Featured Product

    EBA Consults on Methods for Calculating Contributions to DGSs

    July 03, 2017

    EBA launched a public consultation on the implementation of EBA guidelines on methods for calculating contributions to deposit guarantee schemes (DGSs). The consultative report assesses whether principles outlined in the EBA guidelines on these methods are being met in practice. It also evaluates whether the implementation of these guidelines is appropriate and consistent. The consultation runs until August 28, 2017.

    Based on a preliminary analysis, on which the EBA is seeking the views of its stakeholders, the main conclusions are that:

    The guidelines have broadly met the aim of introducing differentiations between institutions contributing to a DGS based on their riskiness. However, the analysis finds that the method allows too much flexibility, which may need to be revisited in the future.

    Some areas may require more consistency in relation to the balance between consistent application of the guidelines across the member states and the flexibility to cater to national specificities.

    There seems to be no specific need to amend the guidelines to enhance transparency to stakeholders. The methodology does not seem to lead to excessive additional reporting requirements.

     

    The EBA guidelines set principles and specify the necessary elements for calculating risk-based contributions from banks to DGSs. They foster convergence in contribution practices across the EU and promote level playing field for banks within the Single Market. DGSs should have had in place these risk-based methods for calculating contributions from their members by May 31, 2016 at the latest. The Deposit Guarantee Schemes Directive (DGSD) mandates EBA to conduct a review of these guidelines by July 03, 2017 and at least every five years thereafter. Considering the short timeframe between the deadline for the implementation of the guidelines and that of their review, EBA has conducted an assessment of the application of the guidelines with some preliminary recommendations on further improvements and amendments of the guidelines to be considered as part of a wider review of the DGSD in 2019. The final report, including public feedback, will be published on the EBA website.

     

    Related Link: Consultation Paper (PDF)

    Comment Due Date: August 28, 2017

    Keywords: Europe, EBA, Banking, DGS, DGSD, Guideline

    Related Articles
    News

    APRA Finalizes Prudential Standard for Credit Risk Management of Banks

    APRA updated the prudential standard on credit risk management requirements (APG 220) for authorized deposit-taking institutions, post a public consultation.

    December 12, 2019 WebPage Regulatory News
    News

    APRA Issues Operational Risk Rules, Consults on Reporting Requirements

    APRA published an updated prudential standard APS 115 that sets out operational risk requirements for authorized deposit-taking institutions in Australia.

    December 11, 2019 WebPage Regulatory News
    News

    ESMA Updates Q&A on European Benchmarks Regulation in December 2019

    ESMA updated the question and answers (Q&A) document on the European Benchmarks Regulation.

    December 11, 2019 WebPage Regulatory News
    News

    APRA Decides to Keep Countercyclical Capital Buffer for Banks at 0%

    APRA announced its decision to keep the countercyclical capital buffer (CCyB) for authorized deposit-taking institutions on hold at zero percent.

    December 11, 2019 WebPage Regulatory News
    News

    FED Extends Consultation Period for Capital Requirements for Insurers

    FED is extending comment period for the proposed rule establishing risk-based capital requirements for depository institution holding companies that are significantly engaged in insurance activities.

    December 10, 2019 WebPage Regulatory News
    News

    OSFI Sets Domestic Stability Buffer Level at 2.25%

    OSFI has set the Domestic Stability Buffer, or DSB, at 2.25% of total risk-weighted assets, with effect from April 30, 2020.

    December 10, 2019 WebPage Regulatory News
    News

    EBA Issues Revised List of Validation Rules for Reporting by Banks

    EBA published a revised list of validation rules in its implementing technical standards on supervisory reporting.

    December 10, 2019 WebPage Regulatory News
    News

    SRB Holds Annual Conference, Reflects on Turning Policy into Action

    SRB published a report on its fourth annual conference that was held on October 10, 2019 in Brussels.

    December 10, 2019 WebPage Regulatory News
    News

    APRA Specifies Capital Treatment of Equity Investments in ABGF

    APRA published a letter to the authorized deposit-taking institutions outlining the regulatory capital treatment of their equity investments in the Australian Business Growth Fund (ABGF).

    December 09, 2019 WebPage Regulatory News
    News

    EBA Updates Guidelines on Reporting of Funding Plans of Banks

    EBA updated the guidelines on harmonized definitions and templates for the reporting of funding plans of credit institutions.

    December 09, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4305