EBA consults on revised Guidelines on methods for calculating contributions to deposit guarantee schemes

The European Banking Authority (EBA) launched today a public consultation on its draft revised Guidelines on deposit guarantee schemes (DGS) contributions. The revised Guidelines aim at enhancing the proportionality between the risk of a credit institution and its contributions to the DGS and at streamlining and simplifying the original Guidelines. The consultation runs until 31 October 2022.

The Guidelines on DGS contributions harmonise the methodology for the DGS to collect contributions from credit institutions in proportion to their riskiness. In its 2021-2022 review of the Guidelines, the EBA identified that those credit institutions that have become subject to a DGS intervention since 2015 were mostly categorised amongst the riskiest members of their DGS. Thus, the EBA concluded that the methodology set out in the Guidelines remains appropriate. Nonetheless, the EBA identified elements that should be improved. The most substantial proposals included in this Consultation Paper are to:

• set minimum thresholds for the majority of core risk indicators and adjust their minimum weights to better reflect the indicators’ performance in measuring the risk to the DGSs;
• introduce an improved formula for determining the risk adjustment factor of each member institution that ensures a constant relationship between the riskiness of institutions and their DGS contributions.; and
• specify how to account for deposits where the DGS coverage is subject to uncertainty, including in relation to client funds, thus ensuring closer alignment between the amount of covered deposits of a credit institution and its contributions.

Finally, the EBA streamlined and simplified the Guidelines significantly, to make them clearer.

Consultation process and next steps

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 31 October 2022. All received contributions will be published at the end of the consultation, unless requested otherwise.

A public hearing on the draft revised Guidelines will take place via online meeting on Thursday 29 September 2022 from 10:00 to 12:00 CEST. Please register for the hearing here by 27 September 2022 16:00 CEST.

Background

Article 13(3) of Directive 2014/49/EU on deposit guarantee schemes (DGSD) mandates the EBA to issue Guidelines to specify methods for calculating the contributions to DGSs. To that end, the EBA issued Guidelines EBA/GL/2015/10 on methods for calculating contributions to deposit guarantee schemes on 22 September 2015, which had to be implemented by 31 May 2016. Furthermore, Article 13(3) of the DGSD further requires the EBA to conduct a review of said Guidelines every five years with the first review to be conducted by 3 July 2017.

Accordingly, the EBA published the EBA Report on the implementation of the EBA Guidelines on methods for calculating contributions to deposit guarantee schemes on 17 January 2018. In that report, the EBA made specific recommendations for revising the current Guidelines. It however stated that the findings were preliminary, given the limited experience of operating the risk-based contribution systems among most DGSs, and data covering only one year of risk-based contributions and thus did not revise the Guidelines at the time.