Deposit Guarantee Scheme Directive

EBA Final Report on Implementation of Guidelines on Methods for Calculating Contributions to Deposit Guarantee Schemes

The European Banking Authority (“EBA“) published its final report on the implementation of its guidelines on methods for calculating contributions to deposit guarantee schemes (DGSs) on January 17, 2018.

This follows the publication of a consultation paper on a draft report by the EBA in July 2017 (EBA/CP/2017/10).

The final report assesses authorities’ compliance with the principles outlined in the guidelines. The report concludes that:

  • the guidelines have broadly met the aim of introducing different contribution levels for institutions according to their risk levels. However, the method outlined in the guidelines, and currently in use, allows too much flexibility and may need to be reviewed to ensure a more consistent approach while still catering for national specificities;
  • the approach taken by member states seems to ensure a good level of transparency to stakeholders and does not cause excessive additional reporting requirements. Therefore, the guidelines do not appear to require amendment. However, changes to the way information is disclosed to the contributing institutions may be considered in the future; and
  • further analysis and greater experience of the risk-based systems currently in use is needed before proposing any changes to the guidelines, as the available data covers only one year of risk-based contributions.

The EBA states that it intends to consider a number of suggested improvements to the guidelines as part of a wider review of the Deposit Guarantee Schemes Directive (2014/49/EU) (“DGSD”) in 2019.

The assessment on the implementation of the methods for calculating contributions to DGSD has been carried out in accordance with Article 13(3) of the DGSD.