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

    BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks

    The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.

    March 13, 2023 WebPage Regulatory News

    OSFI Finalizes on Climate Risk Guideline, Issues Other Updates

    The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.

    March 12, 2023 WebPage Regulatory News

    BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending

    BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.

    March 03, 2023 WebPage Regulatory News

    HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks

    The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.

    March 02, 2023 WebPage Regulatory News

    BCBS Report Examines Impact of Basel III Framework for Banks

    The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.

    February 28, 2023 WebPage Regulatory News

    PRA Consults on Prudential Rules for "Simpler-Regime" Firms

    Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.

    February 28, 2023 WebPage Regulatory News

    DNB Publishes Multiple Reporting Updates for Banks

    DNB, the central bank of Netherlands, updated the list of additional reporting requests and published additional data quality checks and XBRL-Formula linkbase documents for the first quarter of 2023.

    February 28, 2023 WebPage Regulatory News

    NBB Sets Out Climate Risk Expectations, Issues Reporting Updates

    The National Bank of Belgium (NBB) published a communication on climate-related and environmental risks, issued an update on XBRL reporting

    February 24, 2023 WebPage Regulatory News

    EBA Updates Address Securitization Standards and DGS Guidelines

    The European Banking Authority (EBA) published the final draft of the regulatory technical standards that set out conditions for assessment of homogeneity of the underlying exposures in simple, transparent, and standardized (STS) securitizations.

    February 21, 2023 WebPage Regulatory News

    FSB Publishes Letter to G20, Sets Out Work Priorities for 2023

    The Financial Stability Board (FSB) published a letter intended for the G20 Finance Ministers and Central Bank Governors, highlighting the work that FSB will take forward under the Indian G20 Presidency in 2023

    February 20, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8793