2023/0111(COD) | [ParlTrack]

Proposal for a regulation
Recital 21

(21) In light of the experience acquired in the implementation of Directive 2014/59/EU, Regulation (EU) No 806/2014 and Directive 2014/49/EU, it is necessary to specify further the conditions under which measures of a precautionary nature that qualify as extraordinary public financial support may exceptionally be granted. To minimise distortions of competition arising from differences in nature of deposit guarantee schemes in the Union, interventions of such schemes in the context of preventive measures complying with the requirements laid down in Directive 2014/49/EU that qualify as extraordinary public financial support should exceptionally be allowed where the beneficiary institution or entity ~~does not meet any of the conditions for being deemed as~~has been not declared failing or likely to fail. It should be ensured that precautionary measures are taken sufficiently early. The ECB currently bases its consideration that an institution or entity is solvent, for the purposes of precautionary recapitalisation, on a forward-looking assessment for the following 12 months of whether the institution or entity can comply with the own funds requirements set out in Regulation (EU) No 575/2013 or in Regulation (EU) 2019/2033, and the additional own funds requirement laid down in Directive 2013/36/EU or Directive (EU) 2019/2034. That practice should be ~~laid down~~revised in Regulation (EU) No 806/2014. Moreover, measures to provide relief for impaired assets, including asset management vehicles or asset guarantee schemes, can prove effective and efficient in addressing causes of possible financial distress faced by institutions and entities and preventing their failure and could therefore constitute relevant precautionary measures. It should therefore be specified that such precautionary measures can take the form of impaired asset measures.

Amendment 101 #

Marco ZANNI, Valentino GRANT, Antonio Maria RINALDI

Proposal for a regulation
Recital 22

(22) To preserve market discipline, protect public funds and avoid distortions of competition, precautionary measures should remain the exception and only be applied to address serious disturbances in the market or to preserve financial stability and only use funds available in industry funded safety nets. Moreover, precautionary measures should not be used to address incurred or likely losses. The most reliable instrument to identify incurred or likely to be incurred losses is an asset quality review by the ECB, the European Supervisory Authority (European Banking Authority) (EBA), established by Regulation (EU) No 1093/2010 of the European Parliament and of the Council34 or national competent authorities. The ECB and national competent authorities should use such a review to identify incurred or likely to be incurred losses if such review can be carried out within a reasonable timeframe. Where that is not possible, the ECB and national competent authorities should identify incurred or likely to be incurred losses in the most reliable way possible under the prevailing circumstances, based on on-site inspections where appropriate. __________________ 34 Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, p. 12).

Amendment 102 #

Proposal for a regulation
Recital 23

(23) Precautionary recapitalisation is aimed at supporting viable institutions and entities identified as likely to encounter temporary difficulties in the near future and to prevent their situation from deteriorating further. To avoid that public subsidies are granted to businesses that are already unprofitable when the support is granted, precautionary measures granted in the form of acquisition of own funds instruments or other capital instruments or through impaired asset measures should not exceed the amount necessary to cover capital shortfalls as identified in the adverse scenario of a stress test or equivalent exercise. To ensure that public financing is ultimately discontinued, those precautionary measures should also be limited in time and contain a clear timeline for their termination (exit strategy). Perpetual instruments, including Common Equity Tier 1 capital, should only be used in exceptional circumstances and be subject to certain quantitative limits because by their nature they are not well suited for compliance with the condition of temporariness.

Amendment 103 #

Marco ZANNI, Valentino GRANT, Antonio Maria RINALDI

Proposal for a regulation
Recital 23

(23) Precautionary recapitalisation is aimed at supporting viable institutions and entities identified as likely to encounter temporary difficulties in the near future and to prevent their situation from deteriorating further. To avoid that ~~public subsidie~~industry safety net funds are granted to businesses that are already unprofitable when the support is granted, precautionary measures granted in the form of acquisition of own funds instruments or other capital instruments or through impaired asset measures should not exceed the amount necessary to cover capital shortfalls as identified in the adverse scenario of a stress test or equivalent exercise. To ensure that public financing is ultimately discontinued, those precautionary measures should also be limited in time and contain a clear timeline for their termination (exit strategy). Perpetual instruments, including Common Equity Tier 1 capital, should only be used in exceptional circumstances and be subject to certain quantitative limits because by their nature they are not well suited for compliance with the condition of temporariness.

Amendment 104 #

Proposal for a regulation
Recital 24

(24) Precautionary measures should be limited to the amount that the institution or entity would need to maintain its solvency in case of an adverse scenario event as determined in a stress test or equivalent exercise. In the case of precautionary measures in the form of impaired asset measures, the receiving institution or entity should be able to use that amount to cover losses on the transferred assets or in combination with an acquisition of capital instruments, provided that the overall amount of the shortfall identified is not exceeded. It is also necessary to ensure that such precautionary measures in the form of impaired asset measures comply with existing State aid rules and best practices, that they restore the institution or entity's long-term viability, that State aid is limited to the minimum necessary and that distortions of competition are avoided. For those reasons, the authorities concerned should, in case of precautionary measures in the form of impaired asset measures, take into account the specific guidance, including the AMC Blueprint35 and the Communication on Tackling Non- Performing Loans36 . Those precautionary measures in the form of impaired asset measures should also always be subject to the overriding condition of temporariness. Public guarantees granted for a specified period in relation to the impaired assets of the institution or entity concerned are expected to ensure better compliance with the temporariness condition than transfers of such assets to a publicly supported entity. To ensure the market exit of institutions and entities that prove not to be viable, despite the support received, it is necessary to lay down that non- compliance by the institution or entity concerned with the terms of the support measures specified at the time such measures were granted is to result in the institution or entity concerned being considered failing or likely to fail. __________________ 35 COM(2018) 133 final. 36 COM(2020) 822 final.

Amendment 105 #

Proposal for a regulation
Recital 31

(31) In certain circumstances, after the Single Resolution Fund has provided a contribution up to the maximum of 5 % of the institution or entity’s total liabilities including own funds, the Board may use additional sources of funding to further support their resolution action. It should be specified more clearly in which circumstances the Single Resolution Fund may provide further support where all liabilities with a priority ranking lower than deposits that are not mandatorily or discretionarily excluded from bail-in have been written down or converted in full.deleted

Amendment 106 #

Marco ZANNI, Valentino GRANT, Antonio Maria RINALDI

Proposal for a regulation
Recital 31

Amendment 107 #

Proposal for a regulation
Recital 35

(35) In order to ensure institutional continuity and the build-up of institutional expertise, the Chair, the Vice-Chair and the other full-time members of the Board should be allowed to serve for two consecutive terms in their respective positions. It should therefore be possible to renew their term of office for a five-year term, based on an evaluation by the Commission of the discharge of their duties during the first term.deleted

Amendment 108 #

Proposal for a regulation
Recital 35

Amendment 109 #

Proposal for a regulation
Recital 37

(37) After the initial build-up period of the Single Resolution Fund referred to in Article 69(1) of Regulation (EU) No 806/2014, its available financial means may face slight decreases below its target level, in particular resulting from an increase in covered deposits. The amount of the ex-ante contributions likely to be called in those circumstances is thus likely to be small. It may therefore be possible that, in some years, the amount of those ex ante contributions is no longer commensurate to the cost of the collection of those contributions. The Board should therefore be able to defer the collection of the ex ante contributions for one or more years until the amount to be collected reaches an amount that is proportionate to the cost of the collection process, provided that such deferral does not materially affect the capacity of the Board to use the Single Resolution Funthe collection of ex-ante contributions ends once the target level of 1% of covered deposits has been reached.

Amendment 110 #

Proposal for a regulation
Recital 37

(37) After the initial build-up period of the Single Resolution Fund referred to in Article 69(1) of Regulation (EU) No 806/2014, its available financial means may face slight decreases below its target level, in particular resulting from an increase in covered deposits. The amount of the ex-ante contributions likely to be called in those circumstances is thus likely to be small. It may therefore be possible that, in some years, the amount of those ex ante contributions is no longer commensurate to the cost of the collection of those contributions. The Board should therefore be able to defer the collection of the ex ante contributions for one or more years until the amount to be collected reaches an amount that is proportionate to the cost of the collection process, provided that such deferral does not materially affect the capacity of the Board to use the Single Resolution Fundthe regular collection of contributions ends when the target level of 1 % of the amount of covered deposits of all credit institutions authorised in all of the Member States has been reached for the first time.

Amendment 111 #

Proposal for a regulation
Recital 38

(38) Irrevocable payment commitments are one of the components of the available financial means of the Single Resolution Fund. It is therefore necessary to specify the circumstances in which those payment commitments may be called, and the applicable procedure when terminating the commitments in case an institution or entity ceases to be subject to the obligation to pay contributions to the Single Resolution Fund. In addition, to provide more transparency and certainty with respect to the share of irrevocable payment commitments in the total amount of ex ante contributions to be raised, the Board should ~~determine~~grant such share oin ~~an annual basis, subject to the applicable limits~~the full amount as specified in Article 70(3) of Regulation (EU) No 806/2014.

Amendment 112 #

Marco ZANNI, Valentino GRANT, Antonio Maria RINALDI

Proposal for a regulation
Recital 40

(40) The Single Resolution Fund can be used to support the application of the sale of business tool or of the bridge institution tool, whereby a set of assets, rights, and liabilities of the institution under resolution are transferred to a recipient. In that case, the Board may have a claim against the residual institution or entity in its subsequent winding up under normal insolvency proceedings. That may occur where the Single Resolution Fund is used in connection to losses that creditors would otherwise have borne, including under the form of guarantees to assets and liabilities, or coverage of the difference between the transferred assets and liabilities. To ensure that the shareholders and creditors left behind in the residual institution or entity effectively absorb the losses of the institution under resolution and improve the possibility of repayments in insolvency to the Board, those claims of the Board against the residual institution or entity, and claims that arise from reasonable expenses properly incurred by the Board, should benefit from the same priority ranking in insolvency as the ranking of the claims of the national resolution financing arrangements in each participating Member State, which should be higher than the priority ranking of deposits and of deposit guarantee schemes. Since compensations paid to shareholders and creditors from the Single Resolution Fund due to breaches of the ‘no creditor worse off’ principle aim to compensate for the results of resolution action, those compensations should not give rise to claims of the Board.deleted

Amendment 113 #

Proposal for a regulation
Recital 40 a (new)

(40a) Given the creditor hierarchy review, market conditions might not be as favourable to deposit guarantee schemes that seek such alternative funding arrangements. Therefore, to prevent temporary financing by the Member States, and to ensure that it remains a last resort, the Board should be able to provide either a credit line or a guarantee based on the Single Resolution Fund to a deposit guarantee scheme in order to facilitate its access to markets at favourable financing conditions. The Single Resolution Fund's support should be provided when the deposit guarantee scheme is required to intervene in resolution, yet available financial means are insufficient to satisfy the needs of such action.

Amendment 114 #

Fabio Massimo CASTALDO

Proposal for a regulation
Recital 40 a (new)

Amendment 115 #

Roberts ZĪLE

Proposal for a regulation
Recital 40 a (new)

(40a) Despite an agreement having been reached on the introduction by the European Stability Mechanism (ESM) of a backstop to the Single Resolution Fund, its implementation has not yet been achieved. The additional function of the Single Resolution Fund to provide guarantees to deposit guarantee schemes thus warrants additional safeguards to the former, such as the ratification of the ESM backstop to the Single Resolution Fund.

Amendment 116 #

Proposal for a regulation
Recital 41

(41) Since some of the provisions of Regulation (EU) No 806/2014 concerning the role that deposit guarantee schemes may play in resolution are similar to those of Directive 2014/59/EU, the amendments made to those provisions in Directive 2014/59/EU by [OP please insert the number of the directive amending Directive 2014/59/EU] should be mirrored in Regulation (EU) No 806/2014.deleted

Amendment 117 #

Proposal for a regulation
Recital 41 a (new)

(41a) As deposit guarantee schemes are vested with additional tasks and responsibilities and considering that one direct implication of this review of the EU crisis management and deposit insurance framework, is to make DGS funds more available for resolution, their risks of being totally or partially depleted is increased. It is therefore now time to move toward a more Europeanised model, whereby a deposit insurance fund is established, financed by transfer from national DGS and managed by the Board in order to provide loans to depleted or almost depleted national DGS. The contributions to this fund should be computed according to a risk-based methodology. National DGS should inform early the Board if it anticipates that it will need to recourse to the EU credit line offered by the DIF.

Amendment 118 #

Pedro MARQUES, Jonás FERNÁNDEZ, Aurore LALUCQ, René REPASI

Proposal for a regulation
Recital 41 b (new)

(41b) Two years after the entry into force of this amending Regulation, the Commission should prepare a report to the European Parliament and the Council to assess whether and under which modalities the Deposit Insurance Fund shall also cover losses incurred by national DGS.

Amendment 119 #

Lídia PEREIRA

Proposal for a regulation
Recital 42 a (new)

(42a) The Fund should guarantee high levels of transparency to duly safeguard the public interest, particularly when public resources are deployed for the application of resolution tools, and should therefore endeavour to publish regular reports on the resolution processes for which those resources were deployed, mentioning the total amount, the amounts repaid and the timeframe for future repayments.

Amendment 120 #

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

Regulation (EU) No 806/2014
Article 3 – paragraph 1 – point 24

~~‘(24) cross-border group’ means a group that has~~(- a) point (24) is replaced by the following: "(24) ‘cross-border group’ means a group whose parent undertaking and at least one of its subsidiaries are entities as referred to in Article 2 established in more than one participating Member State; " Or. en (Regulation (EU) No 806/2014)

Amendment 121 #

Marco ZANNI, Valentino GRANT, Antonio Maria RINALDI

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

Regulation (EU) No 806/2014
Article 3 – paragraph 1 – points 55a– 55c (new)

~~(See the wording of Delegated Regulation (EU) 2015/63 Article 3, points (27) - (29); instead of the definition in Article 3, point (27), of the Delega~~(ca) the following points are added: (55a) ‘promotional bank’ means any undertaking or entity established by a Member State’s central, regional or local government, which grants promotional loans or grants promotional guarantees, whose primary goal is not to make profit or maximise market share but to promote that government’s public policy objectives, provided that, subject to State aid rules, that government has an obligation to protect the economic basis of the undertaking or entity and maintain its viability throughout its lifetime, or that at least 90 % of its original capital or funding or the promotional loan it grants is directly or indirectly guaranteed ~~Regulation, the definition of "promotional entity" defined in Article 4(1), point (19), of CRR (Regulation (EU) No~~by the Member State’s central, regional or local government; (55b) ‘promotional loan’ means a loan granted by a promotional bank or through an intermediate bank on a non- competitive, non for profit basis, in order to promote the public policy objectives of central or regional governments in a Member State; (55c) ‘intermediary institution’ means a credit institution which intermediates promotional loans provided that it does not give them as credit to a final customer Or. en 57572013) is used.)

Amendment 122 #

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

Regulation (EU) No 806/2014
Article 3 – paragraph 1 – point 55 a (new)

(ca) the following point is added: ‘(55a) ‘critical functions’ means activities, services or operations the discontinuance of which is likely, in one or more Member States, to lead to the disruption of services that are essential to the real economy or to disrupt financial stability at national or regional level on a significant scale, due to the size, market share, external and internal interconnectedness, complexity or cross-border activities of an institution or group, with particular regard to the substitutability of those activities, services or operations;’.

Amendment 123 #

Fabio Massimo CASTALDO

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point c a (new)Regulation (EU) No 806/2014

Article 3 – paragraph 1 – point 55 a (new)

Amendment 124 #

Proposal for a regulation
Article 1 – paragraph 1 – point 4 – point a

Regulation (EU) No 806/2014
Article 8 – paragraph 2 – subparagraph 1 a

The Board may instruct the national resolution authorities to exercise the powers referred to in Article 10(8) of Directive 2014/59/EU. The national resolution authorities shall implement the instructions of the Board in accordance with Article 29 of this Regulation.;deleted

Amendment 125 #

Proposal for a regulation
Article 1 – paragraph 1 – point 4 – point a a (new)

Regulation (EU) No 806/2014
Article 8 – paragraph 6 –subparagraph 3

(aa) in paragraph 6, the third subparagraph is replaced by the following: When drawing up and updating the resolution plan, the Board shall identify any material impediments to resolvability and, where ~~necessary and proportion~~appropriate, outline relevant actions for how those impediments could be addressed, in accordance with Article 10. ~~(https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32014R0806)~~Or. en

Amendment 126 #

Proposal for a regulation
Article 1 – paragraph 1 – point 4 – point a a (new)

(aa) in paragraph 6, fifth subparagraph, the following point is inserted: ‘(ca) any use of deposit guarantee schemes’;

Amendment 127 #

Proposal for a regulation
Article 1 – paragraph 1 – point 4 – point a b(new)

Regulation (EU) No 806/2014
Article 8 – paragraph 7

(ab) paragraph 7 is replaced by the following: 7. The resolution plan shall include an analysis of how and when an institution may apply, in the conditions addressed by the plan, for the use of central bank facilities and shall identify those assets which would be expected to qualify as collateral while providing a prudent estimation of its average yearly value in aggregate for central bank liquidity purposes taking due account of relevant haircuts.

Amendment 128 #

Proposal for a regulation
Article 1 – paragraph 1 – point 4 – point a c (new)

Regulation (EU) No 806/2014
Article 8 – paragraph 9

(ac) paragraph 9 is replaced by the following 9. The resolution plan for each entity shall include, quantified where appropriate and possible: (a) a summary of the key elements of the plan; (aa) where applicable, a detailed description of the reasons for determining that an institution is to be qualified as a liquidation entity; (b)a summary of the material changes to the institution that have occurred after the latest resolution information was filed; (c)a demonstration of how critical functions and core business lines could be legally and economically separated, to the extent necessary, from other functions so as to ensure continuity upon the failure of the institution; (d)an estimation of the timeframe for executing each material aspect of the plan; (e)a detailed description of the assessment of resolvability carried out in accordance with Article 10; (f)a description of any measures required pursuant to Article 10(7) to address or remove impediments to resolvability identified as a result of the assessment carried out in accordance with Article 10; (g)a description of the processes for determining the value and marketability of the critical functions, core business lines and assets of the institution; (h)a detailed description of the arrangements for ensuring that the information required pursuant to Article 11 of Directive 2014/59/EU is up to date and at the disposal of the resolution authorities at all times; (i)an explanation as to how the resolution options could be financed without the assumption of any of the following: (i) any extraordinary public financial support to the resolution entity or entities acquiring parts of its business besides the use of the ~~Fund~~financing arrangements established in accordance with Article 67 ; (ii)any central bank emergency liquidity assistance; or (iii)any central bank liquidity assistance provided under non-standard collateralisation, tenor and interest rate terms; (j) a detailed description of the different resolution strategies that could be applied according to the different possible scenarios and the applicable timescales; (k) a description of critical interdependencies; (l) a description of options for preserving access to payments and clearing services and other infrastructures and an assessment of the portability of client positions; (m) an analysis of the impact of the plan on the employees of the institution, including an assessment of any associated costs, and a description of envisaged procedures to consult staff during the resolution process, taking into account national systems for dialogue with social partners, where applicable; (n) a plan for communicating with the media and the public; (o) the ~~minimum~~ requirement ~~for own funds and eligible liabilities required pursuant to~~s referred to in Article 12f and 12g and a deadline to reach that level, ~~where applicable~~in accordance with Article 12k; (p) where ~~applicable, the minimum requirement for own funds and contractual bail-in instruments pursuant to Article 12, and a deadline to reach that level, where applicable~~the Board applies Article 12c(4), (5), or (7), a timeline for compliance by the resolution entity in accordance with Article 12k; (pa) a detailed and comprehensive list of MREL eligible instruments including whether their holders qualify as retail or professional investors pursuant to Directive 2014/65/EU; (pb) a detailed and quantified list of covered deposits, retail deposits, corporate deposits for payment and settlement purposes and other corporate deposits as defined respectively in Article 2(1) points (95), (97), (98) and (98a) of Directive 2014/59/EU ; (q)a description of essential operations and systems for maintaining the continuous functioning of the institution's operational processes; (r)where applicable, any opinion expressed by the institution in relation to the resolution plan. Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32014R0806)

Amendment 129 #

Jonás FERNÁNDEZ

Proposal for a regulation
Article 1 – paragraph 1 – point 4 – point a a (new)

Regulation (EU) No 806/2014
Article 8 – paragraph 9 – point fa (new)

(aa) in paragraph 9, the following point is inserted: (fa) a detailed description of the reasons for determining that an institution is to be qualified as a liquidation entity, including explaining how the resolution authority came to the conclusion that the institution lacks critical functions;

Amendment 130 #

Marco ZANNI, Valentino GRANT, Antonio Maria RINALDI

Proposal for a regulation
Article 1 – paragraph 1 – point 4 – point b

Regulation (EU) No 806/2014
Article 8 – paragraph 10

(b) in paragraph 10, the following subparagraph is added: The identification of the measures to be taken in respect of the subsidiaries referred to in the first subparagraph, point (b), that are not resolution entities may be subject to a simplified approach by the Board if such approach would not negatively affect the resolvability of the group, taking into account the size of the subsidiary, its risk profile, the absence of critical functions and the group resolution strategy. is replaced by the following: 10. Group resolution plans shall include a plan for the resolution of the group, headed by the Union parent undertaking established in a participating Member State, as a whole, either through resolution at the level of the Union parent undertaking or through break up and resolution of the subsidiaries. The group resolution plan shall identify measures for the resolution of: (a) the Union parent undertaking; (b)the subsidiaries that are part of the group and that are established in the Union; (c) the entities referred to in Article 2(b); and (d) subject to Article 33, the subsidiaries that are part of the group and that are established outside the Union. The group resolution plan shall also determine whether entities within a resolution group other than the resolution entity, qualify as liquidation entities. Without prejudice to other factors that may be deemed relevant by the Board, entities that provide critical functions or critical services or are material subsidiaries pursuant Article 4(1), point 135, of Regulation (EU) 575/2013 shall not qualify as liquidation entities.

Amendment 131 #

Proposal for a regulation
Article 1 – paragraph 1 – point 4 – point b

Regulation (EU) No 806/2014
Article 8 – paragraph 10 – subparagraph 3

The identification of the measures to be taken in respect of the subsidiaries referred to in the first subparagraph, point (b), that are not resolution entities may be subject to a simplified approach by the Board, after consulting with the relevant national resolution authority, and if such approach would not negatively affect the resolvability of the group, taking into account the size of the subsidiary, its risk profile, the absence of critical functions and the group resolution strategy.;

Amendment 132 #

Jonás FERNÁNDEZ

Proposal for a regulation
Article 1 – paragraph 1 – point 4 – point b a(new)

Regulation (EU) No 806/2014
Article 8 – paragraph 11 – point - a a (new)

(ba) in paragraph 11, the following point is inserted: (-aa) a detailed description of the reasons for determining that a group entity is to be qualified as a liquidation entity, including explaining how the resolution authority came to the conclusion that the institution lacks critical functions, and how the ratio of its total risk exposure amount and operating income in the group’s total risk exposure amount and operating income, as well as the leverage ratio of the group entity in the context of the group have been taken into account;

Amendment 133 #

Proposal for a regulation
Article 1 – paragraph 1 – point 4 – point b a(new)

Regulation (EU) No 806/2014
Article 8 – paragraph 11

(ba) paragraph 11 is replaced by the following 11. The group resolution plan shall: (a)set out the resolution actions to be taken in relation to group entities, both through resolution actions in respect of the entities referred to in Article 2(b) and subsidiary institutions and through coordinated resolution actions in respect of subsidiary institutions, in the scenarios provided for in paragraph 6; (aa) where a group referred to in paragraph 1 comprises more than one resolution group, set out the resolution actions that are to be taken for the resolution entities of each resolution group and the implications of those actions on both of the following: (i)other group entities that belong to the same resolution group; (ii)other resolution groups; (ab) a detailed description of the reasons for determining that a group entity referred to in points (a) to (d) of paragraph 1 is to be qualified as a liquidation entity, (b)examine the extent to which the resolution tools and powers could be applied and exercised in a coordinated way to group entities established in the Union, including measures to facilitate the purchase by a third party of the group as a whole, or separate business lines or activities that are delivered by a number of group entities, or particular group entities, and identify any potential impediments to a coordinated resolution; (c)include a detailed description of the assessment of resolvability carried out in accordance with Article 10; (d)where a group includes entities incorporated in third countries, identify appropriate arrangements for cooperation and coordination with the relevant authorities of those third countries and the implications for resolution within the Union; (e)identify measures, including the legal and economic separation of particular functions or business lines, that are necessary to facilitate group resolution where the conditions for resolution are met; (f)identify how the group resolution actions could be financed and, where the Fund and the financing arrangements from non- participating Member States established in accordance with Article 100 of Directive 2014/59/EU would be required, set out principles for sharing responsibility for that financing between sources of funding in different participating and non- participating Member States. The plan shall not assume any of the following: (i)any extraordinary public financial support besides the use of the Fund established in accordance with Article 67 of this Regulation and the financing arrangements from non-participating Member States established in accordance with Article 100 of Directive 2014/59/EU; (ii)any central bank emergency liquidity assistance; or (iii)any central bank liquidity assistance provided under non-standard collateralisation, tenor and interest rate terms. Those principles shall be set out on the basis of equitable and balanced criteria and shall take into account in particular Article 107(5) of Directive 2014/59/EU and the impact on financial stability in all Member States concerned. The group resolution plan shall not have a disproportionate impact on any Member State. Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32014R0806)

Amendment 134 #

Proposal for a regulation
Article 1 – paragraph 1 – point 4 – point c

Regulation (EU) No 806/2014
Article 8 – paragraph 14

14. The Board shall ~~not adopt~~disclose on its website the resolution plans ~~for the entitite~~of institutions aund groups referred to in paragraph 1 where Article 22(5) applies or where the entity or group is being wound up in accordance with the applicable national law pursuant to Article 32b of Directive 2014/59/EU. er its remit on an annual basis. Commercially sensitive information or information that is protected by statutory confidentiality provisions, shall be redacted from such disclosures. Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32014R0806)

Amendment 135 #

Proposal for a regulation
Article 1 – paragraph 1 – point 5 – point - a a(new)

Regulation (EU) No 806/2014
Article 10 – paragraph 4 – subparagraph 1

(-aa) in paragraph 4, the first subparagraph is replaced by the following: "A group shall be deemed to be resolvable if it is feasible and credible for the Board either to wind up group entities under normal insolvency proceedings or to resolve them by applying resolution tools to, and exercising resolution powers with respect to, resolution entities of that group while avoiding, to the maximum extent possible, any significant adverse consequences for the financial systems of the Member States in which group entities are located or of other Member States or the Union, including broader financial instability or system wide events, with a view to ensuring the continuity of critical functions carried out by those group entities, where they can be easily separated in a timely manner, or by other means. ~~(https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02014R0806-20220812)~~In order to perform the assessment under this subparagraph, the Board shall address requirements to a central body and credit institutions permanently affiliated to that central body. " Or. en

Amendment 136 #

Proposal for a regulation
Article 1 – paragraph 1 – point 5 – point c

Regulation (EU) No 806/2014
Article 10 – paragraph 10

(c) paragraph 10 is ~~amended as follows: (i)in the second subparagraph, the word ‘institution’ is replaced by the words ‘entity conc~~replaced by the following: "10. The Board, after consulting the competent authorities, shall assess whether the measures refernred~~; (ii) in the third subparagraph, the word ‘institution’ is replaced by the word ‘entity’; (iii) the following subparagraph is added: ‘~~ to in paragraph 9 effectively address or remove the substantive impediments in question. If the measures proposed by the entity or parent undertaking concerned do not effectively reduce or remove the impediments to resolvability, the Board shall take a decision, after ~~having~~ consulteding the ~~ECB or the relevant national~~ competent authorityies and, where appropriate, the designated macro- prudential authority~~. That decision shall~~, indicateing that the measures proposed do not effectively reduce or remove the impediments to resolvability, and ~~shall~~ instructing the national resolution authorities to require the institution, the parent undertaking, or any subsidiary of the group concerned, to ~~implement the measures proposed.’; (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02014R0806-20220812)~~take any of the measures listed in paragraph 11. The Board shall take into account the threat to financial stability of those impediments to resolvability and the effect of the measures on the business of the institution, its stability and its ability to contribute to the economy, on the internal market for financial services and on the financial stability in other Member States and the Union as a whole. The entity concerned shall have the right to demonstrate how the measures it proposed would be able to remove the impediments to resolvability and how the alternative measures proposed by the Board are unnecessarily burdensome in removing them. " Or. en

Amendment 137 #

Proposal for a regulation
Article 1 – paragraph 1 – point 6 – point a

Regulation (EU) No 806/2014
Article 10a – paragraph 1 – introductory part

1. Where an entity is in a situation where it meets the combined buffer requirement when considered in addition to each of the requirements referred to in Article 141a(1), points (a), (b) and (c), of Directive 2013/36/EU, but it fails to meet the combined buffer requirement when considered in addition to the requirements referred to in Articles 12d and 12e of this Regulation, when calculated in accordance with Article 12a(2), point (a), of this Regulation, or where an entity is in a situation where it breaches its requirements referred to in Articles 12d and 12e of this Regulation when calculated in accordance with Article 12a(2), point (b), the Board shall ~~have the power~~, in accordance with paragraphs 2 and 3 of this Article, ~~to instruct the national resolution authority to~~ prohibit an entity from distributing more than the Maximum Distributable Amount related to the minimum requirement for own funds and eligible liabilities ("‘M-MDA"’), calculated in accordance with paragraph 4 of this Article, through any of the following actions:;

Amendment 138 #

Proposal for a regulation
Article 1 – paragraph 1 – point 6 a (new)

Regulation (EU) No 806/2014
Article 12 – paragraph 4 a (new)

(6a) in Article 12, the following paragraph is inserted: 4a. The calculation of the minimum requirement referred to in paragraph 4 of this Article and Article 45(1) of Directive 2014/59/EU shall, in case of institutions operating promotional loans, exclude the liabilities of the intermediary institution towards the originating or another promotional bank or another intermediary institution and the liabilities of the original promotional bank towards its funding parties in so far as the amount of these liabilities is matched by the promotional loans of that institution. Or. en (see wording of Article 5 paragraph 1 point f of Regulation (EU) 2015/63)

Amendment 139 #

Proposal for a regulation
Article 1 – paragraph 1 – point 8 a

Regulation (EU) No 806/2014
Article 12a – paragraph 1 a (new)

(8a) in Article 12a, the following paragraph is inserted: 1a. Within a resolution group, subsidiaries that are institutions or entities referred to in Article 2(1) but are not resolution entities, whose total assets do not exceed EUR 5 billion and that do not reach a 2% threshold of the resolution group’s total risk exposure amount, or leverage exposure, shall not be subject to the requirement referred to in paragraph 1 of this Article.

Amendment 140 #

Proposal for a regulation
Article 1 – paragraph 1 – point 8 b (new)

Regulation (EU) No 806/2014
Article 12b

(8b) Article 12b is replaced by the following: Article 12b Exemption from the minimum requirement for own funds and eligible liabilities 1. Notwithstanding Article 12a, the Board shall exempt ~~from the requirement laid down in Article 12a(1) mortgage~~ credit institutions financed by covered bonds which are not allowed to receive deposits under national law, provided that all of the following conditions are met:(a) those institutions will be wound up in national insolvency proceeding or in other types of proceedings laid down for those institutions and implemented in accordance with Article 38, 40 or 42 of Directive 2014/59/EU; and(b) the proceedings referred to in point (a) ensure that creditors of those institutions, including holders of covered bonds, where relevant, bear losses in a way that meets the resolution objectives.2. Institutions exempted from the requirement laid down in Article 12(1) shall not be part of the consolidation referred to in Article 12f(1). 2. Institutions exempted from the requirement laid down in Article 12(1) shall not be part of the consolidation referred to in Article 12f(1). from the requirement laid down in Article 12a(1). " Or. en (REGULATION (EU) No 806/2014)

Amendment 141 #

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

Regulation (EU) No 806/2014
Article 12d

(10) ~~in Article 12d, paragraph 3, eight~~Article12d is amended as follows: (a) in paragraph 3, the fifth and sixth subparagraphs are replaced by the following: ‘When setting the recapitalisation amounts referred to in the previous subparagraphs, the Board shall: (a) use the most recently reported values for the relevant total risk exposure amount or total exposure measure, adjusted for any changes resulting from resolution actions set out in the resolution plan, including the reduced size and risk profile of the resolution group resulting from resolution, in particular when the preferred resolution strategy includes the use of resolution tools referred to in Article 22(2), points (a), (b) or (c), as well as for any changes resulting from the recovery options included in the recovery plan that are expected to be implemented by the time of resolution or shortly thereafter; and (b) after consulting the competent authorities, including the ECB, adjust the amount corresponding to the current requirement referred to in Article 104a of Directive 2013/36/EU downwards to determine the requirement that is to apply to the resolution entity after the implementation of the preferred resolution strategy, taking into account changes referred to in point (a) of this subparagraph; (c) after consulting the competent authority, including the ECB, for resolution entities subject to the requirement of Article 131 of Directive 2013/36/EU, adjust the combined buffer requirement applicable to the resolution group, taking into account the changes referred to in point (a) of this subparagraph. The Board shall be able to increase the requirement provided in point (a)(ii) of the first subparagraph by an appropriate amount necessary to ensure that, following resolution, the entity is able to sustain sufficient market confidence for an appropriate period, which shall not exceed one year, except where its preferred resolution strategy envisages primarily the use of the sale of business tool or the bridge institution tool and its exit from the market. The Board shall communicate to the resolution entity the rationale behind the adjustments mentioned in points (a), (b) and (c) of the fifth subparagraph. (b) in paragraph 3, eighth subparagraph, and paragraph 6, eighth subparagraph, the words ‘critical economic functions’ are replaced by the words ‘critical functions’;

Amendment 142 #

Proposal for a regulation
Article 1 – paragraph 1 – point 11

Regulation (EU) No 806/2014
Article 12da

~~(11) the following Article 12da is inserted: […]~~deleted

Amendment 143 #

Proposal for a regulation
Article 1 – paragraph 1 – point 11

Regulation (EU) No 806/2014
Article 12da – paragraph 1 – introductory part

1. When applying Article 12d to a resolution entity whose preferred resolution strategy envisages primarily the use of the sale of business tool or the bridge institution tool and its exit from the market, the Board shall set the recapitalisation amount provided in Article 12d(3) in a proportionate way that ensures that the resolution group can be resolved in all possible scenarios without the need for external funding on the basis of the following criteria, as relevant:

Amendment 144 #

Proposal for a regulation
Article 1 – paragraph 1 – point 11

Regulation (EU) No 806/2014
Article 12da – paragraph 1 – introductory part

1. When applying Article 12d to a resolution entity whose preferred resolution strategy envisages ~~primarily th~~the exclusive use of the sale of business tool or the bridge institution tool and its exit from the market, the Board shall set the recapitalisation amount provided in Article 12d(3) in a proportionate way on the basis of the following criteria, as relevant:

Amendment 145 #

Proposal for a regulation
Article 1 – paragraph 1 – point 11

Regulation (EU) No 806/2014
Article 12da – paragraph 1 – point a

(a) the resolution entity’s size, business model, funding model and risk profile~~, and the depth of the market in which the resolution entity operates~~;

Amendment 146 #

Proposal for a regulation
Article 1 – paragraph 1 – point 11

Regulation (EU) No 806/2014
Article 12da – paragraph 1 – point a

(a) the resolution entity’s size, business model, funding model and risk profile~~, and the depth of the market in which the resolution entity operates~~;

Amendment 147 #

Marco ZANNI, Valentino GRANT, Antonio Maria RINALDI

Proposal for a regulation
Article 1 – paragraph 1 – point 11

Regulation (EU) No 806/2014
Article 12da – paragraph 1 – point a

(a) the resolution entity’s size, business model, funding model and risk profile, and the ~~depth of the market in which the resolution entity operat~~ability to access the capital markets for eligible liabilities;

Amendment 148 #

Proposal for a regulation
Article 1 – paragraph 1 – point 11

Regulation (EU) No 806/2014
Article 12da – paragraph 1 – point a

Amendment 149 #

Proposal for a regulation
Article 1 – paragraph 1 – point 11

Regulation (EU) No 806/2014
Article 12da – paragraph 1 – point b – point ii

(ii) the liabilities excluded from bail-in pursuant to Article 27(3) or bail-inable liabilities where Article 27(5) is likely to apply with regard to these liabilities;

Amendment 150 #

Proposal for a regulation
Article 1 – paragraph 1 – point 11

Regulation (EU) No 806/2014
Article 12da – paragraph 1 – point b – point iii a (new)

(iiia) expected own funds requirements for any bridge institution that may be needed to implement the market exit strategy, to ensure its compliance with Regulation (EU) No 575/2013, Directive 2013/36/EU and Directive 2014/65/EU, as applicable;

Amendment 151 #

Proposal for a regulation
Article 1 – paragraph 1 – point 11

Regulation (EU) No 806/2014
Article 12da – paragraph 1 – point b – point iii a (new)

(iiia) any risks to successful implementation of the preferred resolution strategy, in particular a potentially adverse market environment at the time of resolution;

Amendment 152 #

Proposal for a regulation
Article 1 – paragraph 1 – point 11

Regulation (EU) No 806/2014
Article 12da – paragraph 1 – point a – point iii b (new)

(iiib) expected demand by the recipient for the transaction to be capital neutral with regards to the requirements applicable to the acquiring entity.

Amendment 153 #

Proposal for a regulation
Article 1 – paragraph 1 – point 11

Regulation (EU) No 806/2014
Article 12da – paragraph 1 – point c – point i

(i) any ~~material~~ impediments to resolvability, identified by the resolution authority, that are ~~directly~~ related to the application of the sale of business tool or the bridge institution tool;

Amendment 154 #

Marco ZANNI, Valentino GRANT, Antonio Maria RINALDI

Proposal for a regulation
Article 1 – paragraph 1 – point 11

Regulation (EU) No 806/2014
Article 12da – paragraph 1 – point c – point ii a (new)

(iia) a potentially adverse market environment at the time of resolution;

Amendment 155 #

Proposal for a regulation
Article 1 – paragraph 1 – point 11

Regulation (EU) No 806/2014
Article 12da – paragraph 1 – point e a (new)

(ea) whether any contribution by a deposit guarantee scheme is expected to be made pursuant to Article 79.’

Amendment 156 #

Proposal for a regulation
Article 1 – paragraph 1 – point 11

Regulation (EU) No 806/2014
Article 12da – paragraph 1 – point e a (new)

(ea) whether any contribution by a deposit guarantee scheme is expected to be made pursuant to Article 79.

Amendment 157 #

Proposal for a regulation
Article 1 – paragraph 1 – point 11

Regulation (EU) No 806/2014
Article 12da – paragraph 1 – point e a (new)

(ea) the potential recapitalisation amount required under an alternative resolution strategy.

Amendment 158 #

Proposal for a regulation
Article 1 – paragraph 1 – point 11

Regulation (EU) No 806/2014
Article 12da – paragraph 1 a (new)

1a. For resolution entities subject to the proportionalisation rules of paragraph 1 of this Article, the level of the requirement referred to in paragraph 3 of Article 12d shall be at least equal to: (a) 16 % when calculated in accordance with point (a) of Article 12a(2); and (b) 5,5 % when calculated in accordance with point (b) of Article 12a(2). Resolution entities that are part of a resolution group the total assets of which exceed EUR 5 billion and resolution entities with consolidated total assets in excess of EUR 5 billion shall meet a level of the requirement referred to in the first subparagraph of this paragraph that is equal to 4,5 % when calculated in accordance with point (a) of Article 12a(2) and to 1,5 % when calculated in accordance with point (b) of Article 12a(2), using Tier 2 instruments and eligible liabilities.’ In order to ensure effective and consistent application of this Article, the Board shall give guidance and address instructions to the national resolution authorities for the application of the RTSs referred to in Article 45ca(1b) of Directive 2014/59/EU.

Amendment 159 #

Marco ZANNI, Valentino GRANT, Antonio Maria RINALDI

Proposal for a regulation
Article 1 – paragraph 1 – point 11

Regulation (EU) No 806/2014
Article 12da – paragraph 1 a (new)

1a. Paragraph 1 shall not apply to institutions that are designated as "small and non-complex institutions" in line with Regulation (EU) No 575/2013.

Amendment 160 #

Proposal for a regulation
Article 1 – paragraph 1 – point 11

Regulation (EU) No 806/2014
Article 12da – paragraph 2

Amendment 161 #

Proposal for a regulation
Article 1 – paragraph 1 – point 11

Regulation (EU) No 806/2014
Article 12da – paragraph 2

Amendment 162 #

Proposal for a regulation
Article 1 – paragraph 1 – point 11

Regulation (EU) No 806/2014
Article 12da – paragraph 2

Amendment 163 #

Proposal for a regulation
Article 1 – paragraph 1 – point 11

Regulation (EU) No 806/2014
Article 12da – paragraph 2

2. Where the resolution plan provides that the entity is to be wound up under normal insolvency proceedings or other equivalent national procedures and envisages the use of the deposit guarantee scheme pursuant to Article 11(5) of Directive 2014/49/EU, ~~the Board shall also take into account paragraph 1 of this Article when carrying out~~by way of derogation from Article 12d(2a) the resolution authority shall set a recapitalization amount as provided in Article 12d(3) in a proportionate way on the bas~~sessment referred to in Article 12d(2a), second subparagraph, of this Regulation~~is of the criteria referred to in paragraph 1.

Amendment 164 #

Pedro MARQUES, Aurore LALUCQ, René REPASI, Jonás FERNÁNDEZ

Proposal for a regulation
Article 1 – paragraph 1 – point 11

Regulation (EU) No 806/2014
Article 12da – paragraph 3

3. The application of paragraph 1 shall not result in an amount that is ~~high~~lower than 90% of the amount resulting from the application of Article 12d(3).;

Amendment 165 #

Proposal for a regulation
Article 1 – paragraph 1 – point 14 – point a a (new)

Regulation (EU) No 806/2014
Article 12k – paragraph 1 – subparagraph 3 a (new)

(aa) in paragraph 1, the following subparagraph is added: After 1 January 2024 or the transitional period ending after 1 January 2024 set by the Board pursuant to the third subparagraph, the Board, where duly justified and appropriate on the basis of the criteria referred to in paragraph 7, and taking into consideration the elements referred to in the third subparagraph, may determine an appropriate transitional period within which to comply with the requirements in Articles 12f or 12g or the requirements that result from the application of Article 12c(4), (5) or (7).

Amendment 166 #

Proposal for a regulation
Article 1 – paragraph 1 – point 14 – point a a (new)

Regulation (EU) No 806/2014
Article 12k – paragraph 1a (new)

(aa) the following paragraph is inserted: ‘1a. Regarding entities that were not part of a resolution group prior to the [date of application of this amending Regulation], the Board shall determine appropriate transitional periods for institutions or entities referred to in Article 2(1) to comply with the requirements of Articles 12f or 12g, or with requirements that result from the application of Article 12c(4), (5) or (7), as appropriate. These transitional periods shall not extend beyond 1 January 2030.’

Amendment 167 #

Proposal for a regulation
Article 1 – paragraph 1 – point 15

Regulation (EU) No 806/2014
Article 13 – paragraph 1 – introductory part

1. The ECB mconsiders without undue delay, appnd if necessary adopts swiftly, early intervention measures where an entity as referred to in Article 7(2)(a) meets any of the following conditions:

Amendment 168 #

Proposal for a regulation
Article 1 – paragraph 1 – point 15

Regulation (EU) No 806/2014
Article 13 – paragraph 1 –point a –point ii

(ii) the ECB deems that remedial actions other than early intervention measures are insufficient to address the problems ~~due inter alia to a rapid and significant deterioration of the financial condition of the entity~~;

Amendment 169 #

Proposal for a regulation
Article 1 – paragraph 1 – point 15

Regulation (EU) No 806/2014
Article 13 – paragraph 1 – point a – point ii

(ii) the ECB deems that remedial actions other than early intervention measures are inot sufficient to address the problems due inter alia to a rapid and significant deterioration of the financial condition of the entity;

Amendment 170 #

Proposal for a regulation
Article 1 – paragraph 1 – point 15

Regulation (EU) No 806/2014
Article 13 – paragraph 1 – point b

(b) the entity infringes or is likely to infringe in the 12 months following the assessment of the ECB the requirements laid down in Title II of Directive 2014/65/EU, in Articles 3 to 7, 14 to 17, or 24, 25 and 26 of Regulation (EU) No 600/2014~~, or in Articles 12f or 12g of this Regulation~~.

Amendment 171 #

Proposal for a regulation
Article 1 – paragraph 1 – point 15

Regulation (EU) No 806/2014
Article 13 – paragraph 1 – subparagraph 1 a (new)

Where appropriate to characterize the infringement referred to in point (b), the ECB shall ensure that the Board and the relevant national resolution authorities inform the competent authorities without delay.

Amendment 172 #

Proposal for a regulation
Article 1 – paragraph 1 – point 15

The ECB may determine, where there is a rapid deterioration of conditions, adverse circumstances or new information about an entity is obtained, that the condition referred to in the first subparagraph, point (a)(ii), is met without having previously taken other remedial actions, including the exercise of the powers referred to in Article 104 of Directive 2013/36/EU or in Article 16(2) of Regulation (EU) No 1024/2013.

Amendment 173 #

Proposal for a regulation
Article 1 – paragraph 1 – point 15

Regulation (EU) No 806/2014
Article 13 – paragraph 2 – point c

(c) the requirement for the management body of the entity to draw up an action plan, in accordance with the recovery plan where applicable, for negotiation on restructuring of debt with some or all of its creditors;

Amendment 174 #

Roberts ZĪLE

Proposal for a regulation
Article 1 – paragraph 1 – point 15

Regulation (EU) No 806/2014
Article 13 – paragraph 2 – subparagraph 1 – point f a (new)

(fa) the requirement for the management body of the entity to draw up a plan that the entity can implement in case the relevant corporate body decides to initiate the voluntary winding down of the entity.

Amendment 175 #

Proposal for a regulation
Article 1 – paragraph 1 – point 15

Regulation (EU) No 806/2014
Article 13 – paragraph 2 – subparagraph 1 a (new)

After having received the notification referred to in the first subparagraph, the Board shall assess, in close cooperation with the ECB or the relevant national competent authority, what constitutes a reasonable timeframe for the purposes of the assessment of the condition referred to in Article 18(1), point (b), taking into account the speed of the deterioration of the conditions of the entity, the need to implement effectively the resolution strategy and any other relevant considerations. The Board shall communicate that assessment to the ECB or to the relevant national competent authority as early as possible. The notification referred to in the first subparagraph does not impact the ability of institutional protection schemes to implement any measures. Any decisions relating to measures by an institutional protection scheme are within the sole discretion of the institutional protection scheme.

Amendment 176 #

Proposal for a regulation
Article 1 – paragraph 1 – point 15

Regulation (EU) No 806/2014
Article 13 – paragraph 3

3. The ECB shall choose the appropriate and timely early intervention measures based on what is proportionate to the objectives pursued, having regard to the seriousness of the infringement or likely infringement and the speed of the deterioration in the financial situation of the entity, among other relevant information.

Amendment 177 #

Proposal for a regulation
Article 1 – paragraph 1 – point 15

Regulation (EU) No 806/2014
Article 13 – paragraph 4

4. For each of the measures referred to in paragraph 2, the ECB shall set a deadline that is appropriate for completion of that measure and that enables the ECB to evaluate its effectiveness. The evaluation of the measure should be carried out immediately after the deadline is reached and shared with the Board and relevant national resolution authorities. Should the evaluation conclude that the measures have not been fully implemented or are not effective, the ECB or the relevant national competent authority shall make an assessment of the condition referred to in paragraph 1, point (a) of Article 18 of this Regulation, after having consulted the Board and the relevant national resolution authority.

Amendment 178 #

Proposal for a regulation
Article 1 – paragraph 1 – point 15

Regulation (EU) No 806/2014
Article 13 – paragraph 5 – subparagraph 2

Where a group includes entities established in participating Member States and subsidiaries established, or significant branches located, in non-participating Member States, the ECB shall communicate any decisions or measures referred to in Articles 13 to 13c relevant to the group to the competent authorities or the resolution authorities of the non- participating Member States, as appropriate in a timely manner.;

Amendment 179 #

Proposal for a regulation
Article 1 – paragraph 1 – point 16

The ECB shall make public the appointment of any temporary administrator, except where the temporary administrator does not have the power to represent or make decisions on behalf of the entity.

Amendment 180 #

Proposal for a regulation
Article 1 – paragraph 1 – point 16

Regulation (EU) No 806/2014
Article 13b – paragraph 2

2. The ECB shall specify the powers of the temporary administrator at the time of his or her appointment, based on what is proportionate in the circumstances. Such powers may include some or all of the powers of the management body of the entity, under the statutes of the entity and under national law, including the power to exercise some or all of the administrative functions of the management body of the entity. The powers of the temporary administrator in relation to the entity shall comply with the applicable company law. Such powers may be adjusted upon the change in circumstances by the ECB.

Amendment 181 #

Proposal for a regulation
Article 1 – paragraph 1 – point 16

Regulation (EU) No 806/2014
Article 13b – paragraph 6

6. At the request of the ECB, the temporary administrator shall draw up reports on the financial position of the entity and on the acts performed in the course of his or her appointment, at intervals set by the ECB, at least once after the first six months , and in any case at the end of his or her mandate.

Amendment 182 #

Proposal for a regulation
Article 1 – paragraph 1 – point 16

Regulation (EU) No 806/2014
Article 13b – paragraph 7

7. The temporary administrator shall be appointed for maximum 1 year. That period may be exceptionally renewed once, if the conditions for appointing the temporary administrator continue to be met. The ECB shall determine those conditions and shall justify any renewal of the appointment of the temporary administrator to the shareholders.

Amendment 183 #

Proposal for a regulation
Article 1 – paragraph 1 – point 16

~~After having received t~~The notification referred to in the first subparagraph~~, the Board shall assess, in close cooperation with the ECB or the relevant national competent authority, what constitutes a reasonable timeframe for the purposes of the assessment of the condit~~ shall not constrain the ability of institutional protection schemes to implement measures. Decisions re~~ferred to in Article 18(1), point (b), tak~~lating into account the speed of the deterioration of the conditions of the entity, the need to implement effectively the resolution strategy and any other relevant considerations. The Board shall communicate that assessment to the ECB or to the relevant national competent authority as early as possiblny measures by an institutional protection scheme shall remain under the sole discretion of the institutional protection scheme.

Amendment 184 #

Proposal for a regulation
Article 1 – paragraph 1 – point 16

Regulation (EU) No 806/2014
Article 13 c – paragraph 2 – subparagraph 2

After having received the notification referred to in the first subparagraph, the Board shall assess, in close cooperation with the ECB or the relevant national competent authority, what constitutes a reasonable timeframe for the purposes of the assessment of the condition referred to in Article 18(1), point (b), taking into account the speed of the deterioration of the conditions of the entity, the need to implement effectively the resolution strategy and any other relevant considerations. The Board shall communicate that assessment to the ECB or to the relevant national competent authority as early as possible. The application of any measures by institutional protection schemes shall not be affected by the notification referred to in the first subparagraph.

Amendment 185 #

Marco ZANNI, Valentino GRANT, Antonio Maria RINALDI

Proposal for a regulation
Article 1 – paragraph 1 – point 16

Regulation (EU) No 806/2014
Article 13c – paragraph 2 – subparagraph 2

After having received the notification referred to in the first subparagraph, the Board shall assess, in close cooperation with the ECB or the relevant national competent authority, what constitutes a reasonable timeframe for the purposes of the assessment of the condition referred to in Article 18(1), point (b), taking into account the speed of the deterioration of the conditions of the entity, the potential impact on the financial system and protection of depositors and client funds, the need to implement effectively the resolution strategy and any other relevant considerations. The Board shall communicate that assessment to the ECB or to the relevant national competent authority as early as possible.

Amendment 186 #

Proposal for a regulation
Article 1 – paragraph 1 – point 16

Regulation (EU) No 806/2014
Article 13c – paragraph 4 – introductory part

4. TAfter having received the notification referred to in paragraph 2, the Board shall have the power to market to potential purchasers, or make arrangements for such marketing, the entity referred to in Article 7(2), or the entity referred to in Article 7(4), point (b), and Article 7(5) where the conditions for the application of those provisions are met or require the entity to do so, for the following purposes:

Amendment 187 #

Proposal for a regulation
Article 1 – paragraph 1 – point 16

Regulation (EU) No 806/2014
Article 13c – paragraph 4 – introductory part

4. The Board shall have the power to market to potential purchasers, or make arrangements for such marketing, the entity referred to in Article 7(2), or the entity referred to in Article 7(4), point (b), and Article 7(5) where the conditions for the application of those provisions are met or require the entity to do so, for the ~~following~~ purposes:

Amendment 188 #

Proposal for a regulation
Article 1 – paragraph 1 – point 16

Regulation (EU) No 806/2014
Article 13c – paragraph 4 – point a

(a) to prepare for the highly likely resolution of that entity, subject to the conditions specified in Article 39(2) of Directive 2014/59/EU and the requirements of professional secrecy laid down in Article 88 of this Regulation;

Amendment 189 #

Proposal for a regulation
Article 1 – paragraph 1 – point 16

Regulation (EU) No 806/2014
Article 13c – paragraph 4 – point b

~~(b) to inform the assessment by the Board of the condition referred to in Article 18(1), point (b), of this Regulation.~~deleted

Amendment 190 #

Proposal for a regulation
Article 1 – paragraph 1 – point 16

Regulation (EU) No 806/2014
Article 13c – paragraph 7

7. The Board shall inform the Commission, the ECB, the relevant national competent authorities and the relevant national resolution authorities and the relevant national ministries of any action taken pursuant to paragraphs 4 and 5 without delay.

Amendment 191 #

Proposal for a regulation
Article 1 – paragraph 1 – point 16

The ECB, the national competent authorities, the Board and the relevant national resolution authorities and the relevant national ministries shall closely cooperate:

Amendment 192 #

Proposal for a regulation
Article 1 – paragraph 1 – point 17

Regulation (EU) No 806/2014
Article 14 – paragraph 2 – point c

(c) to protect public funds by minimising reliance on extraordinary public financial support~~, in particular when provided from the budget of a Member State~~;

Amendment 193 #

Proposal for a regulation
Article 1 – paragraph 1 – point 17

Regulation (EU) No 806/2014
Article 14 – paragraph 2 – point c

(c) to protect public funds by minimising reliance on extraordinary public financial support~~, in particular when provided from the budget of a Member State~~;

Amendment 194 #

Proposal for a regulation
Article 1 – paragraph 1 – point 17

Regulation (EU) No 806/2014
Article 14 – paragraph 2 – point c

(c) to protect public funds by minimising reliance on extraordinary public financial support~~, in particular when provided from the budget of a Member State~~;

Amendment 195 #

Proposal for a regulation
Article 1 – paragraph 1 – point 17

Regulation (EU) No 806/2014
Article 14 – paragraph 2 – point c

(c) to protect public funds by minimising reliance on extraordinary public financial support~~, in particular when provided from the budget of a Member State~~;

Amendment 196 #

Proposal for a regulation
Article 1 – paragraph 1 – point 17

Regulation (EU) No 806/2014
Article 14 – paragraph 2 – point d

(d) to protect ~~depositors~~covered deposits, and to the extent possible also that uncovered part of eligible deposits from natural persons and micro, small and medium- sized enterprises, while minimising losses for deposit guarantee schemes, and to protect investors covered by Directive 97/9/EC;;

Amendment 197 #

Marco ZANNI, Valentino GRANT, Antonio Maria RINALDI

Proposal for a regulation
Article 1 – paragraph 1 – point 17

Regulation (EU) No 806/2014
Article 14 – paragraph 2 – point d

(d) to protect depositors while minimising losses for deposit guarantee schemes, by allowing cost-effective involvement of the DGS and to protect investors covered by Directive 97/9/EC;;

Amendment 198 #

Proposal for a regulation
Article 1 – paragraph 1 – point 17

Regulation (EU) No 806/2014
Article 14 – paragraph 2 – point d

(d) to protect depositors ~~while minimising losses for deposit guarantee schemes,~~ and to protect investors covered by Directive 97/9/EC;;

Amendment 199 #

Proposal for a regulation
Article 1 – paragraph 1 – point 17

Regulation (EU) No 806/2014
Article 14 – paragraph 2 – point d

(d) to protect depositors ~~while minimising losses for deposit guarantee schemes~~covered by Directive 2014/49/EU, and to protect investors covered by Directive 97/9/EC;;

Amendment 200 #

Proposal for a regulation
Article 1 – paragraph 1 – point 17

Regulation (EU) No 806/2014
Article 14 – paragraph 2 – point d

(d) to protect depositors ~~while minimising losses for deposit guarantee schemes, and to protect~~covered by Directive 2014/49/EU and investors covered by Directive 97/9/EC;;

Amendment 201 #

Proposal for a regulation
Article 1 – paragraph 1 – point 17

Regulation (EU) No 806/2014
Article 14 – paragraph 2 – point d

(d) to protect depositors ~~while minimising losses for deposit guarantee schemes, and to protect~~covered by Directive 2014/49/EU and investors covered by Directive 97/9/EC; ;

Amendment 202 #

Marco ZANNI, Valentino GRANT, Antonio Maria RINALDI

Proposal for a regulation
Article 1 – paragraph 1 – point 17

Regulation (EU) No 806/2014
Article 14 – paragraph 2 – point d

(d) to protect depositors ~~while minimising losses for deposit guarantee schemes,~~covered by Directive 2014/49/EU and to protect investors covered by Directive 97/9/EC;;

Amendment 203 #

Proposal for a regulation
Article 1 – paragraph 1 – point 17 a (new)

Regulation (EU) No 806/2014
Article 14 – paragraph 2a (new)

(17a) in Article 14, the following paragraph 2a is inserted: "2a. Subject to different provisions of this Regulation, the resolution objectives are of equal significance, and resolution authorities shall balance them as appropriate to the nature and circumstances of each case. For the purposes of Article 18(5), the objectives of preserving financial stability and protecting depositors pursuant to points (b) and (d) of paragraph 2, respectively, shall be deemed to be more significant than other resolution objectives.’;

Amendment 204 #

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

Regulation (EU) No 806/2014
Article 18 – paragraph 1 – subparagraph 1 – point b

(b) having regard to the timing~~, the need to implement effectively the resolution strategy~~ and other relevant circumstances, there is no reasonable prospect that any alternative private sector measure, including measures by an IPS, supervisory action, early intervention measures, or the write down or conversion of relevant capital instruments and eligible liabilities as referred to in Article 21(1), taken in respect of the entity would prevent the failure of the entity within a reasonable timeframe;

Amendment 205 #

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

Regulation (EU) No 806/2014
Article 18 – paragraph 1 – subparagraph 1 – point b

Amendment 206 #

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

Regulation (EU) No 806/2014
Article 18 – paragraph 1 – subparagraph 1 – point b

(b) having regard to the timing, ~~the need to implement effectively the resolution strategy~~ and other relevant circumstances, there is no reasonable prospect that any alternative private sector measure, including measures by an IPS, supervisory action, early intervention measures, or the write down or conversion of relevant capital instruments and eligible liabilities as referred to in Article 21(1), taken in respect of the entity would prevent the failure of the entity within a reasonable timeframe;

Amendment 207 #

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

Regulation (EU) No 806/2014
Article 18 – paragraph 1 – subparagraph 3

Where the ECB ~~or the relevant national competent authority has~~ assesseds that the condition referred to in point (a) of the first subparagraph~~, point (a),~~ is met in relation to an entity asor group referred to in the first subparagraph, it~~hey~~ shall communicate that assessment without delay to the Commission and to the Board ~~without delay~~taking into account, however, that preventive measures carried out by an IPS falling under Article 1(2), point (c), of Directive 2014/49/EU shall not lead to the determination that the credit institution is failing or likely to fail according to this Article or Article 32 (1) of Directive 2014/59/EU if the provisions of Article 11f of Directive 2014/49/EU are met.

Amendment 208 #

Marco ZANNI, Valentino GRANT, Antonio Maria RINALDI

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

Regulation (EU) No 806/2014
Article 18 – paragraph 1a

1a. TWhen a resolution action is deemed necessary in the public interest, the Board ~~may~~shall adopt a resolution scheme in accordance with paragraph 1 in relation to a central body and all ~~credit institutions~~ permanently affiliateds to it, that are part of the same resolution group where the central body and all ~~credit institutions~~ permanently affiliateds to it, or the resolution group to which they belong, comply as a whole with the conditions laid down in paragraph 1, first subparagraph. The assessment of the conditions referred to in paragraph 1, first subparagraph, shall be made exclusively for the central body and its permanent affiliates as a whole.

Amendment 209 #

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

Regulation (EU) No 806/2014
Article 18 – paragraph 2

2. Without prejudice to cases where the ECB has decided to exercise directly supervisory tasks relating to credit institutions pursuant to Article 6(5), point (b) of Regulation (EU) No 1024/2013, in the event of receipt of a communication pursuant to paragraph 1 in relationPrior to determining an institution failing or likely to fail, the relevant authority referred to ain entity or group as referred to in Article 7(3), the Board shall communicate its assessment as referred to paragraph 1, fourth subparagraph, to the ECB or the relevant national competent authority withoutthe second subparagraph of Article 18(1) shall examine whether there exist measures, including alternative private sector measures, supervisory action or early intervention measures, which can avoid the failing or likely to fail declayration.

Amendment 210 #

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

Regulation (EU) No 806/2014
Article 18 – paragraph 2

Amendment 211 #

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

Regulation (EU) No 806/2014
Article 18 – paragraph 5 – subparagraph 1

For the purposes of paragraph 1, point (c), a resolution action shall be treated as in the public interest where, pursuant to the second subparagraph of Article 14(3), that resolution action is necessary for the achievement of, and is proportionate to, one or more of the resolution objectives referred to in that Article 1431, and where winding up of the institution under normal insolvency proceedings would not meet those resolution objectives ~~more effectively~~to the same extent.

Amendment 212 #

Marco ZANNI, Valentino GRANT, Antonio Maria RINALDI

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

Regulation (EU) No 806/2014
Article 18 – paragraph 5 – subparagraph 1

For the purposes of paragraph 1, point (c), a resolution action shall be treated as in the public interest where that resolution action is necessary for the achievement of, and is proportionate to, one or more of the resolution objectives referred to in Article 14 and where winding up of the institution under normal insolvency proceedings would not meet those resolution objectives ~~more effectively~~to the same extent.

Amendment 213 #

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

Regulation (EU) No 806/2014
Article 18 – paragraph 5 – subparagraph 1

For the purposes of paragraph 1, point (c), a resolution action shall be treated as in the public interest where, pursuant to the second subparagraph of Article 14(3), that resolution action is necessary for the achievement of, and is proportionate to, ~~one or more of~~ the resolution objectives referred to in that Article 14, and where winding up of the institution under normal insolvency proceedings would not meet those resolution objectives ~~more effectively.~~ to the same extent.

Amendment 214 #

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

Regulation (EU) No 806/2014
Article 18 – paragraph 5 – subparagraph 1

Amendment 215 #

Marco ZANNI, Valentino GRANT, Antonio Maria RINALDI

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

Regulation (EU) No 806/2014
Article 18 – paragraph 5 – subparagraph 1

Amendment 216 #

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

Regulation (EU) No 806/2014
Article 18 – paragraph 5 – subparagraph 1a (new)

When carrying out the assessment referred to in the first subparagraph, pursuant to Articles 8(2), 9(2) and 12d(2), the Board, in order to assess the appropriateness of the resolution for the institution, considers the following elements: (a) the prevalence of deposits and the absence of debt instruments in the funding model; (b) the access to the capital markets for eligible liabilities; (c) the extent to which the institution relies on Common Equity Tier 1 capital to meet its capital requirements.

Amendment 217 #

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

Resolution action shall be presumed not to be in the public interest for the purposes of paragraph 1, point (c), where the institution qualifies as small and non- complex institution as defined in Article 4(1), point 145, of Regulation (EU) No 575/2013. In case the Board assesses that one or more of those resolution objectives would be at risk, the presumption shall not apply.

Amendment 218 #

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

Regulation (EU) No 806/2014
Article 18 – paragraph 5 – subparagraph 1 a (new)

For entities designated as significant in accordance with Article 6(4) of Regulation (EU) No 1024/2013 there shall be a presumption that the winding up under normal insolvency proceedings would not meet the resolution objectives to the same extent.

Amendment 219 #

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

Regulation (EU) No 806/2014
Article 18 – paragraph 5 – subparagraph 1b (new)

Resolution action shall be presumed to be in the public interest for the purposes of paragraph 1, point (c), of this Article where the institution qualifies as large institution as defined in Article 4(1), point (146) of Regulation (EU) No 575/2013. In case the Board assesses that no resolution objective would be at risk, the presumption shall not apply.

Amendment 220 #

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

Regulation (EU) No 806/2014
Article 18 – paragraph 5 – subparagraph 2

When carrying out the assessment referred to in the first subparagraph, the Board, based on the information available to it at the time of that assessment, shall consider and compare all extraordinary public financial support that can reasonably be expected to be granted to the entity, both in the event of resolution and in the event of winding up in accordance with the applicable national law.;deleted

Amendment 221 #

Marco ZANNI, Valentino GRANT, Antonio Maria RINALDI

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

Regulation (EU) No 806/2014
Article 18 – paragraph 5 – subparagraph 2

Amendment 222 #

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

Regulation (EU) No 806/2014
Article 18 – paragraph 5 – subparagraph 2

When carrying out the assessment referred to in the first subparagraph, ~~the Board, based on the~~pursuant to Articles 8(2), 9(2) and 12d(2), the Board, inf ormation available to it at the time of that assessment, shall consider and compare all extraordinary public financial support that can reasonably be expected to be granted to the entity, both in the event of resolution and inder to assess the appropriateness of the resolution for the institution, considers the following elements: (a) the prevalence of deposits and the absence of debt instruments in the funding model; (b) the access to the capital markets for eligible liabilities; (c) the evxtent ~~of winding up in accordance with the applicable national law~~to which the institution relies on Common Equity Tier 1 capital to meet its capital requirements.;

Amendment 223 #

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

Regulation (EU) No 806/2014
Article 18 – paragraph 5 – subparagraph 2

When carrying out the assessment referred to in the first subparagraph, ~~the Board, based on the~~pursuant to Articles 8(2), 9(2) and 12d(2), the Board, inf ormation available to it at the time of that assessment, shall consider and compare all extraordinary public financial support that can reasonably be expected to be granted to the entity, both in the event of resolution and inder to assess the appropriateness of the resolution for the institution, shall consider the following elements: (a) the prevalence of deposits and the absence of debt instruments in the funding model; (b) the access to the capital markets for eligible liabilities; (c) the evxtent ~~of winding up in accordance with the applicable national law.;~~to which the institution relies on Common Equity Tier 1 capital to meet its capital requirements.

Amendment 224 #

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

Regulation (EU) No 806/2014
Article 18 – paragraph 5 – subparagraph 2

Amendment 225 #

Pedro MARQUES, Aurore LALUCQ, Jonás FERNÁNDEZ, René REPASI

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

Regulation (EU) No 806/2014
Article 18 – paragraph 5 – subparagraph 2

When carrying out the assessment referred to in the first subparagraph, the Board, based on the information available to it at the time of that assessment, shall ~~consider~~evaluate and compare all extraordinary public financial support that can reasonably be expected to be granted to the entity, both in the event of resolution and in the event of winding up in accordance with the applicable national law.’;

Amendment 226 #

Fabio Massimo CASTALDO

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

Regulation (EU) No 806/2014
Article 18 – paragraph 5 – subparagraph 2

When carrying out the assessment referred to in the first subparagraph, the Board, based on the information available to it at the time ~~of that assessment~~, shall consider and compare all extraordinary public financial support that can reasonably be expected to be granted to the entity, both in the event of resolution and in the event of winding up in accordance with the applicable national law.;

Amendment 227 #

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

Regulation (EU) No 806/2014
Article 18 – paragraph 5 – subparagraph 2 a (new)

For the purposes of the second subparagraph, participating Member States, deposit guarantee schemes and, where necessary, the designated authority within the meaning of Article 2(1), point (18), of Directive 2014/49/EU shall keep the Board informed of any preparatory measures for the granting of the measures referred to in Article 18a(1), points (c) and (d), of this Regulation, including any pre-notification contacts with the Commission.

Amendment 228 #

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

Regulation (EU) No 806/2014
Article 18 – paragraph 5 – subparagraph 2 a (new)

Moreover, in the resolution plan, the Board shall include its reasoning as regards the procedure best achieving resolution objectives for each of the resolution objectives laid down in Article 14.

Amendment 229 #

Proposal for a regulation
Article 1 – paragraph 1 – point 19 – point e a (new)

Regulation (EU) No 806/2014
Article 18 – paragraph 11 a (new)

(ea) the following paragraph is added: 11a. In order to ensure effective and consistent application of this Article, the Board shall give guidance and address instructions to national resolution authorities for the application of the RTSs referred to in Article 32(5) of Directive 2014/59/EU.

Amendment 230 #