EBA updated data on the Deposit Guarantee Schemes across EU. This data for 2019 relates to two key concepts in the Deposit Guarantee Schemes Directive or DGSD—namely, available financial means and covered deposits. The data show that the target level of 0.8% of covered deposits, to be attained by July 2024, had been achieved by 18 of the 37 Deposit Guarantee Schemes in EU. Additionally, the available financial means data, as of December 31, 2019, show that 28 out of a total of 37 Deposit Guarantee Schemes in EU member states had increased their funds since December 31, 2018.
The increase in funds for 28 out of the 37 Deposit Guarantee Schemes in EU member states, in general, stems from levies paid by the members of the Deposit Guarantee Schemes; these levies were raised to reach the target level of 0.8% of covered deposits set out in the Deposit Guarantee Schemes Directive and to be attained by July 2024. No significant changes to the available financial means occurred in six Deposit Guarantee Schemes, including three cases where the Deposit Guarantee Schemes already hold more than the minimum target level of 0.8% of covered deposits. The amount of available financial means decreased only for two Deposit Guarantee Schemes: in Latvia because of a significant payout to depositors in 2019 and in Norway where half of the Deposit Guarantee Scheme available financial means were transferred to a separate resolution fund. Finally, there is also one new Deposit Guarantee Scheme in Austria, which took over the protection of deposits previously provided by four separate schemes. Available financial means is the amount of funds raised by Deposit Guarantee Schemes from credit institutions to be used mainly to reimburse depositors in case of bank failures.
EBA publishes this data annually to enhance the transparency and public accountability of Deposit Guarantee Schemes across EU to the benefit of depositors, markets, policymakers, Deposit Guarantee Schemes, and member states. In recent years, the approach to funding a deposit guarantee in EU has been strengthened and further harmonized. Under this new funding model, banks pay a levy every year into a national Deposit Guarantee Scheme fund and that money remains available in case the Scheme needs it to protect depositors if a bank fails. Member states, especially those that previously did not have such a fund, are transitioning to the new funding model and significant progress has been made to date. In EU, all banks, as well as any credit institutions allowed to take deposits, authorized in a member state must be members of an official Deposit Guarantee Scheme.
Keywords: Europe, EU, Banking, DGSD, Deposit Guarantee Schemes, Deposit Guarantee Fund, Crisis Management Framework, Resolution Framework, EBA
Previous ArticleSARB Announces Activation of Loan Guarantee Scheme Amid COVID Crisis
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)
The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.
The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.
The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.