EBA published an opinion on implementation of the Deposit Guarantee Schemes Directive (DGSD) in EU. In its opinion, EBA proposes a number of changes aimed at strengthening depositor protection, enhancing financial stability, and improving operational effectiveness. Two additional opinions—one on DGS payouts and another on DGS funding and uses of DGS funds—are expected to be issued later in 2019. EBA opinion responds to a mandate under the DGSD and covers the eligibility of deposits, coverage level, and cooperation between deposit guarantee schemes.
The opinion proposes changes in relation to the current provisions on transfers of DGS contributions between DGSs, cooperation of DGSs with various stakeholders, current list of exclusions from eligibility, current provisions on eligibility, depositor information, approach to the DGS membership of third-country branches, implications of the recent review of the three ESAs, and cross-references to other EU regulations and EU directives. The opinion proposes no changes, for example, to the current coverage level of EUR 100,000, provisions on home-host cooperation, cooperation agreements, or cooperation between EBA and ESRB.
Article 19(6) of DGSD requires EBA to support EC in its development of a report on the progress toward implementation of DGSD. This opinion is the first part of the fulfillment of this mandate by EBA. EBA invites EC to consider the proposals outlined in the opinion when preparing the report to be submitted to the European Parliament and the Council.
Keywords: Europe, EU, Banking, DGSD, Financial Stability, Opinion, Deposit Guarantee Scheme, EC, EBA
Previous ArticleCBB Issues Circular on GFIN Survey on Digital Regulatory Reporting
EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).
NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.
MAS published the guidelines on individual accountability and conduct at financial institutions.
APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.
SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.
FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.
ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.
OSFI published the key findings of a study on third-party risk management.
FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.