The European Banking Authority (EBA) launched today a public consultation on its draft Guidelines on methods for calculating contributions to Deposit Guarantee Schemes (DGSs). The Guidelines set principles and specify necessary elements for calculating risk-based contributions to DGSs, with a view to curbing moral hazard while building up the necessary financial resources for DGSs. The Guidelines foster convergence in contributions practices across the EU, promoting level playing field for banks within the Single Market. The consultation runs until 11 February 2015.
The proposed Guidelines put forward methods for calculating ex-ante contributions to DGSs, and particularly the methods for adjusting contributions to banks' risk profiles in order to incentivise sound risk behaviours. The proposed methods will ensure that DGSs are properly financed by credit institutions and meet the target funding level foreseen by the DGS Directive (in principle 0.8% of covered deposits by 2024), so as to protect tax payers from an underfinanced deposit insurance scheme.
These Guidelines carefully respect the principle of proportionality and the diversity of institutions and business models. DGSs will be able to complement or even amend the weights assigned to risk indicators, as provided for in these Guidelines, so as to take account of the specificities of credit institutions, while respecting a number of safeguards, which ensure harmonisation and comparability across the Single Market.
These Guidelines offer a comparable basis for assessing progress in convergence when reviewing the framework in 2017 and complement the Guidelines on payment commitments, which the EBA launched for consultation on 25 September 2014.
Comments to this consultation can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 11 February 2015.
A public hearing will then take place at the EBA premises on 8 January 2015 from 14:00 to 17:00 UK time. All contributions received will be published following the close of the consultation, unless requested otherwise.
Legal basis and next steps
These Guidelines have been developed according to Article 13(3) of the Deposit Guarantee Schemes Directive (DGSD) which mandates the EBA to specify methods for calculating contributions to DGSs.
Directive 2014/49/EU of the European Parliament and of the Council of 16 April 2014 on deposit guarantee schemes, OJ L 173, 12.6.2014, p. 149-178.