Prior to the introduction of Directive 2014/49/EU, many Member States did not have pre-financed Deposit Guarantee Scheme’s or there were significant differences in Deposit Guarantee Scheme funding throughout the EU. In order to harmonise Deposit Guarantee Scheme funding methods, to provide a similar level of protection for depositors, and to ensure that costs are primarily borne by Member Institutions, the Directive introduced the requirement for Scheme’s to raise ex-ante contributions annually through a risk-based methodology from members in order to reach a target level by 3 July 2024. The FSRCC, as the ‘Designated Authority’ for the Gibraltar Deposit Guarantee Scheme, is required to calculate risk- based DGS contributions into the fund in accordance with the EBA guidelines “on methods for calculating contributions to DGS”.
The document attached below outlines the methodology and approach taken with regards to the calculation of the Gibraltar Deposit Guarantee Scheme contributions, with the intention of providing increased clarity and transparency for firms.
