Changes from report parliamentary committee draft to plenary report

Added▌

Added‘6. After hearing the Board, in its plenary session, the Commission shall provide to the European Parliament a gender-balanced shortlist of candidates for the positions of Chair, Vice-Chair and members referred to in Article 43(1)(b) and inform the Council of the shortlist. The European Parliament may conduct hearings of the candidates on that shortlist. In accordance with the outcome in the European Parliament, the Commission shall submit a proposal for the appointment of the Chair, the Vice-Chair and the members referred to in Article 43(1)(b) to the European Parliament for approval. Following the approval of that proposal, the Council shall adopt an implementing decision to appoint the Chair, the Vice-Chair and the members referred to in Article 43(1)(b). The Council shall act by qualified majority.’;

Added▌

Added(e) in paragraph 7, the last sentence is replaced by the following:

Added‘The Chair, the Vice-Chair, and the members referred to in Article 43(1), point (b) shall remain in office until their successors are appointed and have taken up their duties in accordance with the Council decision referred to in paragraph 6 of this Article.’;

Added(ea) paragraph 8 is deleted.

Added(35) Article 61 is replaced by the following:

Added‘Article 61

AddedEstablishment of the budget

Added1. By 31 March each year, the Chair shall draw up a preliminary draft budget of the Board, including a statement of estimates of the Board’s revenue and expenditure for the following year, together with the establishment plan, for the following year and submit it to the Board in its plenary session.

AddedThe Board in its plenary session shall, where necessary, adjust the preliminary draft budget of the Board together with the draft establishment plan.

Added2. On the basis of the preliminary draft budget as adopted by the Board in its plenary session, the Chair shall draw up a draft budget of the Board and submit it to the Board in its plenary session for adoption.

AddedBy 30 November each year, the Board in its plenary session shall adjust the draft budget submitted by the Chair, where necessary, and adopt the final budget of the Board together with the establishment plan.’;

Added(35a) in Article 62, paragraph 3 is replaced by the following:

Added‘3. The reponsibility for adopting internal control standards and putting in place internal control systems and procedures suitable for performing the tasks of the internal auditor shall lie with the Board in its plenary session.’;

Added(36) in Article 69, paragraph 4 is replaced by the following:

Added‘4. If, after the initial period referred to in paragraph 1, the available financial means fall below the target level specified in that paragraph, the regular contributions calculated in accordance with Article 70 shall be raised until the target level is reached. The Board may defer the collection of the regular contributions raised in accordance with Article 70 for up to three years to ensure that the amount to be collected reaches an amount that is proportionate to the costs of the collection process, provided that such deferral does not materially affect the capacity of the Board to use the Fund pursuant to Section 3. After the target level has been reached for the first time and where the available financial means have subsequently been reduced to less than two-thirds of the target level, those contributions shall be set at a level allowing for reaching the target level within four years.’;

Added(37) Article 70 is amended as follows:

Added(a) paragraph 3 is replaced by the following:

Added‘3. The available financial means to be taken into account in order to reach the target level specified in Article 69 may include irrevocable payment commitments which are fully backed by collateral of low-risk assets unencumbered by any third-party rights, at the free disposal of and earmarked for the exclusive use by the Board for the purposes specified in Article 76(1). The share of those irrevocable payment commitments shall not exceed 30 % of the total amount of contributions raised in accordance with this Article. Within that limit, the Board shall determine annually the share of irrevocable payment commitments in the total amount of contributions to be raised in accordance with this Article.’;

Added(b) the following paragraph 3a is inserted:

Added‘3a. The Board shall call the irrevocable payment commitments made pursuant to paragraph 3 of this Article when the use of the Fund is needed pursuant to Article 76.

AddedWhere an institution or entity stops being within the scope of Article 2 and is no longer subject to the obligation to pay contributions in accordance with paragraph 1 of this Article, the Board shall call the irrevocable payment commitments made pursuant to paragraph 3 and still due. If the contribution linked to the irrevocable payment commitment is duly paid at first call, the Board shall cancel the commitment and return the collateral. If the contribution is not duly paid at first call, the Board shall seize the collateral and cancel the commitment.’;

Added(38) in Article 71(1), the second subparagraph is replaced by the following:

Added‘The total amount of extraordinary ex-post contributions per year shall not exceed three times 12,5 % of the target level.’;

Added(39) in Article 74, the following paragraph is inserted:

Added‘The Board shall inform the Commission and the ECB as soon as it considers that it may be necessary to activate financial arrangements contracted for the Fund in accordance with this Article, and shall provide the Commission and the ECB with all information necessary for the performance of their tasks in respect of such financial arrangements.’;

Added(40) Article 76 is amended as follows:

Added(a) paragraph 3 is replaced by the following:

Added‘3. Where the Board determines that the use of the Fund for the purposes referred to in paragraph 1 is likely to result in part of the losses of an entity referred to in Article 2 being passed on to the Fund, the principles governing the use of the Fund set out in Article 27 shall apply.’;

Added(b) the following paragraphs 5 and 6 are added:

Added‘5. Where the resolution tools referred to in Article 22(2), point (a) or (b), are used to transfer only part of the assets, rights or liabilities of the institution under resolution, the Board shall have a claim against the residual entity for any expense and loss incurred by the Fund as a result of any contributions made to resolution pursuant to paragraphs 1 and 2 of this Article in connection to losses which creditors would have otherwise borne.

Added6. The claims of the Board referred to paragraph 5 of this Article and in Article 22(6) shall, in each participating Member State, have the same priority ranking as the claims of the national resolution financing arrangements in the national law of that Member State governing normal insolvency proceedings pursuant to Article 108(9) of Directive 2014/59/EU.’;

Added(41) Article 79 is amended as follows:

Added(a) paragraphs 1, 2 and 3 are replaced by the following:

Added‘1. Participating Member States shall ensure that when the Board takes resolution action with respect to a credit institution, provided that such action ensures that depositors of covered deposits, and natural persons as well as micro, small and medium-sized enterprises who hold eligible deposits, continue to have access to their deposits, to prevent such depositors from bearing losses, the deposit guarantee scheme to which that credit institution is affiliated shall contribute for the purposes and under the conditions laid down in Article 109 of Directive 2014/59/EU.

Added2. The Board, in close cooperation with the deposit guarantee scheme, shall determine the amount of the contribution of the deposit guarantee scheme in accordance with paragraph 1 after having consulted the deposit guarantee scheme, and where necessary the designated authority within the meaning of Article 2(1), point (18), of Directive 2014/49/EU, on the estimated cost of repaying depositors pursuant to Article 11e of Directive 2014/49/EU and in compliance with the conditions referred to in Article 20 of this Regulation.

Added3. The Board shall notify its decision as referred to in the first subparagraph to the designated authority within the meaning of Article 2(1), point (18), of Directive 2014/49/EU and to the deposit guarantee scheme to which the institution is affiliated. The deposit guarantee scheme shall implement that decision without delay.’;

Added(b) in paragraph 5, the second and third subparagraph are deleted;

Added(41a) the following articles are inserted:

Added‘Article 79a

AddedReporting on liquidity in resolution

AddedBy 31 December 2024 the Commission shall report, to the European Parliament and to the Council, on the issue of liquidity in resolution.

AddedThe report shall examine whether a temporary liquidity shortfall after recapitalisation of an institution in resolution is caused inter alia by a missing instrument in the resolution toolbox and shall examine the most efficient ways to address temporary liquidity shortfalls, taking into consideration the practices in other jurisdictions. The report shall present concrete policy options.

AddedBy 31 December 2026, in the context of the resumption of banking union discussions, the Commission shall report to the European Parliament and to the Council on the effectiveness and scope of the internal loss transfer mechanism within resolution groups resulting from the reform of the crisis management framework.

AddedIn particular, the report shall take stock of the scope of resolution, the level of compliance with internal MREL targets, conditions to access the industry funded safety nets, in particular the Fund.’;

Added(42) in Article 85(3), the words ‘referred to in’ are replaced by the words ‘adopted under’;

Added(43) in Article 88, the following paragraph 7 is added:

Added‘7. This Article shall not prevent the Board from disclosing its analyses or assessments, including when they are based on information provided by the entities referred to in Article 2 or other authorities as referred to in paragraph 6 of this Article, when the Board assesses that the disclosure would not undermine the protection of the public interest as regards financial, monetary or economic policy and that there is a public interest in disclosing which overrides any other interests referred to in paragraph 5 of this Article. Such disclosure shall be considered to be made by the Board in the exercise of its functions under this Regulation for the purposes of paragraph 1 of this Article.’;

Added(43a) in Article 94(1), the following point is inserted:

Added‘(aa) the interplay between the existing framework and the establishment of the European Deposit Insurance Scheme.’

AddedEntry into force and application

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

AddedIt shall apply from … [OP please insert the date = 12 months from the date of entry into force of this amending Regulation].

AddedHowever, Article 1, points (1)(a), points (2) and, (3), point (4)(a), point (5)(a), (b) and (c)(i) and (ii), point (6)(a), point (7), point (13)(a)(i) and (b), point (14)(a), (b) and (d), point (19)(d) and (e), point (21), point (23)(a)(i), first indent, (b) and (d), points (25) to (35), and points (39), (42) and (43), shall apply from … [OP please insert the date = 1 month from the date of entry into force of this amending Regulation].

AddedThis Regulation shall be binding in its entirety and directly applicable in all Member States.

AddedDone at Strasbourg,

AddedFor the European Parliament For the Council

AddedThe President The President