deposit guarantee schemes

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.

EBA Publishes Final Report on Guidelines on Co-operation Agreements Between DGSs Under Recast DGSD

The European Banking Authority (“EBA“) has published a final report on guidelines on cooperation agreements between deposit guarantee schemes (“DGSs“). The guidelines have been developed to promote a common and consistent approach to co-operation agreements between DGSs throughout the EU, as provided under the recast Deposit Guaran-tee Schemes Directive (“DGSD“).

To promote a consistent approach and facilitate entry into co-operation agreements between DGSs across the EU, the guidelines specify the objectives and minimum content of co-operation agreements, and provide further guidance on the sequence and timing of events when the local DGS performs a pay-out of depositors on behalf of the DGS in another member states. The guidelines also include a multilateral framework co-operation agreement to which the DGSs or, where relevant, the designated authorities should adhere, although they allow DGSs or designated authorities to enter into bilateral or multilateral agreements where it is intended that co-operation agreements will go beyond the level of detail required by the guidelines.