On 12 July 2010, the Commission adopted a legislative proposal for a thorough revision of the Directive 94/19/EC on Deposit Guarantee Schemes. It mainly deals with a harmonisation and simplification of protected deposits, a faster payout, and an improved financing of schemes. These proposed amendments follow urgent legislative changes that the Commission proposed in 2008 and that entered into force early 2009. The proposal is accompanied by a report.
On 15 October 2008 the European Commission has proposed a revision to EU rules on deposit guarantee schemes that puts into action the commitments made by EU Finance Ministers on 7 October 2008. The new rules were designed to improve depositor protection and to maintain the confidence of depositors in the financial safety net.
The European Parliament adopted amendments to the Commission proposal in its plenary meeting (first reading) of 18 December 2008.
The Council adopted these amendments on 26 February 2009.
In its interim version, this report served as a basis for the impact assessment and the legislative review. Beyond this, its final text sheds light on almost every aspect of Deposit Guarantee Schemes in the EU.
On the basis of the previous report describing risk-based models applied across Member States, the new report assesses possible criteria for determining such contributions. This report from the Joint Research Centre complements the public consultation that has also addressed this issue. Both the report and the contributions to the consultation will be taken into account for the current review of the Directive on Deposit guarantee Schemes.
This consultation intended to gather contributions from the public for the review of the Directive on Deposit Guarantee Schemes.
On 31 March 2009 the Commission services invited experts in the field of Deposit Guarantee Schemes to discuss some aspects of the Commission’s review. The minutes of this meeting are available here:
One of the self-regulatory issues identified by the European Commission Communication on Deposit Guarantee Schemes (DGS), published in November 2006, is the voluntary introduction of risk-based contributions in EU DGS. With the objective of developing potential models for adjusting DGS contributions, the Commission’s Joint Research Centre has been requested to investigate current practices across EU Member States.
Report “Investigating the Efficiency of EU Deposit Guarantee Schemes” (2008)
To support the review of Directive 94/19/EEC on Deposit Guarantee Schemes (DGS), the Commission’s Joint Research Centre has been requested to investigate how efficiently EU DGS might be able to deal with bank failures of different magnitudes.
Scenario Analysis: Estimating the effects of changing the funding mechanisms of EU Deposit Guarantee Schemes (2007)
In support of the review of Directive 94/19/EEC on Deposit Guarantee Schemes, the Commission’s Joint Research Centre has been requested to investigate the cost implications associated with the possible harmonization of Deposit Guarantee Schemes’ funding mechanisms.
On 28 November 2006 the European Commission adopted a Communication setting out its approach to modernising current EU legislation on deposit guarantee schemes.
- The press release
Communication of the Commission
Please note that the table in Annex III of the Communication contains three erroneous figures concerning Austria and Luxemburg. The table should read as follows:
Low coverage, low risk adjusted fund Low coverage, medium risk adjusted fund Low coverage, high risk adjusted fund
512 640 000
683 520 000
854 390 000
16 700 000
22 300 000
27 880 000
268 580 000
358 110 000
447 640 000
90 820 000
121 100 000
151 370 000
8 620 000
11 500 000
14 370 000
1 703 930 000
2 271 910 000
2 839 880 000
2 601 290 000
3 468 440 000
4 335 530 000
In accordance with Article 7(5) of the Deposit Guarantee Schemes Directive (94/19/EC), the Commission has been reviewing the € 20.000 minimum guarantee threshold with a view to assessing whether any changes to the guarantee level might be necessary.