Featured Product

    EBA Proposes Guidelines to Clarify Certain Aspects of DGSD

    April 28, 2021

    EBA proposed guidelines on the delineation and reporting of available financial means of the Deposit Guarantee Schemes or DGSs, with the consultation period ending on July 28, 2021. The guidelines propose to clarify that only funds that credit institutions contributed or that stem indirectly from such contributions, such as recoveries or investment income, will count toward reaching the target level of the Deposit Guarantee Scheme fund. The proposed guidelines extend the reporting requirements from Deposit Guarantee Schemes to EBA, with Annex 1 to the consultation paper presenting the reporting template for Deposit Guarantee Scheme funds.

    An earlier EBA Opinion, which was published in January 2020, recommended clarifying, with respect to the Deposit Guarantee Scheme Directive (DGSD or Directive 2014/49/EU), that borrowed funds or funds stemming from borrowed funds should not count toward reaching the minimum target level for Deposit Guarantee Scheme funds. Given that a review of the Deposit Guarantee Scheme Directive (DGSD) is still several years away from being proposed, negotiated, and finalized, the proposed guidelines provide such a clarification ahead of any such changes, using the existing Directive as a legal basis. The draft guidelines clarify that Available Financial Means comprise:

    • Qualified Available Financial Means—Funds stemming directly or indirectly from contributions of Deposit Guarantee Scheme member institutions, which qualify toward reaching the target level of the Deposit Guarantee Scheme fund
    • Other Available Financial Means—Funds that are not qualified as available financial means, including borrowed funds that stem from liabilities such as loans, and hence do not count toward reaching the target level of the Deposit Guarantee Scheme fund.

    The proposed guidelines will extend the reporting requirements from Deposit Guarantee Schemes to EBA to reflect the clarified concepts of Available Financial Means, Qualified Available Financial Means, and other Available Financial Means in the guidelines. They also require the reporting on outstanding liabilities of Deposit Guarantee Schemes, unclaimed repayments, and high-level information on alternative funding arrangements that are in place. That information would be published on the EBA website annually and should provide more transparency and comparability of the financial position of Deposit Guarantee Schemes across EU.

     

    Related Links

    Comment Due Date: July 28, 2021

    Keywords: Europe, EU, Banking, Deposit Guarantee Scheme, Available Financial Means, DGSD, DGS, Reporting, EBA

    Featured Experts
    Related Articles
    News

    EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation

    The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).

    May 23, 2022 WebPage Regulatory News
    News

    EBA Publishes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.

    May 23, 2022 WebPage Regulatory News
    News

    EIOPA Examines Physical Climate Risk Exposure, SII Non-Compliance

    The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks

    May 20, 2022 WebPage Regulatory News
    News

    EC Publishes Results on Review of Web Accessibility Directive

    The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.

    May 19, 2022 WebPage Regulatory News
    News

    NGFS Report Explores Quantification of Climate Risk Differentials

    The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations

    May 19, 2022 WebPage Regulatory News
    News

    MAS Consults on Adjustment Spreads for Conversion of SOR Contracts

    The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.

    May 18, 2022 WebPage Regulatory News
    News

    OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities

    The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.

    May 17, 2022 WebPage Regulatory News
    News

    EBA Proposes Standards to Support Secondary NPL Markets

    The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.

    May 17, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).

    May 13, 2022 WebPage Regulatory News
    News

    EBA Issues Standards for Crowdfunding Service Providers Under ECSPR

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.

    May 13, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8206