Changes from report parliamentary committee draft to plenary report

▸9 unchanged paragraphs

2. The borrowing or other forms of support referred to in paragraph 1 shall be fully recouped in accordance with Article 74c▌.

3. Any expenses incurred by the use of the borrowings specified in paragraph 1 shall be borne by Part III of the budget of the Board and not by the Union budget or the participating Member States.

4. The Board may decide to invest proceeds from borrowings in accordance with Article 75 in order to protect their real value.";

35. in Chapter 2 of Title V of Part III, the heading of Section 2 is replaced by "Administration of the SRF and DIF".

36. Article 75 is replaced by the following:

"Article 75 Investments

1. The Board shall administer the SRF and the DIF in accordance with this Regulation and delegated acts adopted under paragraph 4.

2. The amounts received from an institution under resolution or a bridge institution, the interests and other earnings on investments and any other earnings shall benefit only the SRF and the DIF.

3. The Board shall have a prudent and safe investment strategy that is provided for in the delegated acts adopted pursuant to paragraph 4 of this Article, and shall invest the amounts held in the SRF and the DIF in obligations of the Member States or intergovernmental organisations, or in highly liquid assets of high creditworthiness, taking into account the delegated act referred to in Article 460 of Regulation (EU) No 575/2013 as well as other relevant provisions of that Regulation. Investments shall be sufficiently sectorally, geographically and proportionally diversified. The return on those investments shall benefit the SRF and the DIF respectively.

Change 108

Changed4. The Commission shall be empowered to adopt delegated acts on the detailed rules for the administration of the SRF and the DIF and general principles and criteria for their investment strategy, in accordance with the procedure laid down in Article 93.";93. Those delegated acts shall also clearly define ‘low-risk assets’ within the meaning of Article 3(1), point (57).";

Change 109

Removed37. ▌

38. in Title VI of Part III, in Article 81(4), Article 83(2) and (3), Article 87(4), Article 88(2) and (6), the words "national resolution authority" are replaced by "national resolution authority, participating DGS or designated authorities where relevant" and the words "national resolution authorities" are replaced by "national resolution authorities, participating DGS or designated authorities where relevant";

Change 110

Added38a. in Article 92, paragraph 2 is replaced by the following:

Added‘2. Each report shall examine whether:

Added(a) sufficient regard was given to the economy, efficiency and effectiveness with which the SRF and the DIF have been used, in particular the need to minimise the use of the SRF and the DIF;

Added(b) the assessment of Fund aid was efficient and rigorous.’;

▸7 unchanged paragraphs

39. Article 93 is amended as follows:

(a) paragraph 2 is replaced by the following:

"2. The delegation of power referred to in Article 19(8), Article 65(5), Article 69(5), Article 71(3), Article 74b (5), Article 74c (5), Article 74d(4) and Article 75(4) shall be conferred for an indeterminate period of time from the relevant dates referred to in Article 99.";

(b) paragraph 4 is replaced by the following:

"4. The delegation of power referred to in Article 19(8), Article 65(5), Article 69(5), Article 71(3), Article 74b (5), Article 74c (5), Article 74d(4) and Article 75(4) may be revoked at any time by the European Parliament or by the Council. A decision of revocation shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.";

(c) paragraph 6 is replaced by the following:

"6. A delegated act adopted pursuant to Article 19(8), Article 65(5), Article 69(5), Article 71(3), Article 74b (5), Article 74c (5), Article 74d(4) and Article 75(4) shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of three months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by three months at the initiative of the European Parliament or the Council.";

Change 111

Removed39a. in Article 94, the following paragraph is added:

Added39a. the following articles are inserted:

Removed‘4. By 31 December one year after entry into force of this amending Regulation the Commission shall review the functioning of EDIS I. The review shall asess in particular the following:

Added‘Article 94a

Removed(a) the adequacy of funding mechanism and target level of EDIS I and the cases of use of the liquidity mechanism;

AddedEDIS I review

Removed(b) the scope of measures financed by EDIS I under article 41a and the entities referred tp in Article 2(2), point (b);

AddedFrom … [the date of entry into force of this amending Regulation], the Commission shall, in close collaboration with the SRB, the EBA and the ECB, continuously review the functioning of EDIS I.

Removed(c) the appropriateness of an extension of EDIS I from providing liquidity support to deposit insurance mechanisms.

AddedBy … [4 years from the date of entry into force of this amending Regulation], the Commission shall submit a report to the European Parliament and the Council.

Removed(d) the appropriateness of introducing a publicly funded backstop mechanism or the DIF.

AddedOn the basis of that report, the Commission shall, where appropriate, submit a legislative proposal to the European Parliament and the Council.;

RemovedThe Commission shall submit a report to the European Parliament and the Council. Where appropriate the review shall be accompanied with a legislative proposal.

AddedCompletion of EDIS review

AddedFrom … [the date of entry into force of this amending Regulation], the Commission shall, in close collaboration with the SRB, the EBA and the ECB, continuously review the appropriateness of extending EDIS I from the provision of liquidity support to the establishment of a full insurance scheme with loss coverage, considering the following:

Added(a) the establishment of a dedicated European Deposit Insurance Scheme for institutions that are members of institutional protection schemes as referred to in Article 113(7) of Regulation (EU) No 575/2013, the introduction of a dedicated target level of the DIF referred to in Article 74b of this Regulation, and changes in the legal sequencing of the use of additional preventitative measure funds, in order to reflect their risk mitigation characteristics, while preserving the level playing field within the internal market;

Added(b) the target level referred to in Article 10 of Directive 2014/49/EU, to reflect the changes in likelihood and sizes of liquidity shortfalls due to the positive impact on depositor confidence and financial stability of pooling resources, considering changes to the tasks and responsibilities of participating DGS as part of any future review of Directive 2024/49/EU, as well as the convergence to equal target level contributions to the DIF, as the percentage of DGS resources transferred to the DIF reaches 100%;

Added(c) the appropriateness of introducing a publicly-funded backstop mechanism to support the DIF.

AddedThe Commission shall submit a report to the European Parliament and the Council by … [4 years from the date of entry into force of this amending Regulation].On the basis of that report the Commission shall, where appropriate, submit a legislative proposal to the European Parliament and the Council, provided that

Added(a) sufficient progress has been made on the framework for NPLs in order to lower associated risks for credit institutions;

Added(b) a targeted asset quality review of a a representative sample of less significant institutions referred to in Article 6(4) of Council Regulation (EU) No 1024/2013 has been performed.

AddedCompletion of the banking union review

AddedWith the aim of a timely completion of the banking union, from … [the date of entry into force of this amending Regulation], the Commission shall assess the following interconnected legislative building blocks of the internal market for banking:

Added(a) the appropriateness of amending the capital and liquidity waivers referred to in Articles 7(1) and 8(1) of Regulation (EU) No 575/2013, allowing for the application of those waivers to a subsidiary that is subject to authorisation and supervision by a Member State other than the Member State that authorises and supervises the institution which is the parent undertaking, taking into account developments in other areas of burden sharing;

Added(b) the appropritateness of amending the level of application of the output floor referred to in Article 92 of Regulation (EU) No 575/2013, allowing banking groups to apply the output floor at the highest level of consolidation, taking into account developments in other areas of burden sharing;

Added(c) the progress on legislation and reviews on risk reduction including enhancing the ability of credit institutions to recover value from collateral provided to secure loans in a swifter manner and a targeted asset quality review of a representative sample of less significant institutions referred to in Article 6(4) of Council Regulation (EU) No 1024/2013;

Added(d) the treatment of debt, considering greater diversification of banks’ sovereign bond holdings and the progress at international level on the regulatory treatment of sovereign exposures;

Added(e) the appropriateness of extending EDIS I from the provision of liquidity support to the establishment of a full insurance scheme with loss coverage.

AddedThe Commission shall, by … [4 years from the date of entry into force of this amending Regulation], submit a report to the European Parliament and the Council.

AddedOn the basis of that report, the Commission shall, where appropriate, submit a legislative proposal to the European Parliament and the Council.’;

40. in Article 99, the following paragraph 5a is inserted:

Change 112

Changed"5a. By way of derogation from paragraph 2, Article 1(2), Part IIa and Part III, Title V Chapter 2 Section 1a shall apply from one[OP insert date of theentry followinginto dates,force whiceverof thethis latest:Regulation]";

Change 113

Removeda) date of entry into force of this amending Regulation;

Removedb) date of entry into force of the Directive on accelerated extrajudicial collateral enforcement mechanism (AECE);

Removedc) date of completion of a targeted asset quality review of all less significant institutions referred to in Article 6(4) of Council Regulation (EU) No 1024/2013 of 15 October 2013 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions.

41. throughout Regulation (EU) No 806/2014, the word "the Fund" is replaced with "the SRF".

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.