

Amendment 389 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 52a – introductory part

(52a) ‘legal risk’ means risk of losses, including, but not limited to, expenses, fines, penalties or punitive damages, ~~caused by~~which an institution may incur as a consequence of events that result in legal proceedings, including the following:

Amendment 390 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

(52a) ‘legal risk’ means risk of losses, including expenses, fines, penalties or punitive damages, caused by events that result in legal proceedings, including the following:

Amendment 391 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 52a – point d

(d) misconduct events, which are events that arise from wilful or negligent misconduct, including inappropriate supply of financial services or inadequate or lack of information provided to retail customers about the financial products sold by the institution; ;

Amendment 392 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 52b

(52b) ‘model risk’ means the loss an institution may incur as a consequence of decisions that could be principally based on the output of internal models, due to errors in the development, implementation or use of such models, including the following: (a) internal model and its characteristics; (b) selected internal model’s suitability for the financial instrument to be evaluated or for the product to be priced, or of the selected internal model’s suitability for the applicable market conditions; (c) selected internal model; (d) valuations and risk measurement as a result of a mistake when booking a trade into the trading system; (e) model or of its outputs for a purpose for which that model was not intended or designed, including manipulation of the modelling parameters; (f) monitoring of model performance to assess whether the selected internal model remains fit for purpose;deleted the improper set-up of a selected the inadequate verification of a errors in the implementation of a incorrect mark-to-market the use of a selected internal the untimely and ineffective

Amendment 393 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

Regulation (EU) No 575/2013
Article 4 – paragraph 1– point 52b – introductory part

(52b) ‘model risk’ means the risk of losses an institution may incur as a consequence of decisions that could be principally based on the output of internal models, due to errors in the design, development, implementation or, use or monitoring of such models, including the following:

Amendment 394 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 52b – introductory part

(52b) ‘model risk’ means the risk of loss an institution may incur as a consequence of decisions that could be principally based on the output of internal models, due to errors in the development, implementation or use of such models, including the following:

Amendment 395 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 52c

(52c) ‘ICT risk’ means the risk of losses or potential losses related to the use of network information systems or communication technology, including breach of confidentiality, failure of systems, unavailability or lack of integrity of data and systems, and cyber risk;deleted

Amendment 396 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 52c

(52c) ‘ICT risk’ means the risk of losses or potential losses related to any reasonably identifiable circumstance in relation to the use of network and information systems ~~or communication technology, including breach of confidentiality, failure of systems, unavailability or lack of integrity of data and systems, and cyber risk~~which, if materialised, may compromise the security of the network and information systems, of any technology dependent tool or process, of operations and processes, or of the provision of services by producing adverse effects in the digital or physical environment;

Amendment 397 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 52d

Amendment 398 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 52d

(52d) ‘environmental, social or governance (ESG) risk’ means the risk of losses arising from any negative financial impact on the institution stemming from the current or prospective impacts of environmental, social or governance (ESG) factors on the institution’s counterparties or invested assets; ESG risks are not a separate type of risk, but rather a risk driver impacting other risk categories, such as credit risk, operational risk and market risk.

Amendment 399 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

(52d) ‘environmental, social or governance (ESG) risk’ means the risk of losses arising from any negative financial impact on the institution stemming from the current or prospective impacts of environmental, social or governance (ESG) factors on the institution’s counterparties or invested assets; in this context, ESG risks are drivers of the existing risk categories, such as credit risk, operational risk and market risk;

Amendment 400 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 52d

(52d) ‘environmental, social or governance (ESG) risk’ means the risk ~~of losses~~ arising from any negative financial impact on the institution stemming from the current or prospective impacts of environmental, social or governance (ESG) factors on the institution’s counterparties or invested assets; (This amendment applies throughout the text.)

Amendment 401 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

Regulation EU 575/2013
Article 4 – paragraph 1– point 52d

Amendment 402 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 52d

(52d) ‘environmental, social or governance (risk' or 'ESG) risk’ means the risk of ~~losses arising from~~ any negative financial impact on the institution stemming from the current or prospective impacts of environmental, social or governance (ESG) factors on the institution’s counterparties or invested assets;

Amendment 403 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 52d

(52d) ‘environmental, social or governance (ESG) risk’ means the risk of ~~losses arising from~~ any negative financial impact on the institution stemming from the current or prospective impacts of environmental, social or governance (ESG) factors on the institution’s counterparties or invested assets;

Amendment 404 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 52e – introductory part

(52e) ‘environmental risk’ means the risk ~~of losses~~ arising from any negative financial impact on the institution stemming from the current or prospective impacts of environmental factors on the institution’s counterparties or invested assets, including factors related to the transition towards the following environmental objectives:

Amendment 405 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 52e – introductory part

(52e) ‘environmental risk’ means the risk of ~~losses arising from~~ any negative financial impact on the institution stemming from the current or prospective impacts of environmental factors on the institution’s counterparties or invested assets, including factors related to the transition towards the following environmental objectives:

Amendment 406 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 52e – introductory part

Amendment 407 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

Regulation (EU) No 575/2013
Article 4 – paragraph 1– point 52f

(52f) ‘physical risk’, as part of the overall environmental risk, means the risk ~~of losses~~ arising from any negative financial impact on the institution stemming from the current or prospective impacts of the physical effects of environmental factors on the institution’s counterparties or invested assets;

Amendment 408 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 52f

(52f) ‘physical risk’, as part of the overall environmental risk, means the risk of ~~losses arising from~~ any negative financial impact on the institution stemming from the current or prospective impacts of the physical effects of environmental factors on the institution’s counterparties or invested assets;

Amendment 409 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

Regulation (EU) No 575/2013
Article 4 – paragraph1 – paragraph 52f

Amendment 410 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 52g

(52g) ‘transition risk’, as part of the overall environmental risk, means the risk of ~~losses arising from~~ any negative financial impact on the institution stemming from the current or prospective impacts of the transition ~~of business activities and sectors~~ to an environmentally sustainable economy on the institution’s counterparties or invested assets;

Amendment 411 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

Regulation (EU) No 575/2013
Article 4 ¬ paragraph 1 ¬ point 52g

(52g) ‘transition risk’, as part of the overall environmental risk, means the risk ~~of losses~~ arising from any negative financial impact on the institution stemming from the current or prospective impacts of the transition ~~of business activities and sectors~~ to an environmentally sustainable economy on the institution’s counterparties or invested assets;

Amendment 412 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 52g

(52g) ‘transition risk’, as part of the overall environmental risk, means the risk of ~~losses arising from~~ any negative financial impact on the institution stemming from the current or prospective impacts of the transition of business activities and sectors to an environmentally sustainable economy on the institution’s counterparties or invested assets;

Amendment 413 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

Regulation (EU) No 575/2013
Article 4 – paragraph 1– point 52g

(52g) ‘transition risk’, as part of the overall environmental risk, means the risk of ~~losses arising from~~ any negative financial impact on the institution stemming from the current or prospective impacts of the transition of business activities and sectors to an environmentally sustainable economy on the institution’s counterparties or invested assets;

Amendment 414 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 52h

(52h) ‘social risk’ means the risk of ~~losses arising from~~ any negative financial impact on the institution stemming from the current or prospective impacts of social factors on its counterparties or invested assets;

Amendment 415 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 52h

Amendment 416 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 52h

Amendment 417 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 52i

(52i) ‘governance risk’ means the risk of ~~losses arising from any~~ negative financial impact on the institution stemming from the current or prospective impacts of governance factors on the institution’s counterparties or invested assets;;

Amendment 418 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 52i

(52i) ‘governance risk’ means the risk of ~~losses arising from~~ any negative financial impact on the institution stemming from the current or prospective impacts of governance factors on the institution’s counterparties or invested assets;;

Amendment 419 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point l

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 52i

Amendment 420 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point m

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 54

(54) ‘probability of default’ or ‘PD’ means the probability of default of an obligor over a one-year period, and, in the context of dilution risk, the probability of dilution over ~~that~~a one-year period;

Amendment 421 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point m

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 55

(55) ‘loss given default’ or ‘LGD’ means the ~~expected~~ ratio of the loss on an exposure related to a single facility due to the default of an obligor or facility to the amount outstanding at default, and, in the context of dilution risk, the loss given dilution meaning the expected ratio of the loss on an exposure due to dilution, to the amount outstanding according to the pledged or purchased receivable;

Amendment 422 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point m

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 55

(55) ‘loss given default’ or ‘LGD’ means the ~~expected~~ ratio of the loss on an exposure related to a single facility due to the default of an obligor or facility to the amount outstanding at default, and, in the context of dilution risk, the loss given dilution meaning the ~~expected~~ ratio of the loss on an exposure due to dilution, to the amount outstanding according to the pledged or purchased receivable;

Amendment 423 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point m

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 56

(56) ‘conversion factor’ or ‘credit conversion factor’ or ‘CCF’ means the ~~expected~~ ratio of the currently undrawn amount of a commitment from a single facility that could be drawn from a single facility before default and that would therefore be outstanding at default to the currently undrawn amount of the commitment from that facility, the extent of the commitment being determined by the advised limit, unless the unadvised limit is higher;;

Amendment 424 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point m

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 56

Amendment 425 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point s

Regulation (EU) 575/2013
Article 4 – paragraph 1 – point 75e

(75e) ‘exposure secured by residential property’, or ‘exposure secured by a mortgage on residential property’, or ‘exposure secured by residential property collateral’, or ‘exposure secured by residential immovable property’, means an exposure secured by a mortgage on residential property or secured by any other mechanisms other than mortgages but which are economically equivalent to mortgages and recognised as collateral on residential property under the applicable national law setting out the conditions for the establishment of those mechanisms;residential immovable property; (The same applies to points 75f and 75g, accordingly to the context of those points.)

Amendment 426 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point s

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 75e

Amendment 427 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point s

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 75e

(75e) ‘exposure secured by residential property’, or ‘exposure secured by a mortgage on residential property’, or ‘exposure secured by residential property collateral’, or ‘exposure secured by residential immovable property’, means an exposure secured by a mortgage on residential property or secured by any other mechanisms other than mortgages but which are economically equivalent to mortgages and recognised as collateral on residential property under the applicable national law setting out the conditions for the establishment of those mechanismsan exposure regarded as such in accordance with Article 108(3);

Amendment 428 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point s

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 75e

(75f) ‘exposure secured by commercial immovable property’, or ‘exposure secured by a mortgage on commercial immovable property’, or ‘exposure secured by commercial immovable property collateral’ means an exposure secured by a ~~mortgage on~~ commercial immovable property or secured by any other mechanisms other than mortgages but which are economically equivalent to mortgages and recognised as collateral on commercial immovable property under the applicable national law setting out the conditions for the establishment of those mechanisms;

Amendment 429 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point s

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 75g

(75g) ‘exposure secured by immovable property’, or ‘exposure secured by a mortgage on immovable property’, or ‘exposure secured by immovable property collateral’ means an exposure secured by a ~~mortgage on~~ residential or commercial immovable property or secured by any other mechanisms other than mortgages but which are economically equivalent to mortgages and recognised as collateral on immovable property under the applicable national law setting out the conditions for the establishment of those mechanisms;;

Amendment 430 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point s

Regulation (EU) No 575/2013
Article 4 – pargraph 1 – point 75g

(75g) ‘exposure secured by immovable property’, or ‘exposure secured by a mortgage on immovable property’, or ‘exposure secured by immovable property collateral’ means an exposure secured by a mortgage on residential or commercial immovable property or secured by any other mechanisms other than mortgages but which are economically equivalent to mortgages and recognised as collateral on immovable property under the applicable national law setting out the conditions for the establishment of those mechanisms;an exposure regarded as such in accordance with Article 108(3);

Amendment 431 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point t

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 79

(79) ‘ADC exposures’ or ‘land acquisition, development and construction exposures’ means exposures to corporates or special purpose entities financing any land acquisition for development and construction purposes, or financing development and construction of any residential or commercial immovable property;; except for loans to housing entities which after the construction phase continue to own and administer the financed property.

Amendment 432 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point t

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 79

(79) ‘ADC exposures’ or ‘land acquisition, development and construction exposures’ means exposures to corporates or special purpose entities financing any land acquisition for development and construction purposes, or financing development and construction of any residential or commercial immovable property excluding where the loan is below 80% of the property value;;

Amendment 433 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point t

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 79

(79) ‘ADC exposures’ or ‘land acquisition, development and construction exposures’ means loans exposures to corporates or special purpose entities financing any land acquisition for development and construction purposes, or financing development and construction of any residential or commercial immovable property;;

Amendment 434 #

Elisabetta GUALMINI, Brando BENIFEI, Patrizia TOIA, Alessandra MORETTI, Simona BONAFÈ

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point w a (new)

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 145 – point b

(w a) Article 4(1), point (145), point b is amended as follows: "the total value of its assets on an individual basis or, where applicable, on a consolidated basis in accordance with this Regulation and Directive 2013/36/EU is on average equal to or less than the threshold of EUR 7,5 billion over the four-year period immediately preceding the current annual reporting period; Member States may lower that threshold"

Amendment 435 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point x a (new)

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 146 – introductory part

(x a) point (146) is amended as follows: ‘large institution’ means an institution that is not a social economy entity and meets any of the following conditions: (a) it is a G-SII; (b) it has been identified as another systemically important institution (O-SII) in accordance with Article 131(1) and (3) of Directive 2013/36/EU; (c) it is, in the Member State in which it is established, one of the three largest institutions in terms of total value of assets; (d) the total value of its assets on an individual basis or, where applicable, on the basis of its consolidated situation in accordance with this Regulation and Directive 2013/36/EU is equal to or greater than EUR 30 billion;

Amendment 436 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point x a (new)

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 146 – introductory part

(x a) In Article 4(1), point 146 is replaced by the following: 146) ‘large institution’ means an institution that is not a social economy entity and meets any of the following conditions: (a) it is a G-SII; (b) it has been identified as an other systemically important institution (O-SII) in accordance with Article 131(1) and (3) of Directive 2013/36/EU; (c) it is, in the Member State in which it is established, one of the three largest institutions in terms of total value of assets; (d) the total value of its assets on an individual basis or, where applicable, on the basis of its consolidated situation in accordance with this Regulation and Directive 2013/36/EU is equal to or greater than EUR 30 billion;;

Amendment 437 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point x a (new)

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 146 – introductory part

(x a) in point (146), the introductory part is replaced by the following: (146) ‘large institution’ means an institution that is not a social economy entity and meets any of the following conditions:

Amendment 438 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point x a (new)

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 146 – introductory part

(x a) in point (146), the introductory part is replaced by the following: : "(146) ‘large institution’ means an institution that is not a social economy entity and meets any of the following conditions: " Or. en (Regulation (EU) No 575/2013)

Amendment 439 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 a (new)

Regulation (EU) No 575/2013
Article 4 – paragaraph 1 – point 146 – introductory part

"(146) ‘large institution’ means an institution that is not a social economy entity and meets any of the following conditions: Or. en (02013R0575-20220410)

Amendment 440 #

Elisabetta GUALMINI, Brando BENIFEI, Patrizia TOIA, Alessandra MORETTI, Simona BONAFÈ

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point x b (new)

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 146 a (new)

(x b) the following point 146a is added: 146a) ‘social economy entity’ means an entity that meets all of the following conditions: a) the entity is not a G-SII; b) the entity and its subsidiaries and affiliated undertakings are linked according to Article 22, paragraph 7, of Directive 2013/34/EU and applicable national laws address subsidiaries to allocate profits mainly to common interests of members; c) subsidiaries or affiliated undertakings are small and non-complex entities according to point 145 of this Article or less significant institutions according to Article 6, paragraph 4, of Regulation (EU) 1024/2013; d) affiliated undertakings are bound by national laws for a governance model informed by democratic principles.

Amendment 441 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point x b (new)

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 146 a (new)

(x b) the following point (146 a) is inserted: “social economy entity’ means an entity that meets all of the following conditions: a) The entity is not a G-SII; b) The entity and its subsidiaries and affiliated undertakings are linked according to article 22, paragraph 7 of Directive 2013/34/EU and applicable national laws address subsidiaries to allocate profits mainly to common interests of members; c) Subsidiaries or affiliated undertakings are small and non-complex entities according to point 145 of this article or less significant institutions according to art.6, paragraph 4 of Regulation (EU) 1024/2013; d) Affiliated undertakings are bound by national laws for a governance model informed by democratic principles.

Amendment 442 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point x b (new)

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 146 a (new)

(x b) the following point is inserted : “(146a) ‘social economy entity’ means an entity that meets all of the following conditions: a) the entity is not a G-SII b) the entity and its subsidiaries and affiliated undertakings are linked according to Article 22(7) of Directive 2013/34/EU and applicable national laws address subsidiaries to allocate profits mainly to common interests of members; c) subsidiaries and affiliated undertakings are small and non-complex entities according to point 145 of this Article or less significant institutions according to Art. 6(4) of Regulation (EU) 1024/2013; d) subsidiaries and affiliated undertakings are bound by national laws for a governance model informed by democratic principles.

Amendment 443 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point x b (new)

(x b) the following point is inserted: “(146a) ’social economy entity’ means an entity that meets all of the following conditions: a) the entity is not a G-SII; b) the entity and its subsidiaries and affiliated undertakings are linked in accordance with Article 22(7) of Directive 2013/34/EU and applicable national laws address subsidiaries to allocate profits mainly to common interests of members; c) subsidiaries and affiliated undertakings are small and non-complex entities or less significant institutions in accordance with Article 6(4) of Regulation (EU) 1024/2013; d) subsidiaries and affiliated undertakings are bound by national laws for a governance model informed by democratic principles.

Amendment 444 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point x b (new)

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 146a (new)

(146a) ‘Social economy entity’ means an entity that meets all of the following conditions: (a) the entity is not a G-SII (b) the entity and its subsidiaries are affiliated undertakings are linked according to Art. 22(7) of Directive 2013/34/EU and applicable national laws address subsidiaries to allocate profits mainly to common interests of members (c) subsidiaries or affiliated undertakings are small and non-complex entities according to point 145 of this article or less significant institutions according to Art.6(4) of Regulation (EU) 1024/2013;d) Affiliated undertakings are bound by national laws for a governance model informed by democratic principles " Or. en (02013R0575-20220410)

Amendment 445 #

Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point y

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 151

(151) ‘revolving exposure’ means any exposure whereby the borrower’s outstanding balance is permitted to fluctuate based on its decisions to borrow and repay, up to a~~n agreed limit~~ limit established by the bank;

Amendment 446 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point y

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 151

(151) ‘revolving exposure’ means any exposure whereby the borrower’s outstanding balance is permitted to fluctuate based on its decisions to borrow and repay, up to an a~~gre~~pproved limit;

Amendment 447 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point y

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 152 – point a

(a) an exposure for which, on a regular basis of at least every 12 months, the ~~balance~~amount to be repaid at the next scheduled repayment date is determined as the drawn amount at a predefined reference date or upon contractual repayment modalities, with all scheduled repayment date not later than after 12 months, provided that the ~~balance has~~amount or instalments owed to the bank have been repaid in full at each scheduled repayment date for the previous 12 months;

Amendment 448 #

Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point y

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 152 – point a

(a) an exposure for which, on a regular basis of at least every 12 months, the balance to be repaid at the next scheduled repayment date is determined as the drawn amount or an instalment at a predefined reference date, with a scheduled repayment date not later than after 12 months, provided that the balance has been repaid in full at each scheduled repayment date for the previous 12 months;

Amendment 449 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point y

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 152 – point a

Amendment 450 #

Eva KAILI

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point y

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 152 – point a

Amendment 451 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point y a (new)

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 152 a (new)

(y a) the following point is inserted: ‘(152a) ‘fossil fuel sectors’ means sectors of the economy which produce, process, store or use fossil fuels as defined in Article 2, point (62) of Regulation EU 2018/1999 of the European Parliament and the Council;

Amendment 452 #

Aurore LALUCQ, Paul TANG, Csaba MOLNÁR

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point y a (new)

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 152 a (new)

(152 a)‘fossil fuel sectors’ means sectors of the economy which produce, process, store or use fossil fuels as defined in Article 2(62) of Regulation (EU)2018/1999 of the European Parliament and of the Council.

Amendment 453 #

Aurore LALUCQ, Paul TANG, Csaba MOLNÁR

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point y b (new)

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 152 b (new)

(152 b)‘companies active in the fossil fuel sectors’ means (i) companies that derive any revenues from exploration, mining, extraction, or reining of hard coal and lignite; (ii) companies that derive any revenues from the exploration, extraction, distribution (excluding distribution, transportation, storage and trade) or reining of liquid fossil fuels; and (iii) companies that derive any revenues from exploring and extracting fossil gaseous fuels or from their dedicated distribution(excluding distribution, transportation, storage and trade).

Amendment 454 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point y b (new)

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 152 b (new)

(y b) the following point is inserted: (152b) ‘companies active in the fossil fuel sector’ means companies that derive any revenues from exploration, mining, extraction, production, processing, storage, refining or distribution, including transportation, storage, use and trade, of fossil fuels as defined in Article 2, point (62), of Regulation (EU) 2018/1999 of the European Parliament and of the Council

Amendment 455 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point y c (new)

Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point 152 c (new)

(y c) the following point is added: (152c) 'non-bank financial intermediary' means an undertaking that carries out one or more credit intermediation activities and that is not an undertaking listed in Annex III a (new).

Amendment 456 #

Proposal for a regulation
Article 1 – paragraph 1 – point 1 a (new)

Regulation (EU) No 575/2013
Article 4 – paragraph 4 a (new)

(1 a) in Article 4, the following paragraph is added: ‘4a. The EBA shall develop guidelines specifying which activities are considered similar as those mentioned in points (a) and (b) of point (18) of paragraph 1 of this Article.

Amendment 457 #

Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point b

Regulation (EU) No 575/2013
Article 5 – point 8

(8) ‘small and medium-sized enterprise’ or ‘SME’ means for the purpose of this Regulation a company, enterprise or undertaking which, according to the last consolidated accounts, has an annual turnover not exceeding EUR 50 000 000;’

Amendment 458 #

Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point b

Regulation (EU) No 575/2013
Article 5 – point 9 – subparagraph 2 – point a

(a) contractual arrangements where the institution receives no fees or commissions to ~~establish or~~ maintain those contractual arrangements;

Amendment 459 #

Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point b

Regulation (EU) No 575/2013
Article 5 – point 9 – subparagraph 2 – point d

(d) contractual arrangements where the institution is required to assess the creditworthiness of the client immediately prior to deciding on the execution of each drawdown is conditional upon assessing the creditworthiness of the client by the institution;

Amendment 460 #

Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point b

Regulation (EU) No 575/2013
Article 5 – point 9 – subparagraph 2 – point d

(d) ~~contractual arrangements where the institution is required to assess the creditworthiness of the client immediately prior to deciding on the execution of each drawdown~~the decision of the institution on the execution of each drawdown is conditional upon assessment of the creditworthiness of the client;

Amendment 461 #

Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point b

Regulation (EU) No 575/2013
Article 5 – point 9 – subparagraph 2 – point d

(d) contractual arrangements where the ~~institution is required to assess the creditworthiness of the client immediately prior to deciding on the execution of each drawdown~~decision of the institution on the execution of each drawdown is conditional upon assessment of the creditworthiness of the client;

Amendment 462 #

Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point b

Regulation (EU) No 575/2013
Article 5 – point 9 – subparagraph 2 – point d

Amendment 463 #

Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point b

Regulation (EU) No 575/2013
Article 5 – point 9 – subparagraph 2 – point d

(d) ~~contractual arrangements where the institution is required to~~the institution’s decision on the execution of each drawdown is only made after assessing the creditworthiness of the client immediately prior to ~~deciding on the execution of each~~ drawdown;

Amendment 464 #

Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point b

Regulation (EU) No 575/2013
Article 5 – point 9 – subparagraph 2 – point e

(e) contractual arrangements that are offered to a corporate entity, including an SME, ~~that is~~considered that those counterparties are closely monitored on an ongoing basis.

Amendment 465 #

Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point b

Regulation (EU) No 575/2013
Article 5 – point 9 – subparagraph 2 – point e

(e) contractual arrangements that are offered to a corporate entity, including an SME, ~~that is~~considered that those counterparties are closely monitored on an ongoing basis.

Amendment 466 #

Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point b

Regulation (EU) No 575/2013
Article 5 – point 9 – subparagraph 2 – point e

(e) contractual arrangements that are offered to a corporate entity, including an SME, ~~that is~~provided that those counterparties are closely monitored on an ongoing basis.

Amendment 467 #

Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point b

Regulation (EU) No 575/2013
Article 5 – point 9 – subparagraph 2 – point e

(e) contractual arrangements that are offered to a credit institution or a corporate entity, including an SME, that is closely monitored on an ongoing basis.

Amendment 468 #

Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point b

Regulation (EU) No 575/2013
Article 5 – point 10

(10) ‘unconditionally cancellable commitment’ means any commitment the terms of which permit the institution to cancel that commitment, to the full extent allowable under consumer protection and related legislation where applicable, at any time without prior notice to the obligor or that effectively provide for automatic cancellation due to deterioration in a borrower's creditworthiness.’;

Amendment 469 #

Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point b

Regulation (EU) No 575/2013
Article 5 – point 10

Amendment 470 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point b

Regulation (EU) No 575/2013
Article 5 – point 10

Amendment 471 #

Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point b

Regulation (EU) 575/2013
Article 5 – point 10 a (new)

(10a) For the purpose of this regulation, ‘agricultural enterprise’ means a natural or legal person, or a group of natural or legal persons, regardless of the legal status granted to such group and its members who exercises an agricultural activity.

Amendment 472 #

Frances FITZGERALD

Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point b

Regulation (EU) No 575/2013
Article 5 – point 10 a (new)

(10 a) For the purpose of this regulation, ‘agricultural enterprise’ means a natural or legal person, or a group of natural or legal persons, regardless of the legal status granted to such group and its members who exercises an agricultural activity.

Amendment 473 #

Proposal for a regulation
Article 1 – paragraph 1 – point 3 a (new)

Regulation (EU) No 575/2013
Article 7 – paragraph 3a (new)

(3 a) in Article 7, a new paragraph is added: “3a. By 31 December 2026, the Commission shall report to the European Parliament and the Council on the possibility of allowing for the application of paragraph 1 also to a subsidiary that is subject to authorisation and supervision by a Member State other than the Member State that authorises and supervises the institution which is the parent undertaking. The Commission shall pay particular attention to progress made on completing the banking union, and more particular to improvements made to the banking crisis management and deposit insurance framework which can address potential financial stability concerns resulting from the applying paragraph 1 on a cross-border basis. The Commission shall also consider which additional prudential safeguards and technical modifications could further address any potential financial stability concerns resulting from such application of paragraph 1. In particular, when applying paragraph 1 on a cross-border basis, requiring subsidiaries that benefit from an application of capital requirements in accordance with paragraph 1 to still hold adequate minimum levels of own funds requirements to ensure their resilience, also in distressed situations, could be considered. Competent authorities could define an adequate amount, taking into account the efficiency of group risk management and the effectiveness of the group financial support arrangement in resolution. That report shall, where appropriate, be accompanied by a legislative proposal. In the event that the Commission considers that the conditions to issue a legislative proposal are not met, the review referred to in the first paragraph shall be repeated every two years until such time as the Commission deems it appropriate to publish such a legislative proposal.

Amendment 474 #

Proposal for a regulation
Article 1 – paragraph 1 – point 3 b (new)

Regulation (EU) No 575/2013
Article 8 – paragraph 1 – subparagraph 2

By 1 January 2014, the Commission shall report to the European Parliament and the Council on any legal obstacles which are capable of rendering impossible the application of point (c) of the first subparagraph and is invited to make a legislative proposal, if appropriate, by 31 December 2015, on which of those obstacles should be removed. deleted Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02013R0575- 20230628&from=EN)

Amendment 475 #

Proposal for a regulation
Article 1 – paragraph 1 – point 3 c (new)

Regulation (EU) No 575/2013
Article 8 – paragraph 3 – introductory part

"3. Where institutions of the single liquidity sub-group are authorised in several Member States, paragraph 1 shall only be applied after following the procedure laid down in Article 21 and only to the institutions whose competent authorities agree about the ~~following elements: (https://eur-lex.europa.eu/leg~~elements set out in points (a) to (f) and that the additional- con~~tent/EN/TXT/PDF/?uri=CELEX:02013R0575-~~ditions set out in points (g) to (j) have been fulfilled: " Or. en 20230628&from=EN)

Amendment 476 #

Proposal for a regulation
Article 1 – paragraph 1 – point 3 d (new)

Regulation (EU) No 575/2013
Article 8 – paragraph 3 – points (g) to (j) (new)

(3 d) in Article 8(3), the following points are added: (g) all entities belonging to the single liquidity sub-group have entered into a group financial support agreement as defined in Directive 2014/59/EU, or another group financial support agreement that the competent authorities deem satisfactory, which requires the parent undertaking to provide liquidity support and does not provide for any upper limit to the level of support that can be provided and that would not be revocable at short notice. This group financial support agreement could also be used to satisfy the condition under point (c) of paragraph 1; (h) the liquidity sub-group provides an independent legal opinion to the competent authorities on the enforceability of this group financial support agreement that confirms the absence of any legal impediments to the transfer of liquidity across the entities belonging to the single liquidity sub- group; (i) the single liquidity sub-group is covered by a single group recovery plan that includes recovery plan indicators for each entity of the liquidity sub-group including the parent undertaking that are consistent with the liquidity sub-group’s internal liquidity management policy; (j) the single liquidity sub-group belongs to a banking group which is subject to a group resolution scheme in accordance with Article 92 of Directive 2014/59/EU. " Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02013R0575- 20230628&from=EN)

Amendment 477 #

Proposal for a regulation
Article 1 – paragraph 1 – point 3 e (new)

Regulation (EU) No 575/2013
Article 8 – paragraph 3a (new)

~~New (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02013R0575-~~(3 e) in Article 8, the following paragraph is inserted: "3a. By 31 December 2025, the Commission shall report to the European Parliament and the Council on the legal form and specific prudential treatment for group financial support agreements. The report shall be accompanied, where appropriate, by a legislative proposal. By 31 December 2026, the Commission shall review and report on the functioning of paragraph 3 of this Article and shall submit that report to the European Parliament and the Council. The Commission’s review and report shall assess, in particular, whether the elements and conditions specified in points (a) to (j) of paragraph 3 of this Article provide sufficient flexibility to competent authorities to define institution-specific requirements as necessary for waiving the application of liquidity requirements, where justified by the efficiency of group risk management and the effectiveness of the group financial support arrangement in resolution. The Commission’s review and report shall also take into account progress made towards completing the banking union, and more particularly to improvements made to the banking crisis management framework and the Union deposit guarantee framework which can further strengthen the consistency in liquidity management during going concern and crisis times. The report shall be accompanied, where appropriate, by a legislative proposal. " Or. en 20230628&from=EN)

Amendment 478 #

Proposal for a regulation
Article 1 – paragraph 1 – point 9

Regulation (EU) No 575/2013
Article 34 – paragraph 4

EBA, in consultation with the ECB and the ESMA, shall develop draft regulatory technical standards to specify the indicators and conditions that EBA will use to determine the extraordinary circumstances referred to in the second paragraph and to specify the reduction of the total aggregated additional value adjustments referred to in that paragraph.

Amendment 479 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 10 – point b

(b) in p~~aragraph 1, in point (k), point~~oint (k), the following point is added: (vi) ~~is deleted;~~CIU exposures inaccordance with Article 132(2).

Amendment 480 #

Proposal for a regulation
Article 1 – paragraph 1 – point 10 – point a – introductory part

(a) in paragraph 1, point (d) isand (k) are replaced by the following:

Amendment 481 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 10 – point ba (new)

Regulation (EU) No 575/2013
Article 36 – paragraph 1 – point k – point vi (new)

(ba) in point (k) a new point is added: ‘(vi) CIU exposures in accordance with Article 132(2).

Amendment 482 #

Proposal for a regulation
Article 1 – paragraph 1 – point 10 – point b a (new)

Regulation (EU) No 575/2013
Article 36 – paragraph 1 – point k – point vi (new)

(b a) in paragraph 1, point (k), the following point is added: (vi) CIU exposures in accordance with Article 132(2).

Amendment 483 #

Proposal for a regulation
Article 1 – paragraph 1 – point 10 – point b a (new)

Regulation (EU) 575/2013
Article 36 – paragraph 1 – point m

(b a) in paragraph 1, point (m) is replaced by the following: '(m) the applicable amount of insufficient coverage for non-performing exposures other than exposures purchased by a specilised debt restructurer which were non-performing at the time of purchase.;'

Amendment 484 #

Linea SØGAARD-LIDELL, Pernille WEISS, Nicola BEER, Engin EROGLU, Niels FUGLSANG, Kira Marie PETER-HANSEN

Proposal for a regulation
Article 1 – paragraph 1 – point 10 a (new)

Regulation (EU) No 575/2013
Article 39 – paragraph 2 – introductory part

"Deferred tax assets that do not rely on future profitability shall be limited to deferred tax assets which ~~were created before 23 November 2016 and which~~ arise from temporary differences, where all the following conditions are met: " Or. en (Regulation 575/2013)

Amendment 485 #

Proposal for a regulation
Article 1 – paragraph 1 – point 11 a (new)

Regulation (EU) No 575/2013
Article 46 – paragraph 2 a (new)

(11 a) the following paragraph is inserted: "2a. Institutions shall exclude holdings of Common Equity Tier 1 instruments in ancillary services undertakings where the following conditions apply: (a) the undertaking is owned in a partnership between other institutions or entities in the financial sector; (b) the undertaking provides and develops data services primarily to the shareholders; (c) the partnership between shareholders put together the main part of the board of directors of the undertaking with representatives from the shareholders; (d) the shareholders of the undertaking possess the equity investment with the intention of establishing a long term business relationship; (e) acquisition of equity in the undertaking must be approved by the management of the shareholder. These holdings shall be subject to a risk weight of 100 percent. For the purposes of this Article, a long- term equity investment follows the definition in Article 133(4)."

Amendment 486 #

Proposal for a regulation
Article 1 – paragraph 1 – point 11 a (new)

Regulation (EU) No 575/2013
Article 47a – paragraph 7 a (new)

(11 a) in Article 47a, the following paragraphs are added: '7a. For the purpose of Article 36(m) "specialised debt restructurer" means an institution that, during the preceding financial year, complies with the all following conditions : (i) the main activity of the institution is the purchase of exposures of other institutions and its management body has implemented a clear and effective internal decision process to this end; (ii) the book value of its own originated loans does not exceed 15% of the aggregate book value, including purchased performing and non- performing exposures, of its loans; and (iii) its total assets do not exceed EUR 30,000,000,000. 7b. EBA shall, taking into account the criteria set out in points (i) to (iii) of paragraph 7a, develop draft regulatory technical standards specifying the conditions under which an institution may be considered a specialised debt restructurer. EBA shall submit those draft regulatory technical standards to the Commission by [12 months after the date of entry into force of this amending Regulation]. Power is delegated to 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 487 #

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA

Proposal for a regulation
Article 1 – paragraph 1 – point 11 b (new)

Regulation (EU) No 575/2013
Article 47a – paragraph 7 b (new)

(11 b) in Article 47b(1), the introductory part is replaced by the following: '1. Forbearance measure is a concession by an institution towards an obligor that is experiencing or is likely to experience difficulties in meeting its financial commitments. Forbearance measures should aim to return the borrower to a sustainable performing repayment status, having regard to her fair treatment, and to all relevant national and EU consumer protection requirements that may be applicable. Credit institutions shall make best efforts to exercise, where appropriate, reasonable forbearance before enforcement proceedings are initiated. When deciding which forbearance measures to take, creditors should take into account the individual circumstances of the consumer, the consumer’s interests and rights and the consumer’s ability to repay the credit, including in particular if the credit agreement is secured by residential immovable property that is the consumer’s primary residence. A concession may entail a loss for the lender and shall refer to either of the following actions: '

Amendment 488 #

Proposal for a regulation
Article 1 – paragraph 1 – point 11 a (new)

Regulation (EU) No 575/2013
Article 47a – paragraph 7a (new)

(11 a) in Article 47a, the following paragraph is added:. 7a. For the purposes of point (m) of Article 36(1), when an eligible protection provider compensates credit losses according to the original scheduled payment dates of the guaranteed exposure, and that payment is effective, the eligible protection provider shall replace the guaranteed party as debtor.

Amendment 489 #

Pedro MARQUES

Proposal for a regulation
Article 1 – paragraph 1 – point 11 a (new)

Regulation (EU) No 575/2013
Article 47a – paragraph 7a (new)

(11 a) in Article 47a, the following paragraph is added: 7a. For the purposes of point (m) of Article 36(1), when an eligible protection provider compensates credit losses according to the original scheduled payment dates of the guaranteed exposure, and that payment is effective, the eligible protection provider shall replace the guaranteed party as debtor.

Amendment 490 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 11 a (new)

Regulation (EU) No 575/2013
Article 47a – paragraph 7 a (new)

(11 a) in Article 47a the following paragraph is added: 7a. For the purposes of point (m) of Article 36(1), when an eligible protection provider compensates credit losses according to the original scheduled payment dates of the guaranteed exposure, and that payment is effective, the eligible protection provider shall be deemed replaced the guaranteed party as debtor Or. en (02013R0575-20220410)

Amendment 491 #

Proposal for a regulation
Article 1 – paragraph 1 – point 11 b (new)

Regulation (EU No 575/2013
Article 47a – paragraph 7b (new)

(11 b) in Article 47a, the following paragraph is added:. 7b. For the purposes of point (m) of Article 36(1), the competent authority may consider specific circumstances which may make the expectations for prudential provisioning inappropriate for a specific portfolio/exposure. Institutions shall notify the competent authority without delay when such specific circumstances apply along with the explanatory rationale and the internal governance applied to that decision.

Amendment 492 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 11 c (new)

Regulation (EU) No 575/2013
Article 47b – paragraph 1 – introductory part

(11 c) in Article 47b(1), the introductory part is replaced by the following: '1. Forbearance measure is a concession by an institution towards an obligor that is experiencing or is likely to experience difficulties in meeting its financial commitments. Forbearance measures should aim to return the borrower to a sustainable performing repayment status, having regard to her fair treatment, and to all relevant national and EU consumer protection requirements that may be applicable. Credit institutions shall make best efforts to exercise, where appropriate, reasonable forbearance before enforcement proceedings are initiated. When deciding which forbearance measures to take, creditors should take into account the individual circumstances of the consumer, the consumer’s interests and rights and the consumer’s ability to repay the credit, including in particular if the credit agreement is secured by residential immovable property that is the consumer’s primary residence. A concession may entail a loss for the lender and shall refer to either of the following actions: '

Amendment 493 #

Proposal for a regulation
Article 1 – paragraph 1 – point 11 a (new)

Regulation (EU) No 575/2013
Article 47c – paragraph 4

(11 a) Article 47c(4) is replaced by the following: 4. By way of derogation from paragraph 3 of this Article, the following factors shall apply to the part of the non-performing exposure guaranteed or ~~insured by an official export credit agency or guaranteed or~~ counter-guaranteed by an eligible protection provider referred to in points (a) to (e) of Article 201(1), unsecured exposures to which would be assigned a risk weight of 0 % under Chapter 2 of Title II of Part Three: (a) 0 for the secured part of the non- performing exposure to be applied during the period between one year and seven years following its classification as non- performing; and (b) 1 for the secured part of the non- performing exposure to be applied as of the first day of the eighth year following its classification as non-performing, unless the guarantee or insurance has been invoked by the institution and the eligible protection provider has assumed and, in line with article 213(1), fulfils all payment obligations of the obligor towards the institution in full and in accordance with the applicable payment schedule, in which case a factor of 0 for the secured part of the non-performing exposure will apply. Non-performing exposures guaranteed or insured by an official export credit agency are excluded from these requirements.

Amendment 494 #

Proposal for a regulation
Article 1 – paragraph 1 – point 11 a (new)

Regulation (EU) No 575/2013
Article 47c – paragraph 4 – introductory part

(11 a) Article 47(4), the introductory part is replaced by the following: 4. By way of derogation from paragraph 3 ~~of this Article~~, the following factors shall apply to the part of the non-performing exposure guaranteed or insured by an official export credit agency or guaranteed or counter-guaranteed by an eligible protection provider referred to in points (a) to (e) of Article 201(1), unsecured exposures to which would be assigned a risk weight of 0 % under Chapter 2 of Title II of Part Three:

Amendment 495 #

Paul TANG, René REPASI, Csaba MOLNÁR, Eva KAILI

Proposal for a regulation
Article 1 – paragraph 1 – point 11 a (new)

Regulation (EU) No 575/2013
Article 47c – paragraph 4 – point b

(11 a) in Article 47(4), point (b) is amended as follows: (b) 1 for the secured part of the non- performing exposure to be applied as of the first day of the eighth year following its classification as non-performing. , unless the guarantee or insurance has been invoked by the institution and the eligible protection provider has assumed and, in line with article 213(1), fulfills all payment obligations of the obliger towards the institution in full and in accordance with the applicable payment schedule, in which case a factor of 0 for the secured part of the non-performing exposure will apply. " Or. en (Regulation (EU) 575/2013)

Amendment 496 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 11 a (new)

(11 a) in Article 47c(4), point (b) is amended as follows: (b) 1 for the secured part of the non- performing exposure to be applied as of the first day of the eighth year following its classification as non-performing. , unless the guarantee or insurance has been invoked by the institution and the eligible protection provider has assumed and, in line with article 213(1), fulfils all payment obligations of the obliger towards the institution in full and in accordance with the applicable payment schedule, in which case a factor of 0 for the secured part of the non-performing exposure will apply. " Or. en (02013R0575-20230628)

Amendment 497 #

Proposal for a regulation
Article 1 – paragraph 1 – point 11 b (new)

Regulation (EU) No 575/2013
Article 47c – paragraph 6 – subparagraphs 2 a (new) and 2 b (new)

(11 b) in Article 47c(6), the following subparagraphs are added: By way of derogation from paragraph 2 , when a non-performing exposure is purchased by a financial institution (i) from another financial institution which has originated the credit, (ii) at a price which is at least 50% lower than the total amount owed by the debtor, (iii) before the third year following its classification as non-performing, then the factors foreseen by paragraph 2 shall re-apply from the beginning, as if the exposure would have been just classified as non-performing. By way of derogation from paragraph 3, when a non-performing exposure is purchased by a financial institution, (i) from another financial institution, (ii) at a price which is at least 50% lower than the total amount owed by the debtor, (iii) before the seventh year following its classification of non performing, for non- performing exposures secured by other funded or unfunded credit protection, or before the nineth year following its classification as non performing, for non- performing exposure secured by immovable property, then the factors foreseen by paragraph 3 shall re-apply from the beginning, as if the exposure would have been just classified as non-performing. Or. en (02013R0575-20220410)

Amendment 498 #

Proposal for a regulation
Article 1 – paragraph 1 – point 11 a (new)

Regulation (EU) No 575/2013
Article 47c – paragraph 6 – subparagraphs 2 a (new) and 2 b (new)

(11 a) in Article 47c(6), the following subparagraphs are added: By way of derogation from paragraph 2 , when a non-performing exposure is purchased by a financial institution i) from another financial institution which has originated the credit, ii) at a price which is at least 50% lower than the total amount owed by the debtor and iii) before the third year following its classification as non-performing, then the factors foreseen by paragraph 2 shall re-apply from the beginning, as if the exposure would have been just classified as non- performing. By way of derogation from paragraph 3, when a non-performing exposure is purchased by a financial institution i) from another financial institution, ii) at a price which is at least 50% lower than the total amount owed by the debtor and iii) before the seventh year following its classification as non performing, for non- performing exposures secured by other funded or unfunded credit protection, or before the ninth year following its classification as non performing, for non- performing exposure secured by immovable property, then the factors foreseen by paragraph 3 shall re-apply from the beginning, as if the exposure would have been just classified as non- performing. " Or. en (Regulation (EU) No 575/2013)

Amendment 499 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 11 a (new)

Regulation (EU) No 575/2013
Article 47c – paragraph 6 – subparagraphs 2 a (new) and 2 b (new)

(11 a) in Article 47c(6) the following subparagraphs are added: 4. By way of derogation from paragraph 3, the following factors shall apply to the part of the non-performing exposure guaranteed or insured by an official export credit agency: (a) 0 for the secured part of the non- performing exposure to be applied during the period between one year and seven years following its classification as non- performing; and (b) 1 for the secured part of the non- performing exposure to be applied as of the first day of the eighth year following its classification as non-performing. By way of derogation from paragraph 2 , when a non-performing exposure is purchased by a financial institution i) from another financial institution which has originated the credit, ii) at a price which is at least 50% lower than the total amount owed by the debtor iii) before the third year following its classification as non-performing, then the factors foreseen by paragraph 2 shall re-apply from the beginning, as if the exposure would have been just classified as non-performing. By way of derogation from paragraph 3, when a non-performing exposure is purchased by a financial institution, i) from another financial institution, ii) at a price which is at least 50% lower than the total amount owed by the debtor, iii) before the seventh year following its classification of non performing, for non- performing exposures secured by other funded or unfunded credit protection, or before the nine th year following its classification as non performing, for non- performing exposure secured by immovable property, then the factors foreseen by paragraph 3 shall re-apply from the beginning, as if the exposure would have been just classified as non- performing.

Amendment 500 #

Proposal for a regulation
Article 1 – paragraph 1 – point 11 a (new)

Regulation (EU) 876/2019 amending Regulation (EU) 575/2013
Article 47c – paragraph 6 – subparagraphs 2 a (new) and 2 b (new)

(11 a) in Article 47c(6) the following subparagraphs are added: By way of derogation from paragraph 2, when a non-performing exposure is purchased by a financial institution i) from another financial institution which has originated the credit, ii) at a price which is at least 50% lower than the total amount owed by the debtor iii) before the third year following its classification as non-performing, then the factors foreseen by paragraph 2shall re-apply from the beginning, as if the exposure would have been just classified as non-performing. By way of derogation from paragraph 3, when a non-performing exposure is purchased by a financial institution, i) from another financial institution, ii) at a price which is at least 50% lower than the total amount owed by the debtor, iii) before the seventh year following its classification of non performing, for non- performing exposures secured by other funded or unfunded credit protection, or before the nineth year following its classification as non performing, for non- performing exposure secured by immovable property, then the factors foreseen by paragraph 3 shall re-apply from the beginning, as if the exposure would have been just classified as non- performing.

Amendment 501 #

Linea SØGAARD-LIDELL, Pernille WEISS, Nicola BEER, Engin EROGLU, Niels FUGLSANG, Kira Marie PETER-HANSEN

Proposal for a regulation
Article 1 – paragraph 1 – point 12 a (new)

Regulation (EU) No 575/2013
Article 48 – paragraph 1 a (new)

(12 a) in Article 48, the following paragraph is inserted: "1a. Institutions shall exclude holdings of Common Equity Tier 1 instruments in ancillary services undertakings where the following conditions apply: (a) the undertaking is owned in a partnership between other institutions or entities in the financial sector; (b) the undertaking provides and develops data services primarily to the shareholders; (c) the partnership between shareholders put together the main part of the board of directors of the undertaking with representatives from the shareholders; (d) the shareholders of the undertaking possess the equity investment with the intention of establishing a long term business relationship; (e) acquisition of equity in the undertaking must be approved by the management of the shareholder. For the purposes of this Article, a long- term equity investment follows the definition in Article 133(4). These holdings shall be subject to a risk weight of 100 percent."

Amendment 502 #

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA

Proposal for a regulation
Article 1 – paragraph 1 – point 13 a (new)

Regulation (EU) No 575/2013
Article 49 –title

(13 -a) in Article 49, the title is changed by the following : Requirement for deduction where consolidation~~, supplementary supervision~~ or institutional protection schemes are applied (13 -a) in Article 49, the title is changed by the following : Or. en (Regulation 575/2013)

Amendment 503 #

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA

Proposal for a regulation
Article 1 – paragraph 1 – point 13 -a (new)Regulation (EU) No 575/2013

Article 49 – paragraph 1 – introductory part

(13 -a) in Article 49(1), the introductory part is replaced by the following: '1. For the purposes of calculating own funds on an individual basis, a sub- consolidated basis and a consolidated basis, where the competent authorities require or permit institutions to apply method 1, 2 or 3 of Annex I to Directive 2002/87/EC, the competent authorities may permit institutions not to deduct the holdings of ~~own funds~~equity instruments of a financial sector entity in which the parent institution, parent financial holding company or parent mixed financial holding company or institution has a significant investment, provided that the conditions laid down in points (a) to (e) of this paragraph are met:'

Amendment 504 #

Proposal for a regulation
Article 1 – paragraph 1 – point 13 -a (new)

Regulation (EU) No 575/2013
Article 49 – paragraph 1 – point b

(13 -a) in Article 49(1) point b is replaced by the following : (b) that insurance undertaking, re-insurance undertaking or insurance holding company is included in the same supplementary supervision under Directive 2002/87/EC as the parent institution, parent financial holding company or parent mixed financial holding company or institution that has the holding; are part of a financial conglomerate as defined in Directive 2002/87/EC. Or. en (Regulation 575/2013)

Amendment 505 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 13

Regulation (EU) No 575/2013
Article 49 – paragraph 4

(13) in Article 49, paragraph 4 is replaced by the following: ‘ 4. The holdings in respect of which deduction is not made in accordance with paragraph 1 shall qualify as exposures and shall be risk weighted in accordance with Part Three, Title II, Chapter 2. The holdings in respect of which deduction is not made in accordance with paragraphs 2 or 3 shall qualify as exposures and shall be risk weighted at 100 %.; ’deleted

Amendment 506 #

Proposal for a regulation
Article 1 – paragraph 1 – point 13

Regulation (EU) No 575/2013
Article 49 – paragraph 4

4. The holdings in respect of which deduction is not made in accordance with paragraph ~~1 shall qualify as exposures and shall be risk weighted in accordance with Part Three, Title II, Chapter 2. The holdings in respect of which deduction is not made in accordance with paragraph~~s 1, 2 or 3 shall qualify as exposures and shall be risk weighted at 100 %.

Amendment 507 #

Elisabetta GUALMINI

Proposal for a regulation
Article 1 – paragraph 1 – point 13Regulation (EU) No 575/2013

Article 49 – paragraph 4

~~‘4.~~ The holdings in respect of which deduction is not made in accordance with paragraph ~~1 shall qualify as exposures and shall be risk weighted in accordance with Part Three, Title II, Chapter 2. The holdings in respect of which deduction is not made in accordance with paragraphs~~s 1, 2 or 3 shall qualify as exposures and shall be risk weighted at 100 %.’;

Amendment 508 #

Proposal for a regulation
Article 1 – paragraph 1 – point 13

Regulation (EU) No 575/2013
Article 49 – paragraph 4 – subparagraph 1

4. The holdings in respect of which deduction is not made in accordance with paragraph 1 shall qualify as exposures and shall be risk weighted in accordance with Part Three, Title II, Chapter 2 of the present Regulation.

Amendment 509 #

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA

Proposal for a regulation
Article 1 – paragraph 1 – point 13

Regulation (EU) No 575/2013
Article 49 ¬ paragraph 4 – subparagraph 2

~~The holdings in respect of which deduction is not made in accordance with paragraphs 2 or 3 shall qualify as exposures and shall be risk weighted at 100 %.;~~deleted

Amendment 510 #

Proposal for a regulation
Article 1 – paragraph 1 – point 13

Regulation (EU) No 575/2013
Article 49 – paragraph 4 – subparagraph 2

The holdings in respect of which deduction is not made in accordance with paragraphs 2 or 3 shall qualify as exposures and shall be risk weighted at no more than 100 %.;

Amendment 511 #

Proposal for a regulation
Article 1 – paragraph 1 – point 13

Regulation (EU) No 575/2013
Article 49 – Paragraph 4 – subparagraph 2

The holdings in respect of which deduction is not made in accordance with paragraphs 2 or 3 shall always qualify as exposures and shall be risk weighted at 100 %.;

Amendment 512 #

Proposal for a regulation
Article 1 – paragraph 1 – point 13

Regulation (EU) No 575/2013
Article 49 – paragraph 4 – subparagraph 2

The holdings in respect of which deduction is not made in accordance with paragraphs 2 or 3 shall qualify as exposures and shall be risk weighted at ~~100~~75 %.;

Amendment 513 #

Proposal for a regulation
Article 1 – paragraph 1 – point 13

Regulation (EU) No 575/2013
Article 49 – paragraph 4 – subparagraph 2

~~The h~~Holdings in respect of which deduction iss are not made ~~in accordance with~~pursuant to paragraphs 2 or 3 shall qualify as exposures and shall be risk weighted at 100 %.;

Amendment 514 #

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – introductory part

(a) the Common Equity Tier 1 capital of the subsidiary minus the ~~lower of the following:~~amount of consolidated Common Equity Tier 1 capital that relates to that subsidiary that is required on a consolidated basis to meet the sum of the requirement laid down in Article 92(1), point (a), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU and the combined buffer requirement defined in Article 128, point (6), of that Directive and the Common Equity Tier 1 capital of the subsidiary required at local level to avoid restrictions on dividend payments. In case of third countries it shall be measured based on local own funds requirements.

Amendment 515 #

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – introductory part

(a) the Common Equity Tier 1 capital of the subsidiary ~~minus the lower of the following~~:

Amendment 516 #

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – introductory part

(a) the Common Equity Tier 1 capital of the subsidiary minus ~~the lower of the following:~~

Amendment 517 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – introductory part

(a) the Common Equity Tier 1 capital of the subsidiary minus ~~the lower of the following:~~

Amendment 518 #

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – introductory part

(a) the Common Equity Tier 1 capital of the subsidiary minus ~~the lower of the following~~:

Amendment 519 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – introductory part

(a) the Common Equity Tier 1 capital of the subsidiary minus ~~the lower of the following~~:

Amendment 520 #

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – introductory part

(a) the Common Equity Tier 1 capital of the subsidiary minus ~~the lower of the following:~~;

Amendment 521 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – point i

~~(i) the amount of Common Equity Tier 1 capital of that subsidiary required to meet the following: — institution, the sum of the requirement laid down in Article 92(1), point (a), t~~deleted whe requirements referred to in Articles 458 and 459 , the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in Article 128, point (6), of that Directive, or any local supervisory regulations in third countries insofar as those requirements are to be met by Common Equity Tier 1 capital, as applicable; — investment firm, the sum of the requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific own funds requirements referred to in Article 39(2), point (a), of Directive (EU) 2019/2034, or any local supervisory regulations in third countries, insofar as those requirements are to be met by Common Equity Tier 1 capital, as applicable; the subsidiary is an where the subsidiary is an

Amendment 522 #

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – parapraph 1 – point a – point i

(i) the amount of Common Equity Tier 1 capital of that subsidiary required to meet the following: — institution, the sum of the requirement laid down in Article 92(1), point (a), the requirements referred to in Articles 458 and 459 , the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in Article 128, point (6), of that Directive, or any local supervisory regulations in third countries insofar as those requirements are to be met by Common Equity Tier 1 capital, as applicable; — where the subsidiary is an investment firm, the sum of the requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific own funds requirements referred to in Article 39(2), point (a), of Directive (EU) 2019/2034, or any local supervisory regulations in third countries, insofar as those requirements are to be met by Common Equity Tier 1 capital, as applicable;deleted where the subsidiary is an

Amendment 523 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – point i

Amendment 524 #

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – point i

Amendment 525 #

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Amendment 526 #

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – point i – introductory part

~~(i) the amount of Common Equity Tier 1 capital of that subsidiary required to meet the following:~~deleted

Amendment 527 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – point i –indent 1

— where the subsidiary is an institution, the sum of the requirement laid down in Article 92(1), point (a), the requirements referred to in Articles 458 and 459 , the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in Article 128, point (6), of that Directive, or any local supervisory regulations in third countries insofar as those requirements are to be met by Common Equity Tier 1 capital, as applicable;deleted

Amendment 528 #

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – point i – indent 1

Amendment 529 #

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – point i – indent 1

Amendment 530 #

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – point i – indent 1

Amendment 531 #

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – point i – indent 1

— where the subsidiary is an institution, the sum of the requirement laid down in Article 92(1), point (a), the requirements referred to in Articles 458 and 459 , the specific own funds requirements referred to in Article 104 and 104 a of Directive 2013/36/EU, the combined buffer requirement defined in Article 128, point (6), of that Directive, ~~or any local supervisory regula~~and the Common Equity Tier 1 capital of the subsidiary required at local level to avoid restrictions ion ~~third countries insofar as those requirements are to be met by Common Equity Tier 1 capital, as applicable~~dividend payments. In case of third countries measured shall be based on local own funds requirements ;

Amendment 532 #

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – point i – indent 2

— where the subsidiary is an investment firm, the sum of the requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific own funds requirements referred to in Article 39(2), point (a), of Directive (EU) 2019/2034, or any local supervisory regulations in third countries, insofar as those requirements are to be met by Common Equity Tier 1 capital, as applicable;deleted

Amendment 533 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – point i – indent 2

Amendment 534 #

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) 575/2013
Article 84 – paragraph 1 – point a – point i – indent 2

Amendment 535 #

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a –pointi – indent 2

Amendment 536 #

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Amendment 537 #

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – point ii

Amendment 538 #

Proposal for a regulation
Article 1 – paragraph 1 – point 19

(ii) the amount of consolidated Common Equity Tier 1 capital that relates to that subsidiary that is required on a consolidated basis to meet the sum of the requirement laid down in Article 92(1), point (a), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU and the combined buffer requirement defined in Article 128, point (6), of that Directive;, and upon the approval of the competent authority, the Common Equity Tier 1 capital of the subsidiary required at local level to avoid restrictions on dividend payments. Upon the approval of the competent authority, in case of third countries, it shall be measured based on local own funds requirements;

Amendment 539 #

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – point ii

(ii) the amount of consolidated Common Equity Tier 1 capital that relates to that subsidiary that is required on a consolidated basis to meet the sum of the requirement laid down in Article 92(1), point (a), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU and the combined buffer requirement defined in Article 128, point (6), of that Directive; and the Common Equity Tier 1 capital of the subsidiary required at local level to avoid restrictions on dividend payments. In case of third countries it shall be measured based on local own funds requirements;

Amendment 540 #

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – point ii

(ii) the amount of consolidated Common Equity Tier 1 capital that relates to that subsidiary that is required on a consolidated basis to meet the sum of the requirement laid down in Article 92(1), point (a), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU and the combined buffer requirement defined in Article 128, point (6), of that Directive; and the Common Equity Tier 1 capital of the subsidiary required at local level to avoid restrictions on dividend payments. In case of third countries it shall be measured based on local own funds requirements;

Amendment 541 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – point ii

(ii) the amount of consolidated Common Equity Tier 1 capital that relates to that subsidiary that is required on a consolidated basis to meet the sum of the requirement laid down in Article 92(1), point (a), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU and the combined buffer requirement defined in Article 128, point (6), of that Directive; and the Common Equity Tier 1 capital of the subsidiary required at local level to avoid restrictions on dividend payments; in case of third countries it shall be measured based on local own funds requirements;

Amendment 542 #

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – point ii

(ii) the amount of consolidated Common Equity Tier 1 capital that relates to that subsidiary that is required on a consolidated basis to meet the sum of the requirement laid down in Article 92(1), point (a), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU and the combined buffer requirement defined in Article 128, point (6), of that Directive;; and the Common Equity Tier 1 capital of the subsidiary required at local level to avoid restrictions on dividend payments. In case of third countries it shall be measured based on local own funds requirements;

Amendment 543 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – point ii

(ii) the amount of consolidated Common Equity Tier 1 capital that relates to that subsidiary that is required on a consolidated basis to meet the sum of the requirement laid down in Article 92(1), point (a), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU and the combined buffer requirement defined in Article 128, point (6), of that Directive; and the Common Equity Tier 1 capital of the subsidiary required at local level to avoid restrictions on dividend payments. In case of third countries it shall be measured based on local own funds requirements;

Amendment 544 #

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – point a – point ii

(ii) the amount of consolidated Common Equity Tier 1 capital that relates to that subsidiary that is required on a consolidated basis to meet the sum of the requirement laid down in Article 92(1), point (a), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU and the combined buffer requirement defined in Article 128, point (6), of that Directive; and the Common Equity Tier 1capital of the subsidiary required at local level to avoid restrictions on dividend payments. In case of third countries it shall be measured based on local own funds requirements;

Amendment 545 #

Proposal for a regulation
Article 1 – paragraph 1 – point 19

Regulation (EU) No 575/2013
Article 84 – paragraph 1 – subparagraph 1a (new)

By way of derogation from Article 84(1), point (a), the competent authority may allow institutions to subtract either of the amounts referred to in point (i) or (ii).

Amendment 546 #

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – introductory part

(a) the Tier 1 capital of the subsidiary minus the ~~lower of the following:~~amount of consolidated Tier 1 capital that relates to the subsidiary that is required on a consolidated basis to meet the sum of the requirement laid down in Article 92(1), point (b), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU and the combined buffer requirement defined in Article 128, point (6), of that Directive; and the Common Equity Tier 1 capital of the subsidiary required at local level to avoid restrictions on dividend payments. In case of third countries it shall be measured based on local own funds requirements.

Amendment 547 #

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 - point a – introductory part

(a) the Tier 1 capital of the subsidiary ~~minus the lower of the following~~:

Amendment 548 #

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – introductory part

(a) the Tier 1 capital of the subsidiary minus ~~the lower of the following:~~

Amendment 549 #

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a

(a) the Tier 1 capital of the subsidiary minus ~~the lower of the following:~~

Amendment 550 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – introductory part

(a) the Tier 1 capital of the subsidiary minus ~~the lower of the following:~~

Amendment 551 #

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – introductory part

(a) the Tier 1 capital of the subsidiary minus ~~the lower of the following~~:

Amendment 552 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – introductory part

(a) the Tier 1 capital of the subsidiary minus ~~the lower of the following~~:

Amendment 553 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation EU No 575/2013
Article 85 – paragraph 1 – point a – point i

~~(i) the amount of Tier 1 capital of the subsidiary required to meet the following: — institution, the sum of the requirement laid down in Article 92(1), point (b), t~~deleted whe requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in Article 128, point (6), of that Directive, or any local supervisory regulations in third countries insofar as those requirements are to be met by Tier 1 Capital, as applicable; — investment firm, the sum of the requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific own funds requirements referred to in Article 39(2), point (a), of Directive (EU) 2019/2034, or any local supervisory regulations in third countries insofar as those requirements are to be met by Tier 1 capital, as applicable; the subsidiary is an where the subsidiary is an

Amendment 554 #

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – point i

~~(i) the amount of Tier 1 capital of the subsidiary required to meet the following: — institution, the sum of the requirement laid down in Article 92(1), point (b), t~~deleted whe requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in Article 128, point (6), of that Directive, or any local supervisory regulations in third countries insofar as those requirements are to be met by Tier 1 Capital, as applicable; — investment firm, the sum of t the subsidiary is an whe requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific own funds requirements referred to in Article 39(2), point (a), of Directive (EU) 2019/2034, or any local supervisory regulations in third countries insofar as those requirements are to be met by Tier 1 capital, as applicable; the subsidiary is an

Amendment 555 #

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – point i

~~(i) the amount of Tier 1 capital of the subsidiary required to meet the following: — institution, the sum of the requirement laid down in Article 92(1), point (b), t~~deleted whe requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in Article 128, point (6), of that Directive, or any local supervisory regulations in third countries insofar as those requirements are to be met by Tier 1 Capital, as applicable; — investment firm, the sum of t the subsidiary is an whe requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific own funds requirements referred to in Article 39(2), point (a), of Directive (EU) 2019/2034, or any local supervisory regulations in third countries insofar as those requirements are to be met by Tier 1 capital, as applicable; the subsidiary is an

Amendment 556 #

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – point i

~~(i) the amount of Tier 1 capital of the subsidiary required to meet the following: — institution, the sum of the requirement laid down in Article 92(1), point (b), t~~deleted whe requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in Article 128, point (6), of that Directive, or any local supervisory regulations in third countries insofar as those requirements are to be met by Tier 1 Capital, as applicable; — investment firm, the sum of t the subsidiary is an whe requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific own funds requirements referred to in Article 39(2), point (a), of Directive (EU) 2019/2034, or any local supervisory regulations in third countries insofar as those requirements are to be met by Tier 1 capital, as applicable; the subsidiary is an

Amendment 557 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – point i

Amendment 558 #

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – point i

~~(i) the amount of Tier 1 capital of the subsidiary required to meet the following: — institution, the sum of the requirement laid down in Article 92(1), point (b), t~~deleted whe requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in Article 128, point (6), of that Directive, or any local supervisory regulations in third countries insofar as those requirements are to be met by Tier 1 Capital, as applicable; — investment firm, the sum of t the subsidiary is an whe requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific own funds requirements referred to in Article 39(2), point (a), of Directive (EU) 2019/2034, or any local supervisory regulations in third countries insofar as those requirements are to be met by Tier 1 capital, as applicable; the subsidiary is an

Amendment 559 #

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – point i – introductory part

(i) ~~the amount of Tier 1 capital of the subsidiary required to meet the following:~~-

Amendment 560 #

Antonio TAJANI, Fulvio MARTUSCIELLO, Herbert DORFMANN

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation(EU) No 575/2013
Article 85 – paragraph 1 – point a – point i – introductory part

(i) the amount of Tier 1 capital of the subsidiary ~~required to meet the following~~minus:

Amendment 561 #

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – point i – indent 1

— where the subsidiary is an institution, the sum of the requirement laid down in Article 92(1), point (b), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in Article 128, point (6), of that Directive, or any local supervisory regulations in third countries insofar as those requirements are to be met by Tier 1 Capital, as applicable;deleted

Amendment 562 #

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – point i – indent 1

Amendment 563 #

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Amendment 564 #

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – point i – indent 1

— where the subsidiary is an institution, the sum of the requirement laid down in Article 92(1), point (b), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 and 104a of Directive 2013/36/EU, the combined buffer requirement defined in Article 128, point (6), of that Directive, ~~or any local supervisory regulations in third countries insofar as those requirements are to be met by Tier 1 Capital, as applicable;~~and the Tier 1 capital of the subsidiary required at local level to avoid restrictions on dividend payments. In case of third countries measured shall be based on local own funds requirements

Amendment 565 #

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – point i – indent 2

— where the subsidiary is an investment firm, the sum of the requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific own funds requirements referred to in Article 39(2), point (a), of Directive (EU) 2019/2034, or any local supervisory regulations in third countries insofar as those requirements are to be met by Tier 1 capital, as applicable;deleted

Amendment 566 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – point i – indent 2

— where the subsidiary is an investment firm, the sum of the requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific own funds requirements referred to in Article 39(2), point (a), of Directive (EU) 2019/2034, or any local supervisory regulations in third countries insofar as those requirements are to be met by Tier 1 capital, as applicable;deleted

Amendment 567 #

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – point i – indent 2

— where the subsidiary is an investment firm, the sum of the requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific own funds requirements referred to in Article 39(2), point (a), of Directive (EU) 2019/2034, or any local supervisory regulations in third countries insofar as those requirements are to be met by Tier 1 capital, as applicable;deleted

Amendment 568 #

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – point i – indent 2

— where the subsidiary is an investment firm, the sum of the requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific own funds requirements referred to in Article 39(2), point (a), of Directive (EU) 2019/2034, or any local supervisory regulations in third countries insofar as those requirements are to be met by Tier 1 capital, as applicable; In case of third countries measured shall be based on local own funds requirements

Amendment 569 #

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No575/2013
Article 85 – paragraph 1 – point a – point ii

Amendment 570 #

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – point ii

Amendment 571 #

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – point ii

(ii) the amount of consolidated Tier 1 capital that relates to the subsidiary that is required on a consolidated basis to meet the sum of the requirement laid down in Article 92(1), point (b), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU and the combined buffer requirement defined in Article 128, point (6), of that Directive;, and upon the approval of the competent authority, the Common Equity Tier 1 capital of the subsidiary required at local level to avoid restrictions on dividend payments. Upon the approval of the competent authority, in case of third countries, it shall be measured based on local own funds requirements;

Amendment 572 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – point ii

(ii) the amount of consolidated Tier 1 capital that relates to the subsidiary that is required on a consolidated basis to meet the sum of the requirement laid down in Article 92(1), point (b), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU and the combined buffer requirement defined in Article 128, point (6), of that Directive; and the Common Equity Tier 1 capital of the subsidiary required at local level to avoid restrictions on dividend payments. In case of third countries it shall be measured based on local own funds requirements.;

Amendment 573 #

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – point ii

(ii) the amount of consolidated Tier 1 capital that relates to the subsidiary that is required on a consolidated basis to meet the sum of the requirement laid down in Article 92(1), point (b), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU and the combined buffer requirement defined in Article 128, point (6), of that Directive; and the Common Equity Tier 1 capital of the subsidiary required at local level to avoid restrictions on dividend payments. In case of third countries it shall be measured based on local own funds requirements;

Amendment 574 #

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – point ii

(ii) the amount of consolidated Tier 1 capital that relates to the subsidiary that is required on a consolidated basis to meet the sum of the requirement laid down in Article 92(1), point (b), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU and the combined buffer requirement defined in Article 128, point (6), of that Directive; and the Common Equity Tier 1 capital of the subsidiary required at local level to avoid restrictions on dividend payments; in case of third countries it shall be measured based on local own funds requirements;

Amendment 575 #

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – point ii

(ii) the amount of consolidated Tier 1 capital that relates to the subsidiary that is required on a consolidated basis to meet the sum of the requirement laid down in Article 92(1), point (b), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU and the combined buffer requirement defined in Article 128, point (6), of that Directive;; and the Common Equity Tier 1 capital of the subsidiary required at local level to avoid restrictions on dividend payments. In case of third countries it shall be measured based on local own funds requirements;

Amendment 576 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – point ii

(ii) the amount of consolidated Tier 1 capital that relates to the subsidiary that is required on a consolidated basis to meet the sum of the requirement laid down in Article 92(1), point (b), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU and the combined buffer requirement defined in Article 128, point (6), of that Directive; and the Common Equity Tier 1 capital of the subsidiary required at local level to avoid restrictions on dividend payments; in case of third countries it shall be measured based on local own funds requirements;

Amendment 577 #

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – point a – point ii

(ii) the amount of consolidated Tier 1 capital that relates to the subsidiary that is required on a consolidated basis to meet the sum of the requirement laid down in Article 92(1), point (b), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU and the combined buffer requirement defined in Article 128, point (6), of that Directive; and the Common Equity Tier 1 capital of the subsidiary required at local level to avoid restrictions on dividend payments. In case of third countries it shall be measured based on local own funds requirements;

Amendment 578 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) No 575/2013
Article 85 – paragraph 1 – subparagraph 1a

By way of derogation from Article 85(1), point (a), the competent authority may allow institutions to subtract either of the amounts referred to in point (i) or (ii).

Amendment 579 #

Proposal for a regulation
Article 1 – paragraph 1 – point 20 a (new)

Regulation (EU) No 575/2013
Article 87 – paragraph 1 – point a

(a)20 a) in Article 87 point (a) is replaced by the following: the own funds of the subsidiary minus ~~the lower of the following: (i)~~ the amount of own funds that relates tof the subsidiary that is required ~~to meet the following: —~~on a consolidated basis to meet the sum of the requirement laid down in point (c) of Article 92(1) ~~of this Regulation~~, the requirements referred to in Articles 458 and 459 ~~of this Regulation~~, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in point (6) of Article 128 of ~~that~~ Directive, and any additional local supervisory regulations in third countries, — where the subsidiary is an investment firm, the sum of the requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific own funds requirements referred to in point (a) of Article 39(2) of Directive (EU) 2019/2034, and any additional local supervisory regulations in third countries; (ii) the amount of own funds that relates to 2013/36/EU, the requirements referred to in Article 500 and any additional local supervisory own funds requirement in third countries and the Common Equity Tier 1 capital of the subsidiary ~~that is~~ required on a consolidated basis to meet the sum of the requirement laid down in point (c) of Article 92(1) of this Regulation, the requirements referred to in Articles 458 and 459 of this Regulation, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in point (6) of Article 128 of that Directive, and any additional local supervisoryat local level to avoid restrictions on dividend payments. In case of third countries it shall be measured based on local own funds requirement ~~in third countrie~~s;

Amendment 580 #

Proposal for a regulation
Article 1 – paragraph 1 – point 20 a (new)Regulation (EU) No 575/2013

Article 87 – paragraph 1 – point a

(20 a) in article 87(1), point (a) is replaced by the following: (a) the own funds of the subsidiary minus ~~the lower of the following: (i)~~ the amount of own funds that relates tof the subsidiary that is required ~~to meet the following: —~~on a consolidated basis to meet the sum of the requirement laid down in point (c) of Article 92(1) of this Regulation, the requirements referred to in Articles 458 and 459 of this Regulation, the specific own funds requirements referred to in Article 104 and 104a of Directive 2013/36/EU, the combined buffer requirement defined in point (6) of Article 128 of that Directive, and any additional local supervisory regulations in third countries, — where the subsidiary is an investment firm, the sum of the requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific own funds requirements referred to in point (a) of Article 39(2) of Directive (EU) 2019/2034, and any additional local supervisory regulations in third countries; (ii) the amount of own funds that relates to the subsidiary that is required on a consolidated basis to meet the sum of the requirement laid down in point (c) of Article 92(1) of this Regulation, the requirements referred to in Articles 458 and 459 of this Regulation, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in point (6) of Article 128 of that Directive, and any additional local supervisorythe Common Equity Tier 1 capital of the subsidiary required at local level to avoid restrictions on dividend payments. In case of third countries it shall be measured based on local own funds requirement ~~in third countries;~~s.

Amendment 581 #

Proposal for a regulation
Article 1 – paragraph 1 – point 20 a (new)

Regulation (EU) No 575/2013
Article 87 – paragraph 1 – point a – point ii

(20 a) in Article 87(1), point (a), point ii is replaced by the following: (ii) the amount of own funds that relates to the subsidiary that is required on a consolidated basis to meet the sum of the requirement laid down in point (c) of Article 92(1) of this Regulation, the requirements referred to in Articles 458 and 459 of this Regulation, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in point (6) of Article 128 of that Directive, and any additional local supervisory own funds requirement in third countries; , and upon the approval of the competent authority, the Common Equity Tier 1 capital of the subsidiary required at local level to avoid restrictions on dividend payments. Upon the approval of the competent authority, in case of third countries, it shall be measured based on local own funds requirements; " Or. en (02013R0575-20220410)

Amendment 582 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 20 b (new)

Regulation (EU) No 575/2013
Article 87 – paragraph 1 – subparagraph 1 a (new)

By way of derogation from Article 87(1), point (a), the competent authority may allow institutions to subtract either of the amounts referred to in point (i) or (ii). " Or. en (02013R0575-20220410)

Amendment 583 #

Proposal for a regulation
Article 1 – paragraph 1 – point 20 a (new)

(20 a) in article 87(1), point (a) is replaced by the following: "(a) the own funds of the subsidiary minus ~~the lower of the following~~: (i) the amount of own funds that relates tof the subsidiary that is required ~~to meet the following: —~~on a consolidated basis to meet the sum of the requirement laid down in point (c) of Article 92(1) of this Regulation, the requirements referred to in Articles 458 and 459 of this Regulation, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in point (6) of Article 128 of that Directive, and any additional local supervisory regulations in third countries, — where the subsidiary is an investment firm, the sum of the requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific own funds requirements referred to in point (a) of Article 39(2) of Directive (EU) 2019/2034, and any additional local supervisory regulations in third countries; (ii) the amount of own funds that relates toown funds requirement in third countries and the Common Equity Tier 1 capital of the subsidiary ~~that is~~ required on a consolidated basis to meet the sum of the requirement laid down in point (c) of Article 92(1) of this Regulation, the requirements referred to in Articles 458 and 459 of this Regulation, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in point (6) of Article 128 of that Directive, and any additional local supervisory own funds requirement in third countries; at local level to avoid restrictions on dividend payments; in case of third countries it shall be measured based on local own funds requirements; " Or. en (02013R0575-20220410)

Amendment 584 #

Proposal for a regulation
Article 1 – paragraph 1 – point 20 a (new)

Regulation (EU) No 575/2013
Article 87 – paragraph 1 – point a

(20 a) in Article 87(1), point (a) is replaced by the following: "(a) the own funds of the subsidiary minus ~~the lower of the following: (i)~~ the amount of own funds that relates tof the subsidiary that is required ~~to meet the following: —~~on a consolidated basis to meet the sum of the requirement laid down in point (c) of Article 92(1) of this Regulation, the requirements referred to in Articles 458 and 459 of this Regulation, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in point (6) of Article 128 of that Directive, and any additional local supervisory regulations in third countries, — where the subsidiary is an investment firm, the sum of the requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific own funds requirements referred to in point (a) of Article 39(2) of Directive (EU) 2019/2034, and any additional local supervisory regulations in third countries; (ii) the amount of own funds that relates toown funds requirement in third countries and the Common Equity Tier 1 capital of the subsidiary ~~that is~~ required on a consolidated basis to meet the sum of the requirement laid down in point (c) of Article 92(1) of this Regulation, the requirements referred to in Articles 458 and 459 of this Regulation, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in point (6) of Article 128 of that Directive, and any additional local supervisory own funds requirement in third countries; at local level to avoid restrictions on dividend payments. In case of third countries it shall be measured based on local own funds requirements; " Or. en (Regulation (EU) No 575/2013)

Amendment 585 #

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA

Proposal for a regulation
Article 1 – paragraph 1 – point 20 b (new)

Regulation (EU) No 575/2013
Article 87 – paragraph 1 – point a

(20 b) in Article 87(1), point (a) is replaced by the following: " (a) the own funds of the subsidiary minus ~~the lower of the following: (i)~~ the amount of own funds that relates tof the subsidiary that is required ~~to meet the following: —~~on a consolidated basis to meet the sum of the requirement laid down in point (c) of Article 92(1) ~~of this Regulation~~, the requirements referred to in Articles 458 and 459 ~~of this Regulation~~, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in point (6) of Article 128 of ~~that~~ Directive, and any additional local supervisory regulations in third countries, — where the subsidiary is an investment firm, the sum of the requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific own funds requirements referred to in point (a) of Article 39(2) of Directive (EU) 2019/2034, and any additional local supervisory regulations in third countries; (ii) the amount of own funds that relates to the subsidiary that is required on a consolidated basis to meet the sum of the requirement laid down in point (c) of Article 92(1) of this Regulation, the requirements referred to in Articles 458 and 459 of this Regulation, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in point (6) of Article 128 of that Directive, and any additional local supervisory own funds requirement in third countries; (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02013R0575- 2013/36/EU, the requirements referred to in Article 500 and any additional local supervisory own funds requirement in third countries and the Common Equity Tier 1 capital of the subsidiary required at local level to avoid restrictions on dividend payments; in case of third countries this is to be be measured based on local own funds requirements; " Or. en 20220410&qid=1657181919837&from=EN)

Amendment 586 #

Proposal for a regulation
Article 1 – paragraph 1 – point 20 a (new)

Regulation (EU) No 575/2013
Article 87 – paragraph 1 – point a

(~~a) the own funds of the subsidiary minus the lower of the following: (i)~~20 a) in Article 87(1), point (a) is replaced by the following: "(a) the own funds of the subsidiary: the amount of own funds that relates tof the subsidiary that is required ~~to meet the following: —~~on a consolidated basis to meet the sum of the requirement laid down in point (c) of Article 92(1) ~~of this Regulation~~, the requirements referred to in Articles 458 and 459 ~~of this Regulation~~, the specific own funds requirements referred to in Article 104 and 104a of Directive 2013/36/EU, the combined buffer requirement defined in point (6) of Article 128 of ~~that~~ Directive, and any additional local supervisory regulations in third countries, — where the subsidiary is an investment firm, the sum of the requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific 2013/36/EU, the requirements referred to in Article 500 and any additional local supervisory own funds requirement in third countries and the own funds of the subsidiary required at local level to avoid restrictions own ~~funds requirements referred to in point (a) of Article 39(2) of Directive (EU) 2019/2034, and any additional local supervisory regulations in third countries;~~ dividend payments. In case of third countries measured shall be based on local own funds requirements;; Or. en (Regulation 575/2013)

Amendment 587 #

Proposal for a regulation
Article 1 – paragraph 1 – point 21

Regulation (EU) No 575/2013
Article 88b – paragraph 3

~~For the purposes of this Title II, the terms ‘investment firm’ and ‘institution’ shall be understood to include also undertakings established in~~3. Member States shall ensure that institutions draw up, maintain and update individual statements setting out the roles of key function holders, and the persons who are part of the governance arrangements as referred to in Article74 (1) and their~~d countries, which, were they established in the Union, would fall under the definitions of those terms in Article 4(1), points (2) and (3).;~~ duties approved by the management body. Member States shall ensure that the statements of roles are made available and communicated in a timely manner, upon request, to the competent authorities.

Amendment 588 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point a –introductory part

(a) a stand-alone institution in the EU and, for the purposes of complying with the obligations of this Regulation on the basis of its consolidated situation in accordance with Part One, Title II, Chapter 2, an EU parent institution, an EU parent financial holding company and an EU parent mixed financial holding companyinstitutions shall calculate the total risk exposure amount as follows:

Amendment 589 #

Johan VAN OVERTVELDT, Michiel HOOGEVEEN, Eugen JURZYCA

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point a – introductory part

Amendment 590 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point a – introductory part

Amendment 591 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point a – introductory part

Amendment 592 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point a – introductory part

Amendment 593 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraphs 3 – point a – introductory part

Amendment 594 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point a –introductory part

Amendment 595 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Amendment 596 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Amendment 597 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point a – introductory part

(a) ~~a stand-alone institution in the EU and,~~ for the purposes of complying with the obligations of this Regulation ~~on the basis of its consolidated s~~instituation ~~in accordance with Part One, Title II, Chapter 2, an EU parent institution, an EU parent financial holding company and an EU parent mixed financial holding company~~s shall calculate the total risk exposure amount as follows:

Amendment 598 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point a – subparagraph 5a (new)

By way of derogation from the first subparagraph, institutions which deduct an IRB shortfall amount from their Common Equity Tier 1 in accordance with Article 36 (1), point (d) shall apply the following formula: TREA= max {U-TREA; (x*S-TREA)– (SF*12,5)} where SF = the absolute value of the IRB shortfall deducted in accordance with Article 36(1), point (d)

Amendment 599 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point a – subparagraph 5a (new)

By way of derogation from the first subparagraph, institutions which deduct an IRB shortfall amount from their Common Equity Tier 1 in accordance with Article 36 (1), point (d) shall apply the following formula: TREA= max {U-TREA; (x*S-TREA)– (SF*12,5)} where SF = the absolutevalue of the IRB shortfall deducted in accordance with Article 36(1), point (d)

Amendment 600 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point a – subparagraph 5a (new)

Amendment 601 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point a – subparagraph 5a (new)

Amendment 602 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point a – subparagraph 5a (new)

By way of derogation from the first subparagraph, institutions which deduct an IRB shortfall amount from their Common Equity Tier 1 in accordance with Article 36(1), point (d) shall apply the following formula: TREA= max {U-TREA; (x*S-TREA)– (SF*12,5)} where SF = the absolute value of the IRB shortfall deducted in accordance with Article 36(1), point (d)

Amendment 603 #

Johan VAN OVERTVELDT, Michiel HOOGEVEEN, Eugen JURZYCA

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 ¬ paragraph 3 – point b

(b) for the purposes set out in points (i) and (ii), the total risk exposure amount shall be calculated in accordance with paragraph 6: (i) institution in a Member State, for the purposes of complying with obligations of this Regulation on its individual basis; (ii) in case of a parent institution in a Member State, a parent financial holding company in a Member State or a parent mixed financial holding company in a Member State, for the purposes of complying with obligations of this Regulation on the basis of its consolidated situation;deleted in case of a stand-alone subsidiary

Amendment 604 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point b

(b) for the purposes set out in points (i) and (ii), the total risk exposure amount shall be calculated in accordance with paragraph 6: (i) institution in a Member State, for the purposes of complying with obligations of this Regulation on its individual basis; (ii) Member State, a parent financial holding company in a Member Statdeleted in case of a stand-alone subsidiary in case orf a parent ~~mixed financial holding company in a Member State, for the purposes of complying with obligations of this Regulation on the basis of its consolidated situation;~~institution in a

Amendment 605 #

Gilles BOYER, Stéphanie YON-COURTIN, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point b

(b) for the purposes set out in points (i) and (ii), the total risk exposure amount shall be calculated in accordance with paragraph 6: (i) institution in a Member State, for the purposes of complying with obligations of this Regulation on its individual basis; (ii) Member State, a parent financial holding company in a Member Statdeleted in case of a stand-alone subsidiary in case orf a parent ~~mixed financial holding company in a Member State, for the purposes of complying with obligations of this Regulation on the basis of its consolidated situation;~~institution in a

Amendment 606 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point b

(b) for the purposes set out in points (i) and (ii), the total risk exposure amount shall be calculated in accordance with paragraph 6: (i) institution in a Member State, for the purposes of complying with obligations of this Regulation on its individual basis; (ii) Member State, a parent financial holding company in a Member Statdeleted in case of a stand-alone subsidiary in case orf a parent ~~mixed financial holding company in a Member State, for the purposes of complying with obligations of this Regulation on the basis of its consolidated situation;~~institution in a

Amendment 607 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point b

(b) for the purposes set out in points (i) and (ii), the total risk exposure amount shall be calculated in accordance with paragraph 6: (i) institution in a Member State, for the purposes of complying with obligations of this Regulation on its individual basis; (ii) Member State, a parent financial holding company in a Member Statdeleted in case of a stand-alone subsidiary in case orf a parent ~~mixed financial holding company in a Member State, for the purposes of complying with obligations of this Regulation on the basis of its consolidated situation;~~institution in a

Amendment 608 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point b

(b) for the purposes set out in points (i) and (ii), the total risk exposure amount shall be calculated in accordance with paragraph 6: (i) institution in a Member State, for the purposes of complying with obligations of this Regulation on its individual basis; (ii) Member State, a parent financial holding company in a Member Statdeleted in case of a stand-alone subsidiary in case orf a parent ~~mixed financial holding company in a Member State, for the purposes of complying with obligations of this Regulation on the basis of its consolidated situation;~~institution in a

Amendment 609 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3– point b

(b) for the purposes set out in points (i) and (ii), the total risk exposure amount shall be calculated in accordance with paragraph 6: (i) institution in a Member State, for the purposes of complying with obligations of this Regulation on its individual basis; (ii) Member State, a parent financial holding company in a Member Statdeleted in case of a stand-alone subsidiary in case orf a parent ~~mixed financial holding company in a Member State, for the purposes of complying with obligations of this Regulation on the basis of its consolidated situation;~~institution in a

Amendment 610 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No575–2013
Article 92 – paragraphs 3 – point b

(b) for the purposes set out in points (i) and (ii), the total risk exposure amount shall be calculated in accordance with paragraph 6: (i) institution in a Member State, for the purposes of complying with obligations of this Regulation on its individual basis; (ii) Member State, a parent financial holding company in a Member Statdeleted in case of a stand-alone subsidiary in case orf a parent ~~mixed financial holding company in a Member State, for the purposes of complying with obligations of this Regulation on the basis of its consolidated situation;~~institution in a

Amendment 611 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point b

(b) for the purposes set out in points (i) and (ii), the total risk exposure amount shall be calculated in accordance with paragraph 6: (i) institution in a Member State, for the purposes of complying with obligations of this Regulation on its individual basis; (ii) Member State, a parent financial holding company in a Member Statdeleted in case of a stand-alone subsidiary in case orf a parent ~~mixed financial holding company in a Member State, for the purposes of complying with obligations of this Regulation on the basis of its consolidated situation;~~institution in a

Amendment 612 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point b

(b) for the purposes set out in points (i) and (ii), the total risk exposure amount shall be calculated in accordance with paragraph 6: (i) institution in a Member State, for the purposes of complying with obligations of this Regulation on its individual basis; (ii) Member State, a parent financial holding company in a Member Statdeleted in case of a stand-alone subsidiary in case orf a parent ~~mixed financial holding company in a Member State, for the purposes of complying with obligations of this Regulation on the basis of its consolidated situation;~~institution in a

Amendment 613 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point b

(b) for the purposes set out in points (i) and (ii), the total risk exposure amount shall be calculated in accordance with paragraph 6: (i) institution in a Member State, for the purposes of complying with obligations of this Regulation on its individual basis; (ii) Member State, a parent financial holding company in a Member Statdeleted in case of a stand-alone subsidiary in case orf a parent ~~mixed financial holding company in a Member State, for the purposes of complying with obligations of this Regulation on the basis of its consolidated situation;~~institution in a

Amendment 614 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point b

(b) ~~for the purposes set out in points (i) and (ii),~~by way of derogation of paragraph a), competent authorities may authorise institutions in their jurisdiction that are part of a group with the parent institution also located in this Member State to use for their total risk exposure amount ~~shall be calculated in accordance with paragraph 6: (i) institution in a Member State, for the pur~~the un-floored total risk amount, provided that the parent institution calculates its total risk exposure amount in accordance with paragraph a) on a consolidated basis. in case of a stand-alone subsidiary in case of a parent institution in a To authorise institutions to calculate their risk exposures ~~of complying with obligations of this Reg~~in accordance with point b), competent authorities should take into account at least the following elements: i) the risk faced by the institution would still be properly reflected in the calculation onf its ~~individual basis~~risk exposure amount; (ii) Member State, a parent financial holding company in a Member State or a parent mixed financial holding company in a Member State, for the purposes of complying with obligations of this Regulation on the basis of its consolidated situation;the institution would still remain sufficiently capitalised to cope with adverse economic conditions; iii) the application of the discretion does not jeopardise the level playing field between institutions. By 12 months after the entry into force of this Regulation, EBA shall issue guidelines, in accordance with Article 16 of Regulation (EU) No 1093/2010 on the conditions and criteria competent authorities should apply when authorising institutions to calculate their risk exposure in accordance with point b) of this paragraph.

Amendment 615 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

(b) ~~for the purposes set out in points (i) and (ii), the total risk exposure amount shall be calculated in accordance with paragraph 6:~~by way of derogation from point (a), a Member State may decide that the total risk exposure amount shall be the un- floored total risk exposure amount, calculated in accordance with paragraph 4, for institutions in its jurisdiction which are part of a group with a parent institution in this Member State, provided that this parent institution or, in the case of groups composed of a central body and permanently affiliated institutions, the whole as constituted by the central body together with its affiliated institutions calculates its total risk exposure amount in accordance with point (a) on a consolidated basis.

Amendment 616 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point c

(c) for the purposes of complying with the obligations of this Regulation on an individual basis, the total risk exposure amount of an institution which is neither a stand-alone institution in the EU nor a stand-alone subsidiary institution in a Member State shall be the un-floored total risk exposure amount calculated in accordance with paragraph 4.deleted

Amendment 617 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point c

Amendment 618 #

Johan VAN OVERTVELDT, Michiel HOOGEVEEN, Eugen JURZYCA

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point c

Amendment 619 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point c

Amendment 620 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point c

Amendment 621 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraphs 3 – point c

Amendment 622 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point c

Amendment 623 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point c

Amendment 624 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragrapgh 3 – point c

Amendment 625 #

Gilles BOYER, Stéphanie YON-COURTIN, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point c

Amendment 626 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point c

(c) for the purposes of complying with the obligations of this Regulation oin an ~~individual basis,~~ y case other t~~otal risk exposure amount of an institution which is neither a stand-alone institution in the EU nor a stand-alone subsidiary institution in a Member State~~han the cases referred to in point (a) of this paragraph, the total risk exposure amount shall be the un-floored total risk exposure amount calculated in accordance with paragraph 4.

Amendment 627 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 – paragraph 3 – point c

Amendment 628 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a

Regulation (EU) No 575/2013
Article 92 ¬ paragraph 3 – point c

Amendment 629 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point b

Regulation (EU) No 575/2013
Article 92 – paragraph 5a (new)

5 a. Exposures to central governments, regional governments, local authorities or public sector entities should be excluded from the calculation of the standardised total risk exposure amount in accordance with paragraph 5 of this Article.

Amendment 630 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point b

Regulation (EU) No 575/2013
Article 92 – paragraph 6

6. The total risk exposure amount of an entity ‘i’ for the purposes set out in paragraph 3, point (b), shall be calculated as follows: TREAi=U- TREAi+DIconso∗Contribiconso where: i = the index that denotes the entity; TREAi = the total risk exposure amount of entity i; U-TREAi = the un-floored total risk exposure amount of entity i calculated in accordance with paragraph 4; DIconso = any positive difference between the total risk exposure amount and the un-floored total risk exposure amount for the consolidated situation of the EU parent institution, EU parent financial holding company or EU parent mixed financial holding company of the group that entity i is part of, calculated as follows: DIconso=TREA−U-TREA where: U-TREA = the un-floored total risk exposure amount calculated in accordance with paragraph 4 for that EU parent institution, EU parent financial holding company or EU parent mixed financial holding company on the basis of its consolidated situation; TREA = the total risk exposure amount calculated in accordance with paragraph 3, point (a), for that EU parent institution, EU parent financial holding company or EU parent mixed financial holding company on the basis of its consolidated situation. Contribconsoi = the contribution of entity i, calculated as follows: Contribiconso={(F-TREA𝑖−U-TREA𝑖)/Σ(𝑗F- TREA𝑗−U-TREA𝑗 ), 𝑖𝑓 Σ(𝑗F-TREA𝑗−U-TREAj)>0 0, 𝑜𝑡ℎ𝑒𝑟𝑤𝑖𝑠𝑒 where: j = the index that denotes all entities that are part of the same group as entity i for the consolidated situation of the EU parent institution, EU parent financial holding company or EU parent mixed financial holding company; U-TREAj = the un-floored total risk exposure amount calculated by entity j in accordance with paragraph 4 on the basis of its consolidated situation or, in case entity j is a stand-alone subsidiary institution in a Member State, on its individual basis; F-TREAj = the floored total risk exposure amount of entity j calculated on the basis of its consolidated situation as follows: F-TREAj =max {U-TREAj ;x∙S-TREAj} where: F-TREAj = the floored total risk exposure amount calculated by entity j on the basis of its consolidated situation or, in case entity j is a stand-alone subsidiary institution in a Member State, for its individual basis; S-TREAj = the standardised total risk exposure amount calculated in accordance with paragraph 5 by entity j on the basis of its consolidated situation or, in case entity j is a stand-alone subsidiary institution in a Member State, for its individual basis; x = 72,5 %.deleted

Amendment 631 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point b

Regulation (EU) No 575/2013
Article 92 – paragraph 6

6. The total risk exposure amount of an entity ‘i’ for the purposes set out in paragraph 3, point (b), shall be calculated as follows: null where: i = the index that denotes the entity; TREAi = the total risk exposure amount of entity i; U-TREAi = the un-floored total risk exposure amount of entity i calculated in accordance with paragraph 4; DIconso = any positive difference between the total risk exposure amount and the un-floored total risk exposure amount for the consolidated situation of the EU parent institution, EU parent financial holding company or EU parent mixed financial holding company of the group that entity i is part of, calculated as follows: null where: U-TREA = the un-floored total risk exposure amount calculated in accordance with paragraph 4 for that EU parent institution, EU parent financial holding company or EU parent mixed financial holding company on the basis of its consolidated situation; TREA = the total risk exposure amount calculated in accordance with paragraph 3, point (a), for that EU parent institution, EU parent financial holding company or EU parent mixed financial holding company on the basis of its consolidated situation. Contribconsoi = the contribution of entity i, calculated as follows: null where: j = the index that denotes all entities that are part of the same group as entity i for the consolidated situation of the EU parent institution, EU parent financial holding company or EU parent mixed financial holding company; U-TREAj = the un-floored total risk exposure amount calculated by entity j in accordance with paragraph 4 on the basis of its consolidated situation or, in case entity j is a stand-alone subsidiary institution in a Member State, on its individual basis; F-TREAj = the floored total risk exposure amount of entity j calculated on the basis of its consolidated situation as follows: null where: F-TREAj = the floored total risk exposure amount calculated by entity j on the basis of its consolidated situation or, in case entity j is a stand-alone subsidiary institution in a Member State, for its individual basis; S-TREAj = the standardised total risk exposure amount calculated in accordance with paragraph 5 by entity j on the basis of its consolidated situation or, in case entity j is a stand-alone subsidiary institution in a Member State, for its individual basis; x = 72,5 %.deleted

Amendment 632 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point b

Regulation (EU) No 575/2013
Article 92 – paragraph 6

Amendment 633 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point b

Regulation (EU) No 575/2013
Article 92 – paragraph 6

Amendment 634 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point b

Regulation (EU) No 575/2013
Article 92 – paragraph 6

Amendment 635 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point b

Regulation (EU) No 575/2013
Article 92 – paragraph 6

Amendment 636 #

Johan VAN OVERTVELDT, Michiel HOOGEVEEN, Eugen JURZYCA

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point b

Regulation (EU) No 575/2013
Article 92 – paragraph 6

Amendment 637 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point b

Regulation (EU) No 575/2013
Article 92 – paragraph 6

Amendment 638 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point b

Regulation (EU) No 575/2013
Article 92 – paragraph 6

Amendment 639 #

Gilles BOYER, Stéphanie YON-COURTIN, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point b

Regulation (EU) 575/2013
Article 92 ¬ paragraph 6

Amendment 640 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point b

Regulation (EU) No 575/2013
Article 92 – paragraph 6

Amendment 641 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point b

Regulation (EU) No 575/2013
Article 92 – paragraph 6

Amendment 642 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point b

Regulation (EU) No 575/2013
Article 92 – paragraph 7a (new)

7 a. A parent institution in a Member State, a parent financial holding company in a Member State or a parent mixed financial holding company in a Member State shall ensure that capital is adequately distributed amongst legal entities of a banking group from a risk perspective. Competent authorities shall, on at least an annual basis, test that individual banks are adequately capitalised on a stand-alone basis.

Amendment 643 #

Proposal for a regulation
Article 1 – paragraph 1 – point 23 a (new)

Regulation (EU) No 575/2013
Article 92 a (new)

(23 a) the following article is inserted: Article 92 a Level of application of the output floor 1. Institutions shall calculate the total risk weighted exposure amount referred to in Article 92(3) on an individual and on a consolidated basis in accordance with Part One, Title II of this Regulation. 2. The EBA shall assess the developments in the Union deposit guarantee framework and publish an opinion on whether the developments in such framework provides for the pooling of resources and for risk sharing at the EU level. The EBA shall publish the opinion referred to herein by 31 December 2027 and at least every three years thereafter until the EBA concludes that the Union deposit guarantee framework has reached a sufficient level of convergence for these purposes, having regard to all other relevant considerations in Union law. 3. Upon the EBA’s publishing a positive opinion as per paragraph 3, the Commission may adopt a legislative proposal to amend the level of application set out in paragraphs 1 and 2 taking into consideration the following: (a) institutions shall calculate the total risk weighted exposure amount referred to in Article 92(6) on the basis of the consolidated situation of the EU parent institution, EU parent financial holding company or the EU parent mixed financial holding company in accordance with Part One, Title II, Chapter 2 of this Regulation; (b) stand-alone institutions in the EU shall calculate the total risk weighted exposure amount referred to in Article 92(3) on an individual basis in accordance with Part One, Title II, Chapter 1of this Regulation;

Amendment 644 #

Proposal for a regulation
Article 1 – paragraph 1 – point 26

Regulation EU 575/2013
Article 104 – paragraph 1 – subparagraph 1a (new)

An institution shall have in place an independent risk control unit which evaluates on a continuous basis the instruments in and outside the trading books and assess whether its instruments are being properly designated as trading or non-trading instruments.

Amendment 645 #

Proposal for a regulation
Article 1 – paragraph 1 – point 26

Directive 2013/36/EU
Article 104 – paragraph 2 – point g

(g) listed equities, unless those equities are strategic holdings with an intended holding period of six years or longer; or the equities were not listed at the time of purchase;

Amendment 646 #

Proposal for a regulation
Article 1 – paragraph 1 – point 26

Regulation (EU) No 575/2013
Article 104 ¬ paragraph 2 – subparagraph 3

For the purposes of point (i), an institution shall split the embedded option from its own liability or from the other instrument in the non-trading book that relate to credit or equity risk ~~and~~. It shall assign, the embedded option to the trading book and shall leave the own liability or the other instrument ~~to the trading or to~~in the non-trading book~~, as appropriate, in accordance with this Article~~.

Amendment 647 #

Proposal for a regulation
Article 1 – paragraph 1 – point 27 – point a a (new)

Regulation (EU) No 575/2013
Article 104a – paragraph 2 – subparagraph 1 a (new)

(a a) in paragraph 2, the following subparagraph is inserted: Internal transfers of positions between a well identified central treasury management desk and market making desk shall not be considered as reclassification of position if: (a) the transfer of positions is done at arm's length; (b) the scope of the positions transferred is limited to assets eligible to liquidity buffer and financial instruments where such assets are the underlying instruments; (c) positions transferred to treasury shall not have been held by the market making desk for a duration that exceeds the usual holding period of the market making desk set in line with Article 103.

Amendment 648 #

Proposal for a regulation
Article 1 – paragraph 1 – point 30 – point a

Regulation (EU) No 575/2013
Article 106 – paragraph 3

(a) in paragraph 3~~, the last subparagraph~~ is replaced by the following: ~~Both an internal hedge recognised in accordance with the first subparagraph and the credit derivative entered into with the third party shall be included in~~3.Where an institution hedges a non- trading book credit risk exposure or counterparty risk exposure using a credit derivative booked in its trading book, that credit derivative position shall be recognised as an internal hedge of the non-trading book tocredit risk exposure or counterparty risk exposure for the purpose of calculateing the ~~own f~~risk-weighted exposure amoundts re~~quirements for market risk. To calculate the own funds requirements for market risk us~~ferred to in point (a) of Article 92(3) where the institution enters into another credit derivative transaction with an eligible third party protection provider that meets the requirements for unfunded credit protection ing the ~~approach set out in Article 325(1), point (b), both positions shall be assign~~non-trading book and fully offsets the long market credit risk position of the internal hedge. Both an internal hedge recognised in accordance with the first subparagraph and the credit derivative entered into ~~the same trading desk established in accordance to Article 104b(1) that manages similar risks~~with the third party shall be included in the trading book for the purpose of calculating the own funds requirements for market risk such that credit risk over hedges and other market risks are capitalised.

Amendment 649 #

Proposal for a regulation
Article 1 – paragraph 1 – point 30 – point b

Regulation (EU) No 575/2013
Article 106 – paragraph 4

(b) in paragraph 4~~, the last subparagraph~~ is replaced by the following: 4.Where an institution hedges a non- trading book equity risk exposure using an equity derivative booked in its trading book, that equity derivative position shall be recognised as an internal hedge of the non-trading book equity risk exposure for the purpose of calculating the risk- weighted exposure amounts referred to in point (a) of Article 92(3) where the institution enters into another equity derivative transaction with an eligible third party protection provider that meets the requirements for unfunded credit protection in the non- trading book and fully offsets the long market equity risk position of the internal hedge. Both an internal hedge recognised in accordance with the first subparagraph and the equity derivative entered into with the eligible third party protection provider shall be included in the trading book for the purposes of calculating the own funds requirements for market risk. For the purposes of calculating the own funds requirements for market risks using the approach set out in Article 325(1), point (b) both positions shall be assigned to the same trading desk established in accordance to Article 104b(1) that manages similar risks such that equity risk over hedges and other market risks are capitalised.

Amendment 650 #

Proposal for a regulation
Article 1 – paragraph 1 – point 30 – point d

Regulation (EU) No 575/2013
Article 106 – paragraph 5a

‘5a. For the purposes of paragraph 5, point (a), the institution may assign to that portfolio other interest rate risk positions entered into with third parties, or with its own trading book, as long as the institution ~~perfect~~fully offsets the market risk of those interest rate risk positions entered into with its own trading book by entering into opposite interest rate risk positions with third parties.

Amendment 651 #

Proposal for a regulation
Article 1 – paragraph 1 – point 30 – point d

Regulation (EU) No 575/2013
Article 106 – paragraph 5b – point a

(a) that trading desk may include other interest rate risk positions entered into with third parties or with other trading desks of the institution, as long as those positions meet the requirements for inclusion in the trading book referred to in Article 104 and those other trading desks ~~perfect~~fully offset the market risk of those other interest rate risk positions by entering into opposite interest rate risk positions with third parties;

Amendment 652 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 30 – point e

Regulation (EU) No 575/2013
Article 106 – paragraph 7 – point b

(b) where the derivative position is subject to any of the requirements set out in Article 325c(2), points (b) or (c), or in Article 325e(1), point (c), the institution ~~perfectly~~ offsets the market risk of that derivative position by entering into opposite positions with third parties;

Amendment 653 #

Proposal for a regulation
Article 1 – paragraph 1 – point 30 – point e

Amendment 654 #

Proposal for a regulation
Article 1 – paragraph 1 – point 32

Regulation (EU) No 575/2013
Article 108 – paragraph 3 – introductory part

3. Subject to the conditions set out in paragraph 4, ~~retail loa~~loans to natural persons may be regarded as exposures secured by a mortgage on residential property, instead of being treated as guaranteed exposures, for the purposes of Part three, Title II, Chapters 2, 3 and 4 as applicable, where in a Member State the following conditions for those ~~retail~~ loans have been fulfilled:

Amendment 655 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 32

Regulation (EU) No 575/2013
Article 108 – paragraph 3 – point b

(b) the majority of loans to ~~individual~~natural persons for the purchase of residential properties in that Member State are guaranteed by a guarantor with a credit assessment by an nominated ECAI corresponding to a credit quality step of 1 or 2, that is required to repay the institution in full where the original borrower defaults;

Amendment 656 #

Proposal for a regulation
Article 1 – paragraph 1 – point 32

Regulation (EU) No 575/2013
Article 108 – paragraph 4 – point c

(c) there is no mortgage lien on the residential property when the loan is granted and for the loans granted from 1 January 2024 the borrower is contractually committed not to grant any mortgage lien without the consent of the institution that originally granted the loan;

Amendment 657 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 32

Regulation (EU) No 575/2013
Article 108 – paragraph 4 – point e

(e) the guarantor is an institution or a financial sector entity subject to capital requirements ~~at least equivalent~~comparable to those applicable to institutions or insurance undertakings;

Amendment 658 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 32

Regulation (EU) No 575/2013
Article 108 – paragraph 4 – point f

(f) the guarantor has established a fully-funded mutual guarantee fund or equivalent protection for insurance undertakings to absorb credit risk losses, the calibration of which is periodically reviewed by its competent authority and is subject to ~~yearly~~periodic stress testing, at least every two years;

Amendment 659 #

Proposal for a regulation
Article 1 – paragraph 1 – point 32

Regulation (EU) No 575/2013
Article 108 – paragraph 4 – point h

(h) the institution that decides to exercise the option provided for in paragraph 3 for a given eligible guarantor under the mechanism referred to in paragraph 3, shall do so for all its ~~retail~~natural persons exposures guaranteed by that guarantor under that mechanism.;

Amendment 660 #

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 575/2013
Article 111 – paragraph 2 – point ea (new)

(e a) 0% for items in bucket 6

Amendment 661 #

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 575/2013
Article 111 – Paragraph 2

(e a) 0% for items in bucket 6. (To be read in conjunction with the corresponding change in Annex I.)

Amendment 662 #

Proposal for a regulation
Article 1 – paragraph 1 – point 34

575/2013
Article 111 – paragraph 2a (new)

2 a. By way of derogation from paragraph 2, unconditionally cancellable commitments in accordance with Article 5, point 10, shall be assigned a credit conversion factor of 0%.

Amendment 663 #

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 575/2013
Article 111 – paragraph 4

4. For contractual arrangements offered by an institution, but not yet accepted by the client, that would become commitments if accepted by the client, and contractual arrangements that would qualify as commitments but meet the conditions for not being treated as commitments, the percentage applicable to that type of contractual arrangement shall be that provided for in accordance with paragraph 2.deleted

Amendment 664 #

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 575/2013
Article 111 – paragraph 4

Amendment 665 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 575/2013
Article 111 paragraph 4

Amendment 666 #

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 575/2013
Article 111 paragraph 4

Amendment 667 #

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 575/2013
Article 111 – paragraph 4

Amendment 668 #

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 575/2013
Article 111– paragraph 4

Amendment 669 #

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 575/2013
Article 111 – paragraph 4

Amendment 670 #

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 575/2013
Article 111 – paragraph 4

Amendment 671 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 34

Regulation (EU) No 575/2013
Article 111– paragraph 4

4. For contractual arrangements offered by an institution, but not yet accepted by the client, that would become commitments if accepted by the client, ~~and~~the percentage applicable shall be the one provided for in accordance with paragraph 2. For contractual arrangements that would qualify as commitments but meet the conditions specified in Article 5, point (9), second subparagraph, for not being treated as commitments, the percentage applicable to that type of contractual arrangement shall be ~~that provided for in accordance with paragraph 2.~~ 0 %.”

Amendment 672 #

Proposal for a regulation
Article 1 – paragraph 1 – point 36 a (new)

Regulation (EU) No 575/2013
Article 115 – paragraph 2 a new

2a . Member States may decide to assign a risk weight of 10% to exposures to regional governments or local authorities that are not referred to in paragraph 2 and 4 and are denominated and funded in the domestic currency of that regional government and local authority.

Amendment 673 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 36 a (new)

Regulation (EU) No 575/2013
Article 116 – paragraph 4 – subparagraph 1a (new)

(36 a) in Article 116(4) the following subparagraph is added: ‘EBA shall maintain a publicly available database of all public-sector entities within the Union which relevant competent authorities consider as having no difference in risk as exposures to the central government, regional government or local authority in whose jurisdiction the public-sector entity is established’

Amendment 674 #

Proposal for a regulation
Article 1 – paragraph 1 – point 36 b (new)

Regulation (EU) No 575/2013
Article 116 – paragraph 4 a new

4a. Member States may decide to assign a risk weight of 10% to exposures to public sector entities of the Member States that are denominated and funded in the domestic currency of that public sector entity, unless the treatments set out in paragraph 4 apply.

Amendment 675 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 38

Regulation (EU) No 575/2013
Article 120 – paragraph 2 – introductory part

2. Exposures with a~~n origin~~ residual maturity of three months or less for which a credit assessment by a nominated ECAI is available and exposures which arise from the movement of goods across national borders Trade Finance exposures as referred to Article 4(1), point (80) with an ~~origin~~residual maturity of ~~six months~~one year or less and for which a credit assessment by a nominated ECAI is available, shall be assigned a risk weight in accordance with Table 4 which corresponds to the credit assessment of the ECAI in accordance with Article 136.

Amendment 676 #

Proposal for a regulation
Article 1 – paragraph 1 – point 38

Regulation (EU) No 575/2013
Article 120 – paragraph 2 – introductory part

2. Exposures with a~~n origin~~ residual maturity of three months or less for which a credit assessment by a nominated ECAI is available and exposures which arise from the movement of goods across national borders with a~~n origin~~ residual maturity of six months or less and for which a credit assessment by a nominated ECAI is available, shall be assigned a risk weight in accordance with Table 4 which corresponds to the credit assessment of the ECAI in accordance with Article 136.

Amendment 677 #

Proposal for a regulation
Article 1 – paragraph 1 – point 38 a (new)

Regulation (EU) No 575/2013
Article 120 – paragraph 3

(38 a) in Article 120, paragraph 3 is replaced by the following: "3. The interaction between the treatment of short term credit assessment under Article 131 and the general preferential treatment for short term exposures set out in paragraph 2 shall be as follows: (a) If there is no short-term exposure assessment, the general preferential treatment for short-term exposures as specified in paragraph 2 shall apply to all exposures to institutions of up to three months residual maturity; (b) If there is a short-term assessment and such an assessment determines the application of a more favourable or identical risk weight than the use of the general preferential treatment for short- term exposures, as specified in paragraph 2, then the short-term assessment ~~shall~~may be used for that specific exposure only. Other short-term exposures shall follow the general preferential treatment for short- term exposures, as specified in paragraph 2; (c) If there is a short-term assessment and such an assessment determines a less favourable risk weight than the use of the general preferential treatment for short- term exposures, as specified in paragraph 2, then the general preferential treatment for short-term exposures shall not be used ~~and all unrated short-term claims shall be assigned the same risk weight as that applied by the specific short-term assessment.~~ for that specific exposure. " Or. en (Regulation 575/2013)

Amendment 678 #

Proposal for a regulation
Article 1 – paragraph 1 – point 39

Regulation (EU) No 575/2013
Article 121 – paragraph 1 – point a – point ii

(ii) the institution meets or exceeds the requirement laid down in Article 92(1), the requirements referred to in Articles 458(2)(d)(i), 458(2)(d)(vi) and 459(a), the specific own funds requirements referred to in Article 104a of Directive 2013/36/EU, the combined buffer requirement defined in Article 128, point (6), of Directive 2013/36/EU ~~and~~or any equivalent or additional local supervisory or regulatory requirements in third countries, insofar as those requirements are ~~published~~applicable to that institution and are to be met by Common Equity Tier 1 capital, Tier 1 capital or own funds;, as applicable, or where exposures to a financial institution shall be treated as exposures to an institution according to Article 119(5), any comparable prudential requirements.

Amendment 679 #

Proposal for a regulation
Article 1 – paragraph 1 – point 39

Regulation (EU) No 575/2013
Article 121 – paragraph 1 – point a – point ii

(ii) the institution meets or exceeds the requirement laid down in Article 92(1), the requirements referred to in Articles 458(2)(d)(i), 458(2)(d)(vi) and 459(a), the specific own funds requirements referred to in Article 104a of Directive 2013/36/EU, the combined buffer requirement defined in Article 128, point (6), of Directive 2013/36/EU ~~and~~or any equivalent or additional local supervisory or regulatory requirements in third countries, insofar as those requirements are published and are to be met by Common Equity Tier 1 capital, Tier 1 capital or own funds, or where exposures to a financial institution shall be treated as exposures to an institution according to Article 119(5), any comparable prudential requirements corresponding to Grade A;

Amendment 680 #

Proposal for a regulation
Article 1 – paragraph 1 – point 39

Regulation (EU) No 575/2013
Article 121 – paragraph 1 – point b – point ii

(ii) the institution meets or exceeds the requirement laid down in Article 92(1), the requirements referred to in Articles 458(2)(d)(i), 458(2)(d)(vi) and 459(a), the specific own funds requirements referred to in Article 104a of Directive 2013/36/EU ~~and~~, the combined buffer requirement defined in Article 128, point (6), of Directive 2013/36/EU or any equivalent or additional local supervisory or regulatory requirements in third countries, insofar as those requirements are ~~published~~applicable to that institution and are to be met by Common Equity Tier 1 capital, Tier 1 capital ~~and own funds;~~ or own funds, as applicable, or where exposures to a financial institution shall be treated as exposures to an institution according to Article 119(5), any comparable prudential requirements.

Amendment 681 #

Proposal for a regulation
Article 1 – paragraph 1 – point 39

Regulation (EU) No 575/2013
Article 121 – paragraph 1 – point b – point ii

(ii) the institution meets or exceeds the requirement laid down in Article 92(1), the requirements referred to in Article~~s 458 and~~ 459(a), the specific own funds requirements referred to in Article 104a of Directive 2013/36/EU ~~and~~or any equivalent or additional local supervisory or regulatory requirements in third countries, insofar as those requirements are published and are to be met by Common Equity Tier 1 capital, Tier 1 capital ~~and own funds~~or own funds, or where exposures to a financial institution shall be treated as exposures to an institution according to Article 119(5), any comparable prudential requirements corresponding to Grade B;

Amendment 682 #

Proposal for a regulation
Article 1 – paragraph 1 – point 39

Regulation (EU) No 575/2013
Article 121 – paragraph 2 – point a – point i

(i) the exposure has a~~n origin~~ residual maturity of three months or less;

Amendment 683 #

Proposal for a regulation
Article 1 – paragraph 1 – point 39

Regulation (EU) No 575/2013
Article 121 – paragraph 2 – point a – point ii

(ii) the exposure has a~~n origin~~ residual maturity of ~~six months~~one year or less and ~~arises from the movement of goods across national borders~~is a trade finance exposure as referred to in Article 4(1), point (80).

Amendment 684 #

Proposal for a regulation
Article 1 – paragraph 1 – point 39

Regulation (EU) No 575/2013
Article 121 – paragraph 2 – table 5

Table 5 Credit risk Grade A Grade B Grade C assessment Risk weight for 20 % 50 % 75100 % short-term exposures Risk weight 40 % 75 % 150 %

Amendment 685 #

Proposal for a regulation
Article 1 – paragraph 1 – point 40 – point a a (new)

Regulation (EU) No 575/2013
Article 122 – paragraph 1 a (new)

1a. Exposures with a residual maturity of three months or less for which a credit assessment by a nominated ECAI is available and trade finance exposures as referred to Article 4(1), point (80) with a residual maturity of one year or less and for which a credit assessment by a nominated ECAI is available, shall be assigned a risk weight in accordance with Table 4 which corresponds to the credit assessment of the ECAI in accordance with Article 136.

Amendment 686 #

Johan VAN OVERTVELDT, Michiel HOOGEVEEN, Eugen JURZYCA

Proposal for a regulation
Article 1 – paragraph 1 – point 40 – point b

Regulation (EU) No 575/2013
Article 122 – paragraph 2

Exposures for which such a credit assessment is not available shall be assigned a risk weight of 100 %. except for exposures to SMEs as defined in Article 5 point (8) which shall be assigned a risk weight of 85% ;

Amendment 687 #

Proposal for a regulation
Article 1 – paragraph 1 – point 40 – point b

Regulation (EU) No 575/2013
Article 122 – paragraph 2

Exposures for which such a credit assessment is not available shall be assigned a risk weight of 100 %., except for exposures to SMEs as defined in Article 5 point (8) which shall be assigned a risk weight of 85%;

Amendment 688 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 40 – point b a (new)

Regulation (EU) No 575/2013
Article 122 – paragraph 2 a (new)

(b a ) the following paragraph is added: 2a. By way of derogation from paragraph 2, exposures under the standardised approach due to not-real estate leases granted by an institution to corporate borrowers against the payment of periodic contractual payment sshall be assigned a risk weight of 70%, provided that all the following conditions are met: a) the lessor performs a complete credit risk assessment process comprising lessees, subject of leases and their relative suppliers; b) the lessor retains the legal ownership of the leased asset throughout the life of the contract; c) the lessor has the right to carry out on- site inspections/access; d) the leased assets are instrumental to the exercise of the borrower’s economic activities.

Amendment 689 #

Proposal for a regulation
Article 1 – paragraph 1 – point 40 – point b a (new)

Regulation (EU) No 575/2013
Article 122 – paragraph 2 a (new)

(ba) the following paragraph is added: 2a. By way of derogation from paragraph 2, exposures under the standardised approach due to not-real estate leases granted by an institution to corporate borrowers against the payment of periodic contractual paymentsshall be assigned a risk weight of 70%, provided that all the following conditions are met: a) the lessor performs a complete credit risk assessment process comprising lessees, subject of leases and their relative suppliers; b) the lessor retains the legal ownership of the leased asset throughout the life of the contract; c) the lessor has the right to carry out on- site inspections/access; d) the leased assets are instrumental to the exercise of the borrower’s economic activities;

Amendment 690 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 40 – point b a (new)

Regulation (EU) No 575/2013
Article 122 – paragraph 2a (new)

(b a) the following paragraph is added: 2a. By way of derogation from paragraph 2, exposures under the standardised approach due to not-real estate leases granted by an institution to corporate borrowers against the payment of periodic contractual payments shall be assigned a risk weight of 70%, provided that all the following conditions are met: a) the lessor performs a complete credit risk assessment process comprising lessees, subject of leases and their relative suppliers; b) the lessor retains the legal ownership of the leased asset throughout the life of the contract; c) the lessor has the right to carry out on- site inspections/access; d) the leased assets are instrumental to the exercise of the borrower’s economic activities.

Amendment 691 #

Proposal for a regulation
Article 1 – paragraph 1 – point 40 – point b a (new)

Regulation (EU) No 575/2013
Article 122 – paragraph 2 a (new)

(b a) the following paragraph is added: 2a. By way of derogation from paragraph 2, exposures under the standardised approach due to not-real estate leases granted by an institution to corporate borrowers against the payment of periodic contractual payments shall be assigned a risk weight of 70%, provided that all the following conditions are met: a) the lessor performs a complete credit risk assessment process comprising lessees, subject of leases and their relative suppliers; b) the lessor retains the legal ownership of the leased asset throughout the life of the contract; c) the lessor has the right to carry out on- site inspections/access; d) the leased assets are instrumental to the exercise of the borrower’s economic activities.

Amendment 692 #

Proposal for a regulation
Article 1 – paragraph 1 – point 40 – point b a (new)Regulation (EU) No 575/2013

Article 122 – paragraph 2 a (new)

(b a) the following paragraph is added: 2a. By way of derogation from paragraph 2, exposures under the standardised approach due to not-real estate leases granted by an institution to corporate borrowers against the payment of periodic contractual payments shall be assigned a risk weight of 70%, provided that all the following conditions are met: a) the lessor performs a complete credit risk assessment process comprising lessees, subject of leases and their relative suppliers; b) the lessor retains the legal ownership of the leased asset throughout the life of the contract; c) the lessor has the right to carry out on- site inspections/access; d) the leased assets are instrumental to the exercise of the borrower’s economic activities.

Amendment 693 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 40 – point b a (new)

(b a) the following paragraph is added: 2a. By way of derogation from paragraph 2, exposures under the standardised approach due to not-real estate leases granted by an institution to corporate borrowers against the payment of periodic contractual payments shall be assigned a risk weight of 70%, provided that all the following conditions are met: a) the lessor performs a complete credit risk assessment process comprising lessees, subject of leases and their relative suppliers; b) the lessor retains the legal ownership of the leased asset throughout the life of the contract; c) the lessor has the right to carry out on- site inspections/access; d) the leased assets are instrumental to the exercise of the borrower’s economic activities.

Amendment 694 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122a – paragraph 1 – point b

(b) the exposure is ~~not secured by immovable property~~related to the financing of real estate and is within the definitions orf o~~therwise related to the financing of real estate~~ bject finance, project finance or commodities finance exposures laid down in paragraph 3;

Amendment 695 #

Luis GARICANO, Esther de LANGE, Caroline NAGTEGAAL, Luděk NIEDERMAYER

Proposal for a regulation
article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122a – paragraph 2 – table 6aa

Table 6aa Credit 1 1 2 3 4 45 56 quality Step Risk 20 % 50 % 75 % 100 % 150 % 150 % Weigh t

Amendment 696 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122a – paragraph 3 – point a – introductory part

(a) where the purpose of a specialised lending exposure is to finance the acquisition of physical assets, including ships, aircraft, satellites, railcars, and fleets, and the income to be generated by those assets comes in the form of cash flows generated by the specific physical assets that have been financed and pledged or assigned to the lender ~~by one or several third parties~~ (‘object finance exposures’), institutions shall apply ~~the following~~a risk weights: of 100%.

Amendment 697 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122a – paragraph 3 – point a – introductory part

Amendment 698 #

Johan VAN OVERTVELDT, Michiel HOOGEVEEN, Eugen JURZYCA

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122a ¬ paragraph 3 ¬ point a – introductory part

(a) where the purpose of a specialised lending exposure is to finance the acquisition of physical assets, including ships, aircraft, satellites, railcars, and fleets, and the income to be generated by those assets comes in the form of cash flows generated by the specific physical assets that have been financed and pledged or assigned to the lender by one or several third parties (‘object finance exposures’), institutions shall apply ~~the following~~a risk weights of 100%:

Amendment 699 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No
Article 122a – paragraph 3 – point a – introductory part

(a) where the purpose of a specialised lending exposure is to finance the acquisition of physical assets, including ships, aircraft, satellites, railcars, and fleets, and the income to be generated by those assets comes in the form of cash flows generated by the specific physical assets that have been financed and pledged or assigned to the lender by one or several third parties (‘object finance exposures’), institutions shall apply ~~the following~~a risk weights: of 100%.

Amendment 700 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) 575/2013
Article 122a ¬ paragraph 3 ¬ point a – point i

(i) 80 % where the exposure is deemed to be high quality when taking into account all of the following criteria: — obligations even under severely stressed conditions due to the presence of all of the following features: — adequate exposure-to-value of the exposure; — conservative repayment profile of the exposure; — of the assets upon full pay-out of the exposure or alternatively recourse to a protection provider with high creditworthiness; — exposure by the obligor or that risk is adequately mitigated by a commensurate residual asset value or recourse to a protection provider with high creditworthiness; — the obligor has contractual restrictions over its activity and funding structure; — for risk-mitigation purposes; — properly managed; — the assets provide lenders with a high degree of protection including the following features: — enforceable first-ranking right over the assets financed, and, where applicable, over the income that they generate; — on the ability of the obligor to change anything to the asset which would have a negative impact on its value; — construction, the lenders have a legally enforceable first-ranking right over the assets and the underlyingdeleted the obligor can meet its financial commensurate remaining lifetime low refinancing risk of the the obligor uses derivatives only material operating risks are the contractual arrangements on the lenders have a legally there are construaction contracts; — of the following standards to operate in a sound and effective manner: — asset are tested; — authorisations for the operation of the assets have been obtained; — construction, the obligor has adequate safeguards on the agreed specifications, budget and completion date of the asset, including strong completion guarantees or the involvement of an experienced constructor and adequate contract provisions for liquidated damages;ual restrictions where the asset is under the assets being financed meet all the technology and design of the all necessary permits and where the asset is under

Amendment 701 #

Luis GARICANO, Esther de LANGE, Caroline NAGTEGAAL, Luděk NIEDERMAYER

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation EU 575/2013
Article 122a – paragraph 3 – point a – point i

Amendment 702 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122a – paragraph 3 – point a – point i

(i) 80 % where the exposure is deemed to be high quality when taking into account all of the following criteria: — obligations even under severely stressed conditions due to the presence of all of the following features: — adequate exposure-to-value of the exposure; — conservative repayment profile of the exposure; — of the assets upon full pay-out of the exposure or alternatively recourse to a protection provider with high creditworthiness; — exposure by the obligor or that risk is adequately mitigated by a commensurate residual asset value or recourse to a protection provider with high creditworthiness; — restrictions over its activity and funding structure; — for risk-mitigation purposes; — material operating risks are properly managed; — the contractual arrangements on the assets provide lenders with a high degree of protection including the following features: — enforceable first-ranking right over the assets financed, and, where applicable, over the income that they generate; — on the ability of the obligor to change anything to the asset which would have a negative impact on its value; — construction, the lenders have a legally enforceable first-ranking right over the assets and the underlying construction contracts; — of the following standards to operate in a sound and effective manner: — asset are tested; — authorisations for the operation of the assets have been obtained; — construction, the obligor has adequate safeguards on the agreed specifications, budget and completion date of the asset, including strong completion guarantees or the involvement of an experienced constructor and adequate contract provisions for liquidated damages;deleted the obligor can meet its financial commensurate remaining lifetime low refinancing risk of the the obligor has contractual the obligor uses derivatives only the lenders have a legally there are contractual restrictions where the asset is under the assets being financed meet all the technology and design of the all necessary permits and where the asset is under

Amendment 703 #

Johan VAN OVERTVELDT, Michiel HOOGEVEEN, Eugen JURZYCA

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122a – paragraph 3 – point a – point i

(i) 80 % where the exposure is deemed to be high quality when taking into account all of the following criteria: — obligations even under severely stressed conditions due to the presence of all of the following features: — adequate exposure-to-value of the exposure; — conservative repayment profile of the exposure; — of the assets upon full pay-out of the exposure or alternatively recourse to a protection provider with high creditworthiness; — exposure by the obligor or that risk is adequately mitigated by a commensurate residual asset value or recourse to a protection provider with high creditworthiness; — restrictions over its activity and funding structure; — for risk-mitigation purposes; — material operating risks are properly managed; — the contractual arrangements on the assets provide lenders with a high degree of protection including the following features: — enforceable first-ranking right over the assets financed, and, where applicable, over the income that they generate; — there are contractual restrictions on the ability of the obligor to change anything to the asset which would have a negative impact on its value; — construction, the lenders have a legally enforceable first-ranking right ovdeleted the obligor can meet its financial commensurate remaining lifetime low refinancing risk of the the obligor has contractual the obligor uses derivatives only the lenders have a legally where the assets and the underlying construction contracts; — of the following standards to operate in a sound and effective manner: — asset are tested; — authorisations for the operation of the assets have been obtained; — construction, the obligor has adequate safeguards on the agreed specifications, budget and completion date of the asset, including strong completion guarantees or the involvement of an experienced constructor and adequate contract provisions for liquidated damages; is under the assets being financed meet all the technology and design of the all necessary permits and where the asset is under

Amendment 704 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122a – paragraph 3 – point a – point i – introductory part

(i) 860 % where the exposure is deemed to be high quality when taking into account all of the following criteria:

Amendment 705 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation 575/2013
Article 122a – Paragraph 3 – point a – point i – introductory part

(i) 8075 % where the exposure is deemed to be high quality when taking into account all of the following criteria:

Amendment 706 #

Luis GARICANO, Esther de LANGE, Caroline NAGTEGAAL, Luděk NIEDERMAYER

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation EU 575/2013
Article 122a – paragraph 3 – point a – point ii

~~(ii) 100 % where the exposure is not deemed to be high quality as referred to in point (i);~~deleted

Amendment 707 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122a – paragraph 3 – point a – point ii

~~(ii) 100 % where the exposure is not deemed to be high quality as referred to in point (i);~~deleted

Amendment 708 #

Johan VAN OVERTVELDT, Michiel HOOGEVEEN, Eugen JURZYCA

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122a – paragraph 3 – point a – point ii

~~(ii) 100 % where the exposure is not deemed to be high quality as referred to in point (i);~~deleted

Amendment 709 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) 575/2013
Article 122a – paragraph 3 – point a – point ii

~~(ii) 100 % where the exposure is not deemed to be high quality as referred to in point (i);~~deleted

Amendment 710 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122a – paragraph 3 – point b

(b) where the purpose of a specialised lending exposure is to provide for short- term financing of ~~reserves~~, inventories or receivables of ~~exchange-~~liquidity traded commodities, including crude oil, metals, or ~~crop~~soft comodities, and the income to be generated by those ~~reserves~~, inventories or receivables is to be the proceeds from the sale of the commodity (‘commodities finance exposures’), institutions shall apply a risk weight of 100 %;

Amendment 711 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122a – paragraph 3 – point b

(b) where the purpose of a specialised lending exposure is to provide for short- term financing of ~~reserves,~~ inventories or receivables of ~~exchange-~~liquidly traded commodities, including crude oil, metals, or ~~crop~~soft commodities, and the income to be generated by those ~~reserves,~~ inventories or receivables is to be the proceeds from the sale of the commodity (‘commodities finance exposures’), institutions shall apply a risk weight of 100 %;

Amendment 712 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) 575/2013
Article 122a – paragraph 3 – point b

Amendment 713 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122a – paragraph 3 – point b

Amendment 714 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation EU 575/2013
Article 122a – paragraph 3 – point c – introductory part

(c) where the purpose of a specialised lending exposure is to finance a ~~project~~single project, either in the form of construction of a new capital installation or refinancing of an existing installation, with or without improvements, in particular projects for the development or acquisition of large, complex and expensive installations, including power plants, chemical processing plants, mines, transportation infrastructure, environment, and telecommunications infrastructure, and the income to be generated by the project is the money generated by the contracts for the output of the installation obtained from one or several parties which are not under management control of the sponsor (‘project finance exposures’), institutions shall apply the following risk weights:

Amendment 715 #

Luis GARICANO, Esther de LANGE, Caroline NAGTEGAAL, Luděk NIEDERMAYER

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) 575/2013
Article 122a – pragraph 3 – point c – introductory part

(c) where the purpose of a specialised lending exposure is to finance a ~~project~~single project, either in the form of construction of a new capital installation or refinancing of an existing installation, with or without improvements, in particular projects for the development or acquisition of large, complex and expensive installations, including power plants, chemical processing plants, mines, transportation infrastructure, environment, and telecommunications infrastructure, and the income to be generated by the ~~project is the money generated by the contracts for the output of the installation obtained from one or several parties which are no~~financed project serves both as the primary source of repayment uand~~er management control of the sponsor~~ as security for the loan (‘project finance exposures’), institutions shall apply the following risk weights:

Amendment 716 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122a – paragraph 3 – point c – introductory part

(c) where the purpose of a specialised lending exposure is to finance a ~~project~~single project, either in the form of construction of a new capital installation or refinancing of an existing installation, with or without improvements, in particular projects for the development or acquisition of large, complex and expensive installations, including power plants, chemical processing plants, mines, transportation infrastructure, environment, and telecommunications infrastructure, and the income to be generated by the ~~project is the money generated by the contracts for the output of the installation obtained from one or several parties which are no~~financed project serves both as the primary source of repayment uand~~er management control of the sponsor~~ as security for the loan (‘project finance exposures’), institutions shall apply the following risk weights:

Amendment 717 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) 575/2013
Article 122a – paragraph 3 – point c – introductory part

(c) where the purpose of a specialised lending exposure is to finance a project for the development or acquisition of large, complex and expensive installations, including power plants, chemical processing plants, mines, transportation infrastructure, environment, and telecommunications infrastructure, ~~and the income to b~~in which the glender~~ated by the project is the money generated by the contracts for the output of the installation obtained from one or several parties which are no~~ looks primarily to the revenues generated by the project, both as the source of repayment uand~~er management control of the sponsor~~ as security for the loan (‘project finance exposures’), institutions shall apply the following risk weights:

Amendment 718 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122a – paragraph 3 – point c – point i

(i) 1310 % where the project to which the exposure is related is in the pre- operational phase;

Amendment 719 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) 575/2013
Article 122a – paragraph 3 – point c – point i

(i) 1310 % where the project to which the exposure is related is in the pre- operational phase;

Amendment 720 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122a – paragraph 3 – point c – point i

(i) 1310 % where the project to which the exposure is related is in the pre- operational phase;

Amendment 721 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

(i) 1310 % where the project to which the exposure is related is in the pre- operational phase;

Amendment 722 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation EU 575/2013
Article 122a – paragraph 3 – point c – point ii – introductory part

(ii) ~~provided that the adjustment to own funds requirements for credit risk referred to in Article 501a is not applied,~~ 80 % where the project to which the exposure is related is in the operational phase and the exposure meets all of the following criteria:

Amendment 723 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Amendment 724 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122 a – paragraph 3 – point c – point ii – introductory part

Amendment 725 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) 575/2013
Article 122a – paragraph 3 – point c – point ii – indent 2

— the obligor has sufficient reserve funds fully funded in cash, or other financial arrangements, with ~~highly rated~~guarantors with an ECAI rating with a credit quality step of at least 3, or, if not externally rated, are assigned with a rating equivalent to a step 3 or higher with the bank validated internal rating model guarantors to cover the contingency funding and working capital requirements over the lifetime of the project being financed;

Amendment 726 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 41

— the obligor has sufficient reserve funds fully funded in cash, or other financial arrangements, with ~~highly rated guarantors~~guarantors with an ECAI rating with a credit quality step of at least 3, or, if not externally rated, are assigned with a rating equivalent to a step 3 or higher with the bank validated internal rating model to cover the contingency funding and working capital requirements over the lifetime of the project being financed;

Amendment 727 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122a – paragraph 3 – point c – point ii – indent 2

Amendment 728 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122 – paragraph 3 – point c – point ii – indent 2

Amendment 729 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) 575/2013
Article 122a – paragraph 3 – point c – point ii – indent 2

— the obligor has sufficient reserve funds fully funded in cash, or other financial arrangements~~, with highly rated guarantors~~ to cover the contingency funding and working capital requirements over the lifetime of the project being financed;

Amendment 730 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation EU 575/2013
Article 122a – paragraph 3 – point c – point ii – indent 2

Amendment 731 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) 575/2013
Article 122a – paragraph 3 – point c – point ii – indent 3

— the ~~obligor generates cash flows that are predictable and cover all future loan repayments~~income generated by the financed project is availability-based or subject to a rate-of-return regulation or take-or-pay contract; for this purpose "availability-based" means that, once construction is completed, the obligor is entitled, as long as contract conditions are fulfilled, to payments from its contractual counterparties which cover operating and maintenance costs, debt service costs and equity returns as the obligor operates the project, and these payments are not subject to swings in demand, such as traffic levels, and are adjusted typically only for lack of performance or lack of availability of the asset to the public;

Amendment 732 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) 575/2013
Article 122a – paragraph 3 – point c – point ii – indent 3

— the obligor generates cash flows that are predictable and cover all future loan repayments, including possible repayments with cashflows generated over the remaining asset life;

Amendment 733 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation EU 575/2013
Article 122a – paragraph 3 – point c – point ii – indent 3

— the ~~obligor~~financed project generates cash flows that are predictable and cover all future loan repayments;

Amendment 734 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

R UE 575/2013
Article 122a – paragraph 3 – point c – point ii –indent 4 – introductory part

— where the revenues of the obligor are not funded by payments from a large number of users, the source of repayment of the obligation depends on one main counterparty and that main counterparty is one of the following:

Amendment 735 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Amendment 736 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122a – paragraph 3 – point c –point ii –indent 4 – introductory part

Amendment 737 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122a – paragraph 3 – point c – point ii –indent 4 –introductory part

Amendment 738 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 41

— a public sector entity, provided that that entity is assigned a risk weight of 20 % or below in accordance with Article 116, or is assigned an ECAI rating with a credit quality step of at least 3, or, if not externally rated, are assigned with a rating equivalent to a step 3 or higher with the bank validated internal rating model;

Amendment 739 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122a – paragraph 3 –point c –point ii –indent 4 –indent 2

Amendment 740 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Amendment 741 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122a – paragraph 3 – point c – point ii – indent 4 – indent 2

Amendment 742 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

R UE 575/2013
Article 122a – paragraph 3 point c – point ii – indent 4 – indent 3

— a corporate entity which has been assigned an ECAI rating with a credit quality step of at least 3, or, if not externally rated,are assigned with a rating equivalent to a step 3 or higher with the bankvalidated internal rating model. • an entity that is replaceable without a significant change in the level and timing of revenues.

Amendment 743 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122a – paragraph 3 – point c –point ii – indent 4 –indent 3

— a corporate entity which has been assigned an ECAI rating with a credit quality step of at least 3., or, if not externally rated, are assigned with a rating equivalent to a step 3 or higher with the bank validated internal rating model;

Amendment 744 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 41

— a corporate entity which has been assigned an ECAI rating with a credit quality step of at least 3. , or, if not externally rated, are assigned with a rating equivalent to a step 3 or higher with the bank validated internal rating model.

Amendment 745 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122a – paragraph 3 – point c –point ii –indent 4 – indent 3

— a corporate entity which has been assigned an ECAI rating with a credit quality step of at least 3, or, if not externally rated, are assigned with a rating equivalent toa step 3 or higher with the bank validated internal rating model.

Amendment 746 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 41

- an entity that is replaceable without a significant change in the level and timing of revenues.

Amendment 747 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122a – paragraph 3 – point c –point ii –indent 4 –indent 3 a (new)

- an entity that is replaceable without a significant change in the level and timing of revenues;

Amendment 748 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122 – paragraph 3 – point c –point ii –indent 4 –indent 3 a (new)

- an entity that is replaceable without a significant change in the level and timing of revenues.

Amendment 749 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation EU 575/2013
Article 122a – paragraph 3 – point c – point ii –indent 5

— the main count~~ractual arrangements~~erparty or other counterparties which meet the eligibility criteria for the main counterparty effectively protect the lending institution against losses resulting from the termination of the project;

Amendment 750 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) 575/2013
Article 122a – paragraph 3 – point c – point ii –indent 5

Amendment 751 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122a – paragraph 3 – point c – point ii – indent 8

— equity is pledged or assigned to the lending institution such that they are able to take control of the obligor entity upon default;

Amendment 752 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

— equity is pledged or assigned to the lending institution such that they are able to take control of the obligor entity upon default;

Amendment 753 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) 575/2013
Article 122a – paragraph 3 –point c – point ii –indent 8

— equity is pledged or assigned to the lending institution such that they are able to take control of the obligor entity upon default;

Amendment 754 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

— equity is pledged or assigned to the lending institution such that they are able to take control of the obligor entity upon default;

Amendment 755 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation EU 575/2013
Article 122a – paragraph 3 – point c – point ii – indent 8

— ~~equity is pledged to~~ the lending institution is~~uch that they are~~ able to take control of the obligor entity upon default;

Amendment 756 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) 575/2013
Article 122a – paragraph 3 – point c – point ii – indent 8

— ~~equity is pledged to~~ the lending institution is~~uch that they are~~ able to take control of the obligor entity ~~upon defaul~~in case of a default event;

Amendment 757 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) 575/2013
Article 122a – paragraph 3 – point e – introductory part

(e) for the purposes of point (c), the operational phase shall mean the phase in which the entity that was specifically created to finance the project, or that is economically comparable, meets both of the following conditions:

Amendment 758 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) No 575/2013
Article 122a – paragraph 3 – point e – introductory part

(e) for the purposes of point (c), the operational phase shall mean the phase in which the entity that was specifically created to finance the project or which is economically comparable meets both of the following conditions:

Amendment 759 #

Proposal for a regulation
Article 1 – paragraph 1 – point 41

Regulation (EU) 575/2013
Article 122a – paragraph 3 – point e – point ii

(ii) the ~~entity has a declining long term debt~~project is in operation.

Amendment 760 #

Proposal for a regulation
Article 1 – paragraph 1 – point 42

Regulation (EU) 575/2013
Article 123 ¬ paragraph 1 – point a – introductory part

(a) the total exposure ~~is either of the following:~~value aggregated across all exposures to the obligor or group of connected clients, including any exposure in default but excluding exposures secured by residential property up to the property value, shall not, to the knowledge of the institution, which shall take reasonable steps to confirm the situation, exceed EUR 1 million;

Amendment 761 #

Proposal for a regulation
Article 1 – paragraph 1 – point 42

Regulation EU 575/2013
Article 123 – paragraph 1 – point a – introductory part

(a) the exposure is ~~either of the following:~~an exposure to one or more natural persons or an exposure to an SME within the meaning of Article 5, point (8)

Amendment 762 #

Proposal for a regulation
Article 1 – paragraph 1 – point 42

Regulation (EU) 575/2013
Article 123 – paragraph 1 – point a – point i

~~(i) an exposure to one or more natural persons;~~deleted

Amendment 763 #

Proposal for a regulation
Article 1 – paragraph 1 – point 42

Regulation EU 575/2013
Article 123 – paragraph 1 – point a – point i

~~(i) an exposure to one or more natural persons;~~deleted

Amendment 764 #

Proposal for a regulation
Article 1 – paragraph 1 – point 42

Regulation 575/2013
Article 123 – paragraph 1 – subparagraph 1 – point a – point i

(i) an exposure to one or ~~more~~a group of natural persons;

Amendment 765 #

Proposal for a regulation
Article 1 – paragraph 1 – point 42

Regulation EU 575/2013
Article 123 – paragraph 1 – point a – point ii

(ii) an exposure to an SME within the meaning of Article 5, point (8), where the total amount owed to the institution, its parent undertakings and its subsidiaries, by the obligor or group of connected clients, including any exposure in default but excluding exposures secured by residential property up to the property value shall not, to the knowledge of the institution, which shall take reasonable steps to confirm the situation, exceed EUR 1 million;deleted

Amendment 766 #

Proposal for a regulation
Article 1 – paragraph 1 – point 42

Regulation (EU) 575/2013
Article 123 – paragraph 1 – point a – point ii

Amendment 767 #

Proposal for a regulation
Article 1 – paragraph 1 – point 42

Regulation (EU) No 575/2013
Article 123 – paragraph 1 – point a – point ii

(ii) an exposure to an SME within the meaning of Article 5, point (8) of this Regulation, where the total amount owed to the institution, its parent undertakings and its subsidiaries, by the obligor or group of connected clients, including any exposure in default but excluding exposures secured by residential property up to the property value shall not, to the knowledge of the institution, which shall take reasonable steps to confirm the situation, exceed EUR 1 million;

Amendment 768 #

Proposal for a regulation
Article 1 – paragraph 1 – point 42

Regulation EU 575/2013
Article 123 – paragraph 1 – point a a (new)

(a a) the total amount owed to the institution, its parent undertakings and its subsidiaries, by the obligor or group of connected clients, including any exposure in default but excluding exposures secured by residential property up to the property value shall not, to the knowledge of the institution, which shall take reasonable steps to confirm the situation, exceed EUR 1 million

Amendment 769 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 42

Regulation (EU) 575/2013
Article 123 – paragraph 1 – subparagraph 1 a (new)

Where any of these criteria are not met for an exposure to one or more natural persons, the risk weight shall be 100%.

Amendment 770 #

Proposal for a regulation
Article 1 – paragraph 1 – point 42

EBA shall issue guidelines, in accordance with Article 16 of Regulation (EU) No 1093/2010, to specify proportionate diversification methods under which an exposure is to be considered as one of a significant number of similar exposures as specified in point (b), by [OP please insert the date = 1 year after entry into force of this Regulation].deleted

Amendment 771 #

Proposal for a regulation
Article 1 – paragraph 1 – point 42

3. Retail exposures as referred to in paragraph 1 shall be assigned a risk weight of 75 %, with the exception of transactor exposures, which shall be assigned a risk weight of 45 %. Where any of the criteria laid down in paragraph 1 are not met for an exposure to one or more natural persons, the risk weight shall be 100%.

Amendment 772 #

Proposal for a regulation
Article 1 – paragraph 1 – point 42

Regulation (EU) 575/2013
Article 123 ¬ paragraph 4

4. By way of derogation from paragraph 3, exposures due to loans granted by an institution to pensioners or employees with a permanent contract against the unconditional transfer of part of the borrower’s pension or salary to that institution shall be assigned a risk weight of 35 %, provided that all the following conditions are met: (a) unconditionally authorises the pension fund or employer to make direct payments to the institution by deducting the monthly payments on the loan from the borrower’s monthly pension or salary; (b) work, unemployment or reduction of the net monthly pension or salary of the borrower are properly covered through an insurance policy to the benefit of the institution; (c) by the borrower on all loans that meet the conditions set out in points (a) and (b) do not in aggregate exceed 20 % of the borrower’s net monthly pension or salary; (d) the loan is equal to or less than ten years.;deleted to repay the loan, the borrower the risks of death, inability to the monthly payments to be made the maximum original maturity of

Amendment 773 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 42

Regulation (EU) No 575/2013
Article 123 – paragraph 4 – subparagraph 1 a (new)

When the competent authorities of a third country which apply supervisory and regulatory arrangements at least equivalent to those applied in the Union assign a specific risk weight in exposures where condition “a” of this paragraph is met, institutions may risk weight such exposures in the same manner.’

Amendment 774 #

Proposal for a regulation
Article 1 – paragraph 1 – point 43 a (new)

Regulation (EU) No 575/2013
Article 123 – subpargaraph 5 – introductory part

"Exposures due to loans granted by a credit institution to pensioners or employees with a permanent contract against the unconditional transfer of part of the borrower's pension or salary to that credit institution shall be assigned a risk weight of 350 %, provided that all the following conditions are met: "

Amendment 775 #

Proposal for a regulation
Article 1 – paragraph 1 – point 42

Regulation (EU) 575/2013
Article 123 – paragraph 4 a (new)

4 a.. By way of derogation from paragraph 3, exposures under the standardised approach due to not-real estate leases granted by an institution to retail borrowers against the payment of periodic contractual payments shall be assigned a risk weight of 55%, provided that all the following conditions are met: a) the lessor performs a complete credit risk assessment process comprising lessees, subject of leases and their relative suppliers; b) the lessor retains the legal ownership of the leased asset throughout the life of the contract; c) the lessor has the right to carry out on- site inspections/access; d) the leased assets are instrumental to the exercise of the borrower’s economic activities.

Amendment 776 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 42

Regulation (EU) No 575/2013
Article 123 – paragraph 4 a (new)

4 a. By way of derogation from paragraph 3, exposures under the standardised approach due to not-real estate leases granted by an institution to retail borrowers against the payment of periodic contractual payments shall be assigned a risk weight of 55%, provided that all the following conditions are met: a) the lessor performs a complete credit risk assessment process comprising lessees, subject of leases and their relative suppliers; b) the lessor retains the legal ownership of the leased asset throughout the life of the contract; c) the lessor has the right to carry out on- site inspections/access; d) the leased assets are instrumental to the exercise of the borrower’s economic activities.

Amendment 777 #

Proposal for a regulation
Article 1 – paragraph 1 – point 42

Regulation (EU) No 575/2013
Article 123 paragraph 4 a (new)

Amendment 778 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 42

Regulation (EU) 575/2013
Article 123 – paragraph 4 a (new)

Amendment 779 #

Proposal for a regulation
Article 1 – paragraph 1 – point 42

Regulation (EU) No 575/2013
Article 123 – paragraph 4 a (new)

Amendment 780 #

Proposal for a regulation
Article 1 – paragraph 1 – point 42

4 a. By way of derogation from paragraph 3, exposures under the standardised approach due to not-real estate leases granted by an institution to retail borrowers against the payment of periodic contractual payments shall be assigned a risk weight of 55%,provided that all the following conditions are met: a) the lessor performs a complete credit risk assessment process comprising lessees, subject of leases and their relative suppliers; b) the lessor retains the legal ownership of the leased asset throughout the life of the contract; c) the lessor has the right to carry out on- site inspections/access; d) the leased assets are instrumental to the exercise of the borrower’s economic activities.

Amendment 781 #

Proposal for a regulation
Article 1 – paragraph 1 – point 43

Regulation (EU) 575/2013
Article 123a ¬ paragraph 1 – introductory part

1. ~~Exposures to~~Where the following conditions are met for an exposure to a natural person or natural persons which is assigned to any of the exposures classes laid down in point (h) or, if it is secured by residential immovable property, which is assigned to the exposure class laid down in (i) of Article 112, the risk weight assigned to that exposure in accordance with Chapter 2 shall be multiplied by a factor of 1,5, whereby the resulting risk weight shall not be higher than 150 %~~, where the following conditions are met~~.

Amendment 782 #

Proposal for a regulation
Article 1 – paragraph 1 – point 43

Regulation EU 575/2013
Article 123a – paragraph 1 – introductory part

1. ~~Exposures to~~Where the following conditions are met for an exposure to a natural person or natural persons assigned to ~~any of~~ the exposures classes laid down in point (h) or, if it is secured by residential immovable property, which is assigned to the exposure class laid down in (i) of Article 112, the risk weight assigned to that exposure in accordance with Chapter 2 shall be multiplied by a factor of 1,5, whereby the resulting risk weight shall not be higher than 150 %~~, where the following conditions are met.~~:

Amendment 783 #

Proposal for a regulation
Article 1 – paragraph 1 – point 43

Regulation EU 575/2013
Article 123a – paragraph 1 – point a

(a) the exposure is ~~due to~~ a loan denominated in a currency which is different from the currency of the obligor's source of income;

Amendment 784 #

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation EU 575/2013
Article 124 – paragraph 2 – introductory part

2. A non-ADC exposure secured by an immovable property, where all the conditions laid down in paragraph 3 are met ~~and~~, shall be treated as follows:

Amendment 785 #

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation (EU) No 575/2013
Article 124 – paragraph 2 – point a – introductory part

(a) where the exposure is secured by a non-IPRE residential property or is secured by a IPRE residential property that meets any of the following conditions, the exposure shall not qualify as an IPRE exposure and shall be treated in accordance with Article 125(1) ~~where the exposure meets any of the following conditions:~~

Amendment 786 #

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation EU 575/2013
Article 124 – paragraph 2 – point a – introductory part

(a) where the exposure is secured by a residential property, it~~he exposure shall not qualify as an IPRE exposure and~~ shall be treated in accordance with Article 125(1) where the exposure meets any of the following conditions:

Amendment 787 #

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation (EU) No 575/2013
Article 124 – paragraph 2 – point a – introductory part

(a) where the exposure is secured by a residential property, the exposure shall not qualify as an IPRE exposure and shall be treated in accordance with Article 125(1) where the exposure meets any of the following conditions (i-iva):

Amendment 788 #

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation EU 575/2013
Article 124 – paragraph 2 – point a – point -i

(-i) the exposure does not qualify as an IPRE exposure;

Amendment 789 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation (EU) No 575/2013
Article 124 – paragraph 2 – point a – point i

(i) the ~~immovable property securing the exposure is the obligor’s primary residence~~exposure is to an individual and secured by a residential property, and which is in line with environmentally sustainable economy, either where the immovable property as a whole constitutes a single housing unit or where the immovable property securing the exposure is a housing unit that is a separated part within an immovable property;

Amendment 790 #

Proposal for a regulation
Article 1 – paragraph 1 – point 44

(i) the ~~immovable property securing the exposure is the obligor’s primary residence~~exposure is to an individual and secured by a residential property, either where the immovable property as a whole constitutes a single housing unit or where the immovable property securing the exposure is a housing unit that is a separated part within an immovable property;

Amendment 791 #

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation (EU) No 575/2013
Article 124 – paragraph 2 – point a – point i

Amendment 792 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation (EU) No 575/2013
Article 124 – paragraph 2 – point a – point i

Amendment 793 #

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation (EU) 575/2013
Article 124 – paragraph 2 – point a – point i

Amendment 794 #

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation (EU) No 575/2013
Article 124 – paragraph 2 – point a – point iv a (new)

(iv a) the exposure fulfills the definition of a non-IPRE exposure

Amendment 795 #

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation EU 575/2013
Article 124 – paragraph 2 – point a – point ii

(ii) the exposure is to a~~n individual~~ natural person and is secured by an income-producing residential housing unit, either where the immovable property as a whole constitutes a single housing unit or where the housing unit is a separated part within the immovable property, and total exposures of the institution to that ~~individual~~natural person are not secured by more than four immovable properties, including those which are not residential properties or which do not meet any of the criteria in this point, or separate housing units within immovable properties;

Amendment 796 #

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation EU 575/2013
Article 124 – paragraph 2 – point a – point iii

(iii) the exposure secured by residential property is to associations or cooperatives of ~~individual~~natural persons that are regulated by law and solely exist to grant their members the use of a primary residence in the property securing the loans;

Amendment 797 #

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation (EU) No 575/2013
Article 124 – paragraph 2 – point b

(b) where the exposure is secured by residential property and is an IPRE exposure or the exposure does not meet any of the conditions laid down in point (a), points (i) to (iv), the exposure shall be treated in accordance with Article 125(2);

Amendment 798 #

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation (EU) No 575/2013
Article 124 – paragraph 2 – point b

(b) where the exposure is secured by an IPRE residential property and the exposure does not meet any of the conditions laid down in point (a), points (i) to (iv), the exposure shall be treated in accordance with Article 125(2);

Amendment 799 #

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation (EU) No 575/2013
Article 124 – paragraph 2 – point c – point ii a (new)

(ii a) exposures related to property leasing transactions concerning offices or other commercial premises under which the institution is the lessor and the lessee has an option to purchase shall be assigned a risk weight of 50% provided that the exposure of the institution is fully and completely secured by its ownership of the property and the commercial immovable property is instrumental to the lessee’s economic activities.

Amendment 800 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 44

REGULATION (EU) No 575/2013
Article 124 – paragraph 2 – point c – point ii a (new)

Amendment 801 #

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation (EU) No 575/2013
Article 124 – paragraph 2 – point c – point ii a (new)

(ii a) exposures related to property leasing transactions concerning offices or other commercial premises under which the institution is the lessor and the lessee has an option to purchase shall be assigned a risk weight of 50%provided that the exposure of the institution is fully and completely secured by its ownership of the property and the commercial immovable property is instrumental to the lessee’s economic activities.

Amendment 802 #

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation (EU) No 575/2013
Article 124 – paragraph 2 –point c – point ii a (new)

Amendment 803 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation (EU) 575/2013
Article 124 –paragraph 2 – point c – point ii a (new)

Amendment 804 #

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation (EU) 575/2013
Article 124 – paragraph 2 – point c – point ii a (new)

Amendment 805 #

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation (EU) No 575/2013
Article 124 – paragraph 3 – introductory part

3. In order to be eligible for the treatment laid down in ~~paragraph 2~~Article 125(1), point (a), or Article 126(1), point (a), an exposure secured by an immovable property shall fulfil all of the following conditions:

Amendment 806 #

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation (EU) No 575/2013
Article 124 – paragraph 3 – point a – point iii – introductory part

(iii) the immovable property is either residential property under construction or it is land upon which a residential property is planned to be constructed where that plan has been legally approved by all relevant authorities ~~concerned~~, as applicable, and where any of the following conditions is met:

Amendment 807 #

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation EU 575/2013
Article 124 – paragraph 3 – point a – point iii – indent 1

— the property does not have more than four residential housing units and will be the primary residence of the obligor and the lending to the ~~individual~~natural person is not indirectly financing ADC exposures;

Amendment 808 #

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation (EU) No 575/2013
Article 124 – paragraph 3 – point a – point iii – indent 2

— a central government, regional government or local authority or a public sector entity, exposures to which are treated in accordance with Articles 115(2) and 116(4), respectively, has the legal powers and ability to ensure that the property under construction will be finished within a reasonable time frame and is required to or has committed in a legally binding manner to do so where the construction would otherwise not be finished within a reasonable time frame; alternatively, there is an equivalent legal mechanism to ensure that the property under construction is completed within a reasonable timeframe;

Amendment 809 #

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation (EU) No 575/2013
Article 124 – paragraph 3 – point a – point iii – indent 2

— a central government, regional government or local authority or a public sector entity, exposures to which are treated in accordance with Articles 115(2) and 116(4), respectively, has the legal powers and ability to ensure that the property under construction will be finished within a reasonable time frame and is required to or has committed in a legally binding manner to do so where the construction would otherwise not be finished within a reasonable time frame. Equivalently, there are legal provisions in place to ensure that the property under construction will be finished within a reasonable time frame.;

Amendment 810 #

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation (EU) No 575/2013
Article 124 – paragraph 3 – point a – point iii a (new)

(iii a) the property is built by a housing company or cooperative which continues to own and administer the property after construction.

Amendment 811 #

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation EU 575/2013
Article 124 – paragraph 7 – subparagraph 2

Where, on the basis of the assessment referred to in the first subparagraph, the authority designated in accordance with paragraph 6 of this Article concludes that the risk weights set out in Article 125 or 126 do not adequately reflect the actual risks related to exposures to one or more property segments secured by mortgages on residential property or on commercial immovable property located in one or more parts of the territory of the Member State of the relevant authority, ~~and if it considers that the inadequacy of the risk weights could adversely affect current or future financial stability in its Member State,~~ it may increase the risk weights applicable to those exposures within the ranges determined in the fourth subparagraph of this paragraph or impose stricter criteria than those set out in paragraph 3 of this Article.

Amendment 812 #

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation EU 575/2013
Article 124 – paragraph 7 – subparagraph 3

The authority designated in accordance with paragraph 6 of this Article shall notify EBA and the ESRB of any adjustments to risk weights and criteria applied pursuant to this paragraph. Within one month of receipt of that notification, EBA and the ESRB shall provide their opinion to the Member State concerned and indicate whether they consider that the adjustments to risk weights and criteria are also recommended to other Member States. EBA and the ESRB shall publish the risk weights and criteria for exposures referred to in Articles 125, 126 and Article 199(1), point (a), as implemented by the relevant authority.

Amendment 813 #

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation 575/2013
Article 124 – paragraph 7 – subparagraph 4

For the purposes of the second subparagraph of this paragraph, the authority designated in accordance with paragraph 6 may increase the risk weights laid down in Article 125(1), point (a), or Article 126(1), point (a). The authority shall not increase those to more than 150 %.deleted

Amendment 814 #

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation EU 575/2013
Article 124 – paragraph 7 – subparagraph 4

For the purposes of the second subparagraph of this paragraph, the authority designated in accordance with paragraph 6 may increase the risk weights laid down in Article 125(1), point (a), or Article 126(1), point (a). ~~The authority shall not increase those to more than 150 %.~~

Amendment 815 #

Proposal for a regulation
Article 1 – paragraph 1 – point 44

Regulation EU 575/2013
Article 124 – paragraph 10 – introductory part

10. The ESRB ~~may~~shall, by means of recommendations in accordance with Article 16 of Regulation (EU) No 1092/2010, and in close cooperation with EBA, give guidance to authorities designated in accordance with paragraph 6 of this Article on both of the following:

Amendment 816 #

Proposal for a regulation
Article 1 – paragraph 1 – point 45

Regulation (EU) No 575/2013
Article 125 – paragraph 1 – introductory part

1. An exposure secured by a residential property that complies with the definition of a non IPRE-exposure or with any of the conditions laid down in Article 124(2), point (a), points (i) to (iv a), shall be treated as follows:

Amendment 817 #

Proposal for a regulation
Article 1 – paragraph 1 – point 45

Regulation (EU) No 575/2013
Article 125 – paragraph 1 – point a – subparagraph 1

(a) the part of the exposure up to 55 % of the property value remaining after any senior or pari passu ranking liens not held by the institution have been deducted shall be assigned a risk weight of 20 %. Similarly, the part of the exposure up to 40 % shall be assigned a risk weight of 15 % and exposure up to 30 % shall be assigned a risk weight of 10 %.

Amendment 818 #

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA

Proposal for a regulation
Article 1 – paragraph 1 – point 45

Regulation (EU) No 575/2013
Article 125 – paragraph 1 – subparagraph 1 a (new)

As an alternative to the approach described in the first subparagraph, for an exposure secured by a residential property that complies with any of the conditions laid down in Article 124(2), point (a), points (i) to (iv),institutions may determine the risk weight to be assigned to the total exposure amount based on the exposure’s LTV ratio in Table 6aab:

Amendment 819 #

Table 6aab LTV50 50%LT 60%LT 80%LT 90%LT LTV100  V60% V80% V90% V100% % Risk 20% 25% 30% 40% 50% 70% weight

Amendment 820 #

Proposal for a regulation
Article 1 – paragraph 1 – point 45

Regulation (EU) No 575/2013
Article 125 – paragraph 2 – introductory part

2. An IPRE exposure or an exposure secured by a residential property that does not meet any of the conditions laid down in Article 124(2), point (a), points (i) to (iv), shall be assigned the higher between the risk weight set in accordance with the following Table 6aaa, and the risk weight set in accordance with Article 124(7):

Amendment 821 #

Proposal for a regulation
Article 1 – paragraph 1 – point 45

Regulation (EU) No 575/2013
Article 125 – paragraph 2 a (new)

2 a. Institutions may apply the derogation referred to in the second subparagraph of paragraph 2 also in cases where competent authorities of a third country which apply supervisory and regulatory arrangements at least equivalent to those applied in the Union as decided in accordance with Article 107(4), publish corresponding loss rates for exposures secured by residential immovable property situated within the territory of their country or where a competent authority of a Member State publishes such information for a third country jurisdiction provided the availability of valid statistical data.

Amendment 822 #

Proposal for a regulation
Article 1 – paragraph 1 – point 46

Regulation (EU) No 575/2013
Article 126 – paragraph 1 – subparagraph 1 a (new)

By way of derogation from point (a), institutions may assign a risk weight of 50 % to a non-IPRE exposure secured by a commercial property where the loss rates for such exposures published by the competent authority or by the EBA in accordance with Article 430a(3) do not exceed any of the following limits for losses aggregated across all such exposures existing in the previous year: (i) the losses on the part of the exposures up to 55 % of the property value do not exceed 0.3 % of the total amount of credit obligations outstanding in that year. (ii) the losses on the part of the exposures up to 100 % of the property value do not exceed 0.5 % of the total amount of credit obligations outstanding in that year.

Amendment 823 #

Proposal for a regulation
Article 1- paragraph 1 – point 46

Regulation (EU) No 575/2013
Article 126 – paragraph 2 – subparagraph 1 – table 6c

Table 6c ETV50% ~~ETV60%~~ 50%ETV 60%ETV ETV80% ~~ETV80%~~ 60% 80% Risk weight 60% ~~70%~~ 70% 90% 110%

Amendment 824 #

Proposal for a regulation
Article 1 – paragraph 1 – point 46

Regulation (EU) 575/2013
Article 126 – paragraph 2 a (new

2 a. Institutions may apply the derogation referred to in the second subparagraph of paragraph 2 also in cases where competent authorities of a third country jurisdiction, which apply supervisory and regulatory arrangements at least equivalent to those applied in the Union as decided in accordance with Article 107(4), publish corresponding loss rates for exposures secured by commercial immovable property situated within the territory of their country or where a competent authority of a member state publishes such information for a third country jurisdiction provided the availability of valid statistical data.

Amendment 825 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 47

Regulation (EU) No 575/2013
Article 126a – paragraph 2 – introductory part

2. ADC exposures to residential or commercial property, however, may be risk weighted at 100 %, provided that, where applicable, the institution applies sound origination and monitoring standards which meet the requirements of Articles 74 and 79 of Directive 2013/36/EU and where at least one of the following conditions is met:

Amendment 826 #

Proposal for a regulation
Article 1 – paragraph 1 – point 47

Regulation (EU) 575/2013
Article 126a – paragraph 2 – introductory part

Amendment 827 #

Proposal for a regulation
Article 1 – paragraph 1 – point 47

Regulation (EU) No 575/2013
Article 126 – paragraph 2 – introductory part

Amendment 828 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 47

REGULATION (EU) No 575/2013
Article 126a – paragraph 2 – introductory part

Amendment 829 #

Proposal for a regulation
Article 1 – paragraph 1 – point 47

Regulation (EU) No 575/2013
Article 126a – paragraph 2 – introductroy part

Amendment 830 #

Proposal for a regulation
Article 1 – paragraph 1 – point 47

Regulation (EU) No 575/2013
Article 126a – paragraph 2 – introductory part

2. ADC exposures ~~to residential property, however,~~ may be risk weighted at 100 %, provided that, where applicable, the institution applies sound origination and monitoring standards which meet the requirements of Articles 74 and 79 of Directive 2013/36/EU and where at least one of the following conditions is met:

Amendment 831 #

Proposal for a regulation
Article 1 – paragraph 1 – point 47

Regulation (EU) No 575/2013
Article 126a – paragraph 2 –introductory part

Amendment 832 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL, Engin EROGLU

Proposal for a regulation
Article 1 – paragraph 1 – point 47

Regulation (EU) No 575/2013
Article 126a – paragraph 2 –introductory part

2. ADC exposures ~~to residential property~~, however, may be risk weighted at 100 %, provided that, where applicable, the institution applies sound origination and monitoring standards which meet the requirements of Articles 74 and 79 of Directive 2013/36/EU and where at least one of the following conditions is met:

Amendment 833 #

Proposal for a regulation
Article 1 – paragraph 1 – point 47

Regulation (EU) No 575/2013
Article 126a – paragraph 2 – introductory part

Amendment 834 #

Proposal for a regulation
Article 1 – paragraph 1 – point 47

Regulation 575/2013
Article 126a – paragraph 2 – introductory part

Amendment 835 #

Proposal for a regulation
Article 1 – paragraph 1 – point 47

Regulation (EU) No 575/2013
Article 126a – paragraph 2 –point a

(a) legally binding pre-sale or pre-lease contracts, for which the purchaser or tenant has made a substantial cash deposit which is subject to forfeiture if the contract is terminated, or where the financing is ensured in an equivalent manner, amount to a significant portion of total contracts;

Amendment 836 #

Proposal for a regulation
Article 1 – paragraph 1 – point 47

Regulation (EU) No 575/2013
Article 126a – paragraph 2 – point a

(a) legally binding pre-sale or pre-lease contracts, for which the purchaser or tenant (i) has made a substantial cash deposit which is subject to forfeiture if the contract is terminated, or (ii) has ensured financing via a bank, amount to a significant portion of total contracts;

Amendment 837 #

Proposal for a regulation
Article 1 – paragraph 1 – point 47

Regulation (EU) 575/2013
Article 126a – paragraph 2 – point a

(a) legally binding pre-sale or pre-lease contracts, for which the purchaser or tenant has made a substantial cash deposit which is subject to forfeiture if the contract is terminated, or a comparable financing arrangement amount to a significant portion of total contracts;

Amendment 838 #

Proposal for a regulation
Article 1 – paragraph 1 – point 47

Regulation (EU) 575/2013
Article 126a – paragraph 2 – point b

(b) the obligor has substantial equity at risk, which is represented as an appropriate amount of obligor-contributed equity to the ~~residential~~ property's appraised value upon completion.

Amendment 839 #

Proposal for a regulation
Article 1 – paragraph 1 – point 47

Regulation (EU) No 575/2013
Article 126a – paragraph 2 –point b

(b) the obligor has substantial equity at risk, which is represented as an appropriate amount of obligor-contributed equity to the ~~residential~~ property's appraised value upon completion.

Amendment 840 #

Pascal CANFIN, Gilles BOYER

Proposal for a regulation
Article 1 – paragraph 1 – point 47

Regulation (EU) No 575/2013
Article 126a – paragraph 2 –point b a (new)

(b a) the exposure-to-value does not exceed 80 %.

Amendment 841 #

Proposal for a regulation
Article 1 – paragraph 1 – point 47 a (new)

Regulation (EU) No 575/2013
Article 126b (new)

(47 a) the following article is inserted : Article 126b Fossil fuel sector exposures for corporates 1. The following shall be considered exposures to existing fossil fuel resources: (i)exposures to projects in sectors of the economy which produce, process, store or use fossil fuels as defined in Article 2(62) of Regulation (EU) 2018/1999 of the European Parliament and of the Council (ii)exposures to companies active in fossil fuel sectors, excluding the ones which invest in expansion or exploration and plan to add fossil fuel resources to their production portfolio (iii)exposure to power plants that burn fossil fuels to generate power. Fossil fuel resources and resource fields referred to in this subparagraph must have been explored and known as of 31 December 2021. 2.The following shall be considered exposures to the new fossil fuel resources: (i)exposure to sectors of the economy which produce, process, store or use fossil fuels as defined in Article 2(62)of Regulation (EU) 2018/1999 of the European Parliament and of the Council This includes all projects which have not received a final investment decision (FID)before 31 December 2021 (ii)exposures to companies active in fossil fuel sectors, which invest in expansion and exploration and plan to add fossil fuel resources to their production portfolio (ii)exposure to power plants that burn fossil fuels to generate power; the FID for the exploration or expansion of such fossil fuels must have been on or after 1 January 2022. Exploration or expansion of fossil fuel resources and resource fields referred to in this must have started on or after 1 January 2022. 3. Exposures related to existing fossil fuel resources, as referred to in paragraph 1 of this Article, shall be assigned a risk weight of 150 % 4. Exposures related to new fossil fuel resources, as referred to in paragraph 2 of this Article, shall be assigned a risk weight of 1250 % 5. Corporates publishing a transition plan as defined in article 19a, paragraph 2, point (iii), of Directive 2013/34/EU and as specified in the delegated acts adopted in accordance with Article 29b of Directive 2013/34/EU, shall not be subject to the treatment set out in this Article. For this rule to apply, the transition plan shall be subject to an assurance engagement respecting the dispositions set out in Directive [CSRD]for the assurance of sustainability reporting.

Amendment 842 #

Proposal for a regulation
Article 1 – paragraph 1 – point 47 a (new)

Regulation EU 575/2013
Article 126b (new)

(47 a) the following article is inserted: ‘Article 126b Fossil fuel sector exposures 1. For the purpose of this Article, the following exposures shall be considered as exposures to existing fossil fuel resources, where these resources have been explored and known before [date of entry into force of this Regulation]: i) Exposures to projects in fossil fuel sectors; ii) Exposures to companies active in fossil fuel sectors, excluding the ones which invest in expansion or exploration and plan to add fossil fuel resources to their production portfolio; iii) Exposure to power plants, combined heat and power plants and heat plants that burn fossil fuels 2. The following shall be considered exposures to new fossil fuel resources, where the exploration or expansion of these exposures have started after [date of entry into force of this Regulation]: i) Exposure to fossil fuel extraction projects, transport facilities and other infrastructure that drive expanded extraction, which have not received a final investment decision prior to [date of the entry into force of this Regulation]; ii) Exposures to companies active in fossil fuel sectors, which invest in expansion and exploration and plan to add fossil fuel resources to their production portfolio; iii) Exposure to power plants, combined heat and power plants and heat plants that burn fossil fuels for which the final investment decision to explore or expand the exploitation of such fossil fuel has been taken after [date of entry into force of this Regulation ] 3. Exposures related to existing fossil fuel resources, as referred to in paragraph 1 of this Article, shall be assigned a risk weight of 150 %. 4. Exposures related to new fossil fuel resources, as referred to in paragraph 2 of this Article, shall be assigned a risk weight of 1250 %. 5. An institution’s total exposure to existing and new fossil resources must not be higher than 10% of the institution’s Tier 1 capital at all times.

Amendment 843 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 47 b (new)

Regulation EU 575/2013
Article 126c (new)

(47 b) the following article is inserted: ‘Article 126c Crypto-asset exposures 1. For the purpose of this Article, institutions shall identify their exposures to crypto-assets as follows: - DLT financial instruments as defined in [insert reference to DLT Pilot Regulation], asset reference tokens, e- money tokens as defined in [insert reference to MICA Regulation] shall be categorised as class 1 crypto-asset exposures - Other crypto assets as defined in [insert reference to MICA Regulation] shall be classified as class 2 crypto-asset exposures 2. Institutions shall determine the allocation of class 1 crypto-asset exposures between the banking book and the trading book according to the boundary criteria applied to the reference asset. Class 1 crypto-exposures allocated to the banking book shall be subject to the same risk weights as the reference asset. Class 1 crypto asset exposures allocated to the trading book shall be subject to the requirements set in Articles 325 to 325bp of this Regulation. 3. Class 2 crypto-asset exposures shall receive a risk weight of 1250% to the greater of the absolute value of the aggregate long positions and the absolute value of the aggregate short positions in the crypto-asset. 4. An institution’s total exposure to class 2 crypto-asset exposures must not be higher than 1% of the institution’s Tier 1 capital at all times. 5. EBA, after consulting the ESRB, shall, on the basis of the ESMA assessment of the risks posed by distributed ledger technology referred to in Article 14(1) point h) of [insert reference to DLT Pilot Regulation] assess whether a dedicated prudential treatment for DLT financial instruments is warranted. Based on this report and on international regulatory developments, and if appropriate, the Commission shall submit a legislative proposal to the European Parliament and the Council.

Amendment 844 #

Proposal for a regulation
Article 1 – paragraph 1 – point 49

Regulation (EU) No 575/2013
Article 128 – paragraph 1 – point a

(a) debt exposures which are subordinated to claims of another ordinary unsecured creditors;

Amendment 845 #

Linea SØGAARD-LIDELL, Pernille WEISS, Nicola BEER, Engin EROGLU

Proposal for a regulation
Article 1 – paragraph 1 – point 50 a (new)

Regulation 575/2013
Article 129 – paragraph 1 – introductory part

(50 a) Article 129(1), introductory part, is replaced by the following "1. To be eligible for the preferential treatment set out in paragraphs 4 and 5 of this Article, covered bonds as defined in point (1) of Article 3 of Directive (EU) 2019/2162 of the European Parliament and of the Council ( ~~22 )~~1) and the counterparties of derivative contracts defined in article 11 of Directive (EU) 2019/2162 shall meet the requirements set out in paragraphs 3, 3a and 3b of this Article and shall be collateralised by any of the following eligible assets: " Or. en (Regulation 575/2013)

Amendment 846 #

Proposal for a regulation
Article 1 – paragraph 1 – point 50 a (new)

Regulation (EU) No 575/2013
Article 129 – paragraph 1 – point c

(50 a) in Article 129( 1), point (c) is replaced by the following: ‘(c) exposures to credit institutions that qualify for credit quality step 1 or credit quality step 2 or credit risk assessment grade A, or exposures to credit institutions that qualify for credit quality step 3 or credit risk assessment grade B where those exposures are in the form of: (i) short-term deposits with an original maturity not exceeding 100 days, where used to meet the cover pool liquidity buffer requirement of Article 16 of Directive (EU) 2019/2162; or (ii) derivative contracts that meet the requirements of Article 11(1) of that Directive, where permitted by the competent authorities;’ (iii) guarantees, where permitted by the competent authority " Or. en (https://eur-lex.europa.eu/eli/reg/2019/2160/oj)

Amendment 847 #

Linea SØGAARD-LIDELL, Pernille WEISS, Nicola BEER, Engin EROGLU

Proposal for a regulation
Article 1 – paragraph 1 – point 50 b (new)

Regulation (EU) No 575/2013
Article 129 – paragraph 1a

(50 b) Article 129(1a) is replaced by the following: " 1a. For the purposes of point (c) of the first subparagraph of paragraph 1, the following shall apply: (a) for exposures to credit institutions that qualify for credit quality step 1, the exposure shall not exceed 15 % of the nominal amount of outstanding covered bonds of the issuing credit institution; (b) for exposures to credit institutions that qualify for credit quality step 2 or credit risk assessment grade A, the exposure shall not exceed 10 % of the nominal amount of outstanding covered bonds of the issuing credit institution; (c) for exposures to credit institutions that qualify for credit quality step 3 or credit risk assessment grade B that take the form of short-term deposits, as referred to in point (c)(i) of the first subparagraph of paragraph 1 of this Article, or the form of derivative contracts, as referred to in point (c)(ii) of the first subparagraph of paragraph 1 of this Article, or the form of guarantees, as referred to in point (c)(iii) of the first subparagraph of paragraph 1 of this Article, the total exposure shall not exceed 8 % of the nominal amount of outstanding covered bonds of the issuing credit institution; the competent authorities designated pursuant to Article 18(2) of Directive (EU) 2019/2162 may, after consulting EBA, allow exposures to credit institutions that qualify for credit quality step 3 or credit risk assessment grade B in the form of derivative contracts or guarantees, provided that significant potential concentration problems in the Member States concerned due to the application of credit quality step 1 and 2 requirements or credit risk assessment grade A referred to in this paragraph can be documented; (d) the total exposure to credit institutions that qualify for credit quality step 1, 2 or 3 shor credit risk assessment grade A or B all not exceed 15 % of the nominal amount of outstanding covered bonds of the issuing credit institution and the total exposure to credit institutions that qualify for credit quality step 2 or 3 or credit risk assessment grade A and B shall not exceed 10 % of the nominal amount of outstanding covered bonds of the issuing credit institution. : " Or. en (https://eur-lex.europa.eu/legal- content/EN/TXT/HTML/?uri=CELEX:32019R2160&from=EN)

Amendment 848 #

Linea SØGAARD-LIDELL, Engin EROGLU, Nicola BEER

Proposal for a regulation
Article 1 – paragraph 1 – point 50 c (new)

Regulation (EU) No 575/2013
Article 129 – paragraph 4 –subparagraph 1a (new)

(50 c) in Article 129(4), the following subparagraph is added Exposures in the form of derivatives for hedging purposes as referred to in Articles 11 and 4 of Directive (EU) 2019/2162 shall be assigned the same risk weight that the derivative counterparty would assign to the covered bonds. " Or. en (32013R0575)

Amendment 849 #

Proposal for a regulation
Article 1 – point 50 a (new)

Regulation (EU) No 575/2013
Article 129 – paragraph 4 – table 6a

Table 6a Credit 1 2 3 4 5 6 quality step Risk 10% 15% 20% 50% 50% 100% weight (%)

Amendment 850 #

Linea SØGAARD-LIDELL, Pernille WEISS, Nicola BEER, Engin EROGLU

Proposal for a regulation
Article 1 – paragraph 1 – point 50 d (new)

Regulation (EU) No 575/2013
Article 129 – paragraph 5 – subparagraph 1 a (new)

(50 d) in Article 129(5) the following subparagraph is added: Exposures in the form of derivatives for hedging purposes as referred to in Articles 11 and 4 of Directive (EU) 2019/2162 shall be assigned the same risk weight that the derivative counterparty would assign to the covered bonds. " Or. en (https://eur-lex.europa.eu/eli/reg/2019/2160/oj)

Amendment 851 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 51 a (new)

(51 a) in Article 132(2), subparagraph 2 is replaced by the following: Subject to Article 132b(2), institutions that do not apply the look-through approach or the mandate-based approach shall assign a risk weight of 1 250 % (‘fall-back approach’) to their exposures in the form of units or shares in a CIU. As an alternative to applying a 1 250 % risk weight, institutions may deduct those amounts from Common Equity Tier 1 items in accordance with point (k) of Article 36(1). Or. en(https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02013R0575- 20220410&qid=1657192873239)

Amendment 852 #

Proposal for a regulation
Article 1 – paragraph 1 – point 51 a (new)

Regulation (EU) 575/2013
Article 132 – paragraph 2 – subparagraph 2

(51 a) in Article 132(2), subparagraph 2 is replaced by the following: Subject to Article 132b (2), institutions that do not apply the look-through approach or the mandate-based approach shall assign a risk weight of 1 250 % (‘fall-back approach’) to their exposures in the form of units or shares in a CIU. As an alternative to applying a 1 250 % risk weight, institutions may deduct those amounts from Common Equity Tier 1 items in accordance with point (k) of Article 36(1).

Amendment 853 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 51 a (new)Regulation (EU) 575/2013

Article 132 – paragraph 2 – subparagraph 2

(51 a)in Article 132(2), subparagraph 2 is replaced by the following: Subject to Article 132b(2), institutions that do not apply the look-through approach or the mandate-based approach shall assign a risk weight of 1 250 % (‘fall-back approach’) to their exposures in the form of units or shares in a CIU. As an alternative to applying a 1 250 % risk weight, institutions may deduct those amounts from Common Equity Tier 1 items in accordance with point (k) of Article 36(1)

Amendment 854 #

Proposal for a regulation
Article 1 – paragraph 1 – point 52

Regulation (EU) 575/2013
Article 133 – paragraph 1 – point c – point iv – introductory part

(iv) the holder of the instrument has exercised the option to require that the obligation be settled in equity shares, unless one of the following conditions is met:

Amendment 855 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 52

(iv) the holder of the instrument has exercised the option to require that the obligation be settled in equity shares, unless one of the following conditions is met:

Amendment 856 #

Proposal for a regulation
Article 1 – paragraph 1 – point 52

Regulation (EU) No 575/2013
Article 133 – paragraph 1 – point c – point iv – introductory part

(iv) the holder of the instrument has exercised the option to require that the obligation be settled in equity shares, unless one of the following conditions is met:

Amendment 857 #

Proposal for a regulation
Article 1 – paragraph 1 – point 52

Regulation (EU) No 575/2013
Article 133 – paragraph 1– point c – point iv – introductory part

(iv) the holder of the instrument has exercised the option to require that the obligation be settled in equity shares, unless one of the following conditions is met:

Amendment 858 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 52

Regulation (EU) No 575/2013
Article 133 – paragraph 3 and 3 a (new)

3. Equity exposures, other than those referred to in paragraph 3a and 4 to 7, shall be assigned a risk weight of 250 %, unless those exposures are required to be deducted or risk-weighted in accordance with Part Two. 3a. Exposures to equity listed on regulated markets shall be assigned a risk weight of 100%. Private equity exposures in sufficiently diversified portfolios shall be assigned a risk weight of 190 % unless those exposures are required tobe deducted.

Amendment 859 #

Proposal for a regulation
Article 1 – paragraph 1 – point 52

Regulation (EU) No 575/2013
Article 133 – paragraph 3 and 3a (new)

Amendment 860 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 52

Regulation (EU) 575/2013
Article 133 – paragraph 3

Amendment 861 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 52

Regulation (EU) No 575/2013
Article 133 – paragraph 3

3. Equity exposures, other than those referred to in paragraphs 3a and 4 to 7, shall be assigned a risk weight of 250 %, unless those exposures are required to be deducted or risk-weighted in accordance with Part Two.

Amendment 862 #

Proposal for a regulation
Article 1 – paragraph 1 – point 52

3a. Exposures to equity listed on regulated markets shall be assigned a risk weight of 100%. Private equity exposures in sufficiently diversified portfolios shall be assigned a risk weight of 190 % unless those exposures are required to be deducted.

Amendment 863 #

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA

Proposal for a regulation
Article 1 – paragraph 1 – point 52

REGULATION (EU) No 575/2013
Article 133 – paragraph 3 a (new)

3a. Exposures to equity listed on regulated markets shall be assigned a risk weight of 100%. Private equity exposures in sufficiently diversified portfolios shall be assigned a risk weight of 190% unless those exposures are required to be deducted.

Amendment 864 #

Proposal for a regulation
Article 1 – paragraph 1 – point 52

Regulation (EU) No 575/2013
Article 133 – paragraph 4 – subparagraph 2

By way of derogation from the first subparagraph, long-term equity investment, including investments in equities of corporate clients with which the institution has or intends to establish a long-term business relationship as well as venture capital firms, when they are related to activities which are part of the bank’s strategy approved by the Board, such as digitalization and sustainability, and debt- equity swaps for corporate restructuring purposes shall be assigned a risk weight in accordance with paragraph 3 or 5, as applicable. For the purposes of this Article, a long-term equity investment is an equity investment that is held for three years or longer or incurred with the intention to be held for three years or longer as approved by the institution’s senior management.

Amendment 865 #

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA

Proposal for a regulation
Article 1 – paragraph 1 – point 52

Regulation 575/2013
Article 133 – paragraph 4b (new)

4b. Equity exposures in sufficiently diversified portfolios, including exposures to venture capital funds, shall be given a 190% risk weight.

Amendment 866 #

Proposal for a regulation
Article 1 – paragraph 1 – point 52

Regulation EU 575/2013
Article 133 – paragraph 5 – introductory part

5. Institutions that have received the prior permission of the competent authorities, may assign a risk weight of 100 % to equity exposures incurred under legislative programmes to promote specified sectors of the economy, up to the part of such equity exposures that in aggregate does not exceed 10 % of the institution’s own funds, that comply with all of the following conditions:

Amendment 867 #

Proposal for a regulation
Article 1 – paragraph 1 – point 52

Regulation EU 575/2013
Article 133 – paragraph 5 – point c

(c) ~~such equity exposures in aggregate do not exceed 10 % of the institutions own funds~~the legislative programme involves restrictions on the equity investment, such as limitations on the size and types of businesses in which the institution is investing, on allowable amounts of ownership interests, on the geographical location and on other pertinent factors that limit the potential risk of the investment for the institution.

Amendment 868 #

Proposal for a regulation
Article 1 – paragraph 1 – point 52

Regulation (EU) No 575/2013
Article 133 – paragraph 6

6. Equity exposures to central banks shall be assigned a risk weight of 100 %.

Amendment 869 #

Proposal for a regulation
Article 1 – paragraph 1 – point 52

Regulation (EU) No 575/2013
Article 133 – paragraph 6

6. Equity exposures to central banks shall be assigned a risk weight of 100 %.

Amendment 870 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 52

Regulation (EU) No 575/2013
Article 133 – paragraph 6

6. Equity exposures to central banks shall be assigned a risk weight of 100 %.

Amendment 871 #

Proposal for a regulation
Article 1 – paragraph 1 – point 52

Regulation (EU) 575/2013
Article 133 – paragraph 6

6. Equity exposures to central banks shall be assigned a risk weight of 100 %.

Amendment 872 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 52

Regulation 575/2013
Article 133 – paragraph 6

6. Equity exposures to central banks shall be assigned a risk weight of 100 %.

Amendment 873 #

Proposal for a regulation
Article 1 – paragraph 1 – point 52

Regulation (EU) No 575/2013
Article 133 – paragraph 6

6. Equity exposures to central banks shall be assigned a risk weight of 100 %.

Amendment 874 #

Proposal for a regulation
Article 1 – paragraph 1 – point 52

Regulation (EU) No 575/2013
Article 133 – paragraph 7a (new)

7 a. Equity exposures which represent a strategic investment for institutions shall be assigned a risk weight of 100%. Other equity investments shall be assigned the following risk weights: a) 100% for participations by collective investment undertakings in an entity established specifically to hold ownership rights in real estate property b) 150% for participations in an entity established specifically to finance or operate physical structures or facilities, systems and networks. The entity must provide or support basic public services (e.g. financing of broadband and energy networks, transport infrastructure, education, etc.) c) 160% for equity investments held in CIU, if the individual underlying is an equity investment equal to or smaller than 10% of the CIU’s NAV according to the documented intention of investment diversification d) 170% for investments with the intent to hold for a period of at least 10 years d) 200% for investments in the form of publicly quoted shares listed in appropriately diversified indices investment for institutions shall be assigned a risk weight of 100%. For the purposes of this paragraph, a strategic equity investment is an equity investment which has a long-term nature proven by a holding period of at least 6 years or documented intention of a holding intention of at least 6 years; and where there is no intention to make a short-term profit by selling the equity exposure .

Amendment 875 #

Pascal CANFIN, Gilles BOYER

Proposal for a regulation
Article 1 – paragraph 1 – point 52

Regulation (EU) 575/2013
Article 133 – paragraph 7a (new)

7 a. Long-term strategic equity exposures with an intended holding period of at least six years shall be assigned a risk weight of 100%.

Amendment 876 #

Proposal for a regulation
Article 1 – paragraph 1 – point 52 a (new)

Regulation (EU) No 575/2013
Article 133a (new)

(52 a) the following article is inserted : Article 133a Fossil fuel sector equity exposures for corporates 1. The following shall be considered companies having activities relating to existing fossil fuel resources: (i)companies in the sectors of the economy which produce, process, store or use fossil fuels as defined in Article 2(62) of Regulation (EU) 2018/1999 of the European Parliament and of the Council (ii)companies active in fossil fuel sectors, excluding the ones which invest in expansion or exploration and plan to add fossil fuel resources to their production portfolio (iii)companies exploiting power plants that burn fossil fuels to generate power. Fossil fuel resources and resource fields referred to in this subparagraph must have been explored and known as of 31 December 2021. 2. The following shall be considered companies having activities relating to new fossil fuel resources: (i) companies in the sectors of the economy which produce, process, store or use fossil fuels as defined in Article 2(62) of Regulation (EU) 2018/1999 of the European Parliament and of the Council This includes all projects which have not received a final investment decision (FID) before 31 December 2021 (i) companies active in fossil fuel sectors, which invest in expansion and exploration and plan to add fossil fuel resources to their production portfolio (iii) companies exploiting power plants that burn fossil fuels to generate power; the FID for the exploration or expansion of such fossil fuels must have been on or after 1 January 2022. Exploration or expansion of fossil fuel resources and resource fields referred to in this must have started on or after 1 January 2022. 3. Equity exposures in companies having activities relating to existing fossil fuel resources, as referred to in paragraph 1 of this Article, shall be assigned a risk weight of 400 % 4. Equity exposures in companies having activities relating to new fossil fuel resources, as referred to in paragraph 2 of this Article, shall be assigned a risk weight of 1250 % 5. Corporates publishing a transition plan as defined in article 19a, paragraph 2, point (iii), of Directive 2013/34/EU and as specified in the delegated acts adopted in accordance with Article 29b of Directive 2013/34/EU, shall not be subject to the treatment set out in this Article. For this rule to apply, the transition plan shall be subject to an assurance engagement respecting the dispositions set out in Directive [CSRD] for the assurance of sustainability reporting.

Amendment 877 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 53 – point a

Regulation EU 575/2013
Article 134 – paragraph 3

3. Cash items in the process of collection shall be assigned a 20 % risk weight. Cash owned and held by the institution ~~or in transit~~, and equivalent cash items shall be assigned a 0 % risk weight.;

Amendment 878 #

Proposal for a regulation
Article 1 – paragraph 1 – point 53 – point a a (new)

Reglement (EU) 575/2013
Article 134 – paragraph 7 a new

7a . The risk weights applicable to securities financing transactions exposures shall be capped at 50% and 20% where the exposures residual maturities are respectively one year or less and 3 months or less

Amendment 879 #

Proposal for a regulation
Article 1 – paragraph 1 – point 53 – point b a (new)Reglement (EU) 575/2013

Article 134 – paragraph 8 a (new)

(b a) the following paragraph 8a is added: 8a. Securities financing transactions exposures risk weights shall be capped at 50 % and 20 % where the exposures residual maturities are respectively one year or less and 3 months or less.

Amendment 880 #

Agnès EVREN

Proposal for a regulation
Article 1 – paragraph 1 – point 53 – point b a (new)

Regulation (EU) No 575/2013
Article 134 – paragraph 8 a (new)

8a. Regarding SFTs, securities financing transactions exposures risk weights shall be capped at 50 % and 20% where the exposures residual maturities are respectively one year or less and 3 months or less;

Amendment 881 #

Proposal for a regulation
Article 1 – paragraph 1 – point 53 – point b a (new)

8a. Securities financing transactions exposures risk weights shall be capped at 50 % and 20% where the exposures residual maturities are respectively one year or less and 3 months or less.

Amendment 882 #

Proposal for a regulation
Article 1 – paragraph 1 – point 53 a (new)Regulation (EU) No 575/201 Art 134 – paragraph 8 a (new)

8a Securities financing transactions exposures risk weights shall be capped at 50 % and 20% where the exposures residual maturities are respectively one year or less and 3 months or less.

Amendment 883 #

Proposal for a regulation
Article 1 – paragraph 1 – point 53 a (new)

Regulation (EU) 575/2013
Article 134 – paragraph 8 a (new)

8a. Securities financing transactions exposures risk weights shall be capped at 50 % and 20% where the exposures residual maturities are respectively one year or less and 3 months or less.

Amendment 884 #

Proposal for a regulation
Article 1 – paragraph 1 – point 54 – introductory part

Regulation EU 575/2013
Article 135

(54) in Article 135, the following paragraphs 3 isand 3a are added:

Amendment 885 #

Proposal for a regulation
Article 1 – paragraph 1 – point 54

Regulation EU 575/2013
Article 135 – paragraph 3

3. 3. EBA, EIOPA and ESMA shall by [OP please insert the date = 1 year after entry into force] prepare a report on the impediments to the availability of credit assessments by ECAIs, in particular for corporates, and on possible measures to address them taking into account differences across economic sectors and geographical areas. EBA, EIOPA and ESMA shall make the report publicly available on their websites;

Amendment 886 #

Proposal for a regulation
Article 1 – paragraph 1 – point 54

Regulation EU 575/2013
Article 135 – paragraph 3 a (new)

3a. The ESMA shall by [OP please insert the date = 1 year after entry into force] prepare a report on whether ESG risks are appropriately reflected in ECAI credit risk rating methodologies. Based on this report and if appropriate, the Commission shall submit a legislative proposal to the European Parliament and the Council by [OP please insert the date = 18 months after entry into force]

Amendment 887 #

Proposal for a regulation
Article 1 – paragraph 1 – point 55 – point a

Regulation EU 575/2013
Article 138 – point g

(g) an institution shall not use an ECAI credit assessment in relation to an institution that incorporates assumptions of implicit government support, unless the respective ECAI credit assessment refers to an institution owned by or ~~set up and~~ sponsored by central governments, regional governments or local authorities.;

Amendment 888 #

Proposal for a regulation
Article 1 – paragraph 1 – point 55 – point b

Regulation EU 575/2013
Article 138 – subparagraph 2

For the purposes of point (g), in case of institutions, other than institutions owned by or ~~set up and~~ sponsored by central governments, regional governments or local authorities, for which only ECAI credit assessment exist which do incorporate assumptions of implicit government support, exposures to such institutions shall be treated as exposures to unrated institutions in accordance with Article 121.

Amendment 889 #

Proposal for a regulation
Article 1 – paragraph 1 – point 55 – point b

Regulation EU 575/2013
Article 138 – subparagraph 3

Implicit government support means that the central government, regional government or local authority ~~shall~~is expected to act to prevent creditors of the institution from incurring losses in the event of the institution’s default or distress., notably because of the absence of resolution framework relying on the “bail-in” principle. ;

Amendment 890 #

Proposal for a regulation
Article 1 – paragraph 1 – point 58 – point c

Regulation EU 575/2013
Article 142 – paragraph 1 - point 4 – point a

(a) the entity’s total assets, or the total assets of its parent company where the entity has a parent company, calculated on an individual or consolidated basis, are greater than or equal to EUR 730 billion , using the most recent audited financial statement or consolidated financial statement in order to determine asset size;

Amendment 891 #

Proposal for a regulation
Article 1 – paragraph 1 – point 58 – point c

Regulation EU 575/2013
Article 142 – paragraph 1 – point 5

(5) ‘~~unregulated~~other financial sector entity’ means a financial sector entity that does not fulfil the condition laid down in point (4)(b);;

Amendment 892 #

Proposal for a regulation
Article 1 – paragraph 1 – point 58 – point d

Regulation EU 575/2013
Article 142 – paragraph 1 – point 5 a

(5a) ‘large corporate’ means any corporate undertaking having consolidated annual ~~sales~~turnover of more than EUR 500 million or belonging to a group where the total annual ~~sales~~turnover for the consolidated group is more than EUR 500 million.’;’

Amendment 893 #

Proposal for a regulation
Article 1 – paragraph 1 – point 59 – point a

Regulation EU 575/2013
Article 143 – paragraph 2

2. Prior permission to the use the IRB Approach, including own estimates of LGDs and CCFs, shall be required for each exposure class and for each rating system and for each approach to estimating LGDs and CCFs used. Exposures defined in Articles 126b and 126c shall not be eligible for the IRB approach ;

Amendment 894 #

Proposal for a regulation
Article 1 – paragraph 1 – point 59 – point a

2. Prior permission to the use the IRB Approach, including own estimates of LGDs and CCFs, shall be required for each exposure class and for each rating system and for each approach to estimating LGDs and CCFs used.; Exposures defined in Article 126b shall not be eligible for the IRB approach.

Amendment 895 #

Nicola BEER

Proposal for a regulation
Article 1 – paragraph 1 – point 61 – point c

(EU) No 575/2013
Article 147 – paragraph 3 a

3a. Exposures to regional governments, local authorities or public sector entities shall all be assigned to the exposure class referred to in paragraph 2, point (a1), irrespective of the treatment such exposures would receive under ~~Articles 115 or 116.;~~unless they are treated as exposures to the central government according to Articles 115 or 116. Exposures treated as exposures to central governments according to Articles 115 or 116 shall be assigned to the exposure class referred to in paragraph 2, point (a).

Amendment 896 #

Proposal for a regulation
Article 1 – paragraph 1 – point 61 – point c

Regulation (EU) No 575/2013
Article 147 – paragraph 3 a

3a. Exposures to regional governments, local authorities or public sector entities shall ~~all~~ be assigned to the exposure class referred to in paragraph 2, point (a1), ~~irrespective of the treatment such exposures would receive under Articles 115 or 116~~given these exposures are treated according to Articles 115 or 116. In all other cases, exposures to regional governments, local authorities or public sector entities shall be assigned to the exposure class referred to in paragraph 2, point (a1).;

Amendment 897 #

Proposal for a regulation
Article 1 – paragraph 1 – point 61 – point c

Regulation 575/2013
Article 147 – paragraph 3 a

3a. Exposures to regional governments, local authorities or public sector entities shall all be assigned to the exposure class referred to in paragraph 2, point (a1)~~, irrespective of the treatment such exposures would receive under~~. By derogation from the first sentence, exposures treated according to Articles 115 orand 116 shall be assigned to the exposure class referred to in paragraph 2, point (a).;

Amendment 898 #

Proposal for a regulation
Article 1 – paragraph 1 – point 61 – point c

Regulation (EU) No 575/2013
Article 147 – paragraph 3 a

3a. Exposures to regional governments, local authorities or public sector entities shall all be assigned to the exposure class referred to in paragraph 2, point (a1)~~, irrespective of the treatment such exposures would receive under Articles 115 or 116.;~~. By derogation from the first sentence, exposures treated according to Articles 115 or 116 shall be assigned to the exposure class referred to in paragraph 2, point (a).

Amendment 899 #

Agnès EVREN

Proposal for a regulation
Article 1 – paragraph 1 – point 61 – point c

Règlement (UE) nº 575/2013
Article 147 – paragraph 3 a

3a. Exposures to regional governments, local authorities or public sector entities shall all be assigned to the exposure class referred to in paragraph 2, point (a1), ~~irrespective of the treatment such exposures would receive und~~except for exposures treated as exposures to central governments as per Aarticles 115 orand 116.;

Amendment 900 #

Proposal for a regulation
Article 1 – paragraph 1 – point 61 – point e – point iii

Regulation EU 575/2013
Article 147 – paragraph 5a – point a

(a) ~~the~~ exposures ~~of that type of exposures are to individual~~to natural persons;

Amendment 901 #

Proposal for a regulation
Article 1 – paragraph 1 – point 61 – point e – point iii

Regulation EU 575/2013
Article 147 – paragraph 5a – point c

source: 734.262

2022/08/18 ECON 660 amendments...

Amendment 1000 #

Esther de LANGE, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 1 – point 103 – point a – point i

Regulation (EU) No 575/2013
Article 208 – paragraph 3 – point b – subparagraph 1 a

TIn the case of a revaluation beyond the value at the time the loan was granted the value of the property shall not exceed the average value measured for that property or for a comparable property over the last three years in case of commercial immovable property, and over the last six years in case of residential property. Modifications made to the property that unequivocally increase its value shall lead to an upwards adjustment of the property value. Modifications made to the property that improve the energy efficiency of the building or housing unit shall in any case be considered as unequivocally increasing its value.;

Amendment 1001 #

Proposal for a regulation
Article 1 – paragraph 1 – point 103 – point a – point i

Regulation (EU) No 575/2013
Article 208 paragraph 3 – point b – subparagraph 1 a

The value of the property shall not exceed the average value measured for that property, or for a comparable property, as defined in Article 4(1)(74a) over the last ~~three~~six years in case of commercial immovable property, and over the last six years in case of residential property. Modifications made to the property that improve the energy efficiency of the building or housing unit shall be considered as. For the purpose of calculating the average value, institutions shall take the average across property values observed at equal intervals in time and the reference period shall include at least three data points. The value of the property can exceed that average value in case of modifications made to the property that unequivocally increas~~ing~~e its value, such as improvements of the energy efficiency.;

Amendment 1002 #

Proposal for a regulation
Article 1 – paragraph 1 – point 103 – point a – point i

Regulation (EU) No 575/2013
Article 208 – paragraph 3 – point b – subparagraph 1 a

The value of the property shall not exceed the average value measured for that property or for a comparable property over the last three years in case of commercial immovable property, and over the last six years in case of residentialproperty value used for an exposure secured by an immovable property shall not exceed the market value of this immovable property. Modifications made to the property that improve the energy efficiency of the building or housing unit shall be considered as unequivocally increasing its value.;

Amendment 1003 #

Proposal for a regulation
Article 1 – paragraph 1 – point 103 – point a – point i

Regulation (EU) No 575/2013
Article 208 – paragraph 3 – point b – subparagraph 1 a

The value of the property shall not exceed the average value measured for that property or for a comparable property over the last three years in case of commercial immovable property, and over the last six years in case of residential propertyproperty value used for an exposure secured by an immovable property shall not exceed the property value of this immovable property measured when the institutions entered that exposure. Modifications made to the property that improve the energy efficiency of the building or housing unit shall be considered as unequivocally increasing its value.;

Amendment 1004 #

Proposal for a regulation
Article 1 – paragraph 1 – point 103 – point a – point i

Regulation (EU) No 575/2013
Article 208 – paragraph 3 – point b – subparagraph 1 a

The value of the property shall not exceed the ~~average value measured for~~value of thatis property ~~or for a comparable property over the last three years in case of commercial immovable property, and over the last six years in case of residential property~~measured when the institution entered that exposure. Modifications made to the property that improve the energy efficiency of the building or housing unit, by improving its energy performance certificate by at least one grade, shall be considered as unequivocally increasing its value.;

Amendment 1005 #

Proposal for a regulation
Article 1 – paragraph 1 – point 103 – point a – point i

Regulation (EU) No 575/2013
Article 208 – paragraph 3 – point b – subparagraph 1 a

The value of the property shall not exceed the moving average value measured for that property or for a comparable property over the last three years in case of commercial immovable property, and over the last six years in case of residential property. Modifications made to the property that improve the energy efficiency of the building or housing unit shall be considered as unequivocally increasing its value.;

Amendment 1006 #

Proposal for a regulation
Article 1 – paragraph 1 – point 103 – point a – point i

Regulation (EU) No 575/2013
Article 208 – paragraph 3 – point b – subparagraph 1 a

The value of the property shall not exceed the average value measured for that property or for a comparable property over the last t~~hree~~wo years in case of commercial immovable property, and over the last ~~six~~four years in case of residential property. Modifications made to the property that improve the energy efficiency of the building or housing unit shall be considered as unequivocally increasing its value.; Or. <Original>{EN}en</Original>

Amendment 1007 #

Proposal for a regulation
Article 1 – paragraph 1 – point 103 – point b

3a. In accordance with paragraph 3 and subject to the approval of the competent authorities, institutions may carry out the ~~valuation and revalu~~monitoring of the property value and the indentification of thimmovable property ~~value~~in need of revaluation by means of advanced statistical or other mathematical methods (‘models’), developed independently from the credit decision process, subject to the fulfilment of the following conditions:

Amendment 1008 #

Esther de LANGE, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 1 – point 103 – point b

Regulation (EU) No 575/2013
Article 208 – paragraph 3a – introductory part

3a. In accordance with paragraph 3 and subject to the approval of the competent authorities, institutions may ~~carry out the valuation and revaluation of the property value~~monitor the property value and identify properties in need of revaluation by means of advanced statistical or other mathematical methods (‘models’), developed independently from the credit decision process, subject to the fulfilment of the following conditions:

Amendment 1009 #

Proposal for a regulation
Article 1 – paragraph 1 – point 103 – point b

Regulation (EU) No 575/2013
Article 208 – paragraph 3a – introductory part

3a. In accordance with paragraph 3 and subject to the approval of the competent authorities, institutions may carry out the valuation and revaluation of the property value by means of advanced statistical or other mathematical methods (‘models’), developed independently from the credit decision process, and subject to the fulfilment of the following conditions:

Amendment 1010 #

Proposal for a regulation
Article 1 – paragraph 1 – point 103 – point b

Regulation (EU) No 575/2013
Article 208 – paragraph 3a – introductory part

3a. In accordance with paragraph 3 and subject to the approval of the competent authorities, institutions may carry out the valuation and revaluation of the property value by means of advanced statistical ~~or other mathematical~~ methods (‘models’), developed independently from the credit decision process, subject to the fulfilment of the following conditions:

Amendment 1011 #

Proposal for a regulation
Article 1 – paragraph 1 – point 103 – point b

Regulation (EU) No 575/2013
Article 208 – paragraph 3a – point a

(a) the institutions set out, in their policies and procedures, the criteria for using models to ~~valuate, revaluate and~~ monitor the values of collateral and to identify the properties that should be reevaluated. Those policies and procedures shall account for such models’ proven track record, property- specific variables considered, the use of minimum available and accurate information, and the models’ uncertainty;

Amendment 1012 #

Proposal for a regulation
Article 1 – paragraph 1 – point 103 – point b

Regulation (EU) No 575/2013
Article 208 ¬ paragraph 3a – point a

(a) the institutions set out, in their policies and procedures, the criteria for using models to ~~valuate, revaluate and~~ monitor the values of collateral and to identify immovable property in need of revaluation. Those policies and procedures shall account for such models’ proven track record, property-specific variables considered, the use of minimum available and accurate information, and the models’ uncertainty;

Amendment 1013 #

Proposal for a regulation
Article 1 – paragraph 1 – point 103 – point b

Regulation (EU) No 575/2013
Article 208 ¬ paragraph 3a – point c

(c) the institutions are ultimately responsible for the appropriateness and performance of the models, the valuer referred to in paragraph 3, point (b), is responsible for the valuation ~~that is made~~of immovable property for which the need for revaluation has been identified using the models and the institutions understand the methodology, input data and assumptions of the models used;

Amendment 1014 #

Proposal for a regulation
Article 1 – paragraph 1 – point 103 – point b

Regulation (EU) No 575/2013
Article 208 ¬ paragraph 3a – point e

(e) the institutions have in place adequate IT processes, systems and capabilities and have sufficient and accurate data for any model-based ~~valuation or revaluation of collateral~~monitoring of the value of immovable property collateral and identification of properties in need of revaluation;

Amendment 1015 #

Proposal for a regulation
Article 1 – paragraph 1 – point 103 – point b

Regulation (EU) No 575/2013
Article 208 – paragraph 3a – point e

(e) the institutions have in place adequate IT processes, systems and capabilities and have sufficient and accurate data for any model-based ~~valuation or revaluation of collateral~~monitoring of property value and identification of properties in need of reevaluation ;

Amendment 1016 #

Proposal for a regulation
Article 1 – paragraph 1 – point 103 – point b

Regulation (EU) No 575/2013
Article 208 – paragraph 3a – point f

(f) the estimates of models are independently validated and the validation process is generally consistent with the principles set out in Article 185, where applicable, and the independent valuer referred to in paragraph 3, point (b) is responsible for the final values used by the institution for the purposes of this Chapter.;

Amendment 1017 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 103 a (new)

Regulation (EU) No 575/201
Article 210 – introductory part

(103 a)in Article 210, the introductory part is replaced by the following: Physical collateral other than immovable property collateral shall qualify as eligible collateral under ~~the IRB Approach~~all approaches and methods where all the following conditions are met:

Amendment 1018 #

Proposal for a regulation
Article 1 – paragraph 1 – point 103 a (new)

Regulation (EU) No 575/2013
Article 210 – introductory part

(103 a)"Physical collateral other than immovable property collateral shall qualify as eligible collateral under ~~the IRB Approach~~all approaches and methods where all the following conditions are met: " Or. en (02013R0575-20220410)

Amendment 1019 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Proposal for a regulation
Article 1 – paragraph 1 – point 104 a (new)

Regulation (EU) 575/2013
Article 212 – paragraph 2 – point g

(~~g) the surrender value is declared by the company providing the life insurance and is non-reducible;~~104 a)in Article 212(2), point (g) is replaced by the following: (g) the current surrender value is declared by the company providing the life insurance. Where the surrender value is reducible, it has to be revaluated during the exposure life cycle.

Amendment 1020 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 104 b (new)

Regulation (EU) No 575/2013
Article 212 – paragraph 2 – point g

(~~g) the surrender value is declared by the company providing the life insurance and is non-reducib~~104 b)in Article 212(2), point (g) is replaced by the following: (g) the current surrender value is declared by the company providing the life insurance. Where the surrender value is reducible, it has to be revaluated during the exposure life cycle;

Amendment 1021 #

Proposal for a regulation
Article 1 – paragraph 1 – point 104 b (new)

Regulation (EU) No 575/2013
Article 212 – paragraph 2 – point g

~~g) the surrender value is declared by the company providing the life insurance and is non-reducible;~~ (104 b) in Article 212(2), point (g) is replaced by the following: "g) the current surrender value is declared by the company providing the life insurance. Where the surrender value is reducible, it has to be revaluated during the exposure life cycle; " Or. en (02013R0575-20220410)

Amendment 1022 #

Proposal for a regulation
Article 1 – paragraph 1 – point 111 a (new)

Regulation (EU) No 575/2013
Article 222 – paragraph 1

(111 a) in Article 222, paragraph.1 is replaced by the following : "1. Institutions may use the Financial Collateral Simple Method ~~only~~ where they calculate risk-weighted exposure amounts under the Standardised Approach or under the IRB approach foreseen in Article 153(5). Institution shall not use both the Financial Collateral Simple Method and the Financial Collateral Comprehensive Method, except for the purposes of Articles 148(1) and 150(1). Institutions shall not use this exception selectively with the purpose of achieving reduced own funds requirements or with the purpose of conducting regulatory arbitrage. " Or. en (Regulation 575/2013)

Amendment 1023 #

Proposal for a regulation
Article 1 – paragraph 1 – point 117 – point a a (new)

Regulation (EU) No 575/2013
Article 228 – paragraph1b (new)

(a a) the following paragraph is inserted : 1b. Under the IRB Approach, institutions shall use E* as calculated under Article 223(5) as the exposure value for the purposes of Article 153(5). In the case of off-balance sheet items listed in Annex I, institutions shall use E* as the value to which the percentages indicated in Article 166(8) shall be applied to arrive at the exposure value.

Amendment 1024 #

Proposal for a regulation
Article 1 – paragraph 1 – point 118 – point b

Regulation (EU) No 575/2013
Article 229– paragraph 1– point a

(a) the value shall be appraised by a valuer independently from ~~an institution’s mortgage acquisition, loan processing and loan decision process by an independent valuer~~the credit decision process, who possesses the necessary qualifications, ability and experience to execute a valuation;

Amendment 1025 #

Proposal for a regulation
Article 1 – paragraph 1 – point 118 – point b

(i) the value ~~excludes expectations on pr~~of the collateral shall be the market value or mortgage lending value reduced as appropriate to reflect the results of the monitoring required under Article ~~increases~~208(3) and to take account of any prior claims on the immovable property;

Amendment 1026 #

Proposal for a regulation
Article 1 – paragraph 1 – point 118 – point b

Regulation (EU) No 575/2013
Article 229 – paragraph 1 – point b – point ii

(ii) the value is adjusted to take into account the potential for the current market price to be significantly above the value that would be sustainable ~~over the life of the loan~~;

Amendment 1027 #

Proposal for a regulation
Article 1 – paragraph 1 – point 118 – point b

Regulation (EU) No 575/2013
Article 229 – paragraph 1 – point b – point ii

(ii) the value is adjusted to take into account the potential for the ~~current market price to be significantly above the value that would be sustainable over the life of the loan~~market value or mortgage lending value to be significantly above the current market price;

Amendment 1028 #

Proposal for a regulation
Article 1 – paragraph 1 – point 118 – point b

Regulation (EU) No 575/2013
Article 229 – paragraph1 – point b – point ii

Amendment 1029 #

Proposal for a regulation
Article 1 – paragraph 1 – point 118 – point b

Regulation (EU) No 575/201
Article 229 – paragraph 1 – point b – point ii

Amendment 1030 #

Proposal for a regulation
Article 1 – paragraph 1 – point 118 – point b

Regulation (EU) No 575/2013
Article 229 – paragraph 1 – subparagraph 1 a (new)

For the purposes of point a, the value of residential real estate in well-developed and mature property markets may be assessed by means of a desktop valuation.

Amendment 1031 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 121 a (new)

Regulation (EU) No 575/201
Article 232 – paragraph 2

(121 a) in Article 232, paragraph 2 is replaced by the following: 2. Where the conditions set out in Article 212(2) are met, institutions shall subject the “portion of the exposure collateralised by the ~~current surrender value of~~ life insurance policies pledged to the lending institution” to the following treatment: (a) where the exposure is subject to the Standardised Approach, it shall be risk- weighted by using the risk weights specified in paragraph 3; (b) where the exposure is subject to the IRB Approach but not subject to the institution's own estimates of LGD, it shall be assigned an LGD of 40 %. The “portion of the exposure collateralized by the life insurance policies pledged to the lending institution”, where the surrender value (SV) is reducible, has to be calculated by the following formula: SV = SV · (1 - HC) where: HC = volatility adjustment. Where institutions are aware of the underlying exposures of the life insurance policy and the underlying exposures satisfy the eligibility criteria set out in Article 197 and 198, they should calculate Hc as the weighted average of each underlying exposure Hc according to Art. 224, paragraph 1 Tables 1 to 3. Underlying exposures in the form of CIUs should be themselves subject to the look- through approach up the maximum extent. For the purposes of calculating weighted average Hc, underlying exposures not satisfying eligibility criteria set out in Article 197 and 198and underlying exposures in the for of CIUs for which the look-through approach up to the maximum extent is not available should be considered as having Hc equal to 1. In the event of a currency mismatch, institutions shall reduce the current surrender value in accordance with Article 233(3), the value of the credit protection being the current surrender value of the life insurance policy.

Amendment 1032 #

Proposal for a regulation
Article 1 – paragraph 1 – point 121 a (new)

(121 a) in Article 232, paragraphs 2 is replaced by the following: "2. Where the conditions set out in Article 212(2) are met, institutions shall subject the “portion of the exposure collateralised by the current surrender value of life insurance policies pledged to the lending institution” to the following treatment: (a) where the exposure is subject to the Standardised Approach, it shall be risk- weighted by using the risk weights specified in paragraph 3; (b) where the exposure is subject to the IRB Approach but not subject to the institution's own estimates of LGD, it shall be assigned an LGD of 40 % . The “portion of the exposure collateralized by the life insurance policies pledged to the lending institution”, where the surrender value (SV) is reducible, has to be calculated by the following formula: SV = SV · (1 - HC) where: HC = volatility adjustment. Where institutions are aware of the underlying exposures of the life insurance policy and the underlying exposures satisfy the eligibility criteria set out in Article 197and 198, they should calculate Hc as the weighted average of each underlying exposure Hc according to Art. 224, paragraph 1 Tables 1 to 3. Underlying exposures in the form of CIUs should be themselves subject to the look-through approach up the maximum extent. For the purposes of calculating weighted average Hc, underlying exposures not satisfying eligibility criteria set out in Article 197 and 198 and underlying exposures in the for of CIUs for which the look-through approach up to the maximum extent is not available should be considered as having Hc equal to 1. " Or. en (02013R0575-20220410)

Amendment 1033 #

Proposal for a regulation
Article 1 – paragraph 1 – point 123 – point b

Regulation (EU) No 575/2013
Article 235 – point g

g = the risk weight of exposures to the protection provider as specified in Chapter 2 or in Chapter 3 if the institution has been granted permission to use IRB Approach for the exposure class that the protection provider belongs.

Amendment 1034 #

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA

Proposal for a regulation
Article 1 – paragraph 1 – point 126 a (new)Regulation (EU) No 575/2013

Article 236b (new)

(126 a) the following article is inserted: Article 236b Fossil fuel sector exposures 1. The following shall be considered exposures to existing fossil fuel resources: (i) exposures to projects in fossil fuel sectors (ii) exposures to companies active in fossil fuel sectors, excluding the ones which invest in expansion or exploration and plan to add fossil fuel resources to their production portfolio (iii) exposure to power plants that burn fossil fuels to generate power. Fossil fuel resources and resource fields referred to in this subparagraph must have been explored and known as of 31 December 2021. 2. The following shall be considered exposures to the new fossil fuel resources: (i) exposure to fossil fuel extraction projects, transport facilities and other infrastructure (such as LNG terminals)that drive expanded extraction. This includes all projects which have not received a final investment decision (FID) before 31 December 2021 (ii) exposures to companies active in fossil fuel sectors, which invest in expansion and exploration and plan to add fossil fuel resources to their production portfolio (iii) exposure to power plants that burn fossil fuels to generate power; the FID for the exploration or expansion of such fossil fuels must have been on or after 1 January 2022.Exploration or expansion of fossil fuel resources and resource fields referred to in this must have started on or after 1 January 2022. 3. Exposures related to existing fossil fuel resources, as referred to in paragraph 1 of this Article, shall be assigned a risk weight of 150 % 4. Exposures related to new fossil fuel resources, as referred to in paragraph 2 of this Article, shall be assigned a risk weight of 1250 %

Amendment 1035 #

Proposal for a regulation
Article 1 – paragraph 1 – point 130 – point -a (new)

(- a) paragraph 2 is replaced by the following: 2. Institutions shall calculate the exposure value of a netting set under the standardised approach for counterparty credit risk as follows: Exposure value = α ·· (RC + PFE) where: RC = the replacement cost calculated in accordance with Article 275; and PFE = the potential future exposure calculated in accordance with Article 278; α = 1~~,4.~~ for netting sets with non-financial counterparties as defined in point (9) of Article 2 of Regulation (EU) No 648/2012, or with non-financial counterparties established in a third country α= 1.4 for all other nettings sets

Amendment 1036 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 130 – point -a (new)

Regulation (EU) No 575/2013
Article 274 paragraph 2

(- a) paragraph 2 is replaced by the following: "2. Institutions shall calculate the exposure value of a netting set under the standardised approach for counterparty credit risk as follows: Exposure value = α · (RC + PFE) where: RC = the replacement cost calculated in accordance with Article 275; and PFE = the potential future exposure calculated in accordance with Article 278; α = 1~~,4.~~ for netting sets with non-financial counterparties as defined in point(9) of Article 2 of Regulation (EU) No 648/2012, or with non-financial counterparties established in a third country α = 1.4 for all other nettings sets " Or. en (https://eur-lex.europa.eu/legal-content/en/TXT/?uri=celex:32013R0575)

Amendment 1037 #

Agnès EVREN

Proposal for a regulation
Article 1 – paragraph 1 – point 130 – point -a (new)

Regulation (EU) No 575/2013
Article 274 paragraph 2

(- a) paragraph 2 is replaced by the following: "2. Institutions shall calculate the exposure value of a netting set under the standardised approach for counterparty credit risk as follows: Exposure value = α · (RC + PFE) where: RC=the replacement cost calculated in accordance with Article 275; and PFE=the potential future exposure calculated in accordance with Article 278; α=1~~,4.~~ for netting sets with non-financial counterparties as defined in point(9) of Article 2 of Regulation (EU) No 648/2012, or with non-financial counterparties established in a third country; α = 1.4 for all other nettings sets. " Or. en (REGULATION (EU) 2019/876)

Amendment 1038 #

Proposal for a regulation
Article 1 – paragraph 1 – point 130 – point b a (new)

Regulation (EU) No 575/2013
Article 274 – paragraph 7 a (new)

(b a) the following paragraph is added: 7a. By way of derogation from paragraph 2, institutions may, upon approval of the competent authorities, replace alpha by 1 in the calculation of the exposure value for netting sets with non-financial counterparties as defined in point (9) of Article 2 of Regulation (EU) No 648/2012, or with non-financial counterparties established in a third country. Or. en (See Regulation (EU) No 648/2012 Article 2, point 9)

Amendment 1039 #

Proposal for a regulation
Article 1 – paragraph 1 – point 130a (new)

Regulation (EU) No 575/2013
Article 284 – paragraph 6

~~Effective EPE is the average~~(130a ) Article 284(6) is replaced by the following: 6. The calculation of Effective EPE ~~during the first year of future exposure. If all~~shall not include the effect of trade-related cash flow payments from the institution to the defaulting countracts in the netting set mature within less than one year, EPE shall be the average of EE until all contracts in the netting set mature. Effective EPE shall be calculated as a weighted average of Effective EE: where the weights Δtk= tk – tk–1 allow for the case when future exposureerparty and vice versa for margined trading during the margin period of risk. The impact of such trade- related cash flow payments shall be taken into account by adding to Effective EPE the term: Where: expected spike exposures is calculated as the expected exposure increase due to trade-related cash flow payments from the institution to the defaulting counterparty during the margin period of risk that are possible due to contractual provisions (e.g. grace periods), the default notification and management processes of the institution and due to applicable settlement netting rules for such cash flows, which can also include variation margin payments isf c~~alculated at dates that are not equally spaced over time~~ ontractually agreed; denotes the time period inside the margin period of risk attached to the time grid point where such payments are possible, expressed in units of a year.’

Amendment 1040 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 312

The own funds requirement for operational risk shall be the product of the business indicator component calculated in accordance with Article 313 and the internal loss multiplier calculated in accordance with Article 313a.

Amendment 1041 #

Gilles BOYER, Stéphanie YON-COURTIN, Olivier CHASTEL, Engin EROGLU

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 312

Amendment 1042 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 312

The own funds requirement for operational risk shall be the product of business indicator component calculated in accordance with Article 313, and the internal loss multiplier calculated in accordance with Article 315b.

Amendment 1043 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 313a (new)

Article 313a Internal Loss Multiplier 1. Institutions shall calculate their internal loss multiplier, which reflects the bank’s internal operational risk experience, as follows: ILM = ln(exp(1) -1 + (LC/BIC)^0.8) where ILM is the internal loss multiplier BIC is the business indicator calculated in accordance with article 314, expressed in billions of euro. LC is the loss component equals to 15 times average annual operational risk losses incurred over the previous 10 financial years, calculated in accordance with Articles 316 and 318 and Article 319(1) 2. The calculation of average losses as part of the loss component shall rely on high- quality data. Upon supervisory approval, institutions that do not have ten years of high-quality annual loss data, may use five years of high-quality data. Institutions that do not have five years of high-quality loss data must calculate the capital requirement based solely on the BI Component.

Amendment 1044 #

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA

Proposal for a regulation
article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 313 a (new)

Article 313a Internal Loss Multiplier 1. Institutions shall calculate their internal loss multiplier component in accordance with the following formula: where ILM = the internal loss multiplier BI= the business indicator, expressed in billions of euro, calculated in accordance with Article 314; LC = the loss component, expressed in billions of euro, calculated as 15 times the annual average over the last ten financial years of the annual operational risk losses calculated in accordance with Articles 316 and 318 and Article 319(1). 2. When the business indicator of an institution exceeds 1 for the first time: (a) institutions that do not have ten years of good quality loss data may use a minimum of five years of data to calculate the loss component; (b) institutions that do not have five years of good-quality loss data shall set the internal loss multiplier at 1; (c) competent authorities may however require an institution to calculate the loss component using fewer than five years of losses if the resulting internal loss multiplier is greater than 1 and competent authorities believe the losses are representative of the institution’s operational risk exposure.’

Amendment 1045 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 314 – paragraph 2 – subparagraph 3

IC = the interest component, determined at jurisdiction level for the purposes of taking into consideration high and low net interest margin jurisdictions, which is the institution’s interest income from all financial assets and other interest income, including finance income from financial and income from operating leases and profits from leased assets, minus the institution’s interest expenses from all financial liabilities and other interest expenses, including interest expense from financial and operating leases, depreciation and impairment of, and losses from, operating leased assets, calculated as the annual average of the absolute values of the difference over the previous three financial years;

Amendment 1046 #

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 314 –paragraph 2 – subparagraph 3

IC = the interest component, determined at jurisdiction level, which is the institution’s interest income from all financial assets and other interest income, including finance income from financial and income from operating leases and profits from leased assets, minus the institution’s interest expenses from all financial liabilities and other interest expenses, including interest expense from financial and operating leases, depreciation and impairment of, and losses from, operating leased assets, calculated as the annual average of the absolute values of the difference over the previous three financial years;

Amendment 1047 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 314 – paragraph 2 – subparagraph 4

AC = the asset component, determined at jurisdiction level for the purposes of taking into consideration high and low net interest margin jurisdictions, which is the sum of the institution’s total gross outstanding loans, advances, interest bearing securities, including government bonds, and lease assets, calculated as the annual average over the previous three financial years on the basis of the amounts at the end of each of the respective financial years;

Amendment 1048 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 314 – paragraph 2 – subparagraph 4

AC = the asset component, determined at jurisdiction level, which is the sum of the institution’s total gross outstanding loans, advances, interest bearing securities, including government bonds, and lease assets, calculated as the annual average over the previous three financial years on the basis of the amounts at the end of each of the respective financial years;

Amendment 1049 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 314 – paragraph 3 – subparagraph 6 a (new)

For Institutions having a service component SC weight greater than 50% of the overall business indicator, the service component shall be calculated in accordance to the following formula: SC = min (SC0 , 50% BI) + max (0,[SC0- 50%BI]) * SCCF where: SCCF: service component calibration factor proposed at 50%. SC0=max (OI , OE) + max (FI , FE)

Amendment 1050 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 314 – paragraph 3 – subparagraph 6 a (new)

For Institutions having a service component SC weight greater than 50% of the overall business indicator, the service component shall be calculated in accordance to the following formula: SC = min (SC0 , 50% BI) + max (0,[SC0-50% BI]) * SCCF where: SCCF: service component calibration factor proposed at 50%. SC0= max (OI , OE) + max (FI , FE)

Amendment 1051 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 314 – paragraph 3 – subparagraph 6 a (new)

By way of derogation from this requirement, institutions may exclude fees collected in connection with the conclusion of a transaction giving access to contractual savings schemes leading to a mortgage loan with fixed interest rates and which fees' are passed through to the sales force as acquisition costs immediately after they have been settled when considering the services component.

Amendment 1052 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 314 – paragraph 3a (new)

3 a. When calculating the SC, institutions may: (a) exclude fees collected in connection with the conclusion of a transaction giving access to contractual savings schemes leading to a mortgage loan with fixed interest rates and which fees’ are passed through to the sales force as acquisition costs immediately after they have been settled when considering the service component; (b) exclude any income received from or expenses paid to institutions, given they are members of the same institutional protection scheme meeting the requirements of Article 113(7).

Amendment 1053 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 314 – paragraph 3 a (new)

3 a. Institutions that are a member of an institutional protection scheme as defined in Article 113(7) may net the fee and commission income and expenses received from and paid to other members the same institutional protection scheme for the purposes of calculating the Services Component.

Amendment 1054 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 314 – paragraph 6 – subparagraph 1 – point a

(a) the components of the business indicator by developing a list of typical sub-items, taking into account international regulatory standards; for the Financial Component calculation, this list shall not be used to separate TC and BC components and shall not prevent an institution from addressing sub-items to the TC or the BC components according to their prudential boundary defined in Part three, Title I, Chapter 3.

Amendment 1055 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 314 – paragraph 6 – subparagraph 2

EBA shall submit those draft regulatory technical standards to the Commission by [OP please insert the date = 186 months after entry into force of this Regulation]. The application date of the regulatory technical standards will at least be 18 months after publication in the OJEU.

Amendment 1056 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 314 – paragraph7 – subparagraph 2

EBA shall submit those draft regulatory technical standards to the Commission by [OP please insert the date = 246 months after entry into force of this Regulation]. The application date of the regulatory technical standards will at least be 18 months after publication in the OJEU.

Amendment 1057 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 315 – paragraph 1

1. Institutions shall include business indicator items of merged or acquired entities or activities in their business indicator calculation from the time of the merger or acquisition, as applicable, and shall cover the previous three financial years. When the business indicator of the acquired entity applies a lower marginal factor than the business indicator of the acquiring entity, the difference between the business indicator of the acquired entity calculated using the marginal coefficient of the acquiring entity and the business indicator of the acquired entity calculated using the marginal coefficient of the acquired entity will be applied the following coefficients: a) 33.34% during the first year following the acquisition of the acquired entity b) 66.67% during the second year following the acquisition of the acquired entity c) 100% from the third year following the acquisition of the acquired entity

Amendment 1058 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 315 – paragraph 2

2. Institutions ~~may request permission from~~will notify the competent authority to exclude business indicator items related to disposed entities or activities from the calculation of their business indicator, through formal communication with tacit agreement (60 days silence procedure).

Amendment 1059 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 315 – paragraph 3 – subparagraph 2

EBA shall submit those draft regulatory technical standards to the Commission by [OP please insert the date = 186 months after entry into force of this Regulation].

Amendment 1060 #

Gilles BOYER, Stéphanie YON-COURTIN

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 315 – paragraph3 – subparagraph 3 a (new)

The application date of the regulatory technical standards will at least be 18 months after publication in the OJEU.

Amendment 1061 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Article 315a (new) Classification of institutions Each institution is classified into one of the three categories set out in Table 2 on the basis of the highest value of the business indicator that it has reported at the last eight reporting reference dates. Where an institution has not yet reported its business indicator it shall be classified on the basis of its most recent business indicator. Table 2 Business Category Indicator Below or equal 1a to EUR 750 million Above EUR 750 1b million and below or equal to EUR 1 billion Above EUR 1 2 billion

Amendment 1062 #

Gilles BOYER, Stéphanie YON-COURTIN

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 315 b (new)

Article 315b Internal loss multiplier 1. Institutions classified pursuant to Article 315a within the category 2 shall calculate their internal loss multiplier in accordance with the following formula: ( 𝑰𝑳𝑴 = 𝒍𝒏 𝒆𝒙𝒑 (𝟏) ― 𝟏 + ( ) ) 𝑳𝑪 𝟎.𝟖 𝑩𝑰𝑪 where: ILM = the internal loss multiplier; LC = the loss component calculated in accordance with Article 315c; and BIC = the business indicator component calculated in accordance with Article 313. 2. By way of derogation from the first subparagraph, institutions that are classified pursuant to Article 315a within the categories 2 and that use less than five years of high-quality loss data in accordance with Article 315c(2) shall use an internal loss multiplier equal to 1 for the purpose of the calculation under Article 312. Competent authorities may require those institutions to use their internal loss multiplier calculated in accordance with paragraph 1 of this Article only where it is greater than 1 and where this is appropriate to better reflect the actual operational risk profile of the institution. 3. Institutions classified within the categories 1a and 1b pursuant to Article 315a shall use an internal loss multiplier equal to 1. 4. EBA shall develop draft regulatory technical standards to specify the methodology that competent authorities shall apply for the purposes of the paragraph 2 to assess whether the respective internal loss multiplier appropriately reflects the actual operational risk profile of the institution; EBA shall submit those draft regulatory technical standards to the Commission by [OP please insert the date = 12 months after the entry into force of this Regulation]. Power is delegated to 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 1063 #

Gilles BOYER, Stéphanie YON-COURTIN

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 315 c (new)

Article 315c Loss component 1. Institutions that calculate their internal loss multiplier according to the paragraph 1 of Article 315b shall compute their loss component in accordance with the following formula: ∑𝑨𝑳 𝑳𝑪 = ∗ 𝜷 𝒏 where: LC = the loss component; AL = the annual operational risk loss, as defined in Article 316, for the previous n financial years; n = 10 ; and β = 15. 2. For the purposes of paragraph 1, the calculation of average losses must meet the requirements for high-quality loss data set out in Chapter 2 of this Title. By way of derogation from the first paragraph, an institution that is in an uninterrupted transition process to calculate its internal loss multiplier in accordance with Article 315b and that has therefore not yet built-up ten consecutive years of loss data that meets the aforementioned requirements shall determine “n” in accordance with Table 3. The institution shall update “n” each year until it has built-up ten consecutive years of loss data that meets the requirements set out in Chapter 2 of this Title. Table 3 Number of previous n consecutive years for which loss data that meets the requirements set out in Chapter 2 of this Title is available. 9 9 8 8 7 7 6 6 5 5 4 4 3 3 2 2 1 1

Amendment 1064 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 316 – paragraph 1

1. Institutions ~~with a business indicator equal to or exceeding EUR 750 million~~classified within categories 1b or 2 pursuant to Article 315a shall calculate annual operational risk losses as the sum of all net losses over a given financial year, calculated in accordance with Article 318(1), that are equal to or exceed the loss data thresholds set out in Article 319, paragraphs 1 or 2, respectively.

Amendment 1065 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 316 – paragraph 1 – subparagraph 2

By way of derogation from the first subparagraph, competent authorities may grant a waiver from the requirement to calculate an annual operational risk loss to institutions with a business indictor that does not exceed EUR 1 billion, provided that the institution has demonstrated to the satisfaction of the competent authority that it would be unduly burdensome for the institution to apply the first subparagraph.deleted

Amendment 1066 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 316 – paragraph 1 – subparagraph 2

By way of derogation from the first subparagraph, competent authorities may grant a waiver from the requirement to calculate an annual operational risk loss to institutions ~~with a business indictor that does not exceed EUR 1 billion~~classified within category 1b, provided that the institution has demonstrated to the satisfaction of the competent authority that it would be unduly burdensome for the institution to apply the first subparagraph.

Amendment 1067 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 316 – paragraph 3

3. EBA shall develop draft regulatory technical standards to specify the condition of ‘unduly burdensome’ for the purposes of the first paragraph. EBA shall submit those draft regulatory technical standards to the Commission by [OP please insert the date = 18 months after entry into force of this Regulation]. Power is delegated to 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.deleted

Amendment 1068 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 317 – paragraph 1

1. Institutions that calculate annual operational risk losses in accordance with Article 316(1) shall have in place arrangements, processes and mechanisms to inform and maintain updated on an ongoing basis a loss data set compiling for each recorded operational risk event the gross loss amounts, non-insurance recoveries, insurance recoveries, reference date and grouped losses, including those from misconduct events. Institutions shall regularly review these arrangements, processes and mechanisms for the purpose of using the loss data set for the calculation of own funds requirements for operational risk in accordance with Article 312.

Amendment 1069 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 317 ¬ paragraph 1

1. Institutions that calculate annual operational risk losses in accordance with Article 316(1) shall have in place arrangements, processes and mechanisms to inform and maintain updated on an ongoing basis a loss data set compiling for each recorded operational risk event the gross loss amounts, non-insurance recoveries, insurance recoveries, reference dates and grouped losses, including those from misconduct events. These arrangements, processes and mechanisms shall be internally reviewed before the use of the loss data set for the calculation of own funds requirements for operational risk.

Amendment 1070 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 317 – paragraph 8 – introductory part

8. For the purposes of this Article, institutions shall ensure the soundness, robustness and performance of the IT systems and infrastructure necessary to maintain and update the loss data set by confirming all of the following:

Amendment 1071 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 317 – paragraph 8 – point c – point ii

(ii) that the process for planning, creating, testing, and deploying the IT systems and infrastructure for the purpose of this Article is sound and proper with reference to project management, risk management, and governance, engineering, quality assurance and test planning, systems’ modelling and development, quality assurance in all activities, including code reviews and where appropriate, code verification, and testing, including user acceptance;

Amendment 1072 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 317 – paragraph 8 – point c – point iii

(iii) that the institution’s IT systems and infrastructure for the purpose of this Article is subject to configuration management, change management and release management processes;

Amendment 1073 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 317 – paragraph 8 – point c – point iv

(iv) that the process for planning, creating, testing, and deploying the IT systems and infrastructure and contingency plans for the purpose of this Article is approved by the institution’s management body or senior management and that the management body and senior management are periodically informed about the IT infrastructure performance for the purposes of this Article.

Amendment 1074 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 317 – paragraph 9 – subparagraph 1

9. For the purposes of paragraph 67 of 9. this Article, EBA is mandated to develop draft regulatory technical standards establishing a risk taxonomy on operational risk and a methodology to classify, based on that risk taxonomy on operational risk, the loss events included in the loss data set, that should comply with international standards.

Amendment 1075 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 317 – paragraph 9 – subparagraph 2

Amendment 1076 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 319 – paragraph1

1. To calculate an annual operational risk loss as required by Article 316(1), institutions shall take into account from the loss data set operational risk events with a net loss, calculated in accordance with Article 318, that are equal to or above EUR 20 000 for banks in bucket and equal to or above EUR 100.000 for banks in buckets 2 and 3.

Amendment 1077 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) 575/2013
Article 319 – paragraph 2

2. Without prejudice to paragraph 1, and for the purposes of Article 446, institutions shall also calculate the annual operational risk loss referred to in Article 316(1), taking into account from the loss data set operational risk events with a net loss, calculated in accordance with Article 318, that are equal to or above EUR 100 000An institution may request permission from the competent authorities to increase the threshold mentioned in the paragraph 1 of this Article to EUR 100,000, provided that this institution is classified within the category 2 pursuant to Article 315a and can demonstrate to the satisfaction of the competent authority: (a) that the conditions set in the Article 323 are met; (b) that the change of the threshold is not requested in order to materially reduce the operational risk related own funds requirements of the institution; (c) that the change of the threshold can be justified on the basis of the nature of the institution, its activities, and the characteristics of losses historically observed; (d) that this new threshold would not have a material adverse impact on the solvency of the institution.

Amendment 1078 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No575/2013
Article 319 – paragraph 3 a (new)

3 a. The EBA shall develop draft regulatory technical standards to specify the criteria to be assessed by the competent authority pursuant to paragraph 2 of this Article. EBA shall submit those draft regulatory technical standards to the Commission by[OP please insert the date = 12 months after the entry into force of this Regulation]. Power is delegated to 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 1079 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 320 – paragraph 1 – introductory part

1. Competent authorities may permit an institution to exclude Institutions may notify competent authorities by formal communication with tacit agreement (60 days silence procedure) as already used in the ex ante notification (Commission Delegated Regulation 529/2014) the exclusion from the calculation of the institution’s annual operational risk losses exceptional operational risk events that are no longer relevant to the institution’s risk profile, where all of the following conditions are fulfilled:

Amendment 1080 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 320 – paragraph 1 – introductory parat

1. ~~Competent authorities may permit an institution to~~Institutions may notify competent authorities by formal communication with Tacit agreement (60 days silence procedure) the excludesion from the calculation of the institution’s annual operational risk losses exceptional operational risk events that are no longer relevant to the institution’s risk profile, where all of the following conditions are fulfilled:

Amendment 1081 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 320 – paragraph 1 – point b – point i

(i) equal to or above 15 % of the institution’s average annual operational risk loss, calculated based on the threshold referred to in Article 319(1), where the operational risk loss event refers to activities that are still part of the business indicator;

Amendment 1082 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 320 – paragraph 1 – point b – point i

Amendment 1083 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 320 – paragraph 1 – point b – point i

Amendment 1084 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 320 – paragraph 3 – subparagraph 2

EBA shall submit those draft regulatory technical standards to the Commission by [OP please insert the date = 186 months after entry into force of this Regulation]. ]. The application date of the regulatory technical standards will at least be 18 months after publication in the OJEU.

Amendment 1085 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 320 – paragraph3 – subparagraph 2

Amendment 1086 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Amendment 1087 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 322 ¬ paragraph 2

2. Competent authorities shall ~~periodically~~ review the quality of the loss data of an institution that calculates annual operational risk losses in accordance with Article 316(1). ~~Competent authorities shall carry out such review at least every three years for an institution with a business indicator above EUR 1 billion.~~

Amendment 1088 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Amendment 1089 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 322 – paragraph 2

2. Competent authorities shall periodically review the quality of the loss data of an institution that calculates annual operational risk losses in accordance with Article 316(1). ~~Competent authorities shall carry out such review at least every three years for an institution with a business indicator above EUR 1 billion.~~

Amendment 1090 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 322 – paragraph 2

2. Competent authorities shall periodically review the quality of the loss data of an institution that calculates annual operational risk losses in accordance with Article 316(1). Competent authorities shall carry out such review at least every three years for an institutions with ~~a business indicator above EUR 1 billion~~in the category 2 pursuant to article 315a.

Amendment 1091 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 322 – paragraph 2 a (new)

2 a. Institutions that do not meet the requirements set out in Articles 316, 317, 318, 319, 320, and 321 shall apply an internal loss multiplier of at least 1 and competent authorities may require these institutions to apply an internal loss multiplier greater than 1.

Amendment 1092 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 323 – paragraph 2 – subparagraph 1

EBA shall develop draft regulatory technical standards to specify the obligations under paragraph 1, points (a) to (h), taking into consideration institutions’ size and complexity. In addition, EBA shall align the entities’ reporting requirements on operational risk with the current regulation.

Amendment 1093 #

Proposal for a regulation
Article 1 – paragraph 1 – point 131

Regulation (EU) No 575/2013
Article 323 paragraph 2 – subparagraph 2

Amendment 1094 #

Proposal for a regulation
Article 1 – paragraph 1 – point 135 – point c

Regulation (EU) No 575/2013
Article 325c – paragraph 5 – introductory part

5. The review of the alternative standardised approach referred to in paragraph 4 shall cover both the activities of the business trading units and of the independent risk control unit and shall assess a~~ll of~~t least the following:

Amendment 1095 #

Proposal for a regulation
Article 1 – paragraph 1 – point 135 – point c

Regulation (EU) No 575/2013
Article 325c – paragraph 5 – subparagraph 2

~~An institution shall conduct the review referred to in the first subparagraph at least once a year, or on a less frequent basis upon the approval of the competent authorities.;~~deleted

Amendment 1096 #

Proposal for a regulation
Article 1 – paragraph 1 – point 135 – point c

Regulation (EU) No 575/2013
Article 325c – paragraph 5 a (new)

5 a. Competent authorities shall verify that the calculation referred to in paragraph 2, including the implementation by an institution of the requirements set out in this Chapter and in Article 325a, is performed with integrity. Competent authorities shall establish the frequency and intensity of the verification referred to in the previous subparagraph 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.

Amendment 1097 #

Proposal for a regulation
Article 1 – paragraph 1 – point 135 – point c

Regulation (EU) No 575/2013
Article 325c – paragraph 5 b (new)

5 b. EBA shall develop draft regulatory technical standards to specify the assessment methodology under which competent authorities conduct the verification referred to in paragraph 3.

Amendment 1098 #

Proposal for a regulation
Article 1 – paragraph 1 – point 136 – point a

Regulation (EU) No 575/2013
Article 325j – paragraph 1 – point b – point i

(i) it shall calculate the own funds requirement for market risk of the CIU by considering the position in the CIU as a single equity position allocated to the bucket ~~’Other sector‘~~12 or 13, as appropriate, in Article 325ap(1), Table 8;

Amendment 1099 #

Proposal for a regulation
Article 1 – paragraph 1 – point 136 – point a

Regulation (EU) No 575/2013
Article 325j – paragraph 1 – point b – point i

(i) it shall calculate the own funds requirement for market risk of the CIU by considering the position in the CIU as a single equity position allocated to ~~the b~~Bucket ~~’Other sector‘ in Article 325ap(1), Table 8~~12 or 13 (Qualified indices);

Amendment 1100 #

Proposal for a regulation
Article 1 – paragraph 1 – point 136 – point a

Regulation (EU) No 575/2013
Article 325j – paragraph 1 – subparagraph 2

For the purposes of the calculation referred to in point (i), the institution shall consider the position in the CIU as a single unrated equity position allocated to the bucket “Unrated” in Article 325y(1), Table 2.deleted

Amendment 1101 #

Proposal for a regulation
Article 1 – paragraph 1 – point 136 – point a

Regulation (EU) No 575/2013
Article 325j – paragraph 1 – subparagraph 2

For the purposes of the calculation referred to in point (i), the institution shall ~~consider the position in the CIU as a single unrated equity position allocated to the bucket “Unrated” in Article 325y(1), Table 2~~apply a 5% default risk weight.

Amendment 1102 #

Proposal for a regulation
Article 1 – paragraph 1 – point 136 – point b

Regulation UE No 575/2013
Article 325j – paragraph 1 a – introductory part

1a. For the purposes of the approaches referred to in paragraph 1, point ~~(b)(i) and~~ (b)(ii), the institution shall:

Amendment 1103 #

Proposal for a regulation
Article 1 – paragraph 1 – point 136 – point b

Regulation (EU) No 575/2013
Article 325j – paragraph 1 a – point b

(b) for all positions in the same CIU, use the same approach among the approaches set out in paragraph 1, point (b), ~~to calculate the own funds requirements on a stand-alone basis as a separate portfolio.;~~

Amendment 1104 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 136 – point d

Regulation (EU) No 575/2013
Article 325j – paragraph 6

6. Institutions that do not have adequate data or information to calculate the own funds requirements for market risk of a CIU position in accordance with the approach set out in paragraph 1, point (a), may rely on a third party to perform such calculation, provided that all the following conditions are met: (a) following: (i) depository financial institution of the CIU, provided that the CIU exclusively invests in securities and deposits all securities at that depository institution or depository financial institution; (ii) the CIU management company, provided that the CIU management company meets the criteria set out in Article 132(3), point (a); (b) institution with the adequate data or information missing to calculate the own fund requirement for market risk of the CIU position in accordance with the approach refdeleted the third party is one of the the depository institution or the for CIUs not coverred to in in paragraph 1, point (a); (c) institution has confirmed the adequacy of the third party's data or information referred to in point (b) and the institution’s competent authority has unrestricted access to these data and information upon request.by point (i), the third party provides the an external auditor of the

Amendment 1105 #

Proposal for a regulation
Article 1 – paragraph 1 – point 136 – point d

Regulation (EU) No 575/2013
Article 325 j – paragraph 6 – introductory part

6. ~~Institutions that do not have adequate data or information t~~To calculate the own funds requirements for market risk of a CIU position in accordance with the approach set out in paragraph 1, point (a), institutions may rely on a third party to perform such calculation, provided that all the following conditions are met:

Amendment 1106 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 136 – point d

Regulation (EU) No 575/2013
Article 325 j – paragraph 6 – point a – point ii a (new)

(ii a) a third-party vendor on condition that the data, information or risk metrics are provided by or calculated from the third parties of subparagraphs (i) or (ii) or another such third-party vendor;

Amendment 1107 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 136 – point d

Regulation (EU) No 575/2013
Article 325 j – paragraph 6 – point b

(b) the third party provides the institution with the ~~adequate data or information missing~~data, information or risk metrics to calculate the own fund requirement for market risk of the CIU position in accordance with the approach referred to in in paragraph 1, point (a);

Amendment 1108 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 136 – point d

Regulation (EU) No 575/2013
Article 325 j – paragraph 6 – point c

(c) an external auditor of the institution has confirmed the adequacy of the third party's data or, information or risk metrics referred to in point (b) and the institution’s competent authority has unrestricted access to these data ~~and~~, information or risk metrics upon request.

Amendment 1109 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL, Engin EROGLU

Proposal for a regulation
Article 1 – paragraph 1 – point 139 a (new)

Regulation (EU) No 575/2013
Article 325u – paragraph 4 – point c a (new)

(139 a)In article 325u(4), the following point is added: (ca) the instrument aims solely at hedging the market risks of the trading book that generate own funds requirement for residual risks, provided that the institution has demonstrated to the satisfaction of the competent authority that the instrument should be treated as a hedging position.

Amendment 1110 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL, Engin EROGLU

Proposal for a regulation
Article 1 – paragraph 1 – point 139 b (new)

Regulation (EU) No 575/2013
Article 325u – paragraph 5 a (new)

(139 b)in article 325u, the following paragraph is added : 5a. For the purposes of paragraph 4, point (ca), EBA shall issue guidelines in accordance with Article16 of Regulation (EU) No 1093/2010 to specify the conditions that the competent authority has to assess to determine that an instrument is a hedging position.

Amendment 1111 #

Proposal for a regulation
Article 1 – paragraph 1 – point 141 a (new)

6 a. Long and short positions in institution’s own debt should be excluded from the calculation of own funds requirements for default risk.

Amendment 1112 #

Proposal for a regulation
Article 1 – paragraph 1 – point 141 a (new)

Regulation (EU) No 575/2013
Article 325y – paragraph 6 a (new)

6a. Long and short positions in institution’s own debt should be excluded from the calculation of own funds requirements for default risk.

Amendment 1113 #

Proposal for a regulation
Article 1 – paragraph 1 – point 143 a (new)

Regulation (EU) No 575/2013
Article 325ae – paragraph 3 – subparagraph 1 a (new)

(143a) in Article 325ae(3), the following subparagraph is added: "The domestic currency of the institution referred to in the first subparagraph may also include currencies that the institution has acquired permission by the national competent authority to classify as a domestic currency in accordance with the provision in Article 325bd(new5a).”

Amendment 1114 #

Proposal for a regulation
Article 1 – paragraph 1 – point 149 a (new)

Regulation (EU) No 575/2013
Article 325at – paragraph 2 – subparagraph 3

(149 a)in Article 325at(2), subparagraph 3 is replaced by the following: ρkl(tenor) shall be equal to 1 where the two vertices of the sensitivities k and l are identical, otherwise it shall be equal to 99 %.9% for bucket 3a and 99 % for all other buckets; and

Amendment 1115 #

Proposal for a regulation
Article 1 – paragraph 1 – point 150 – point b a (new)

Regulation (EU) No 575/2013
Article 325ax – paragraph 6

(b a) paragraph 6 is replaced by the following: "6. For general interest rate, credit spread and commodity curvature risk factors, the curvature risk weight shall be the parallel shift of all the vertices for each curve on the basis of the highest prescribed delta risk weight referred to in Subsection 1 for the relevant risk ~~class. (https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:02013R0575-~~bucket. " Or. en 20220410&from=EN)

Amendment 1116 #

Proposal for a regulation
Article 1 – paragraph 1 – point 151 – point c a (new)

Regulation (EU) No 575/2013
Article 325az – paragraph 8 – point b

"(b) the assessment methodology under which competent authorities verify an institution's compliance with the requirements set out in ~~Articles 325bh, 325bi, 325bn, 325bo and 325bp. (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02013R0575-20230628)~~this Chapter. " Or. en

Amendment 1117 #

Proposal for a regulation
Article 1 – paragraph 1 – point 153 a (new)

Regulation (EU) No 575/2013
Article 325bd – paragraph 5 a (new)

(153 a) in Article 325bd, the following paragraph is inserted: "5a. For the purpose of determining the most liquid currencies and domestic currencies for general interest rate broad risk subcategory in table 2, a competent authority may permit an institution to classify a currency that is not the institution’s reporting currency as a domestic currency. In doing so, the competent authority shall evaluate that the institution has: (a) a sufficiently large presence in the given domestic interest rate market; (b) access to liquidity with the local central bank. " Or. en (32019R0876)

Amendment 1118 #

Proposal for a regulation
Article 1 – paragraph 1 – point 156 – point a

Regulation (EU) No 575/2013
Article 325bg – paragraph 2

2. Notwithstanding paragraph 1, where the theoretical changes in the value of a trading desk's portfolio, based on the institution's risk-measurement model are sufficiently close to the hypothetical changes in the value of that trading desk's portfolio, based on the institution's pricing model, the institution shall calculate, for all the positions assigned to that trading desk, an additional own funds requirement to the own funds requirements referred to in Article 325ba, paragraphs 1 and 2.deleted

Amendment 1119 #

Proposal for a regulation
Article 1 – paragraph 1 – point 156 – point a

Regulation (EU) No 575/2013
Article 325bg – paragraph 2

Amendment 1120 #

Proposal for a regulation
Article 1 – paragraph 1 – point 156 – point a

Regulation (EU) No 575/2013
Article 325bg ¬ paragraph 3

3. For each position of a given trading desk, an institution's compliance with the P&L attribution requirement as referred in to paragraph 1 shall lead to the identification of a precise list of risk factors that are deemed appropriate for verifying the institution's compliance with the back-testing requirement set out in Article 325bf.;deleted

Amendment 1121 #

Proposal for a regulation
Article 1 – paragraph 1 – point 157 – point a

Regulation (EU) 575/2013
Article 325bh ¬ paragraph 1 – point i – introductory part

(i) for positions in CIUs, institutions shall look through the underlying positions of the CIUs at least on a weekly basis to calculate their own funds requirements in accordance with this Chapter~~; i~~. If an institution looks through less regularly than daily, it shall identify, measure and monitor any risk occurring from its less than daily look through and avoid any significant risk underestimation. Institutions that do not have adequate data inputs or information to calculate the own fund requirement for market risk of a CIU position in accordance with the look- through approach may rely on a third party to obtain those data inputs or information, provided that all the following conditions are met:

Amendment 1122 #

Proposal for a regulation
Article 1 – paragraph 1 – point 158 a (new)

Regulation (EU) No 575/2013
Article 325bl – paragraph 1 – subparagraph 1 a (new)

(158 a)in Article 325bl(1), the following subparagraph is added: Long and short positions in institution’s own debt should be excluded from the calculation of own funds requirements for default risk.

Amendment 1123 #

Proposal for a regulation
Article 1 – paragraph 1 – point 159 – point a – point -i (new)

Regulation (EU) No 575/2013
Article 325bp – paragraph 5 – point a

(-i) point (a) is replaced by the following: (a) the default probabilities shall be floored at 0,03 %; for exposures other than those that would receive a 0 % risk-weight under the Standardised Approach for credit risk in accordance with Chapter 2 of Title II;

Amendment 1124 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 159 – point a – point -i (new)

Regulation (EU) 575/2013
Article 325bp – paragraph 5 – point a

(a) the default probabilities shall be floored at 0,03 %; for exposures other than those that would receive a 0 % risk-weight under the Standardised Approach for credit risk in accordance with Chapter 2 of Title II

Amendment 1125 #

Proposal for a regulation
Article 1 – paragraph 1 – point 159 – point a – point -i (new)

Regulation (EU) No 575/2013
Article 325bp – paragraph 5 – point a

(~~a) t~~-i) point (a) is replaced by the following: (a) the default probabilities shall not be floored for exposures to which a 0% risk- weight is applied in accordance with Articles 114 to 118 of this Regulation and for covered bonds to which a 10% risk- weight is applied in accordance with article 129. The default probabilities shall be floored at 0,03 % otherwise;

Amendment 1126 #

Proposal for a regulation
Article 1 – paragraph 1 – point 159 – point a – point i

Regulation (EU) No 575/2013
Article 325bp – paragraph 5 – point a

"(a) the default probabilities shall be floored at 0,0~~3 %;~~ 1% for covered bond issuers and 0,03 % for all other issuers; exposures which would receive a 0 % risk- weight under the Standardised Approach for credit risk in accordance with Chapter 2 of Title II shall not be floored; " Or. en (32013R0575)

Amendment 1127 #

Proposal for a regulation
Article 1 – paragraph 1 – point 159 – point a – point -i (new)

Regulation (EU) No 575/2013
Article 325bp – paragraph 5 – point a

"(a) the default probabilities shall be floored at 0,03 % for exposures othert han those that would receive a 0 % risk-weight under the Standardised Approach for credit risk in accordance with Chapter 2 of Title II; Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02013R0575- 20220410&qid=1657284993452&from=EN)

Amendment 1128 #

Proposal for a regulation
Article 1 – paragraph 1 – point 166 – point b

Regulation (EU) No 575/2013
Article 382 – paragraph 4

(b) ~~the following~~ paragraphs 4a and 4b are inserted: 4a. paragraph 4, an institution may choose to calculate an own funds requirements for CVA risk, using any of the applicable approaches referred to in Article 382a, for those transactions that are excluded in accordance with paragraph 4, where the institution uses eligible hedges determined in accordance with Article 386 to mitigate the CVA risk of those transactions. Institutions shall establish policies to specify where they choose to satisfy their own funds requirements for CVA risk for such transactions. 4b. competent authorities the results of the calculations of the own funds requirements for CVA risk for all the transactions referred to in paragraph 4. For the purposes of that reporting requirement, institutions shall calculate the own funds requirements for CVA risk using the relevant approaches set out in Article 382a(1), that they would have used to satisfy an own funds requirement for CVA risk if those transactions were not excluded from the scope in accordance with paragraph 4. is deleted By way of derogation from Institutions shall report to their

Amendment 1129 #

Johan VAN OVERTVELDT, Michiel HOOGEVEEN, Eugen JURZYCA

Proposal for a regulation
Article 1 – paragraph 1 – point 166 – point b

Regulation (EU) No 575/2013
Article 382 – paragraph 4

(b) ~~the following~~ paragraphs 4a and 4b are inserted: 4a. paragraph 4, an institution may choose to calculate an own funds requirements for CVA risk, using any of the applicable approaches referred to in Article 382a, for those transactions that are excluded in accordance with paragraph 4, where the institution uses eligible hedges determined in accordance with Article 386 to mitigate the CVA risk of those transactions. Institutions shall establish policies to specify where they choose to satisfy their own funds requirements for CVA risk for such transactions. 4b. competent authorities the results of the calculations of the own funds requirements for CVA risk for all the transactions referred to in paragraph 4. For the purposes of that reporting requirement, institutions shall calculate the own funds requirements for CVA risk using the relevant approaches set out in Article 382a(1), that they would have used to satisfy an own funds requirement for CVA risk if those transactions were not excluded from the scope in accordance with paragraph 4. is deleted; By way of derogation from Institutions shall report to their

Amendment 1130 #

Proposal for a regulation
Article 1 – paragraph 1 – point 166 – point b – introductory part

Regulation (EU) No 575/2013
Article 382

(b) ~~the following~~ paragraphs 4a and 4b are inserted: 4a. paragraph 4, an institution may choose to calculate an own funds requirements for CVA risk, using any of the applicable approaches referred to in Article 382a, for those transactions that are excluded in accordance with paragraph 4, where the institution uses eligible hedges determined in accordance with Article 386 to mitigate the CVA risk of those transactions. Institutions shall establish policies to specify where they choose to satisfy their own funds requirements for CVA risk for such transactions. 4b. competent authorities the results of the calculations of the own funds requirements for CVA risk for all the transactions referred to in paragraph 4. For the purposes of that reporting requirement, institutions shall calculate the own funds requirements for CVA risk using the relevant approaches set out in Article 382a(1), that they would have used to satisfy an own funds requirement for CVA risk if those transactions were not excluded from the scope in accordance with paragraph 4. is deleted: By way of derogation from Institutions shall report to their

Amendment 1131 #

Proposal for a regulation
Article 1 – paragraph 1 – point 166 – point b – introductory part

(b) the following paragraphs 4a ~~and 4b are~~is inserted:

Amendment 1132 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 166 – point b

Regulation (EU) No 575/2013
Article 382 – paragraph 4 a

4a. By way of derogation from paragraph 4, an institution may choose to calculate an own funds requirements for CVA risk, using any of the applicable approaches referred to in Article 382a, for those transactions that are excluded in accordance with paragraph 4, where the institution uses eligible hedges determined in accordance with Article 386 to mitigate the CVA risk of those transactions. For this purpose, an institution may separate the own funds requirements for CVA risk of those transactions between variability of the counterparty credit spread and variability of the exposure component of CVA risk. Institutions shall establish policies to specify where they choose to satisfy their own funds requirements for CVA risk for such transactions.

Amendment 1133 #

Proposal for a regulation
Article 1 – paragraph 1 – point 166 – point b

Regulation (EU) No 575/2013
Article 382 – paragraph 4b

4b. Institutions shall report to their competent authorities the results of the calculations of the own funds requirements for CVA risk for all the transactions referred to in paragraph 4. For the purposes of that reporting requirement, institutions shall calculate the own funds requirements for CVA risk using the relevant approaches set out in Article 382a(1), that they would have used to satisfy an own funds requirement for CVA risk if those transactions were not excluded from the scope in accordance with paragraph 4.deleted

Amendment 1134 #

Proposal for a regulation
Article 1 – paragraph 1 – point 166 – point b

Regulation (EU) No 575/2013
Article 382 – paragraph 4b

Amendment 1135 #

Proposal for a regulation
Article 1 – paragraph 1 – point 166 – point b

Regulation (UE) No 575/2013
Article 382 – paragraph 4b

Amendment 1136 #

Proposal for a regulation
Article 1 – paragraph 1 – point 166 – point b

Regulation (EU) No 575/2013
Article 382 – paragraph 4b

Amendment 1137 #

Proposal for a regulation
Article 1 – paragraph 1 – point 169

Regulation (EU) No 575/2013
Article 383b – paragraph 8 – introductory part

8. The bucket-specific sensitivity shall be calculated in accordance with paragraphs 5, 6 and 7 for each bucket within a risk class. Once the bucket- specific sensitivity has been calculated for all buckets, weighted sensitivities to all risk factors across buckets shall be aggregated in accordance with the following formula, using the corresponding correlations for weighted sensitivities in different buckets set out in Articles 383l, 383n, 383q, 383u and 383qw, giving rise to the risk-class specific own funds requirements for delta or vega risk:

Amendment 1138 #

Proposal for a regulation
Article 1 – paragraph 1 – point 169

Regulation (EU) No 575/2013
Article 383d – paragraph 1

1. The foreign exchange delta risk factors to be applied by institutions to instruments in the CVA portfolio sensitive to foreign exchange spot rates shall be the spot foreign exchange rates between the currency in which an instrument is denominated and the institution's reporting currency or the institution's base currency where the institution is using a base currency in accordance with Article 325q (7). There shall be one bucket per currency pair, containing a single risk factor and a single net sensitivity.

Amendment 1139 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 169

Regulation (EU) No 575/2013
Article 383d – paragraph 2

2. The foreign exchange vega risk factors to be applied by institutions to instruments in the CVA portfolio sensitive to foreign exchange volatility shall be the implied volatilities of all foreign exchange rates ~~between the currency pairs referred to in paragraph 1. There shall be one bucket for all currencies and maturities, containing all foreign exchange vega risk factors and~~. There shall be one bucket for all currency pairs, containing a single net sensitivity.

Amendment 1140 #

Proposal for a regulation
Article 1 – paragraph 1 – point 169

Regulation (EU) No 575/2013
Article 383i – paragraph 2 – subparagraph 1

2. Institutions shall calculate the delta sensitivities of the aggregate CVA to risk factors consisting of foreign exchange spot rates, as well as of an eligible hedge instrument to those risk factors, as follows:

Amendment 1141 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 169

Regulation (EU) No 575/2013
Article 383i – paragraph 3 – subparagraph 1

3. Institutions shall calculate the delta sensitivities of the aggregate CVA to risk factors consisting of counterparty credit spread rates, as well as of an eligible hedge instrument to those risk factors, as follows:

Amendment 1142 #

Marco ZANNI, Antonio Maria RINALDI, Valentino GRANT

Proposal for a regulation
Article 1 – paragraph 1 – point 169

Regulation (EU) No 575/2013
Article 383i – paragraph 5 – subparagraph 1

5. Institutions shall calculate the delta sensitivities of the aggregate CVA to risk factors consisting of equity spot prices, as well as of an eligible hedge instrument to those risk factors, as follows:

Amendment 1143 #

Linea SØGAARD-LIDELL, Engin EROGLU, Nicola BEER

Proposal for a regulation
Article 1 – paragraph 1 – point 169

Regulation (EU) No 575/2013
Article 383l – paragraph 3 a (new) and 3 b (new)

3a. The correlation parameter γbc = 50 % shall be used to aggregate general interest risk factors belonging to different buckets. 3b. The correlation parameter γbc = 80 % shall be used to aggregate general interest rate risk factors based on a currency as referred to in Article 325av (3) and a general interest rate risk factor based on the euro.

Amendment 1144 #

Proposal for a regulation
Article 1 – paragraph 1 – point 169

Regulation (EU) No 575/2013
Article 383o – paragraph 1 – table 3 – row 9 a (new)

9 Other sector 5,0% 9a (new) Covered bonds issued by 1,0% credit institutions established in Member States 10 Qualified indices 1,5%

Amendment 1145 #

Proposal for a regulation
Article 1 – paragraph 1 – point 170 a (new)

Regulation (EU) No 575/2013
Article 395a (new)

(170 a)the following article is inserted: Article 395a Aggregate limit on exposures to non-bank financial intermediaries 1. An institution shall not incur a total exposure to non-bank financial intermediaries as defined in point (154) of Article 4 (1) which value, after taking into account the effect of the credit risk mitigation in accordance with Articles 399 to 403, exceeds 25% of its Tier 1 capital. 2. Competent authorities may set a lower limit than 25% of Tier 1 capital and shall inform EBA and the Commission thereof.

Amendment 1146 #

Marek BELKA, Danuta Maria HÜBNER

Proposal for a regulation
Article 1 – paragraph 1 – point 171 b (new)

Regulation (EU) No 575/2013
Article 415 – paragraph 3 – subparagraph 1 – point b

(171 b)Article 415(3), first subparagraph, point (b) is replaced by the following: "(b) additional liquidity monitoring metrics required, to allow competent authorities to obtain a comprehensive view of an institution's liquidity risk profile, proportionate to the nature, scale and complexity of an institution's activities Article 430 No. 6 requires the application of the reporting requirements in a “proportionate manner”. In addition, the findings of the EBA’s Cost of Compliance study reveal further possibilities to apply such proportionate measures.The revision of existing reporting requirements for SNCI at Level 2 does not lead to the expected relief. As the Commission asked for a cost reduction of ideally 20 % in Article 430 (8), the Commission should ensure simplifications of reporting directly in the level 1 text.For SNCI the reporting of ALLM does entail an administrative burden, even after the reduction of; in this context, institutions which qualify as small and non-complex institutions are to be subject to reduced reporting requirements and only report a maturity ladder; institutions which do not qualify as large institutions are to fulfil their reporting requirement~~s by EBA.The levels and information on ALLM are hence not significant for an European based analysis. (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02013R0575-~~ on a quarterly basis. " Or. enJustification 20220410&from=EN)

Amendment 1147 #

Proposal for a regulation
Article 1 – paragraph 1 – point 172 a (new)

Regulation (EU) No 575/2013
Article 429a – paragraph 1 – point c a (new)

(172 a) in Article 429a(1), the following point is added: (ca) where the institution is a member of the network referred to in Article 113(7), the exposures that are assigned a risk weight of 0% in accordance with Article 114 and arising from assets being an equivalent of deposits in the same currency of other members of that network stemming from legal or statutory minimum deposit in accordance with Article 422(3), point (b). In such a case exposures of other members of that network being legal or statutory minimum deposit are not subject to point c).

Amendment 1148 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 172 a (new)

Regulation (EU) No 575/2013
Article 429a – paragraph 1 – point c a (new)

Amendment 1149 #

Proposal for a regulation
Article 1 – paragraph 1 – point 172 a (new)

Regulation (EU) 575/2013
Article 429a – paragraph 1 – point e

(172 a) in article 429a(1), point (e) is replaced by the following : (e) where the institution is not a public development credit institution, the parts of exposures arising from granting or passing-through promotional loans to other credit institutions;

Amendment 1150 #

Proposal for a regulation
Article 1 – paragraph 1 – point 176

Regulation (EU) No 575/2013
Article 430 – paragraph 1 – point f a (new)

(f a) progress towards achieving the targets and plans laid down in Article 76(2) and76(4) of the Directive 2013/36/EU.

Amendment 1151 #

Proposal for a regulation
Article 1 – paragraph 1 – point 176

Regulation (EU) No 575/2013
Article 430 – paragraph 1 – point h

~~(176) in Article 430, paragraph 1, the following point (h) is added: ‘ (h) ’~~deleted their exposures to ESG risks.;

Amendment 1152 #

Proposal for a regulation
Article 1 – paragraph 1 – point 176

Regulation (EU) No 575/2013
Article 430 – paragraph 1 – point h

~~(176) in Article 430, paragraph 1, the following point (h) is added: ‘ (h)~~deleted their exposures to ESG risks.;

Amendment 1153 #

Proposal for a regulation
Article 1 – paragraph 1 – point 176

Regulation (EU) No 575/2013
Article 430 – paragraph 1 – point h

(h) their exposures to ESG risks., including: i) their exposures to existing and new fossil fuel assets; ii) their exposures to activities that are deemed to do significant harm to one of the environmental objectives as defined in EU Regulation 2020/852; iii) their exposure to physical risks and transition risks.’;

Amendment 1154 #

Proposal for a regulation
Article 1 – paragraph 1 – point 176 a (new)

Regulation (EU) 575/2013
Article 430 – paragraph 1 – subparagraph 2 a (new)

(176 a) in Article 430(1), the following subparagraph is added : Institutions which meet the definition of small and non-complex institutions shall be exempted from reporting points (e) to (g).

Amendment 1155 #

Proposal for a regulation
Article 1 – paragraph 1 – point 176 b (new)

Regulation (EU) No 575/2013
Article 430 – paragraph 8 a (new)

(176 b) in Article 430, the following paragraph is inserted: 'By 1 January 2024 and every year thereafter, the EBA shall publish a progress report on the implementation of the mandate given in paragraph 8 of this Article. EBA shall specifically detail the progress made in relation to the objective specified in point (e) of paragraph 8.'

Amendment 1156 #

Proposal for a regulation
Article 1 – paragraph 1 – point 177a (new)

Regulation (EU) No 575/2013
Article 430a – paragraph 3

(177 a) in Article 430a, paragraph 3 is replaced by the following: "3. The competent authorities shall publish annually on an aggregated basis the data specified in points (a) to (f) of paragraph 1, together with historical data, where available, for each national immovable property market for which such data has been collected. A competent authority shall, upon the request of another competent authority in a Member State or EBA provide to that competent authority or EBA more detailed information on the condition of the residential property or commercial immovable property markets in that Member State. " Or. en (02013R0575)

Amendment 1157 #

Proposal for a regulation
Article 1 – paragraph 1 – point 179 -a (new)

Regulation (EU) No 575/2013
Article 433a – paragraph 1 – point b – point xiv a (new)

(179 -a) in Article 433a(1), point (b), the following point is added : ‘(xiv a) Article 449a'

Amendment 1158 #

Proposal for a regulation
Article 1 – paragraph 1 – point 180

Regulation (EU) No 575/2013
Article 433b

(180) in Article 433b(1), point (a) is amended as follows: (a) point (ii) is replaced by the following: ‘(ii) points (c), (d) and (da) of Article 438;’; (b) the following point (iv) is added: ‘(iv) points (c) and (d) of Article 442;’; is replaced by the following: Article 433b Disclosures by small and non-complex institutions “Small and non-complex institutions are exempted from disclosure requirements.”

Amendment 1159 #

Proposal for a regulation
Article 1 – paragraph 1 – point 180 – point b a (new)

Regulation (EU) No 575/2013
Article 433b – paragraph 1 – point a – point iv a (new)

(ba) the following point is added: (iv a) Article 449a

Amendment 1160 #

Joachim SCHUSTER, René REPASI

Proposal for a regulation
Article 1 – paragraph 1 – point 180 a (new)

Regulation (EU) No 575/2013
Article 433b – paragraph 1 – subparagraph 1a (new)

(180 a)in Article 433b(1), the following subparagraph is added: "Non-listed small and non-complex institutions shall not be required to disclose the information of paragraph 1 of this Article or any other disclosure requirements set out in this Regulation."

Amendment 1161 #

Proposal for a regulation
Article 1 – paragraph 1 – point 180 a (new)

Regulation (EU) No 575/2013
Article 433b – paragraph 2

2. (180 a)in Article 433b, paragraph 2 is replaced by the following: "By way of derogation from paragraph 1 of this Article, small and non-complex institutions that are non-listed institutions shall only be required to disclose the key metrics referred to in ~~Article 447 on an annual basis. (https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:02013R0575-~~paragraph 2 of Article 447. Small and non-complex institutions that are non-listed institutions shall disclose the key metrics referred to in paragraph 2 of Article 447 on an annual basis. " Or. en 20220410&from=EN)

Amendment 1162 #

Proposal for a regulation
Article 1 – paragraph 1 – point 182

Regulation (EU) 575/2013
Article 434 ¬ paragraph 1

1. Institutions other than small and non-complex institutions shall submit all the information required under Titles II and III in electronic format to EBA no later than the date on which institutions publish their financial statements or financial reports for the corresponding period, where applicable, or as soon as possible thereafter. EBA shall also publish the submission date of this information. EBA shall ensure that the disclosures made on the EBA website contain the information identical to what institutions submitted to EBA. Institutions shall have the right to resubmit to EBA the information in accordance with the technical standards referred to in Article 434a. EBA shall make available on its website the date when the resubmission took place. EBA shall prepare and keep up-to- date the tool that specifies the mapping of the templates and tables for disclosures with those on supervisory reporting. The mapping tool shall be accessible to the public on the EBA website. Institutions may continue to publish a standalone document that provides a readily accessible source of prudential information for users of that information or a distinctive section included in or appended to the institutions' financial statements or financial reports containing the required disclosures and being easily identifiable to those users. Institutions may include in their website a link to the EBA website where the prudential information is published on a centralised manner.

Amendment 1163 #

Proposal for a regulation
Article 1 – paragraph 1 – point 182

Regulation (EU) No 575/2013
Article 434 – paragraph 1 – subparagraph 1

1. ILarge institutions and other ~~than small and non-complex~~institutions that are listed institutions shall submit all the information required under Titles II and III in electronic format to EBA no later than the date on which institutions publish their financial statements or financial reports for the corresponding period, where applicable, or as soon as possible thereafter. EBA shall also publish the submission date of this information.

Amendment 1164 #

Proposal for a regulation
Article 1 – paragraph 1 – point 182

Regulation (EU) 575/2013
Article 434 ¬ paragraph 2

2. Large institutions and other institutions that are not large institutions or small and non-complex institutions shall submit to EBA the disclosures referred to in Article 433a and Article 433c respectively, but not later than on the date of the publication of financial statements or financial reports for the corresponding period or as soon as possible thereafter. If disclosure is required to be made for a period when an institution does not prepare any financial report, the institution shall submit to EBA the information on disclosures as soon as practicable.deleted

Amendment 1165 #

Proposal for a regulation
Article 1 – paragraph 1 – point 182

Regulation (EU) No 575/2013
Article 434 – paragraph 2

2. Large institutions and other institutions that are ~~not large institutions or small and non-complex institutions~~listed shall submit to EBA the disclosures referred to in Article 433a and Article 433c respectively, but not later than on the date of the publication of financial statements or financial reports for the corresponding period or as soon as possible thereafter. If disclosure is required to be made for a period when an institution does not prepare any financial report, the institution shall submit to EBA the information on disclosures as soon as practicable.

Amendment 1166 #

Joachim SCHUSTER, René REPASI

Proposal for a regulation
Article 1 – paragraph 1 – point 182

Regulation (EU) No 575/2013
Article 434 – paragraph 2

2. Large institutions and other institutions that are ~~not large institutions or small and non-complex~~listed institutions shall submit to EBA the disclosures referred to in Article 433a and Article 433c respectively, but not later than on the date of the publication of financial statements or financial reports for the corresponding period or as soon as possible thereafter. If disclosure is required to be made for a period when an institution does not prepare any financial report, the institution shall submit to EBA the information on disclosures as soon as practicable.

Amendment 1167 #

Proposal for a regulation
Article 1 – paragraph 1 – point 182

Regulation (EU) No 575/2013
Article 434 – paragraph 3

3. EBA shall publish on its website the disclosures of small and non-complex institutions on the basis of the information reported by those institutions to competent authorities in accordance with Article 430. and paragraph 2 of Article 447.

Amendment 1168 #

Proposal for a regulation
Article 1 – paragraph 1 – point 182

Regulation (EU) 575/2013
Article 434 ¬ paragraph 3

3. EBA shall publish on its website the disclosures of ~~small and non-complex~~ institutions on the basis of the information reported by those institutions to competent authorities in accordance with Article 430.

Amendment 1169 #

Proposal for a regulation
Article 1 – paragraph 1 – point 187

(d) the business indicator, calculated in accordance with Article 314(1), and the amounts of each of the business indicator ~~sub-items~~components, which are ILDC, SC and FC, for each of the three years relevant for the calculation of the business indicator;

Amendment 1170 #

Proposal for a regulation
Article 1 – paragraph 1 – point 187

Regulation (EU) No 575/2013
Article 446 – paragraph 2 – point c a (new)

(ca) the internal loss multiplier calculated in accordance with Article 313a;

Amendment 1171 #

Gilles BOYER, Stéphanie YON-COURTIN, Billy KELLEHER, Olivier CHASTEL

Proposal for a regulation
Article 1 – paragraph 1 – point 187

Regulation (EU) No 575/2013
Article 446 – paragraph 2 – point c b (new)

(cb) the loss component calculated in accordance with article 313a’

Amendment 1172 #

Proposal for a regulation
Article 1 – paragraph 1 – point 187

Regulation (EU) No 575/2013
Article 446 – paragraph 2 a (new)

2 a. Institutions that calculate an internal loss multiplier in accordance with Article 315b shall disclose the following information: (a) the internal loss data for each of the years with high-quality loss data used to calculate the loss component in accordance with Article 315c; (b) the internal loss multiplier and the number of years with high-quality loss data used to calculate the loss component in accordance with Article 315c.’ For the purposes of paragraphs 2 and 3, institutions shall report on both thresholds independently of which threshold they use.

Amendment 1173 #

Joachim SCHUSTER, René REPASI

Proposal for a regulation
Article 1 – paragraph 1 – point 188 – point d a (new)

Regulation (EU) No 575/2013
Article 447 – paragraph1 a (new)

x (da) the following paragraph is added: "(1a) Small and non-complex institutions that are non-listed institutions shall only disclose the following key metrics in a tabular format: (a) the composition of their own funds and their risk-based capital ratios as calculated in accordance with Article 92(2); (b) the total risk exposure amounts as calculated in accordance with Article 92(3) and, where applicable; (c) where applicable, the amount and composition of additional own funds which the institutions are required to hold in accordance with point (a) of Article104(1) of Directive 2013/36/EU; (d) the combined buffer requirement which the institutions are required to hold in accordance with Chapter 4 of Title VII of Directive 2013/36/EU; (e) their leverage ratio as calculated in accordance with Article 429; (f) the average or averages, as applicable, of their liquidity coverage ratio based on end-of-the-month observations over the preceding 12 months for each quarter of the relevant disclosure period as calculated in accordance with the delegated act referred to in Article 460(1); (g) the net stable funding ratio at the end of each quarter of the relevant disclosure period as calculated in accordance with Title IV of Part Six. " Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:02013R0575- 20220410&from=EN)

Amendment 1174 #

Proposal for a regulation
Article 1 – paragraph 1 – point 189

Regulation (EU) No 575/2013
Article 449a

(189) Article 449a is replaced by the following: ‘ Article 449a Disclosure of environmental, social and governance risks (ESG risks) Institutions shall disclose information on ESG risks, including physical risks and transition risks. The information referred to in the first paragraph shall be disclosed on an annual basis by small and non-complex institutions and on a semi-annual basis by other institutions. EBA shall develop draft implementing technical standards specifying uniform disclosure formats for ESG risks, as laid down in Article 434a, ensuring that they are consistent with and uphold the principle of proportionality.’ For small and non-complex institutions, the formats shall not require disclosure of information beyond the information required to be reported to competent authorities in accordance with Article 430(1), point (h).; ’deleted

Amendment 1175 #

Aurore LALUCQ, Paul TANG, Csaba MOLNÁR

Proposal for a regulation
Article 1 – paragraph 1 – point 189

Regulation (EU) No 575/2013
Article 449a – paragraph

Institutions shall disclose: (a) information on ESG risks, including physical risks and transition risks. (b) climate targets and transition plans, including absolute carbon emission reduction targets, submitted in accordance with Article 76(2) of the Directive 2013/36/EU, and the progress made towards implementing them (c) how the institution’s business model and strategy take account of ESG risks faced by the undertaking.

Amendment 1176 #

Proposal for a regulation
Article 1 – paragraph 1 – point 189

Regulation (EU) No 575/2013
Article 449a – paragraph 1

Institutions other than small and non- complex institutions shall disclose information on ESG risks, including physical risks and transition risks.

Amendment 1177 #

Proposal for a regulation
Article 1 – paragraph 1 – point 189

Regulation (EU) No 575/2013
Article 449a – paragraph 2

The information referred to in the first paragraph shall be disclosed on an annual basis ~~by small and non-complex institutions and on a semi-annual basis by other institutions~~.

Amendment 1178 #

Proposal for a regulation
Article 1 – paragraph 1 – point 189

Regulation (EU) No 575/2013
Article 449a – paragraph 2

The information referred to in the first paragraph shall be disclosed on an annual basis ~~by small and non-complex institutions and on a semi-annual basis by other institutions~~.

Amendment 1179 #

Proposal for a regulation
Article 1 – paragraph 1 – point 189

Regulation (EU) No 575/2013
Article 449a – paragraph 2

The information referred to in the first paragraph shall be disclosed on ~~an annual basi~~ce every two years by small and non-complex institutions and on a ~~semi-~~annual basis by other institutions.

Amendment 1180 #

Proposal for a regulation
Article 1 – paragraph 1 – point 189

Regulation (EU) No 575/2013
Article 449a – paragraph 3

EBA shall develop draft implementing technical standards specifying uniform disclosure formats for ESG risks, as laid down in Article 434a, ensuring that they are consistent with and uphold the principle of proportionality.’ For small and non-complex institutions, the formats shall not require disclosure of information beyond the information required to be reported to competent authorities in accordance with Article 430(1), point (h).;

Amendment 1181 #

Proposal for a regulation
Article 1 – paragraph 1 – point 189

Regulation (EU) No 575/2013
Article 449a – paragraph 3

Amendment 1182 #

Proposal for a regulation
Article 1 – paragraph 1 – point 189 a (new)

Regulation (EU) No 575/2013
Article 449b (new)

(189 a) the following article is inserted: ‘Article 449b Disclosure of exposures to shadow banking entities 1. Credit institutions shall disclose information concerning their individual exposures to non-bank financial intermediaries, including all potential risks to the institution arising from those exposures, and the potential impact of those risks, as well as the supervisory regime applicable to their non-bank financial intermediaries counterparties. 2. EBA shall develop draft regulatory technical standards to further specify the information that institutions must disclose, as referred to in paragraph 1. EBA shall submit those draft regulatory technical standards to the Commission by [12 months after theentry into force of this Regulation]. Power is delegated to 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 1183 #

Luis GARICANO, Esther de LANGE, Caroline NAGTEGAAL, Luděk NIEDERMAYER

Proposal for a regulation
Article 1 – paragraph 1 – point 189 a (new)

Regulation (EU) No 575/2013
Article 450 – paragraph 1 – point h– point vii a (new)

(189a) in Article 450(1), point h, the following point is added: (vii a) the amounts of variable remuneration linked to achievement of the targets related to management of ESG risks, including climate targets and transition plans referred to in Article76(2) of the Directive 2013/36/EU.

Amendment 1184 #

Proposal for a regulation
Article 1 – paragraph 1 – point 193

‘The Commission shall monitor the implementation of the international standards on own funds requirements for market risk in third countries. Where significant differences between the Union implementation and third countries’ implementation of those international standards are observed, including as regards the impact of the rules in terms of own funds requirements and as regards their entry into application, the Commission shall be empowered to adopt a delegated act in accordance with Article 462 to amend this Regulation by: (a) deliver a level playing field, a multiplier equal to or greater than 0 and lower than 1 to the institutions’ own funds requirements for market risk, calculated for specific risk classes and specific risk factors using one of the approaches referred to in Article 325(1), and laid out in: (i) the alternative standardised approach; (ii) the alternative internal model approach; (iii) simplified standardised approach, to offset those observed differences between the third countries rules and Union law; (b) from which institutions shall apply the own funds requirements for market risk set out in Part Three, Title IV, or any of the approaches to calculate the own funds requirements for market risk referred to in Article 325(1).;deleted applying, where necessary to Articles 325c to 325ay, specifying Articles 325az to 325bp, specifying Articles 326 to 361, specifying the postponing by two years the date

Amendment 1185 #

Proposal for a regulation
Article 1 – paragraph 1 – point 193

Regulation (EU) No 575/2013
Article 461a – introductory part

‘The Commission shall monitor the implementation of the international standards on own funds requirements for market risk in third countries. Where significant differences between the Union implementation and third countries’ implementation of those international standards are observed, including as regards the impact of the rules in terms of own funds requirements and as regards their entry into application, the Commission shall be empowered to ~~adopt a delegated act in acc~~postpone by two years the date from which institutions shall apply the own funds requirements for market risk set out in Part Three, Title IV, ord an~~ce with Article 462 to amend this Regulation by:~~y of the approaches to calculate the own funds requirements for market risk referred to in Article 325(1). The Commission shall, where appropriate, submit to European Parliament and to the Council a legislative proposal by 31 December 2026 to amend the framework for own funds requirements for market risk in light of significant differences.’

Amendment 1186 #

Proposal for a regulation
Article 1 – paragraph 1 – point 193

Regulation (EU) No 575/2013
Article 461a – introductory part

‘The Commission shall monitor the implementation of the international standards on own funds requirements for market risk in third countries. WThere Commission shall report to the European Parliament and the Council where it identifies significant differences between the Union implementation and third countries’ implementation of those international standards ~~are observed~~, including as regards the impact of the rules in terms of own funds requirements and as regards their entry into application,. Where appropriate the Commission shall ~~be empowered to adopt a delegated act in accordance with Article 462 to amend this Regulation by:~~submit a legislative proposal to the European Parliament and the Council to adjust the EU implementation of the own funds requirement for market risks as swiftly as possible.

Amendment 1187 #

Proposal for a regulation
Article 1 – paragraph 1 – point 193

Regulation (EU) No 575/2013
Article 461a – introductory part

‘The Commission shall monitor the implementation of the international standards on own funds requirements for market risk in third countries. Where significant differences between the Union implementation and third countries’By 31 December 2025, the Commission shall submit a report to the European Parliament and to the Council, on the implementation of those international standards ~~are observed, including as regards the impact of the rules in terms of~~on own funds requirements ~~and as regards~~ for market risk in otheir ~~entry into appl~~jurisdication~~, the Commission shall be empowered to adopt~~s. This report may be accompanied by a deleg~~ated act~~islative proposal, inf a~~ccordance with Article 462 to amend this Regulation by:~~ppropriate, in order to ensure a global level playing field.

Amendment 1188 #

Proposal for a regulation
Article 1 – paragraph 1 – point 193

Regulation (EU) No 575/2013
Article 461a – point a

(a) applying, where necessary to deliver a level playing field, a multiplier equal to or greater than 0 and lower than 1 to the institutions’ own funds requirements for market risk, calculated for specific risk classes and specific risk factors using one of the approaches referred to indeleted Articles 325c to 325ay, specifying Articles 325(1), and laid out in: (i) the alternative standardised approach; (ii) the alternative internal model approach; (iii) simplified standardised approach, to offset those observed differences between the third countries rules and Union law;az to 325bp, specifying Articles 326 to 361, specifying the

Amendment 1189 #

Proposal for a regulation
Article 1 – paragraph 1 – point 193

Regulation (EU) No 575/2013
Article 461a – point a

Amendment 1190 #

Proposal for a regulation
Article 1 – paragraph 1 – point 193

Regulation (EU) No 575/2013
Article 461a – point a

Amendment 1191 #

Proposal for a regulation
Article 1 – paragraph 1 – point 193

Regulation (EU) No 575/2013
Article 461a – paragraph 1 – point b

(b) postponing by two years the date from which institutions shall apply the own funds requirements for market risk set out in Part Three, Title IV, or any of the approaches to calculate the own funds requirements for market risk referred to in Article 325(1).;deleted

Amendment 1192 #

Proposal for a regulation
Article 1 – paragraph 1 – point 193

Regulation (EU) No 575/2013
Article 461a – paragraph 1 – point b

Amendment 1193 #

Luis GARICANO, Esther de LANGE, Caroline NAGTEGAAL, Luděk NIEDERMAYER

Proposal for a regulation
Article 1 – paragraph 1 – point 193

Regulation (EU) No 575/2013
Article 461a – paragraph 1 – point b

Amendment 1194 #

Proposal for a regulation
Article 1 – paragraph 1 – point 193

Regulation (EU) No 575/2013
Article 461a – paragraph 1 a (new)

By 31 December 2025, the Commission shall submit a report to the European Parliament and to the Council, on the implementation of the international standards on own funds requirements for market risk in other jurisdictions. This report may be accompanied by a legislative proposal, if appropriate, in order to ensure a global level playing field.

Amendment 1195 #

Proposal for a regulation
Article 1 – paragraph 1 – point 194

By 31 December 20258, the Commission shall review ~~whether a dedicated~~the prudential treatment ~~should be developed~~ for exposures to crypto assets as developed in Article 126c, and shall, after consulting EBA and taking into account international developments, submit a report to the European Parliament and to the Council, together with a legislative proposal, where appropriate.’

Amendment 1196 #

Proposal for a regulation
Article 1 – paragraph 1 – point 195 – point a

Regulation (EU) No 575/2013
Article 462 – paragraph 2

2. The power to adopt delegated acts referred to in Article 47a, Articles 244(6) and 245(6), in Articles 456 to 460 ~~and~~, in Articles 461a and 461b, and in Article 500 shall be conferred on the Commission for an indeterminate period of time from 28 June 2013.

Amendment 1197 #

Johan VAN OVERTVELDT, Michiel HOOGEVEEN, Eugen JURZYCA

Proposal for a regulation
Article 1 – paragraph 1 – point 195 – point a

Regulation (EU) No 575/2013
Article 462 – paragraph 3

3. The delegation of power referred to in Article 47a, Articles 244(6) and 245(6), in Articles 456 to 460 ~~and~~, in Article 461a and 461b, and in Article 500 may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of the delegated acts already in force.;

Amendment 1198 #

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 375/2013
Article 465 – paragraph 1 – introductory part

1. By way of derogation from Article 92, paragraphs 3 and 6, parent institutions, parent financial holding companies, parent mixed financial holding companies, stand-alone institutions in the EU or stand-alone subsidiary institutions in Member Stateinstitutions may apply the following factor ‘x’ where calculating TREA:

Amendment 1199 #

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 1 – introductory part

1. By way of derogation from Article 92, paragraphs 3 ~~and 6, parent institutions, parent financial holding companies, parent mixed financial holding companies, stand-alone institutions in the EU or stand-alone subsidiary institutions in Member State~~institutions may apply the following factor ‘x’ where calculating TREA:

Amendment 1200 #

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation COM(2021)0664
Article 465 – paragraph 1 – introductory part

1. By way of derogation from Article 92, paragraphs 3 ~~and 6, parent institutions, parent financial holding companies, parent mixed financial holding companies, stand-alone institutions in the EU or stand-alone subsidiary institutions in Member State~~, institutions may apply the following factor ‘x’ where calculating TREA:

Amendment 1201 #

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No 575/2013
Article 465 – paragraph 1 – introductory part

1. By way of derogation from Article 92, paragraphs 3 ~~and 6, parent institutions, parent financial holding companies, parent mixed financial holding companies, stand-alone institutions in the EU or stand-alone subsidiary institutions in Member State~~, institutions may apply the following factor ‘x’ where calculating TREA:

Amendment 1202 #

Proposal for a regulation
Article 1 – paragraph 1 – point 196

Regulation (EU) No575–2013
Article 465 – paragraph 1 – introductory part

1. By way of derogation from Article 92, paragraphs 3 ~~and 6, parent institutions, parent financial holding companies, parent mixed financial holding companies, stand-alone institutions in the EU or stand-alone subsidiary institutions in Member State~~, institutions may apply the following factor ‘x’ where calculating TREA:

Amendment 1203 #

Proposal for a regulation
Article 1 – paragraph 1 – point 196

1. By way of derogation from Article 92, paragraphs 3 and 6, ~~parent~~ institutions~~, parent financial holding companies, parent mixed financial holding companies, stand-alone institutions in the EU or stand-alone subsidiary institutions in Member States~~ may apply the following factor ‘x’ where calculating TREA:

Amendment 1204 #