The European Banking Authority (EBA) launched today a public consultation on the implementation of the EBA Guidelines on methods for calculating contributions to deposit guarantee schemes (DGSs). The draft Report assesses whether the principles outlined in the EBA Guidelines on these methods are being met in practice. It also evaluates whether there is appropriate and consistent implementation of these Guidelines. The consultation runs until 28 August 2017 .
The EBA Guidelines set principles and specify the necessary elements for calculating risk-based contributions from banks to DGSs. They foster convergence in contributions practices across the EU and promote level playing field for banks within the Single Market. DGSs should have had in place these risk-based methods for calculating contributions from their members by 31 May 2016 at the latest.
The Deposit Guarantee Schemes Directive (DGSD) mandates the EBA to conduct a review of these Guidelines by 3 July 2017. Considering the short timeframe between the deadline for the implementation of the Guidelines and that of their review, the EBA has conducted an assessment of the application of the Guidelines with some preliminary recommendations on further improvements and amendments of the Guidelines to be considered as part of a wider review of the DGSD in 2019.
Based on a preliminary analysis, on which the EBA is seeking the views of its stakeholders, the main conclusions are that:
- The Guidelines have broadly met the aim of introducing differentiations between institutions contributing to a DGS based on their riskiness. However, the analysis finds that the method allows too much flexibility, which may need to be revisited in the future;
- Some areas may require more consistency in relation to the balance between consistent application of the Guidelines across the Member States and the flexibility to cater to national specificities;
- There seems to be no specific need to amend the Guidelines to enhance transparency to stakeholders. The methodology does not seem to lead to excessive additional reporting requirements.
The preliminary conclusions of the EBA assessment are currently based on limited experience of operating risk-based contributions systems among most DGSs. In addition, the data only covers one year of risk-based contributions based on the method outlined in the Guidelines. With time, better quality data and a longer time series will become available. Further analysis reflecting this data and greater experience of the risk-based systems will be needed ahead of proposing changes to the Guidelines.
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 28 August 2017.
A public hearing
will take place at the EBA premises on 10 August 2017 from 13:00 to 15:00 UK time. All contributions received will be published following the close of the consultation, unless requested otherwise.
Legal basis and next steps
The assessment on the implementation of the methods for calculating contributions to DGS has been carried out in accordance with Article 13(3) of the DGSD, which mandates the EBA to conduct a review of the Guidelines on risk-based or alternative own-risk-based methods applied by DGSs by 3 July 2017 and at least every five years thereafter. The final report, including public feedback, will be published on the EBA website. Any changes to the Guidelines may be considered as part of a wider DGSD review in 2019.