Article 19(6) of the Deposit Guarantee Schemes Directive (DGSD) requires the European Commission to submit to the European Parliament and to the Council a report on the progress towards the implementation of the Directive. To support the Commission in meeting this obligation, the European Banking Authority (EBA) committed to drafting three opinions on the DGSD.

The EBA has already drafted two opinions. The first opinion was published in August 2019 and covered eligibility of deposits, coverage level and cooperation between deposit guarantee schemes (DGSs). The second opinion was published in October 2019 and concerned pay outs from DGSs.

The EBA has now published its third and final opinion covering DGS funding and uses of DGS funds. The topics covered by the opinion include:

  • target level, collection of contributions and fund access;
  • the definition of available financial means;
  • extraordinary contributions and alternative funding arrangements;
  • the use of DGS funds for interventions other than pay outs;
  • the use of failed institutions’ assets for DGS pay outs;
  • payment commitments;
  • investment strategy;
  • an assessment of the impact of risk-based contributions on different business models; and
  • reporting of data.