Changes from report parliamentary committee draft to plenary report

Removed▌ Article 41a Liquidity support

1. As from the date of application set out in Article 99(5a), the DIF shall be used to provide liquidity support to participating DGSs in accordance with this Chapter.

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Changed2. In case a participating DGS encounters a payout event or is used in resolution in accordance with Article 79 of this Regulation, or is used for financing measures in accordance with Article 11(3) andor 11(6)(6) of Directive 2014/49/EU, it may request a loanliquidity from the DIF ▌ofin the amount of its liquidity shortfall as set out in Article 41b.

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Removed3. ▌

Removed4. ▌The outstanding cumulative funding provided by the DIF to a participating DGS shall not exceed ▌10 times the target level of the participating DGS as defined in the first subparagraph of Article 10(2) of Directive 2014/49/EU.

Removed1. In case the participating DGS encounters a payout event, its liquidity shortfall shall be calculated as the total amount of covered deposits held by the credit institution referred to under 2(2), point b, and within the meaning of Article 6(1) and 6(2) of Directive 2014/49/EU ▌at the time of the payout event less ▌the amount of available financial means the participating DGS should have at the time of the payout event in accordance with Articles 10(2) and 10(3) of that Directive.

▌

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Changed2. In4. caseThe theoutstanding participatingcumulative DGSfunding isprovided usedby inthe resolutionDIF proceedings,to itsa liquidityparticipating shortfallDGS shall be calculated as thenot amountexceed determined▌10 bytimes the resolution authority in accordance with Article 79 less thetarget amountlevel of available financial means the participating DGS should have at theas timedefined ofin the determination infirst accordancesubparagraph withof ArticlesArticle 10(2) and (3) of Directive 2014/49/EU.

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Changed3.1. In case the fundsparticipating ofDGS encounters a participatingpayout DGSevent, areits usedliquidity toshortfall financeshall measuresbe incalculated accordanceas withthe total amount of covered deposits held by the credit institution, and within the meaning of Article 11(3)6(1) and 11(6)(2) of the Directive 2014/49/EU,2014/49/EU its▌at liquiditythe shortfalltime shallof bethe calculatedpayout asevent and the amountnecessary usedadministrative toexpenditure financeof thosethe measuresparticipating DGS related to the payout less the amount of available financial means the participating DGS should have in accordance with Articles 10(2) and 10(3) ofis thatto Directivehave at the time of the decision to grant a measuredetermination in accordance with 11(3)Article or10(2) 11(6)and (3) of that Directive is taken..

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Added2. In case the participating DGS is used in resolution proceedings, its liquidity shortfall shall be calculated as the amount determined by the resolution authority in accordance with Article 79 of this Regulation less the amount of available financial means the participating DGS should have at the time of the determination in accordance with Article 10(2) and (3) of Directive 2014/49/EU.

Added2a. In case the funds of a participating DGS are used to finance measures in accordance with Article 11(3) and (6) of Directive 2014/49/EU, its liquidity shortfall shall be calculated as the amount used to finance those measures less the amount of available financial means that the participating DGS is to have in accordance with Article 10(2) and (3) of that Directive at the time when the decision to grant a measure in accordance with Article 11(3) or (6) of that Directive is taken.

Added1. In cases where the available financial means of the DIF are not sufficient to provide the liquidity requested by a participating DGS in accordance with Article 41a, the Board shall borrow from the other participating DGSs or access alternative funding arrangements pursuant to Article 74g, unless that would result in significant adverse consequences for the financial system or threaten financial stability.

Added2. Each participating DGS shall provide the loans referred to in paragraph 1, where applicable, to the DIF.

Added3. The Board shall calculate the amount of mandatory lending needed to provide liquidity support in accordance with Article 41a of this Regulation. The SRB shall calculate the amount of mandatory lending to be claimed from each participating DGS in proportion to the ratio of the DIF’s target level to the target level of each DGS as determined in accordance with Article 10(2) of Directive 2014/49/EU.

Added4. After completion of the build-up phase of the DIF in accordance with Article 74d of this Regulation, the amount to be provided by each participating DGS as mandatory lending shall not exceed 30% of the target level of that DGS in accordance with Article 10(2) of Directive 2014/49/EU.

Added5. In order to obtain the funding through mandatory lending, the SRB shall follow the procedure laid down in Article 41q.

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Removed1. In cases where the available financial means of the DIF are not sufficient to provide the loan requested by a participating DGS in accordance to Article 41a, the Board may decide to borrow from the other participating DGSs.

Added1. A participating DGS shall not be eligible for liquidity support exceeding the total amount of contributions transferred to the DIF by that DGS in accordance with Article 74c(1), if the Commission, acting on its own initiative or upon a request of the Board or a participating Member State, decides and informs the Board, the DGS, the designated authority of the participating Member State within the meaning of point 18 of Article 2 of Directive 2014/49/EU, and the national competent authority or authorities, that at least one of the following disqualifying conditions is met:

Removed2. Each participating DGS shall provide the requested loans to the DIF (mandatory lending)

Added(a) the participating DGS has failed to comply with the obligations under this Regulation or Articles 4, 6, 7 or 10 of Directive 2014/49/EU;

Removed3. The SRB shall calculate the amount of mandatory lending needed to provide funding in accordance to Article 41a. The SRB shall calculate the amount of mandatory lending to be claimed from each participating DGS in proportion to the ratio between the DIF’s target level and the target level of each DGS as determined in accordance with Article 10(2) of Directive 2014/49/EU.

Added(b) the participating DGS, the relevant administrative authority within the meaning of Article 3 of Directive 2014/49/EU, or any other relevant authority of the respective Member State have, in relation to a particular request for coverage by EDIS, acted in a way that runs counter to the principle of sincere cooperation as laid down in Article 4(3) of the Treaty on European Union.

Removed4. After completion of the build-up phase of the DIF in accordance with Article 74d, the amount to be provided by each participating DGS as mandatory lending shall not exceed 25% of the target level of that DGS.

Added1a. The Board shall monitor compliance with paragraph 1, points (a) and (b), on a continuous basis. If the Board identifies instances of non-compliance with any of the obligations laid down in paragraph 1, points (a) and (b), it shall immediately inform the Commission thereof.

Removed5. In order to obtain the funding through mandatory lending the SRB shall follow the procedure laid down in Article 41q.

Added1b. If the Commission considers that at least one of the disqualifying conditions referred to in paragraph 1 is met, it shall notify the DGS concerned and the designated authority of the participating Member State as defined in Article 2, point (18), of Directive 2014/49/EU, as well as the national competent authority or authorities. It shall also inform the Member State or Member States concerned. In its notification, the Commission shall set out the reasons for considering disqualifying the participating DGS from coverage by EDIS.

AddedWithin two months of receipt of the notification referred to in the first subparagraph, the designated authority, in close cooperation with the DGS concerned and the national competent authority, shall:

Added(a) take prompt corrective action to address the shortcomings identified and to ensure that the disqualifying conditions are no longer met; and

Added(b) submit to the Commission a reply which sets out in detail the corrective action that has been taken.

Added2. When funding has already been obtained by a participating DGS and at least one of the disqualifying conditions referred to in paragraph 1 is met in relation to a payout event or a use in resolution, the Commission may order full or partial repayment of the funding to the DIF.

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PROCEDURAL PROVISIONS

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ChangedWhere a participating DGS has been informed by the competent authority about, or has otherwise become aware of, circumstances relating to a credit institution affiliated to that participating DGS that are likely to result in a payout event or its use in resolution proceedings or in accordance with ArticlesArticle 11(3) andor 11(6)(6) of Directive 2014/49/EU, it shall inform the designated authority and the Board about such circumstances without delay if it intends to request coverage by EDIS I. In this case the participating DGS shall also provide the Board with an estimate of the expected liquidity shortfall▌.

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Changed1. In case a participating DGS encounters a payout event or is to be used in resolution in accordance with ▌Article 79 of this Regulation or in accordance with ArticlesArticle 11(3) andor 11(6)(6) of Directive 2014/49/EU, it shall immediately notifynotify, in accordance with Article 41k of this Regulation, the designated authority and the Board and submit all necessary information in order to allow the Board to assess whether the conditions for the provision of liquidity support in accordance with Article 41a41a▌ ▌ofof this Regulation are met.

2. The participating DGS shall inform the Board in particular about:

(a) the amount of covered deposits of the credit institution concerned;

(aa) the amount determined by the resolution authority in accordance with Article 79;

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Changed(c)(ab) the amount used to finance measures in accordance with ArticlesArticle 11(3) or 11(6)(6) of Directive 2014/49/EU;

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Changed(d)(b) its available financial means at the time of the payout event or use in resolution;resolution or use in accordance with Article 11(3) or (6) of Directive 2014/49/EU;

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Removed(e) ▌

Added(c) in case of a payout event, an estimate of the extraordinary contributions it can raise, in order to comply with the repayment of liquidity in accordance with Article 41o;

(d) any circumstances which would prevent it from meeting its obligations under national law transposing Directive 2014/49/EU and possible remedies.

Determination of the amount of funding

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Changed1. After receiving the notification under Article 41k, the Board shall decide within 24 hours, in its executive session, that the conditions for coverage by EDIS I have been met and shall determine the amount of liquidity support that it will provide to the participating DGS.DGS and the amount of mandatory lending in accordance with Article 41ba.

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Removed2. The Board shall within 24 hours, in its executive session, determine the amount of liquidity support to be financed by mandatory lending in accordance with Article 41ba.

Added▌

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Changed3. The Board shall immediately inform the participating DGS about its decision under paragraph 1▌. The relevant designated authority and the participating DGS may request a review of the Board’s decision within 24 hours after it has been informed. It shall state the reasons why it considers an amendment to the Board’s decision necessary, in particular with respect to the extent of coverage by EDIS I. The Board shall take a decision on the request within another 24 hours.

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Changed1. The Board shall provide liquidity support under Article 41a ▌inin accordance with the following provisions:

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Changed(a) the loanliquidity support shall be provided in the form of a cash contribution to the participating DGS;

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Changed(b) the funds shall be due within one working day afterof the determination of the Board made pursuant to Article 41m.

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Changed2.1a. By way of derogation from paragraph 1, upon the request of a participating DGS, the Board may decide that the DIF provides liquidity support in the form of a guarantee for any of the measures underreferred to in Article 41a41a(2) to access alternative funding arrangements under 74g.Article 10(9) of Directive 2014/49/EU.

1. The participating DGS shall repay the liquidity support provided by the Board under Article 41n in accordance with a repayment plan as referred to in paragraph 2 of this Article.

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Changed2. Within 3 months of the determination referred to in Article 41m, the BoardBoard, after consulting the relevant designated authority, shall establish a repayment plan that ensures that the funding provided by the Board under Article 41n will be repaid in full within six years by the participating DGS.

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Changed3. The repayment plan initiallyshall shall,initially, and to the largest extent possible, be based on the expected funding from sourcesthe assources referred to in paragraph 5.4a.

4. The following conditions for the repayment plan shall apply:

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Changeda)(a) the minimum annual repayment by the participating DGS shall be 10%on average 16,67% of the funding provided by the Board under articleArticle 41n; and

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Changedb)(b) each year, the Board shall reassess the level of expected recoveries and recalibrate the repayment plan for the remaining years inor, accordancewhere withappropriate, grant an extension of the assessment.maturity referred to in paragraph 4c.

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Removed5. As long as a participating DGS has liquidity support outstanding with the DIF, any extraordinary contributions raised in accordance with Article 10(8) of Directive 2014/49/EU, any recoveries on the DGS’s claims pursuant to Article 9(2) of Directive 2014/49/EU and Article 75 of Directive 2014/59/EU, any repayment of or income derived from measures taken in accordance with Article 109 of Directive 2014/59/EU or Article 11(3) of Directive 2014/49/EU shall be repaid to the DIF first before those financial means are used to reach the target level of the participating DGS again. This shall be reflected in the repayment plan.

Added4a. The repayment plan referred to in paragraph 2 shall give priority to transfers of the following sources to the DIF to comply with the obligations under paragraphs 1 and 2 over reaching again the target level of the participating DGS: