Changes from report parliamentary committee draft to plenary report

Removed▌The transfers from the participating DGS to the board shall take place by 30 June of each year at the latest.

Removed3. The duly received transfers from each participating DGS shall not be reimbursed to the participating DGSs.

Removed4. The amounts transferred by a participating DGS ▌into the DIF in accordance with this Article shall count towards the minimum target level that each participating DGS shall reach in accordance with ▌Article 10 of Directive 2014/49/EU. ▌

▌

Change 88

Removed5. The Board, after consulting the participating DGS concerned and the designated authority, shall defer, in whole or in part, the transfer of the amount determined by Board in accordance with paragraph 2 of this Article when:

Added1. Each year until ... [three years from the date of entry into force of this amending Regulation], the Board shall, ▌in close cooperation with the EBA, the participating DGSs and designated authorities, determine for each participating DGS the total amount of ▌contributions to be transferred to the DIF in order to reach the target levels provided for in Article 74b. The total amount of contributions to be transferred shall not exceed the target levels provided for in Article 74b▌.

Removed(a) a participating DGS does not have sufficient financial means to transfer the amounts due, due to having used DGS funds pursuant to Article 11 of Directive 2014/49/EU prior to the date where the first transfer from the participating DGS to the Board shall take place; or

Added2. The amounts to be transfered referred to in paragraph 1 of this Article shall be spread out in time as evenly as possible until the target level referred to in Article 74b is reached. The Board shall determine the amount to be transferred by each participating DGS in accordance with Article 74a(2) and in accordance with the method to calculate the risk-adjusted contributions laid down in the delegated act referred to in paragraph 5 of this Article.The transfers from the participating DGS to the Board shall take place by 30 June of each year at the latest.

Removed(b) a participating DGS does not have sufficient financial means to transfer the amounts due – due to having used DGS funds for purposes as referred to in Article 41a before the target level referred to in Article 74b is reached.

Added3. The duly received transfers from each participating DGS shall not be reimbursed to those participating DGSs.

Added4. The amounts transferred by participating DGS ▌into the DIF in accordance with this Article shall count towards the minimum target level that each participating DGS shall reach in accordance with ▌Article 10▌ of Directive 2014/49/EU. ▌

Added4a. By way of derogation from paragraph 1, the Board, after consulting the participating DGS and the designated authority, shall defer by a maximum of 6 years, in whole or in part, the transfer of the amount determined by the Board in accordance with paragraph 2 of this Article when:

Added(a) the participating DGS does not have sufficient financial means to transfer that amount, due to having used DGS available financial means pursuant to Article 11 of Directive 2014/49/EU prior to the date of the first transfer from the participating DGS to the Board; or

Added(b) the participating DGS does not have sufficient financial means to transfer that amount, due to having used DGS available financial means for the purposes referred to in Article 41a before the target level referred to in Article 74b is reached.

The Board, after consulting the participating DGS and the designated authority, shall define a plan for the payment of the transfer owed by the participating DGS, taking into account the contributions that the participating DGS can raise pursuant to Article 10 of Directive 2014/49/EU and the need for the participating DGS to repay any amounts borrowed.

Change 89

ChangedDeferrals granted cannotshall not prevent the general target level referred to in Article 74b from being reached and shall not lead to increases in transfers for other participating DGSs aimed at reaching the target level in accordance with Article 74b or maintaining the target level in accordance with paragraph 7 of this Article.

Change 90

Removed6. As long as participating DGS is benefiting from a deferral in accordance with paragraph 5 of this Article, 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 transfered to the DIF to comply with the obligations under paragraphs 1 and 2 before these financial means are used to reach the target level of the participating DGS again.

Added4b. The plan referred to in paragraph 4a 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:

Removed7. After 5 years from the date of entry into force of this amending Regulation the Board shall, in close cooperation with the participating DGSs and designated authorities, determine contributions to be collected from each credit institution referred to in Article 2(2), point (b), and to be transferred to DIF by the participating DGS in order to maintain the target level provided for in Article 74b.

Added(a) any extraordinary contributions raised in accordance with Article 10(8) of Directive 2014/49/EU;

Removed8. After 5 years from the date of entry into force of this amending Regulation the Board may, in close cooperation with the participating DGSs and designated authorities, defer the required contributions to be collected in accordance with paragraph 7 to ensure that the amount to be transferred reaches an amount that is proportionate to the costs of the collection process for participating DGSs, provided that such deferral does not materially affect the capacity of the Board to use the DIF in accordance with Article 41a.

Added(b) any recoveries on the DGS’s claims pursuant to Article 9(2) of Directive 2014/49/EU or Article 75 of Directive 2014/59/EU;

Removed9. The EBA shall develop draft regulatory standards to specify a risk-based method for the calculation of the amounts to be transferred to the DIF by the participating DGSs in accordance with paragraph 1 of this Article.

Added(c) any repayment of or income derived from measures taken in accordance with Article 109 of Directive 2014/59/EU or Articles 11(3) and (6) of Directive 2014/49/EU.

Added4c. After ... [three years from the date of entry into force of this amending Regulation], the Board shall, in close cooperation with the participating DGSs and designated authorities, determine the contributions to be collected from each credit institution referred to in Article 2(2), point (b), and to be transferred to DIF by the participating DGS in order to maintain the target level provided for in Article 74b.

Added4d. After ... [three years from the date of entry into force of this amending Regulation], the Board may, in close cooperation with the participating DGSs and designated authorities, defer the required contributions to be collected in accordance with paragraph 4c to ensure that the amount to be transferred reaches an amount that is proportionate to the costs of the collection process for participating DGSs, provided that such deferral does not materially affect the capacity of the Board to use the DIF in accordance with Article 41a.

Added5. The Commission shall be empowered to adopt a delegated act in accordance with Article 93 in order to specify a risk-based method for the calculation of the amounts to be transferred to the DIF by the participating DGSs in accordance with paragraph 1 of this Article.

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Change 91

ChangedThe regulatory technicaldelegated standardsact shall include a calculation formula, specific indicators, risk classes for members, thresholds for risk weights assigned to specific risk classes, and other necessary elements. The degree of risk of each participating DGS shall be assessed taking into account all the credit institutions referred to in Article 2(2), point (b), affiliated to it on the basis of the following criteria:

Change 92

Changed(a) the level and quality of loss absorbing capacity of the institution;

(b) the institution’s ability to meet its short- and long-term obligations;

Change 93

Removed▌

Added(c) ▌;

Change 94

Changed(d) the quality of the institution’s assets, including its level II and III assets;

Change 95

Changed(e) the institution’s business modelmodel, governance and management;

Change 96

Changed(f) the degree to which the institution’s assets are encumbered;encumbered.

Change 97

Changed(g)(fa) exposuresconcentration towithin centralexposures governmentof andthe centralcredit bankinstitution ofto theeach participating Member StateState’s wherecentral, theregional creditand institutionlocal isgovernment authorised;and central bank, where applicable;

Change 98

Removed(h) whether the credit institution is subject to prudential requirements under Directive EU/2013/36 and Regulation (EU) No 575/2013.

Added(fb) whether the institution is part of an IPS.

RemovedThe EBA shall submit those draft regulatory technical standards to the Commission by 6 months from the date of entry into force of this amending Regulation.

RemovedPower is delegated to the Commission to supplement this Directive by adopting the regulatory technical standards referred to in the first subparagraph of this paragraph in accoradance with Articles 10 to 14 of Regulation (EU) No 1093/2010.

Limits for mandatory lending during the build-up phase of the EDIS I

Change 99

ChangedParticipating DGSDGSs shall provide mandatory lending in accordance with Article 41ba of this Regulation starting from 1st of1 July following… 1[1 year afterfrom the date of entry into force of this amending RegulationRegulation] within the following limits:

Change 100

Changeda)(a) from the 1st of July following 1 year after date of entry into force of this amending Regulation, 65%60% of the minimum target level of each participating DGS;DGS, in accordance with Article 10(2), first subparagraph, of Directive 2014/49/EU;

Change 101

Changedb)(b) from the 1st of July following 2one yearsyear after the date of entry into force of this amending Regulation, 55%50% of the minimum target level of each participating DGS;DGS, in accordance with Article 10(2), first subparagraph, of Directive 2014/49/EU;

Change 102

Changedc)(c) from the 1st of July following 3two years after the date of entry into force of this amending Regulation, 45%40% of the minimum target level of each participating DGS;DGS, in accordance with Article 10(2), first subparagraph, of Directive 2014/49/EU;

Change 103

Changedd)(d) from the 1st of July following 4three years after the date of entry into force of this amending Regulation, 35%30% of the minimum target level of each participating DGS;DGS, in accordance with Article 10(2), first subparagraph, of Directive 2014/49/EU.

Change 104

Removede) from the 1st of July following 5 years after date of entry into force of this amending Regulation and until the build-up of the DIF is completed, 25% of the minimum target level of each participating DGS.

▸6 unchanged paragraphs

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1. The participating DGS shall take the necessary action to implement decisions referred to in this Regulation.

Subject to this Regulation, the participating DGS shall exercise its powers under national law transposing ▌Directive 2014/49/EU and in accordance with the conditions laid down in national law. The participating DGS shall fully inform the Board of the exercise of those powers.

2. Where a participating DGS has not applied or has not complied with a decision by the Board pursuant to this Regulation or has applied it in a way which poses a threat to the efficient implementation of EDIS I and to the objectives of this Regulation, the Board may order the participating DGS to adopt any necessary action to comply with the decision in question.

3. Where a participating DGS addressed a decision to a credit institution affiliated to it, including the invoicing of contributions, and the credit institution has intentionally or negligently not complied with that decision, the Board shall take a decision to instruct a participating DGS to charge interest on the credit institution in accordance with Article 38.

1. The Board shall decide to make a request to borrow for the DIF from deposit guarantee schemes within non-participating Member States in the event that:

Change 105

Changed(a) the available financing means of the DIF and the amounts raised under mandatory lending are not sufficient to cover the losses, costs or other expenses incurred by the use of the DIF pursuant to Article 41a;41a ;

(b) ▌

(c) the alternative funding means provided for in Article 74g are not immediately accessible on reasonable terms.

2. Those deposit guarantee schemes shall decide on such a request in accordance with Article 12 of Directive 2014/49/EU.

Change 106

Changed3. The Board may decide to lend to other deposit guarantee schemes within non-participating Member States upon request.request and up to a limit of 25% of the available financial means of the DIF. Such a decision shall be taken unanimously in the plenary session. Article 12 of Directive 2014/49/EU shall apply by analogy with respect to the borrowing conditions, except for paragraph (1), point (b).conditions.

Change 107

Changed1. The Board may contract for the DIF borrowings or other forms of support from institutions, financial institutions or other third parties, which offer better financial terms, at the most appropriate time so as to optimise the cost of funding and preserve its reputation. The proceeds of such borrowings shall be used exclusively to provide liquidity support or meet payment obligations towards participating DGSs, in the event that the amounts raised in accordance with ArticleArticles 74c ▌are not immediately accessible or do not cover the amounts claimed from the DIF in relation to the use of DGS funds referred to in Article 41a.