The European Banking Authority (EBA) published today an opinion on the implementation of the Deposit Guarantee Schemes Directive (DGSD) in the EU. It proposes a number of changes aimed at strengthening depositor protection, enhancing financial stability and improving operational effectiveness. Two other opinions are forthcoming later in 2019.
The EBA opinion responds to a mandate under the DGSD and covers the eligibility of deposits, coverage level and cooperation between deposit guarantee schemes. The opinion proposes changes in relation to the current provisions on transfers of DGS contributions between DGSs, DGSs’ cooperation with various stakeholders, the current list of exclusions from eligibility, current provisions on eligibility, depositor information, the approach to third country branches’ DGS membership, the implications of the recent review of the three European Supervisory Authorities (ESAs), and cross-references to other EU regulations and EU directives. The opinion proposes no changes, for example, to the current coverage level of EUR 100,000, provisions on home-host cooperation, cooperation agreements, or the cooperation between the EBA and the European Systemic Risk Board (ESRB).
Article 19(6) DGSD requires the EBA to support the EU Commission in its development of a report on the progress towards the implementation of the DGSD. This opinion is the first part of the EBA’s fulfilment of this mandate, which should be read alongside two other opinions – on DGS pay-outs, and on DGS funding and uses of DGS funds – that the EBA aims at publishing later in 2019.
The EBA invites the Commission to consider the proposals outlined in the opinion when preparing a report on the implementation of the DGSD to be submitted to the European Parliament and the Council.