Article 13(3) of the Deposit Guarantee Schemes Directive (DGSD) requires the EBA to issue guidelines on methods for calculating DGS contributions by 3 July 2015, to ensure that the DGSD is consistently implemented in relation to risk based contributions. The deadline to implement the guidelines was 31 May 2016, with the EBA to review the guidelines by 3 July 2017.
Given the short time frame between implementation and review, the EBA has decided to carry out an assessment of the application of the guidelines with some recommendations on further improvements and amendments of the guidelines, all of which would be considered as part of a wider DGSD review in 2019.
The consultation seeks views on the EBA’s initial conclusions, which are that:
- the risk based method set out in the guidelines has broadly met the aim of ensuring differentiation between institutions affiliated to a DGS based on their risk;
- the method allows flexibility for the authorities to design risk based systems which provide less differentiation; and
- preliminary analysis showed that the level of flexibility allowed by the guidelines did not need to increase to allow additional indicators to determine the riskiness of institutions.
These initial conclusions are based on limited experience of risk based contributions amongst DGS and only covers one year of data based on the method outlined in the guidelines.
Interested parties are invited to comment on the consultation by 28 August 2017.