What changed between the draft committee report and the plenary report

Changed:(11)(12) Furthermore, EDIS I is part of the wider EU rules harmonising prudential supervision and recovery and resolution, which are complementary aspects of the internal market for banking services. Supervision can only be effective and meaningful if an adequate deposit insurance scheme, corresponding to the developments in the field of supervision, is created. EDIS I is therefore instrumental to a wider process of harmonisation and its objectives are closely linked to the Union framework on prudential supervision and recovery and resolution whose centralised application are mutually dependant. For instance, adequate coordination at the level of supervision and deposit guarantee is needed in cases where the European Central Bank (ECB) envisages withdrawing an authorisation to a credit institution or where a credit institution does not comply with the obligation to be a member of a DGS. A similar high level of integration is needed between the resolution actions and the deposit insurance tasks attributed to the Board.

Removed:(12) This Regulation applies only in respect of banks whose home supervisor is the ECB or the national competent authority in Member States whose currency is the euro or in Member States whose currency is not the euro which have established a close cooperation in accordance with Article 7 of Regulation (EU) No 1024/2013. The scope of application of this Regulation is linked to the scope of application of Regulation (EU) No 1024/2013. Indeed, bearing in mind the significant level to which the supervisory tasks attributed to the SSM and deposit guarantee actions are interwoven, the establishment of a centralised system of supervision operated under Article 127(6) of the Treaty on the Functioning of the European Union is fundamentally important to the process of harmonisation of deposit guarantee in participating Member States. The fact of being subject to supervision by the SSM constitutes a specific attribute that places the entities falling within the scope of application of Regulation (EU) No 1024/2013 in an objectively and characterised distinct position for deposit guarantee purposes. It is necessary to adopt measures to create a single deposit insurance scheme for all Member States participating in the SSM in order to facilitate the proper and stable functioning of the internal market.

Added:(13) This Regulation applies ▌in respect of banks which are members of participating DGSs in Member States whose currency is the euro or in Member States whose currency is not the euro which have established a close cooperation in accordance with Article 7 of Regulation (EU) No 1024/2013. ▌

Changed:(13)(14) In order to ensure parallelism with the SSM and the SRM, EDIS I should apply to participating Member States. Banks established in the Member States not participating in the SSM should not be subject to EDIS.EDIS I. As long as supervision in a Member State remains outside the SSM, that Member State should remain responsible for ensuring the protection of depositors against the consequences of the insolvency of a credit institution. As Member States join the SSM, they should also automatically become subject to the EDIS.EDIS I. Ultimately, the EDIS I could potentially extend to the entire internal market.

Changed:(14)(15) In order to ensure a level playing field within the internal market as a whole, this Regulation is consistent with Directive 2014/49/EU. It complements the rules and principles of that Directive to ensure the proper functioning of EDIS I and that appropriate funding is available to the latter. The material law on deposit guarantee to be applied within the EDIS I framework will therefore be consistent with the one applicable by the national DGSs or designated authorities of the non-participating Member States, harmonised through the Directive 2014/49/EU.

Removed:(16) EDIS should progressively evolve from a reinsurance scheme into a fully mutualised co-insurance scheme over a number of years. In the context of efforts to deepen the EMU, together with the work on the establishment of bridge-financing arrangements for the Single Resolution Fund (SRF) and on developing a common fiscal backstop, this step is necessary to reduce the bank/sovereign links in individual Member States by means of steps towards risk sharing among all the Member States in the Banking Union, and thereby to reinforce the Banking Union in achieving its key objective. However, such risk sharing implied by steps to reinforce Banking Union must proceed in parallel with risk reducing measures designed to break the bank-sovereign link more directly.

Added:▌

Removed:(17) EDIS should be established in three sequential stages, first a reinsurance scheme that covers a share of the liquidity shortfall and of the excess losses of participating DGSs, followed by a co-insurance scheme that covers a gradually increasing share of the liquidity shortfall and losses of participating DGSs and eventually resulting in a full insurance scheme that covers all liquidity needs and losses of participating deposit guarantee schemes.

Added:(18) This amending Regulation establishes the modalities for the use of the Deposit Insurance Fund and the general criteria to determine the fixing and calculation of contributions and lays down the powers of the Board for using and managing the Deposit Insurance Fund. The Deposit Insurance Fund could provide liquidity support where the available financial means of a DGS are used for payout, in the context of resolution in accordance with Regulation (EU) 806/2014, or for the measures referred to in Article 11(3) or (6) of Directive 2014/49/EU. Liquidity support should be kept at ten times the target level of the participating DGS and thereby significantly increase the available financial means to protect depositors.

Changed:(18) In the reinsurance stage, and(19) in▌In order to limit the liability for the European Deposit Insurance Fund (“the Deposit Insurance Fund”) and to reduce moral hazard risk at the national level, assistance from the Deposit Insurance Fund can only be requested if the nationalparticipating DGS has raised ex-ante contributions in accordance with aArticle precise10 fundingof path,Directive 2014/49/EU and if it▌these firstfunds depleteswould thesenot funds.be sufficient. However, to the extent that a national DGS has collected funds over and above that which is required by the funding path, it only needs to use up the funds it had to collect to comply with the funding path before being able to receive coverageliquidity support by EDIS.EDIS I. Therefore, DGSs which have collected more funds than is needed to comply with the funding path should not be in a worse position than those which have collected funds not exceeding the levels set out in the funding path. Liquidity support from the Deposit Insurance Fund (DIF) should be available only after funds from participating DGSs have been used. However, spending the necessary administrative expenses of the participating DGS should not be considered as a condition to access funds from the DIF. Additionally, the procedure of preliminary information and the duty to notify the Board should ensure that the necessary liquidity support is provided at an appropriate time before the complete depletion of the funds of a participating DGS.

Removed:(19) As the Deposit Insurance Fund, in the re-insurance stage, would only provide an additional source of funding and would only weaken the link between banks and their national sovereign, without however ensuring that all depositors in the Banking Union enjoy an equal level of protection, the reinsurance stage should, after three years, gradually progress into a co-insurance scheme and ultimately into a fully mutualised deposit insurance scheme.

Added:(19a) In cases where the DIF funds are insufficient to provide the amount of liquidity support to a participating DGS, all other participating DGSs should be obliged to lend to the DIF upon the request of the Board. That mandatory lending should be kept to 30% of the target level of each lending DGS. The Board should always take into consideration the effect on financial stability when making a decision on mandatory lending. Before the DIF is fully funded, the cap on mandatory lending should decrease evenly from 60% to 30% of the target level of each DGS.

Removed:(20) While the reinsurance and coinsurance stages would share many common features, ensuring a smooth gradual evolution, pay-outs under the co-insurance stage would be shared between national DGS and the Deposit Insurance Fund as of the first euro of loss. The relative contribution from the Deposit Insurance Fund would gradually increase to 100 percent, resulting in the full mutualisation of depositor risk across the Banking Union after four years.

Added:(19b) If a DGS has received liquidity support from the DIF or via mandatory lending from other participating DGSs, that liquidity support should be repaid within six years in accordance with a clear repayment plan and as a matter of priority for the DGS that received the liquidity support. Repaying the liquidity support within the agreed timeframe should take priority over all other liabilities of the DGS that are not outstanding at the moment of the provision of the liquidity support. It is the legal responsibility of the participating DGS to meet and maintain both the target level of the DGS and of the DIF.

Changed:(28) The initial and(29) finalThe▌ target level of the Deposit Insurance Fund should be established as a percentage of the total minimum target levels of participating DGS. It should progressively reach 20% of four ninth of the total minimum target levels by the end of the reinsurance period and the sum of all minimum target levels by the end of the co-insurance period. The▌The possibility to apply for approval to authorise a lower target level in accordance with Article 10(6) of Directive 2014/49/EU should not be considered when setting the initial or final target▌target levels of the Deposit Insurance Fund. An appropriate time frame should be set to reach the target level for the Deposit Insurance Fund. The setting of that timeframe should not prevent a national DGS from granting a deferral for the transfer of contributions following an intervention.

Removed:(29) Ensuring effective and sufficient financing of the Deposit Insurance Fund is of paramount importance to the credibility of EDIS. The capacity of the Board to contract alternative funding means for the Deposit Insurance Fund should be enhanced in a manner that optimises the cost of funding and preserves the creditworthiness of the Deposit Insurance Fund. Immediately after the entry into force of this Regulation, the necessary steps should be taken by the Board in cooperation with the participating Member States to develop the appropriate methods and modalities permitting the enhancement of the borrowing capacity of the Deposit Insurance Fund that should be in place by the date of application of this Regulation.

Added:(29a) In order to ensure the availability of liquidity support as from the entry into force of this amending Regulation, a proportionally higher amount of funds in participating DGSs should be available for mandatory lending during the build-up period of the DIF.

Removed:(30) It is necessary to ensure that the Deposit Insurance Fund is fully available for the purpose of ensuring the guarantee of deposits. Therefore, the Deposit Insurance Fund should primarily be used for the efficient implementation of deposit guarantee requirements and actions. Furthermore, it should be used only in accordance with the applicable deposit guarantee objectives and principles. Under certain conditions, the Deposit Insurance Fund could also provide funding where the available financial means of a DGS are used in resolution in accordance with Article 79 of this Regulation.

Added:▌

Changed:(33)(34) In order to guarantee its full autonomy and independence when undertaking deposit insurance actions under this Regulation, the Board should have an autonomous budget with revenues from obligatory contributions collected from the institutions in the participating Member States. This Regulation should be without prejudice to the ability of Member States to levy fees to cover the administrative expenses of their national DGSs or designated authorities.

Changed:(34)(35) The Board, where all the criteria relating to the use of the Deposit Insurance Fund are met, should provide the relevant funding and lossliquidity coversupport to the nationalparticipating DGS.

Changed:(35)(36) The Board should operate in joint-plenary, plenary and executive sessions. The Board, in its executive session, should prepare all decisions concerning pay-outprovision proceduresof liquidity and, to the fullest extent possible, adopt those decisions. Regarding the use of the Deposit Insurance Fund, it is important that there is no first-mover advantage and that the outflows of the Deposit Insurance Fund are monitored. Once▌Once the net accumulated use of the Deposit Insurance Fund in the previous consecutive 12 months reaches the threshold of 25% of the final target▌target level, the plenary session should evaluate the application of the deposit insurance actions or the participations in resolution actions and the use of the Deposit Insurance Fund, and should provide guidance which the executive session should follow in subsequent decisions. Guidance to the executive session should, in particular, focus on ensuring the non-discriminatory application of deposit insurance actions or participation in resolution actions, on measures to be taken to avoid a depletion of the Deposit Insurance Fund.

Changed:(36)(37) The efficiency and uniformity of deposit insurance actions should be ensured in all of the participating Member States. For that purpose, 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 any of the deposit insurance scheme's objectives or to the efficient implementation of the deposit insurance action, the Board should be empowered to order any necessary action which significantly addresses the concern or threat to the EDIS I objectives. Any action by a participating DGS that would restrain or affect the exercise of powers or functions of the Board should be excluded.

Removed:(38) The Board, the designated authorities, the competent authorities, including the ECB, and the resolution authorities should, where necessary, conclude a memorandum of understanding describing in general terms how they will cooperate with one another in the performance of their respective tasks under Union law. The memorandum should be reviewed on a regular basis.

Added:▌

Removed:(40) The Board and the designated authorities and competent authorities of the non-participating Member States should also conclude memoranda of understanding describing in general terms how they will cooperate with one another in the performance of their tasks under Directive 2014/49/EU. The memoranda of understanding could, inter alia, clarify the consultation relating to decisions of the Board that have effect on branches located in the non-participating Member States, where the credit institution is established in a participating Member State. The memoranda should be reviewed on a regular basis.

Added:▌

Changed:(44)(45) The Commission should review the application of this Regulation in order to assess its impact on the internal market and to determine whether any modifications or further developments are needed in order to improve the efficiency and the effectiveness of the EDIS I. The review should be conducted independently from any assessment of the necessity of a fully-fledged EDIS.

Removed:(45) In order for EDIS to function in an effective manner as of [….], the provisions concerning the payment of contributions to the Deposit Insurance Fund, the establishment of all the relevant procedures and any other operational and institutional aspects should apply from XX.

Added:(45a) The Commission should 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. The Commission should consider the treatment of institutional protection schemes, changes to the general DGS target level, convergence of contributions to the DIF and the need for a publicly funded backstop mechanism. Sufficient progress on the NPL (non-performing loans) framework and an asset quality review of less significant institutions should be a condition for making any legislative proposals.

Removed:(46) Regulation (EU) No 806/2014 should be amended to incorporate and respectively take into account the establishment of EDIS,

Added:(45b) This amending Regulation sets out a clear path to complete the long overdue banking union. Apart from the completion of EDIS, there are interconnected and incomplete legislative building blocks of the internal market for banking which should be assessed. The Commission should consider amending the capital and liquidity waivers and the level of application of the output floor in Regulation (EU) No 575/2013 of the European Parliament and of the Council, as well as progress on legislation and reviews on risk reduction and the diversification of banks’ sovereign bond holdings and progress on international level on the regulatory treatment of sovereign exposures.

Changed:"REGULATION (EU) No 806/2014 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 15 July 2014 on a Single Resolution Mechanism and a▌a European Deposit Insurance Scheme and amending Regulation (EU) No 1093/2010";

Changed:2. In addition, this Regulation establishes stage 1 of a European Deposit Insurance Scheme ('EDIS I')▌:I') to operate as a liquidity scheme that ▌provides liquidity to participating deposit guarantee schemes in accordance with Article 41a with the aim of making progress towards the establishment of a full insurance scheme with loss coverage at a later stage, in accordance with Article 94b.

Removed:– to operate as a liquidity scheme that ▌provides loans to participating deposit guarantee schemes in accordance with Article 41a, with the aim to make progress to a full insurance scheme with loss coverage at a later stage, following a new Commission proposal;

Added:EDIS I shall be administered by the Board in cooperation with participating DGSs and designated authorities in accordance with Part IIa. EDIS I shall be supported by a Deposit Insurance Fund (the ‘DIF’) and, when needed, by additional loans from the participating DGSs in accordance with Chapter 4."

Removed:▌

Removed:▌

Removed:(a) credit institutions established in a participating Member State, except for institutions that are members of an institutional protection schemes as referred to in Article 113(7) of Regulation No 575/2013 CRR;

Added:(a) credit institutions established in a participating Member State;

Changed:(a)(d) participating deposit-guarantee schemes as defined in point (1) of Article 3(1a), except for institutional protection schemes as referred to in Article 113(7) of Regulation No 575/2013 CRR;3(1a);

Changed:(b)(e) credit institutions affiliated toinstitutions, participatingincluding deposit-guaranteethe schemesentities withreferred theto exceptionin ofArticle branches2(5) of creditDirective institutions2013/36/EU, that have theirare headaffiliated officeto outsideparticipating thedeposit-guarantee Union.schemes.

Removed:(b) the amount of all transfers paid to the DIF. The transferred amount shall not exceed the amount that is necessary for the available financial means of the participating DGS concerned to reach two-thirds of its target level as defined in Article 10(2) first subparagraph of Directive 2014/49/EU.

Added:(g) the amount of all transfers paid to the DIF.

Removed:4. This Regulation shall continue to apply to resolution and deposit insurance proceedings which are ongoing on the date of application of a decision as referred to in paragraph 2.";

Added:The transferred amount shall not exceed the amount that is necessary for the available financial means of the participating DGS concerned to reach two-thirds of its target level as defined in Article 10(2) first subparagraph of Directive 2014/49/EU.

Changed:"The Board, the Council and the Commission and, where relevant, the national resolution authorities and participating DGSs,DGS, shall take decisions subject to and in compliance with the relevant Union law and in particular any legislative and non–legislative acts, including those referred to in Articles 290 and 291 of the Treaty on the Functioning of the European Union.";

Removed:9. Article 19 is amended as follows:

Added:▌

Removed:(a) in paragraph 3, the first subparagraph is replaced by the following:

Removed:"To the extent that the resolution action as proposed by the Board involves the use of the Funds (SRF or DIF), the Board shall notify the Commission of the proposed use of the Funds. The Board's notification shall include all of the information necessary to enable the Commission to make its assessments pursuant to this paragraph.";

Removed:"PART IIa STAGE 1 OF EDIS I

Added:"PART IIa EUROPEAN DEPOSIT INSURANCE SCHEME (EDIS)

Removed:▌ Article 41a Liquidity support

Changed:2. In case a participating DGS encounters a payout event or is used in resolution in accordance with Article 79 of this Regulation, or is used for financing measures in accordance with Article 11(3) andor 11(6)(6) of Directive 2014/49/EU, it may request a loanliquidity from the DIF ▌ofin the amount of its liquidity shortfall as set out in Article 41b.

Removed:3. ▌

Removed:4. ▌The outstanding cumulative funding provided by the DIF to a participating DGS shall not exceed ▌10 times the target level of the participating DGS as defined in the first subparagraph of Article 10(2) of Directive 2014/49/EU.

Removed:1. In case the participating DGS encounters a payout event, its liquidity shortfall shall be calculated as the total amount of covered deposits held by the credit institution referred to under 2(2), point b, and within the meaning of Article 6(1) and 6(2) of Directive 2014/49/EU ▌at the time of the payout event less ▌the amount of available financial means the participating DGS should have at the time of the payout event in accordance with Articles 10(2) and 10(3) of that Directive.

Changed:2. In4. caseThe theoutstanding participatingcumulative DGSfunding isprovided usedby inthe resolutionDIF proceedings,to itsa liquidityparticipating shortfallDGS shall be calculated as thenot amountexceed determined▌10 bytimes the resolution authority in accordance with Article 79 less thetarget amountlevel of available financial means the participating DGS should have at theas timedefined ofin the determination infirst accordancesubparagraph withof ArticlesArticle 10(2) and (3) of Directive 2014/49/EU.

Changed:3.1. In case the fundsparticipating ofDGS encounters a participatingpayout DGSevent, areits usedliquidity toshortfall financeshall measuresbe incalculated accordanceas withthe total amount of covered deposits held by the credit institution, and within the meaning of Article 11(3)6(1) and 11(6)(2) of the Directive 2014/49/EU,2014/49/EU its▌at liquiditythe shortfalltime shallof bethe calculatedpayout asevent and the amountnecessary usedadministrative toexpenditure financeof thosethe measuresparticipating DGS related to the payout less the amount of available financial means the participating DGS should have in accordance with Articles 10(2) and 10(3) ofis thatto Directivehave at the time of the decision to grant a measuredetermination in accordance with 11(3)Article or10(2) 11(6)and (3) of that Directive is taken..

Added:2. In case the participating DGS is used in resolution proceedings, its liquidity shortfall shall be calculated as the amount determined by the resolution authority in accordance with Article 79 of this Regulation less the amount of available financial means the participating DGS should have at the time of the determination in accordance with Article 10(2) and (3) of Directive 2014/49/EU.

Added:2a. In case the funds of a participating DGS are used to finance measures in accordance with Article 11(3) and (6) of Directive 2014/49/EU, its liquidity shortfall shall be calculated as the amount used to finance those measures less the amount of available financial means that the participating DGS is to have in accordance with Article 10(2) and (3) of that Directive at the time when the decision to grant a measure in accordance with Article 11(3) or (6) of that Directive is taken.

Added:1. In cases where the available financial means of the DIF are not sufficient to provide the liquidity requested by a participating DGS in accordance with Article 41a, the Board shall borrow from the other participating DGSs or access alternative funding arrangements pursuant to Article 74g, unless that would result in significant adverse consequences for the financial system or threaten financial stability.

Added:2. Each participating DGS shall provide the loans referred to in paragraph 1, where applicable, to the DIF.

Removed:1. In cases where the available financial means of the DIF are not sufficient to provide the loan requested by a participating DGS in accordance to Article 41a, the Board may decide to borrow from the other participating DGSs.

Added:1. A participating DGS shall not be eligible for liquidity support exceeding the total amount of contributions transferred to the DIF by that DGS in accordance with Article 74c(1), if the Commission, acting on its own initiative or upon a request of the Board or a participating Member State, decides and informs the Board, the DGS, the designated authority of the participating Member State within the meaning of point 18 of Article 2 of Directive 2014/49/EU, and the national competent authority or authorities, that at least one of the following disqualifying conditions is met:

Removed:2. Each participating DGS shall provide the requested loans to the DIF (mandatory lending)

Added:(a) the participating DGS has failed to comply with the obligations under this Regulation or Articles 4, 6, 7 or 10 of Directive 2014/49/EU;

Changed:Where a participating DGS has been informed by the competent authority about, or has otherwise become aware of, circumstances relating to a credit institution affiliated to that participating DGS that are likely to result in a payout event or its use in resolution proceedings or in accordance with ArticlesArticle 11(3) andor 11(6)(6) of Directive 2014/49/EU, it shall inform the designated authority and the Board about such circumstances without delay if it intends to request coverage by EDIS I. In this case the participating DGS shall also provide the Board with an estimate of the expected liquidity shortfall▌.

Changed:1. In case a participating DGS encounters a payout event or is to be used in resolution in accordance with ▌Article 79 of this Regulation or in accordance with ArticlesArticle 11(3) andor 11(6)(6) of Directive 2014/49/EU, it shall immediately notifynotify, in accordance with Article 41k of this Regulation, the designated authority and the Board and submit all necessary information in order to allow the Board to assess whether the conditions for the provision of liquidity support in accordance with Article 41a41a▌ ▌ofof this Regulation are met.

Changed:(c)(ab) the amount used to finance measures in accordance with ArticlesArticle 11(3) or 11(6)(6) of Directive 2014/49/EU;

Changed:(d)(b) its available financial means at the time of the payout event or use in resolution;resolution or use in accordance with Article 11(3) or (6) of Directive 2014/49/EU;

Removed:(e) ▌

Added:(c) in case of a payout event, an estimate of the extraordinary contributions it can raise, in order to comply with the repayment of liquidity in accordance with Article 41o;

Changed:1. After receiving the notification under Article 41k, the Board shall decide within 24 hours, in its executive session, that the conditions for coverage by EDIS I have been met and shall determine the amount of liquidity support that it will provide to the participating DGS.DGS and the amount of mandatory lending in accordance with Article 41ba.

Removed:2. The Board shall within 24 hours, in its executive session, determine the amount of liquidity support to be financed by mandatory lending in accordance with Article 41ba.

Added:▌

Changed:3. The Board shall immediately inform the participating DGS about its decision under paragraph 1▌. The relevant designated authority and the participating DGS may request a review of the Board’s decision within 24 hours after it has been informed. It shall state the reasons why it considers an amendment to the Board’s decision necessary, in particular with respect to the extent of coverage by EDIS I. The Board shall take a decision on the request within another 24 hours.

Changed:1. The Board shall provide liquidity support under Article 41a ▌inin accordance with the following provisions:

Changed:(a) the loanliquidity support shall be provided in the form of a cash contribution to the participating DGS;

Changed:(b) the funds shall be due within one working day afterof the determination of the Board made pursuant to Article 41m.

Changed:2.1a. By way of derogation from paragraph 1, upon the request of a participating DGS, the Board may decide that the DIF provides liquidity support in the form of a guarantee for any of the measures underreferred to in Article 41a41a(2) to access alternative funding arrangements under 74g.Article 10(9) of Directive 2014/49/EU.

Changed:2. Within 3 months of the determination referred to in Article 41m, the BoardBoard, after consulting the relevant designated authority, shall establish a repayment plan that ensures that the funding provided by the Board under Article 41n will be repaid in full within six years by the participating DGS.

Changed:3. The repayment plan initiallyshall shall,initially, and to the largest extent possible, be based on the expected funding from sourcesthe assources referred to in paragraph 5.4a.

Changed:a)(a) the minimum annual repayment by the participating DGS shall be 10%on average 16,67% of the funding provided by the Board under articleArticle 41n; and

Changed:b)(b) each year, the Board shall reassess the level of expected recoveries and recalibrate the repayment plan for the remaining years inor, accordancewhere withappropriate, grant an extension of the assessment.maturity referred to in paragraph 4c.

Removed:5. As long as a participating DGS has liquidity support outstanding with the DIF, 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 repaid to the DIF first before those financial means are used to reach the target level of the participating DGS again. This shall be reflected in the repayment plan.

Added:4a. The repayment plan referred to in paragraph 2 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:

Removed:6. The participating DGS shall provide the board as a minimum on an annual basis and in case of any event that could have a material impact on the trajectory of repayment as described in the repayment plan, updated information on any contributions, recoveries, repayments or income referred to in paragraph 5.

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

Changed:2. The Board and the participating DGS that has requested liquidity support in accordance with Article 41a shall enter into an agreeeementagreement based on the standardizedstandardised agreement as referred to in paragraph 1.

Changed:3. The interest rate on loansliquidity provided by the DIF shall be equal to the ECB marginal facility rate increased by 1% every third year of the remaining time to maturity of the loan.be:

Added:(a) 0% for the amount of liquidity support up to the total amount of contributions transferred to the DIF by the relevant DGS in accordance with Article 74c(1);

Added:(b) equal to the ECB marginal facility rate for any amount of liquidity support exceeding the amount referred to in point (a), up to double the total amount of contributions transferred to the DIF by the relevant DGS in accordance with Article 74c(1); and

Added:(c) equal to the ECB marginal facility rate increased by 0,25% for every year of the remaining time until maturity of the provided liquidity, for any amount of liquidity support exceeding the sum of the amounts referred to in points (a) and (b).

Changed:(b) ▌plenaryplenary sessions of the Board in accordance with Article 49 or 49a, which shall perform the tasks referred to in Article 50 and respectively Article 50a;

Changed:(a) in paragraphs 4 and 5, the words "the resolutions tasks" are replaced by "the resolution and the depositDGS insuranceliquidity support tasks", making such grammar changes as necessary;

Changed:13. in Article 46(4), the words "national“national resolution authorities"authorities” are replaced by "national“national resolution authorities or of national DGS or designated authorities",authorities, making such grammar changes as necessary;

Changed:"1.“1. When performing the tasks conferred on them by this Regulation, the Board, the national resolution authorities, the national DGS or designated authorities shall act independently and in the general interest.";interest.;

Changed:15. in Part III, the heading of Title II "Plenary“Plenary session of the Board"Board” is replaced by "Joint“Joint plenary session and plenary sessions of the Board";Board;

Removed:"Article 48a

Changed:All members of the Board referred to in Article 43(1) shall participate in its joint plenary sessions.";sessions.;

Removed:"Article 49

Changed:The members of the Board referred to in points (a), (b) and (c) of Article 43(1) shall participate in its plenary sessions relating to the Single Resolution Mechanism (SRM plenary session).";session).”;

Removed:"Article 49a

Removed:(a) once the net accumulated use of the DIF in the last consecutive 12 months reaches the threshold of 25% of the final target level, evaluate the application of ▌the use of the DIF, and provide guidance which the executive session shall follow in subsequent liquidity support decisions▌;

Added:▌;

Changed:(b) decide on the key terms and conditions of the standardised agreement referred to in Article 41r(1);41qa(1);

Removed:▌

Added:(d) decide▌ whether the disqualifying conditions laid down in points (a) and (b) of Article 41i(1) are met, to comply with paragraphs 1 and 1a of that Article;(da) once the net accumulated use of the DIF in the last consecutive 12 months reaches the threshold of 25% of the final target level, evaluate, on an annual basis, the application of the use of the DIF, and provide guidance to be followed by the executive session of the Board in subsequent liquidity support decisions.

Changed:"3. When deliberating on an entity referred to in Article 2 or a group of entities established only in one participating Member State or on a depositDGS insuranceliquidity support action or decision, the relevant member appointed by that Member State under Article 43(1)(c) or 43(1)(d) shall also participate in the deliberations and in the decision-making process, and the rules laid down in Article 55(1) shall apply.";

Changed:"5. The members of the Board referred to in Article 43(1)(a) and (b) shall ensure that the resolution and depositDGS insuranceliquidity support decisions and actions, in particular with regard to the use of the SRF and respectively of the DIF, across the different formations of the executive sessions of the Board, are coherent, appropriate and proportionate.";

Changed:(g) determine the amount of liquidity support to be provided by mandatory lending in accordance with Article 41m(2);41m(1);

Changed:4. The Board in its executive session shall keep the Board in its joint plenary or its SRM and EDIS I plenary sessions respectively informed of the decisions it takes on resolution or depositDGS insurance.";liquidity support.";

Changed:(ii) in point (g), the words "on the resolution activities" are replaced by "on the resolution and on the depositDGS insuranceliquidity support activities", making such grammar changes as necessary;

Changed:(b) in paragraph 4, in the first sentence the words "bank resolution" are replaced by "bank resolution and depositDGS guarantee",liquidity support", making such grammar changes as necessary;

Changed:(e) funding repaid by participating DGSs in accordance with Article 41o.41o;

Changed:(f)(ea) loans received from participating DGSDGSs in accordance with Article 41ba (mandatory lending);41ba.

Changed:(d) interest paid on loans received from financial institutions or other third parties in accordance with Article 74g.";74g;

Changed:(f)(da) interest paid on loans received from participating DGSDGSs in accordance with Article 41ba (mandatory lending);41ba.";

Changed:1. The DIF is hereby established. It shall be filled by transfers from participating DGSs of contributions collected from credit institutions affiliated to thatthose DGSs. The amounts of the contributions to be transferred shall be calculated by the Board, in accordance with paragraph 2.1a.

Changed:2.1a. Each yearyear, the individual contribution of each participating credit institution shall be calculated based on:

Changed:a)(a) a flat contribution,contribution that is pro-rataprorated based on the amount of an institution's covered deposits,deposits with respect to the amount of total covered deposits in theall credit institutions referred to in Article 2(2), point (b);

Removed:b) a risk-adjusted contribution.

Added:(b) a risk-adjusted contribution with respect to the other participating credit institutions in the banking union.

Changed:2. The Board shall use the DIF only in order to provide the funding to ▌participatingthe participating DGS ▌in accordance with the objectives and the principles governing EDIS referred to in Article 6. Under no circumstances shall the Union budget or the national budgets be held liable for expenses or losses of the Fund.

Changed:1. By 53 years from the date of entry into force of this amending Regulation, the available financial means of the DIF shall reach a target level of 50% of the target level referred to in Article 10(2) of Directive 2014/49/EU calculated as a percentage of the amount of covered deposits in all credit institutions referred to in Article 2(2), point (b), of this Regulation.▌Regulation.

Removed:1. Each year until 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 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:2. 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 the method to calculate the risk-adjusted contributions laid down in the delegated act referred to in paragraph 9.

Removed:▌

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

Removed:5. 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:

Added:1. 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

Added:2. 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.

Changed:Deferrals 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.

Removed:6. 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.

Added:4b. 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:

Removed:7. 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;

Changed:The 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:

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

Removed:▌

Added:(c) ▌;

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

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

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

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;

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.

Removed:The 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.

Removed:Power 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.

Changed:Participating 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:

Changed:a)(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;

Changed:b)(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;

Changed:c)(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;

Changed:d)(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.

Removed:e) 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.

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 ;

Changed:3. 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.

Changed:1. 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.

Changed:4. 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).";

Removed:37. ▌

Added:38a. 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.’;

Removed:39a. in Article 94, the following paragraph is added:

Added:39a. 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

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]";

Removed:a) date of entry into force of this amending Regulation;

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

Removed:c) 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.