Corrected: paragraph 58 and Annex 1
Background and rationale
EBA guidelines on methods for calculating contributions to deposit guarantee schemes
Title I - Subject matter, scope and definitions
Title II- Guidance for developing methods for calculating contributions to DGSs
Part I - Objectives for DGS contribution schemes
Part II - Principles for developing the calculation methods
Part III - Mandatory elements of the calculation methods
Part IV - Optional elements of the calculation methods
Title III: Final Provisions and Implementation
Annex 1 - Methods to calculate Aggregate Risk Weights (ARW) and determine risk classes
Annex 2 - Description of core risk indicators
Annex 3 - Description of additional risk indicators
Annex 4 - Steps to calculate annual contributions to the DGS
4.1 Impact Assessment
4.2 Views of the Banking Stakeholder Group (BSG)
4.3 Feedback on the public consultation
Confirmation of compliance with guidelines and recommendations
Pursuant to Article 13(3) of the Directive 2014/49/EU of the European Parliament and of the
Council of 16 April 2014 on deposit guarantee schemes (Directive 2014/49/EU), these guidelines
specify methods for calculating contributions to deposit guarantee schemes (DGSs).
In a context where, until now, many Member States did not have pre-financed DGSs, these
guidelines set out principles for technically sound methods for calculating contributions to ensure
that costs of deposit insurance are borne primarily by the banking sector and that the available
financial means reach the target level within the time horizon envisaged in Directive 2014/49/EU.
These guidelines, which will apply both to ex-ante and ex-post contributions, will contribute to
providing incentives to institutions to operate under a less risky business model. To that end,
these guidelines set out principles on the risk component of the calculation method. In addition,
they capture various aspects of the institutions’ risk profile by specifying a number of core risk
indicators pertaining to capital, liquidity and funding, asset quality, business model and
management, and potential losses for the DGS.
In line with the principle of proportionality, the guidelines allow authorities to take into account
the diversity of institutions and business models while respecting a number of safeguards
inherent in the need for harmonisation and comparability within the Single Market. The
guidelines allow authorities to set aside, with regard to a given type of institution, a core risk
indicator that is unavailable due to the legal characteristics of such institutions or supervisory
regime in which they operate. The authorities may introduce additional risk indicators, provided
that the minimum weights specified for the remaining core indicators and risk categories are
respected. The authorities also have a margin of flexibility allowing them to reshuffle up to 25% of
indicators’ weights in order to increase the importance of risk indicators which better capture
differences in risk profiles. In any event, the weight of any additional indicator, or any increase in
the weight of a core indicator, may not exceed 15%, except for qualitative indicators in the risk
category ‘Business model and management’ where full flexibility is allowed in order to properly
reflect the diverse characteristics of member institutions.
The guidelines will offer the EBA a basis on which to assess progress in the convergence of
national practices in calculating contributions to DGSs before the review in 2017 as required by
These guidelines have been drafted with reference to internationally agreed principles, such as
the BIS-IADI Core Principles for Effective Deposit Insurance Systems and the IADI General
Guidance for developing differential premium systems.
deposit guarantee schemes (Directive 2014/49/EU), recasting Directive 94/19/EC and its
subsequent amendments, was published in the Official Journal on 12 June 2014
Prior to this recast, there had been significant differences in DGS funding throughout the EU.
from deposit-taking institutions made in advance on a regular basis (the ex-ante model). In
other Member States, institutions only contributed once the DGS was required to repay
depositors (the ex-post model). When the financial crisis struck in autumn 2008, some DGSs
turned out to be underfinanced and had to resort to public support to repay depositors. In
order to harmonise DGS funding methods, to warrant a similar level of protection of
depositors, and to ensure that costs are primarily borne by member institutions rather than
taxpayers, the new Directive 2014/49/EU introduced an obligation for the DGSs to raise ex-
of 0.8% of covered deposits by 3 July 2024
In addition, the new Directive 2014/49/EU introduced a requirement for contributions to be
risk-based. The rationale was that if ex-ante DGS contributions were to be calculated as a fixed
percentage of deposits of member institutions without taking into account the risk profile of
these entities it could lead to moral hazard. In such cases, other things being equal, risky
institutions would pay the same amount of contributions as less risky ones, causing cross-
subsidisation among institutions and discouraging sound risk practices.
contributions to DGSs, and notably that:
contributions are compulsorily based on the amount of covered deposits and the risk
contributions to market circumstances and risk profiles;
Member States may provide for lower contributions from institutional protection scheme
mandated to issue guidelines to specify methods for calculating contributions to DGSs in
accordance with Article 13(1) and (2) of that Directive.
Directive 2014/49/EU of the European Parliament and of the Council of 16 April 2014 on deposit guarantee schemes,
Article 10 of Directive 2014/49/EU.
the level playing field and contribute to greater comparability of risk-based contributions to
DGSs across Member States. Pursuant to Article 13(3) second subparagraph, the guidelines are
to include ‘a calculation formula, specific indicators, risk classes for members, thresholds for
risk weights assigned to specific risk classes, and other necessary elements’.
three different systems for calculating risk-based contributions to DGSs. The test systems were
developed so that Member States could verify how different combinations of mandatory
elements of calculation methods could be applied to their national banking sectors. Each of
the three test systems used a fixed set of risk indicators and proposed calibration of thresholds
for particular risk indicators and risk classes to be applied in all Member States.
Taking into account the results of the test exercise and choices made by EU co-legislators,
guidance on specific elements that should be taken into account in developing and assessing
the methods for calculating risk-based contributions.
wide range of key aspects of institutions’ operations are reflected in the risk classification. The
selection of risk categories reflects the minimum elements specified in Article 13 of
Directive 2014/49/EU, such as capital adequacy, asset quality, liquidity, but also the business
model and management, and the need to take into account the potential loss to the DGS.
In order to strike the right balance between the need for flexibility required given the diversity
of institutions on the one hand, and the need for harmonisation and comparability within the
Single Market on the other, the guidelines specify core risk indicators and provide guidance for
assigning weights to the risk categories and indicators. Within each risk category, there are
compulsory core risk indicators which should be used in order to promote comparable
treatment of institutions. However, competent authorities may exclude, with regard to any
type of institutions, a core risk indicator upon justification that this indicator is unavailable due
to the legal characteristics of such institutions or supervisory regime in which they operate.
In addition, competent authorities may introduce additional risk indicators if they consider
that the core indicators do not sufficiently take into account the characteristics of the member
institutions, for example in order to reflect the presence of an IPS, or of institutions in low-risk
sectors regulated under national law. A minimum weight is assigned to each core indicator.
The sum of all minimum weights equals 75% of the total aggregate weight, which means that
authorities and DGSs are able to allocate the remaining 25%, either by increasing the weights
of some core indicators above the minima, or by introducing additional risk indicators. In any
event, the weight of any additional indicator, or any increase in the weight of a core indicator,
may not exceed 15%, except for qualitative risk indicators from the risk category ‘Business
model and management’ representing the outcome of a comprehensive assessment of the
member institution’s risk profile and management.
These guidelines acknowledge the option given in Article 13(2) of Directive 2014/49/EU to
balance sheet of an institution. In that case competent authorities will ensure that the
guidelines are respected when approving those methods.
These guidelines have been drafted with reference to internationally agreed principles, such
as the BIS-IADI Core Principles for Effective Deposit Insurance Systems
and the IADI General
. This reference is particularly reflected
the risk adjustment system should be transparent to market participants
In parallel with these guidelines, the European Commission has adopted, pursuant to Article
103(7) of the Bank Recovery and Resolution Directive
, a delegated act on ex-ante
. The DGS funds and resolution funds,
pursue different goals and have different contribution bases and target levels. Therefore, the
risk indicators and calculation methods should reflect the specific characteristics of each
contribution scheme. These guidelines ensure that the two contribution schemes do not
create conflicting incentives in terms of risk behaviour of banks, and strive to avoid
unnecessary reporting burden for institutions by using similar indicators, where appropriate.
In line with Article 10(1) of Directive 2014/49/EU, DGSs will have to collect contributions at
with Article 13 of Directive 2014/49/EU, contributions will have to be risk-based, unless the
appropriate authorities of a Member State have availed themselves of the option envisaged in
Article 20(1), subparagraph 3 of Directive 2014/49/EU on the grounds that a DGS is not yet in
a position to comply with Article 13. In that case, the risk-based requirement will have to be
introduced no later than by 31 May 2016. Similarly, in order to make possible the
implementation of these guidelines, the risk-based contributions to be collected from
member institutions by DGSs should comply with these guidelines by the end of 2015, or as
from the later date set pursuant to Article 20(1) subparagraph 3 of Directive 2014/49/EU.
In line with Article 13(3) of Directive 2014/49/EU, the EBA will review these guidelines by
3 July 2017 and at least every 5 years thereafter. These guidelines will provide a basis on which
to assess the progress achieved by competent and designated authorities in converging
towards sound and harmonised practices, and to compare the results obtained across Member
States when applying the calculation methods described in these guidelines. The data gathered
by the EBA for the purpose of conducting this review will be used to review the proposed list
of core risk indicators and to potentially recalibrate minimum weights assigned to these
The revised ‘Core principles’, International Association of Deposit Insurers (IADI), November 2014.
Those two requirements are laid down in principle 9 of the revised Core Principles.
Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014 establishing a framework for the
recovery and resolution of credit institutions and investment firms, OJ L 173, 12.6.2014, p. 190–348.
Commission regulation supplementing Directive 2014/59/EU of the European Parliament and the Council of 15 May
on the European Commission’s website, not yet published in the official journal.
EBA guidelines on methods for
calculating contributions to deposit
Status of these guidelines
(EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010
establishing a European Supervisory Authority (European Banking Authority), amending
Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC
(the EBA Regulation). In accordance with Article 16(3) of the EBA Regulation, competent
authorities and financial institutions must make every effort to comply with the guidelines.
Guidelines set out the EBA’s view of appropriate supervisory practices within the European
EBA, therefore, expects all competent authorities and financial institutions to which guidelines
are addressed to comply with guidelines. Competent authorities to whom guidelines apply
should comply by incorporating them into their supervisory practices as appropriate (for
example, by amending their legal framework or their supervisory processes), including where
guidelines are directed primarily at institutions.
to whether they comply or intend to comply with these guidelines, or otherwise with reasons
for non-compliance, by [2 months after publication of the final translation]. In the absence of
any notification by this deadline, competent authorities will be considered by the EBA to be
non-compliant. Notifications should be sent by submitting the form provided at Section 5 to
email@example.com with the reference ‘EBA/GL/2015/10’. Notifications should be
submitted by persons with appropriate authority to report compliance on behalf of their
Notifications will be published on the EBA website, in line with Article 16(3).
Title I - Subject matter, scope and
on deposit guarantee schemes (Directive 2014/49/EU), recasting Directive 94/19/EC and its
mandates the collection of risk-based contributions. Pursuant to Article 13 of
Directive 2014/49/EU, the contributions to DGSs shall be based on the amount of covered
deposits and the degree of risk incurred by the respective members. The DGSs may develop
and use their own methods for calculating the risk-based contributions from their members.
Each method shall be approved by the competent authority in cooperation with the
designated authority. The EBA shall be informed about the approved methods.
proportional to the risk of the members and shall take due account of the risk profiles of the
various business models. Those methods may also take into account the asset side of the
balance sheet and risk indicators, such as capital adequacy, asset quality and liquidity.
These guidelines fulfil the mandate given to the EBA under Article 13(3) of
DGSs, and in particular, that such guidelines, are to include a calculation formula, specific
indicators, risk classes for members, thresholds for risk weights assigned to specific risk
classes, and other necessary elements.
These guidelines specify the objectives and principles governing DGS contribution schemes.
developing and assessing the methods for calculating risk-based contributions, while properly
addressing the characteristics of national banking sectors and business models of member
definitions apply for the purpose of these guidelines:
‘DGS contribution scheme’ means the DGS financing arrangement which is entitled to raise
Directive 2014/49/EU of the European Parliament and of the Council of 16 April 2014 on deposit guarantee schemes,
institutions to a DGS;
‘member institution’ means a credit institution, as defined in point (1) of Article 4(1) of
, affiliated to a particular DGS;
‘annual target level’ means the amount of contributions that a DGS plans to collect in a
and further specified in the EBA guidelines on the common