European Parliament decision to raise no objections to the Commission delegated regulation of 28 May 2020 amending Delegated Regulation (EU) 2016/101 of 26 October 2015 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for prudent valuation under Article 105(14) of Regulation (EU) No 575/2013 (C(2020)03428 — 2020/2668(DEA))
Date: 2020-06-18
Institutions: Committee on Economic and Monetary Affairs, European Parliament
Subjects: banking policy, coronavirus disease, credit institution, epidemic, financial instrument, financial legislation, financial management, investment company, private-sector liquidity, technical standard








C_2021362EN.01017901.xml










8.9.2021   


EN


Official Journal of the European Union


C 362/179






P9_TA(2020)0155
Non-objection to a delegated act: regulatory technical standards for prudent valuation
European Parliament decision to raise no objections to the Commission delegated regulation of 28 May 2020 amending Delegated Regulation (EU) 2016/101 of 26 October 2015 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for prudent valuation under Article 105(14) of Regulation (EU) No 575/2013 (C(2020)03428 — 2020/2668(DEA))
(2021/C 362/37)

The European Parliament,






—


having regard to the Commission delegated regulation (C(2020)03428),










—


having regard to the Commission’s letter of 29 May 2020 asking Parliament to declare that it will raise no objections to the delegated regulation,










—


having regard to the letter from the Committee on Economic and Monetary Affairs to the Chair of the Conference of Committee Chairs of 9 June 2020,










—


having regard to Article 290 of the Treaty on the Functioning of the European Union,










—


having regard to Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (1), and in particular Article 105(14) thereof,










—


having regard to Article 13 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (2),










—


having regard to the draft regulatory technical standard submitted by the European Banking Authority (EBA/RTS/2020/04) on 22 April 2020 pursuant to Article 105(14) of Regulation (EU) No 575/2013,










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having regard to Rule 111(6) of its Rules of Procedure,










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having regard to the recommendation for a decision of the Committee on Economic and Monetary Affairs,










A.


whereas the delegated act temporarily amends the prudential banking framework in response to the COVID-19 outbreak; in particular to mitigate the impacts of the extreme market volatility on the prudent valuation framework, the delegated act increases the aggregation factor used to calculate the total additional valuation adjustments (‘AVA’) amount under the ‘core approach’ from 50 % to 66 % until 31 December 2020 to allow institutions to weather out the current extreme market volatility; this would reduce the total AVAs amount, hence reducing the amount deducted from institutions’ Common Equity Tier 1 (CETI) capital;










B.


whereas this delegated act should enter into force as soon as possible in order to ensure swift capital relief for institutions still during this quarter and until the end of the year;












1.


Declares that it has no objections to the delegated regulation;












2.


Instructs its President to forward this decision to the Council and the Commission.






(1)  OJ L 176, 27.6.2013, p. 1.

(2)  OJ L 331, 15.12.2010, p. 12.