Featured Product

    EBA Publishes Annual Data on Deposit Guarantee Schemes in EU

    May 12, 2020

    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. 


    Related Links

    Keywords: Europe, EU, Banking, DGSD, Deposit Guarantee Schemes, Deposit Guarantee Fund, Crisis Management Framework, Resolution Framework, EBA 

    Related Articles

    UK Authorities Consult on Implementation of Basel 3.1 Standards

    The UK authorities have published consultations with respect to the Basel requirements for banks. The Prudential Regulation Authority (PRA) published the consultation paper CP16/22 on rules for the implementation of Basel 3.1 standards.

    November 30, 2022 WebPage Regulatory News

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News

    FSB and NGFS Publish Initial Findings from Climate Scenario Analyses

    The Financial Stability Board (FSB) and the Network for Greening the Financial System (NGFS) published a joint report that outlines the initial findings from climate scenario analyses undertaken by financial authorities to assess climate-related financial risks.

    November 15, 2022 WebPage Regulatory News

    FSB Issues Reports on NBFI and Liquidity in Government Bonds

    The Financial Stability Board (FSB) published a letter intended for the G20 leaders, highlighting the work that it will undertake under the Indian G20 Presidency in 2023 to strengthen resilience of the financial system.

    November 14, 2022 WebPage Regulatory News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News

    EU Finalizes Rules Under Crowdfunding Service Providers Regulation

    The European Union has finalized and published, in the Official Journal of the European Union, a set of 13 Delegated and Implementing Regulations applicable to the European crowdfunding service providers.

    November 08, 2022 WebPage Regulatory News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8597