EBA updates data on deposit guarantee schemes across the European Economic Area

• In the period from 2021 to 2022, the amount of deposits protected by EU deposit guarantee schemes (DGS) increased by 2.5%, and the amount of funds available to protect those deposits in case of bank failures increased by 7.4%.
• DGSs are gradually increasing their available funds raised from the industry with the aim of reaching the harmonised minimum target level of 0.8% of deposits covered by the DGS by July 2024.
• Half of the 36 DGSs in the European Economic Area have already reached the minimum target level ahead of the deadline.

The European Banking Authority (EBA) today published end-2022 data related to two key concepts and indicators in the Deposit Guarantee Schemes Directive (DGSD), namely available financial means (AFMs) and covered deposits. The EBA publishes these data for the deposit guarantee scheme (DGS) in each Member State on a yearly basis to enhance the transparency and public accountability of DGSs across the EEA to the benefit of depositors, markets, policymakers, DGSs and Members States.

Under the DGSD, covered deposits are guaranteed up to 100,000 Euro or the equivalent in other currencies per depositor at each bank. The data as of 31 December 2022 shows that, compared to 2021, the amount of covered deposits across the EEA increased by 2.5%, which is lower than the increases of 7.4% in 2021, 8.6% in 2020 and 5.6% percent in 2019.

In parallel, EEA DGSs are obliged to raise funds from credit institution for the main purpose of reimbursing depositors in case of bank failures. The end-2022 data shows that most of the EEA DGSs continued raising contributions from the banks to reach the minimum target level applicable to all national DGSs imposed by the Deposit Guarantee Schemes Directive (DGSD). DGSs have until July 2024 to reach the minimum target level which in most cases is 0.8% of covered deposits. Exactly half of the 36 EEA DGSs have already done so ahead of the deadline.

Legal basis and background

• The EBA is collecting DGS data in accordance with Article 10(10) of the DGSD. With its Decision EBA/DC/2018/243 from 23 July 2018, the EBA explained that it will make these data publicly available on its website.
• In support of the DGSD, the EBA published in December 2021 the Guidelines EBA/GL/2021/17 on the delineation and reporting of AFMs of the DGSs and, thus, expanded the reporting requirements from DGSs to the EBA.