Featured Product

    EBA Publishes Opinion on Improvement of Deposit Guarantee Directive

    February 11, 2020

    EBA published its third and final opinion, addressed to EC, on implementation of the Deposit Guarantee Schemes Directive (DGSD) in EU. The opinion focuses on deposit guarantee scheme (DGS) funding and uses of DGS funds and proposes a number of changes to the EU legal framework for DGSD. EBA invites EC to consider the proposals outlined in the opinions when preparing a report on the implementation of DGSD, for submission to the European Parliament and the Council. EBA also published a factsheet on improving depositor protection in EU.

    In its opinion, EBA assesses 33 topics related to DGS funding and uses of DGS funds, setting out 23 proposals for improving the legal framework for DGSD in EU. EBA calls for a clarification on what funds should count toward the available financial means (that is, ex-ante funds) of DGS and a clarification about when different DGS funding sources (including loans) can be used and under what conditions. The opinion also addresses the need to introduce more transparency in relation to the reporting of DGS funds, more consistency in the approach to payment commitments, and more precision in the DGSD in relation to how DGS funds should be invested.

    In addition, the opinion recommends the need for EC to further consider the consequences of the recent General Court ruling in the Tercas case, concerning the use of DGS funds to prevent failure of credit institutions and the ceiling up to which DGS funds can be used for such failure prevention. EC should also consider introducing, in the EU framework, the possibility to use assets of a failed institution to repay depositors. However, no changes have been proposed to the current DGSD provisions in relation to the minimum target level for the ex-ante funds, the target level basis, and the possibility for DGSs to continue collecting contributions above the minimum target level. The opinion also recommends that there is no need for changes in relation to contributions from third-country branches or for immediate changes to the risk-based contributions based on the assessment of their impact on different business models.

    Article 19(6) of the DGSD requires EBA to support EC in its development of a report on the progress toward implementation of the DGSD. The opinion on DGS funding and uses of DGS funds is the third part of the fulfillment of this mandate by EBA. This opinion follows the first opinion on eligibility of deposits, coverage level, and cooperation between DGSs (published in August 2019) and the second opinion on DGS payouts (published in October 2019).

     

    Related Links

    Keywords: Europe, EU, Banking, Deposit Guarantee Schemes, DGSD, Opinion, Deposit Guarantee Fund, Resolution Framework, EC, EBA

    Featured Experts
    Related Articles
    News

    APRA Plans to Assess Climate Risks and Develop Prudential Guidance

    APRA published a letter that outlines its plans to undertake a climate change vulnerability assessment and develop a prudential practice guide focused on climate-related financial risks.

    February 24, 2020 WebPage Regulatory News
    News

    APRA to Transition to Annual Stress Testing of Large Banks in 2020

    APRA published key findings of the stress testing assessment conducted on authorized deposit-taking institutions.

    February 21, 2020 WebPage Regulatory News
    News

    IAIS Statement on Monitoring Period of Insurance Capital Standard

    IAIS published a statement from its Secretary General Jonathan Dixon on the Insurance Capital Standard (ICS) monitoring period.

    February 21, 2020 WebPage Regulatory News
    News

    EC Consults on Review of Non-Financial Reporting Directive

    EC is launched a consultation on the review of the Non-Financial Reporting Directive or NFRD (Directive 2014/95/EU, as part of its strategy to strengthen sustainable investment in Europe.

    February 20, 2020 WebPage Regulatory News
    News

    EIOPA Consults on Standards for Supervisory Reporting Under PEPP Rule

    EIOPA is consulting on the implementing technical standards for supervisory reporting and cooperation, as mandated by the Pan-European Personal Pension Product (PEPP) Regulation (Regulation 2019/1238).

    February 20, 2020 WebPage Regulatory News
    News

    ECB Report on Transfer of Liquidity from EONIA Products to €STR

    ECB published a report on the transfer of liquidity from the cash and derivatives products of the Euro Overnight Index Average (EONIA) to the Euro Short-Term Rate (€STR).

    February 19, 2020 WebPage Regulatory News
    News

    ESRB Publishes Report on Systemic Cyberattacks

    ESRB published a report that explores systemic implications of cyber incidents, such as cyberattacks.

    February 19, 2020 WebPage Regulatory News
    News

    FSB Chair Sets Out Key Deliverables for G20 Presidency of Saudi Arabia

    FSB published a letter from the Chair Randal K. Quarles to the G20 finance ministers and Central Bank governors ahead of the meetings in Riyadh on February 22-23.

    February 19, 2020 WebPage Regulatory News
    News

    CFTC Proposes Rules on Derivative Position Limits and Swap Execution

    CFTC approved a proposed rule on position limits for derivatives and a proposed rule amending requirements for certain Swap Execution Facilities and real-time reporting.

    February 19, 2020 WebPage Regulatory News
    News

    BIS Appoints Heads of Innovation Hubs in Singapore and Switzerland

    BIS announced key personnel appointments to the Innovation Hubs in Singapore and Switzerland.

    February 19, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4717