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

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