Changes from adopted text to adopted text

Removed9. Member States shall ensure that the claims of the resolution financing arrangement referred to in paragraph 8 of this Article and in Article 37(7) have, in their national laws governing normal insolvency proceedings, a preferred priority ranking, which shall be higher than the ranking provided for the claims of deposits and of deposit guarantee schemes pursuant to paragraph 1 of this Article.’;

Removed(56) Article 109 is amended as follows:

Removed(a) paragraphs 1 and 2 are replaced by the following:

Removed'1. Member States shall ensure that, where the resolution authorities take resolution action with respect to a credit institution, and provided that such action ensures that depositors continue to have access to their deposits, ▌the deposit guarantee scheme to which that credit institution is affiliated shall contribute the following amounts:

Removed(a) where the bail-in tool is applied, independently or in combination with the asset separation tool, the amount by which covered deposits would have been written down or converted in order to absorb the losses and recapitalise the institution under resolution pursuant to Article 46(1), had covered deposits been included within the scope of bail-in;

Removed(b) where the sale of business or the bridge institution tools are applied, independently or in combination with other resolution tools:

Removed(i) the amount necessary to cover the difference between the value of the covered deposits and of the liabilities with the same or a higher priority ranking than deposits and the value of the assets of the institution under resolution which are to be transferred to a recipient; and

Removed(ii) where relevant, an amount necessary to ensure the capital neutrality of the recipient following the transfer.

RemovedIn the cases referred to in the first subparagraph, point (b), where the transfer to the recipient includes deposits that are not covered deposits or other bail-inable liabilities and the resolution authority assesses that the circumstances referred to in Article 44(3) apply to those deposits or liabilities, the deposit guarantee scheme shall contribute:

Removed(a) the amount necessary to cover the difference between the value of deposits, including deposits that are not covered, and of the liabilities with the same or higher priority ranking than deposits and the value of the assets of the institution under resolution which are to be transferred to a recipient; and

Removed(b) where relevant, an amount necessary to ensure the capital neutrality of the transfer for the recipient.

RemovedMember States shall ensure that, once the deposit guarantee scheme has made a contribution in the cases referred to in the second subparagraph, the institution under resolution refrains from acquiring stakes in other undertakings as well as distributions in connection with Common Equity Tier 1 capital or payments on Additional Tier 1 instruments, or from other activities that may lead to an outflow of funds.

RemovedIn all cases, the cost of the contribution of the deposit guarantee scheme shall not be greater than the cost of repaying depositors as calculated by the deposit guarantee scheme under Article 11e of Directive 2014/49/EU.

RemovedWhere it is determined by a valuation under Article 74 that the cost of the deposit guarantee scheme’s contribution to resolution was greater than the losses it would have incurred had the institution been wound up under normal insolvency proceedings, the deposit guarantee scheme shall be entitled to the payment of the difference from the resolution financing arrangement in accordance with Article 75.

Removed2. Member States shall ensure that the resolution authority determines the amount of the contribution of the deposit guarantee scheme in accordance with paragraph 1 after having consulted the deposit guarantee scheme 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 36 of this Directive.

RemovedThe resolution authority shall notify its decision as referred to in the first subparagraph to the deposit guarantee scheme to which the institution is affiliated. The deposit guarantee scheme shall implement that decision without delay.’;

Removed(b) the following paragraphs 2a and 2b are inserted:

Removed‘2a. Where the funds of the deposit guarantee scheme are used in accordance with paragraph 1, first subparagraph, point (a), to contribute to the recapitalisation of the institution under resolution, Member States shall ensure that the deposit guarantee scheme transfers its holdings of shares or other capital instruments in the institution under resolution to the private sector as soon as commercial and financial circumstances allow.

RemovedMember States shall ensure that the deposit guarantee scheme markets the shares and other capital instruments referred to in the first subparagraph openly and transparently, and that the sale does not misrepresent them or discriminate between potential purchasers. Any such sale shall be made on commercial terms.

Removed2b. The contribution of the deposit guarantee scheme pursuant to paragraph 1, second subparagraph, shall count towards the thresholds laid down in Article 44(5), point (a), and in Article 44(8), point (a).

RemovedWhere the use of the deposit guarantee scheme pursuant to paragraph 1, second subparagraph, together with the contribution to loss absorption and recapitalisation made by the shareholders and the holders of other instruments of ownership, the holders of relevant capital instruments and other bail-inable liabilities, allows for the use of the resolution financing arrangement, the contribution of the deposit guarantee scheme shall be limited to the amount necessary to meet the thresholds laid down in Article 44(5), point (a), and in Article 44(8), point (a). Following the contribution of the deposit guarantee scheme, the resolution financing arrangement shall be used in accordance with the principles governing the use of the resolution financing arrangement set out in Articles 44 and 101.

RemovedBy way of derogation from the limitation on contributions from the deposit guarantee scheme under the second subparagraph of this paragraph, where the conditions under Article 44(7) are fulfilled, an additional contribution of the deposit guarantee scheme shall be required. That additional contribution shall be equal to the amount contributed by the resolution financing arrangement above the 5% limit specified in Article 44(5), point (b), multiplied by the share of covered deposits as part of the total liabilities in the scope of the transfer.

RemovedHowever, the first and the second subparagraphs shall not apply to institutions that meet at least one of the following conditions:

Removed(a) the institution has been identified as a liquidation entity in the group resolution plan or in the resolution plan.’;

Removed(b) the institution has breached its intermediate or final MREL target, as appropriate, in four quarters within four years ending 6 months prior to the determination of failing or likely to fail pursuant to Article 32(1), point (a). The four-year-period does not take into account the two consecutive quarters immediately preceding such determination of failing or likely to fail.

Removed(c) paragraph 3 is deleted;

Removed(d) in paragraph 5, the second and third subparagraphs are deleted;

Removed(57) in Article 111(1), the following point (e) is added:

Removed‘(e) failure to comply with the minimum requirement for own funds and eligible liabilities referred to in Article 45e or 45f.’;

Removed(58) Article 128 is amended as follows:

Removed(a) the title is replaced by the following:

Removed‘Cooperation and information exchange among institutions and authorities’;

Removed(b) the following paragraph is added:

Removed‘The resolution authorities, competent authorities, the EBA, the Single Resolution Board, the ECB and other members of the European System of Central Banks shall provide the Commission, upon its request and within the specified timeframe, with any information necessary for the performance of its tasks related to policy development, including the carrying out of impact assessments, the preparation of legislative proposals, and the participation in the legislative process. The Commission and the Commission staff shall be subject to the requirements of professional secrecy laid down in Article 88 of Regulation (EU) No 806/2014 of the European Parliament and of the Council* with regard to the information received.’;

Removed______________________________

Removed* Regulation (EU) No 806/2014 of the European Parliament and of the Council of 15 July 2014 establishing uniform rules and a uniform procedure for the resolution of credit institutions and certain investment firms in the framework of a Single Resolution Mechanism and a Single Resolution Fund and amending Regulation (EU) No 1093/2010 (OJ L 225, 30.7.2014, p. 1).

Removed(59) the following Article 128a is inserted:

Removed‘Article 128a

RemovedCrisis management simulations

Removed1. EBA shall coordinate regular Union-wide exercises to test the application of this Directive, Regulation (EU) No 806/2014 and Directive 2014/49/EU in cross-border situations on all of the following aspects:

Removed(a) cooperation of the competent authorities during recovery planning;

Removed(b) cooperation among resolution authorities and competent authorities before the failure and during the resolution of financial institutions, including in the implementation of resolution schemes adopted pursuant to Article 18 of Regulation (EU) No 806/2014.

Removed2. EBA shall produce a report setting out the key findings and conclusions of the exercises. The report shall be made public.’.

RemovedArticle 2

RemovedTransposition

Removed1. Member States shall adopt and publish, by … [OP please insert the date = 18 months from the date of entry into force of this amending Directive] at the latest, the laws, regulations and administrative provisions necessary to comply with this Directive. They shall forthwith communicate to the Commission the text of those provisions.

RemovedThey shall apply those provisions from … [OP please insert the date = 1 day after the transposition date of this amending Directive].

RemovedWhen Member States adopt those provisions, they shall contain a reference to this Directive or be accompanied by such a reference on the occasion of their official publication. Member States shall determine how such reference is to be made.

Removed2. Member States shall communicate to the Commission the text of the main provisions of national law which they adopt in the field covered by this Directive.

RemovedArticle 3

RemovedEntry into force

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

RemovedArticle 4

RemovedAddressees

RemovedThis Directive is addressed to the Member States.

RemovedDone at …,

RemovedFor the European Parliament For the Council

RemovedThe President The President