Newsletter Issue No. 4, April 2016 MESSAGE FROM THE CHAIRMAN Dear EFDI Members, Welcome to this year‘s first edition of the EFDI Newsletter, with many interesting con- tributions and news from our membership. I would like to take this opportunity for a quick update on EFDI‘s internal activities. As previously announced, the 2016 EFDI AGM & International Conference wil be hosted by the Lithuanian Deposit and Investment Insurance from 28 th Septem- ber to 1 st October 2016. A delegation of the EFDI Board visited Vilnius in March for an inspection of the facilities and first discussions regarding the program with Aurelija Mazintiene, Director of the LIthuanian DGS. We experienced a very warm welcome and witnessed the excellent and highly professional preparations for the mee- ting. The Board will convene in Berlin on 12 th of May to continue its work on the agendas of the meetings, among others. We hope to provide you with further information regarding registration, logistics and program shortly and expect to see many of you in the beautiful town of Vilnius this fall. As you may hav noted, the Steering Group recently held a consultation on the proposed draft amendments to the EFDI Statutes. Following its closure, the Steering Group Chairman Joseph Delhaye is currently in the process of analysing its results, which will then be discussed and incorporated in draft amendments by the Steering Group. It is foreseen to present the revised amendments within the framework of the annual events in Vilnius. Finally, I would like to kindly remind you of the upcoming EFDI EU Committee Meeting in Vienna on 23 rd July and the PR Committee in London on 13 th June. We hope to see many of you at these meetings. I want to conclude by thanking all mem- bers who contributed to this newsletter. Your Dirk Cupei IN THIS ISSUE News from Members 2 First tripartite Memorandum of Understanding signed in Switzerland 2 Bank Deposit Guarantee Fund (FGDB), Romania 2 FGD Successfully participantes in call for papers by the JEEH 3 Update from the Czech Deposit Insurance Fund 4 FITD updates 5 FSCS and introduction of risk-based levies for the deposit sector 7 Transposition of Directive 2014/49/EU in Greece 8 German Report on cooperation agreements and someone called Eddies 9 Investor Protection Fund of Hungary (IPFH) 10 Field report 11 Resolution Fund of Hungary (RFH) 11 Cyprus Deposit Guarantee Scheme Activation 11 Romanian Investor Compensation Scheme 2016 12 Resolution of Credit Institution “Cooperative Bank of Peloponnese Coop. LTD” 12 Maple Bank GmbH – Compensation Case 3 Events and Meetings 15 3 rd EFDI Balkan Region Meeting 10-12 March 2016, Zlatibor (Serbia) 15 Turning disadvantage into advantage - Communicators’ meeting in Istanbul 16 FOR YOUR DIARY May 12.05. EFDI Board Meeting, Berlin, Germany 26.05. IADI ERC International Conference „Diversity and Harmonization of Deposit Insurance“, Paris, France June 13.06. EFDI PR Committee, London, UK 23.06. EFDI EU Committee, Vienna, Austria September 28.09.- EFDI Annual Meeting & 1.10. International Conference, Vilnius, Lithuania
17
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Newsletter Issue No. 4, April 2016
MESSAGE FROM THE CHAIRMANDear EFDI Members,
Welcome to
this year‘s first
edition of the
EFDI Newsletter,
with many
interesting con-
tributions and
news from our
membership.
I would like to take this opportunity for a
quick update on EFDI‘s internal activities.
As previously announced, the 2016 EFDI
AGM & International Conference wil be
hosted by the Lithuanian Deposit and
Investment Insurance from 28th Septem-
ber to 1st October 2016. A delegation of
the EFDI Board visited Vilnius in March
for an inspection of the facilities and first
discussions regarding the program with
Aurelija Mazintiene, Director of the
LIthuanian DGS.
We experienced a very warm welcome
and witnessed the excellent and highly
professional preparations for the mee-
ting. The Board will convene in Berlin on
12th of May to continue its work on the
agendas of the meetings, among others.
We hope to provide you with further
information regarding registration,
logistics and program shortly and expect
to see many of you in the beautiful town
of Vilnius this fall.
As you may hav noted, the Steering
Group recently held a consultation on
the proposed draft amendments to
the EFDI Statutes. Following its closure,
the Steering Group Chairman Joseph
Delhaye is currently in the process of
analysing its results, which will then
be discussed and incorporated in draft
amendments by the Steering Group.
It is foreseen to present the revised
amendments within the framework of
the annual events in Vilnius.
Finally, I would like to kindly remind you
of the upcoming EFDI EU Committee
Meeting in Vienna on 23rd July and the
PR Committee in London on 13th June.
We hope to see many of you at these
meetings.
I want to conclude by thanking all mem-
bers who contributed to this newsletter.
Your
Dirk Cupei
IN THIS ISSUE
News from Members 2
First tripartite Memorandum of Understanding signed in Switzerland 2
Bank Deposit Guarantee Fund (FGDB), Romania 2
FGD Successfully participantes in call for papers by the JEEH 3
Update from the Czech Deposit Insurance Fund 4
FITD updates 5
FSCS and introduction of risk-based levies for the deposit sector 7
Transposition of Directive 2014/49/EU in Greece 8
German Report on cooperation agreements and someone called Eddies 9
Investor Protection Fund of Hungary (IPFH) 10
Field report 11
Resolution Fund of Hungary (RFH) 11
Cyprus Deposit Guarantee Scheme Activation 11
Romanian Investor Compensation Scheme 2016 12
Resolution of Credit Institution “Cooperative Bank of Peloponnese Coop. LTD” 12
Maple Bank GmbH – Compensation Case 3
Events and Meetings 15
3rd EFDI Balkan Region Meeting 10-12 March 2016, Zlatibor (Serbia) 15
Turning disadvantage into advantage - Communicators’ meeting in Istanbul 16
FOR YOUR DIARY
May
12.05. EFDI Board Meeting, Berlin,
Germany
26.05. IADI ERC International
Conference „Diversity and
Harmonization of Deposit
Insurance“, Paris, France
June
13.06. EFDI PR Committee, London,
UK
23.06. EFDI EU Committee, Vienna,
Austria
September
28.09.- EFDI Annual Meeting &
1.10. International Conference,
Vilnius, Lithuania
2
News from Members
FIRST TRIPARTITE MEMORANDUM OF UNDERSTANDING SIGNED IN SWITZERLAND
At the end of last year, the heads
of the Swiss Deposit Protection
of Banks and Securities Dealers
esisuisse, the Albanian Deposit
Insurance Agency (ADIA) and
the Deposit Insurance Fund of
Kosovo (DIFK) signed a “Tripartite
Memorandum of Understanding”
at the embassy of the Republic of
Albania in Bern, Switzerland.
Patrick Loeb, Chief Executive
Officer of esisuisse, stated that
finances have become a global
business.
“International contacts are
therefore most vital for us, and
we are proud to have signed the above
mentioned MoU. It gives us access to
important pieces of information for our
international activities and enables us to
lead a most fruitful dialogue with repre-
sentatives of the respective countries”,
he added.
Genci Mamani, ADIA General Director,
stressed that this Memorandum was an
important step in the Agency’s continu-
ed efforts in increasing cooperation with
thomologous deposit insurers. “The Me
morandum”, he said, “aimes at strengt-
hening human capacities and improving
the deposit insurance schemes in
line with best international stan-
dards”.
The Managing Director of DIFK,
Violeta Arifi Krasniqi, appreciated
the signing of the MoU and the
cooperation institutionalised in this
context. “This leads to constant
improvement of our institutions
by adopting global best practice
standards.”
Furthermore, the signing was
applauded by other guests, who
valued the importance of deposit
insuring institutions in protecting
and strengthening financial stabi-
lity. Gail Verley, Secretary General
of the International Association
of Deposit Insurers, pointed out that
the tripartite MoU in question was the
first of its kind under the auspices of
the International Association of Deposit
Insurers.
Posing for a picture after signing the tripartite MoU in Switzerland are (from left to right) Genci Mamani, General Director Albanian Deposit Insurance Agency, Gail Verley, Secretary General IADI, Violeta Arifi Krasniqi, Managing Director Deposit Insurance Fund of Kosovo, Eliverta Radomi, Counsellor Embassy of the Republic of Al-bania, Mustafë Xhemaili, Chargé d’Affaires a.i., Embassy of Kosovo, Patrick Loeb, CEO esisuisse, Martin Blushi, Coordinator Albanian Deposit Insurance Agency
BANK DEPOSIT GUARANTEE FUND (FGDB), ROMANIA The European
Directives’
provisions
on deposit
guarantee schemes and on recovery
and resolution of credit institutions and
investment firms have been implemen-
ted into Romanian legislation through
two Laws. Both Laws have entered into
force on December 14, 2015.
Beside its traditional „pay-box” function,
the Fund may carry out the activity of:
• administrator of banking resolution
fund,
• interim or special administrator for
a credit institution in resolution
and, as the case may be, sharehol-
der of a bridge bank or of an asset
management vehicle,
• sole liquidator, if the National Bank
of Romania withdraws the license
of a credit institution and takes the
measure to order the dissolution
followed by liquidation of the
respective credit institution or in
the case the liquidation is decided
by the shareholders of the credit
institution.
Since 2016, FGDB collects contributions
from member banks on a risk-based
assessment.
At present, FGDB is in process of
drawing up the related secondary
regulations and bringing clarifications
to the member credit institutions. In this
regard, a meeting with them took place
in January at FGDB’s premises.
Two regulations have been issued at the
beginning of 2016: regarding the risk
based contributions and, respectively,
the reporting requirements to FGDB.
In December 2015, FGDB awarded the
winner of the fourth edition of the Cos-
tin Murgescu Contest for Economic Re-
search – the essay “Emigration impact on
the Romanian economy in the context of
the most recent economic and financial
crisis”. The contest encourages new ideas
in macroeconomics, cross-disciplinary
analysis of phenomena seeking financial
and economic stability while promoting
Romanian students’ research and profes-
sional development.”
3
FGD SUCCESSFULLY PARTICIPANTES IN CALL FOR PAPERS BY THE JOURNAL OF EUROPEAN ECONOMIC HISTORY
The
economic
analysis
and
international relations team of the
Fondo di Garanzia dei Depositanti
of Italian BCCs (FGD) – composed
by its Director, Roberto Di Salvo,
Marcello Bredice and Francesco
Baldi – has conducted a study
entitled “Back to the Future”: Bank
Crisis Management Practices
in Italy (1978-2015) and Their
Perspectives in the Italian Cooperative
Credit Network. The study represents the
FGD’s response to the “call for papers”
launched by The Journal of European
Economic History (www.jeeh.it), an
international academic review founded
by the prominent economy historian
Luigi De Rosa in 1972 and distributed in
about 50 countries worldwide.
The special issue of the Journal will be
presented during a workshop, entitled
“From the Financial Crisis to the Banking
Union. Perspectives from Economic
History”, held at the Italian Banking Asso-
ciation (ABI)’s premises on April 12 2016.
The FGD’s article will be distributed to
EFDI members via email as soon as it will
be released. A brief abstract of the study
follows.
Bank recovery and resolution practices
so far applied have shown strong limits
in the aftermath of the 2007-2008 global
financial crisis. The new EU legislation
concerning bank crisis management is
intended to challenge such practices.
The Italian Cooperative Credit (CC)’s
pioneering experience of the Guarantee
Central Fund (FCG) - established on a
voluntary basis in 1978 in line with the
spirit of mutuality shared by the credit
cooperation movement across Europe
since the late 1800s- allows to gather
important lessons on how to re-concep-
tualize and re-design the financial safety
net of a small banks’ network within the
Banking Union. Past research has shown
that a private sector-approach to deposit
insurance can function better than a go-
vernment-based one, preventing
moral hazard behaviors of small
member banks and the adverse
effects of their failures on the
economic output of associated
communities. The ex-ante self-fi-
nancing mechanism implemented
by FCG to support Cooperative
Credit Banks (CCBs) successfully
avoided depositors pay-outs,
further disbursements by member
banks, and pro-cyclical effects
on local economies. Overall, the
Italian CC financial safety net enabled
the market exit of 400 CCBs over the last
40 years without any failures, contagion
spillovers to the country’s economic
system or societal value destruction. Two
key lessons that, among others, can be
drawn are that (a) a sectoral DGS should
better serve as a “risk-minimizer” so as
to reduce the likelihood and amount of
losses for member banks; (b) cohesiven-
ess produces high economic and social
returns at both micro and macro levels.
Conclusively, the fruitful results of the
above experience should be contrasted
with the consequences of small banks
failures in the U.S. market and the huge
amount of State Aids granted worldwide
during the recent global financial crisis.
FGD team members Roberto Di Salvo, Marcello Bredice and Francesco Baldi
News from Members
4
News from Members UPDATE FROM THE CZECH DEPOSIT INSURANCE FUNDThe Deposit Insurance Fund, Czech
Republic has been transformed into
Financial Market Guarantee System
On 1 January
2016, the
acts transpo-
sing DGS Di-
rective and Bank Recovery and Resoluti-
on Directive came into force in the Czech
Republic. Under these acts, the Deposit
Insurance Fund has been transformed
into the Financial Market Guarantee
System with aim to have a more
comprehensive system to protect
depositors and promote stability
on the financial market. The Gua-
rantee System takes over the role
and all responsibilities of former
Deposit Insurance Fund and it
also administers newly formed
Crisis Resolution Fund, which can
be used for the potential future
resolution of financial institution
crises.
The Guarantee System will be a more
stable and robust institution with wider
range of powers to significantly reduce
the risk of financial institution failure.
The existence of the Guarantee System
will also ensure better coherence with
the Czech National Bank (that has the
role of resolution authority) and the Mi-
nistry of Finance of the Czech Republic.
The Guarantee System has two mana-
ging authorities:
A five-member Board of Directors, re-
sponsible for strategic decisions, whose
members are:
• Mr. Dusan Hradil – chairman (Mi-
nistry of Finance)
• Mr. Karel Bauer – vice-chairman
(Czech National Bank)
• Mr. Ondrej Landa – member (Minist-
ry of Finance
• Mr. Radek Urban – member (Czech
National Bank)
• Mr. Josef Tauber – member (Czech
Banking Association)
A three-member Management Board,
responsible for day-to-day agenda
and communication with third parties,
whose members are:
• Ms. Renata Kadlecova – chairperson
• Mr. Tomas Hejduk – member
• Mr. Roman Kahanek – member
Other significant changes brought by
the transposition of the DGS Directive
are:
• temporary high balances are
protected (insured up to additional
100 000 EUR for 3 months after the
amount has been credited or after
the moment when such deposits
become legally transferable),
• deadline for the commencement
of deposit compensation will be
shortened (from 1 June 2016 the
deadline will be 7 working days),
• deposits of local authorities with an
annual budget not exceeding EUR
500 000 remain protected.
These changes provide clients more re-
liability in the deposit insurance protec-
tion system and more flexible access to
their deposits during the reimbursement
process if any financial institution fails.
More information is available at the
website: www.gsft.cz (transferred to
former DIF site – new web site is under
preparation).
The EFDI EU Committee Meeting in
Pilsen, Czech Republic, 24-25 Febru-
ary 2016
Another EFDI EU Committee Meeting
was held in Pilsen in February 2016. The
meeting was opened by Mr. Urban´s
presentation of the Czech Resolution
Regime followed by other in-
teresting topics such as European
Deposit Insurance Scheme – EDIS
(presentation of the latest version
of the document drafted by the
EFDI Banking Union Working
Group), H2C Home/Host Agree-
ments, Stress Tests and many
others. United Kingdom shared
their experience with limit change
and Italy presented results of their
recent interventions affected by state aid
issues.
EFDI ON WIKIPEDIA
The English entry about EFDI on
Wikipedia was recently updated
and approved by the Wikipedia
adminstrators. In order to make
information about EFDI available
in other languages, we would like
to kindly ask for your support in
preparing a version in your local
language based on the English
version.
Please contact secretariat@efdi.
eu for further information and as-
sistance.
5
News from Members
5
FITD UPDATESIn Italy
the BRRD
and the
DGSD
have been recently implemented into
the national legislation:
• the BRRD with the legislative
decrees n.180 and n.181 of 16 No-
vember 2015; one legislative decree
to implement BRRD and the other
to make all relevant amendments to
the Banking Law.
• the DGSD with the legislative
decree n. 30 of 15 February 2016.
Even before the implementation of the
DGSD, FITD started analysis of various
issues resulting from the new rules,
which would have impacted on FITD
organization and activity. In particular:
1. In November 2015 FITD amended
its Statutes to anticipate the new
ex-ante system imposed by the
DGSD. The decision to anticipate
the switch to ex-ante funding was
taken by the Fund in order to begin
raising contributions soon in 2015.
And in December 2015 FITD raised
the contribution for 2015 according
to a funding plan aimed at reaching
the target-level of 0.8% by July
2024.
2. Also, extraordinary contributions
have been introduced with other
funding sources and mutual borro-
wing between DGSs.
3. The ways of investment of available
resources in low risk and appro-
priately differentiated have been
regulated also. To this end, FITD has
signed a correspondent banking
services agreement with the Bank
of Italy. Investments are made on
the basis of the investment policy
and asset allocation decided by the
Fund.
4. In addition to the new funding
mechanism, already introduced, the
SCV project is being finalized.
5. Also, EBA guidelines on risk based
contributions are being implemen-
ted. FITD is making all changes
necessary to its current risk-based
contribution system to comply with
the new rules. FITD sent its con-
tribution to the EBA consultation
on draft guidelines on stress tests,
which DGS will have to carry out on
their systems pursuant to DGSD.
6. An important innovation in FITD
Statutes is the introduction of a
voluntary scheme of intervention. It
is completely separate and has au-
tonomous governance and resour-
ces with respect to the mandatory
scheme. This voluntary instrument
of FITD aims at performing support
measures for its Member banks,
without raising any State aid
concerns. FITD is now engaged in
the enhancement of the Statutes of
the Voluntary Fund: amendments
were approved at the FITD Extraor-
dinary Assembly of 20 January and
others will be approved at the FITD
Ordinary Assembly scheduled on 30
March 2016.
7. FITD will soon launch its new web-
site. The website, which is in Italian
and English, underwent a substan-
tial revision to render it more “user
friendly” for depositors.
8. The website is and will continue
vto be a major instrument for
communication with depositors
in line with Art 16, par. 3 of DGSD
which sets significant importance
on communication of essential
information for depositors through
DGS websites.
-----------
In 2015 FITD carried out an intense
activity for the preparation of three
support interventions. The intervention
were decided in favour of member banks
in special administration, according to
the requirements of the Statute and in
compliance with the new framework on
bank recovery and resolution.
The three interventions would have
been carried out in the form of the
acquisition of equity interests, together
with the application of burden sharing,
ie., the write-down and conversion of
subordinated debt into capital.
In the opinion of the European Commis-
sion, FITD interventions in favour of the
banks would have been qualified as a
State Aid.
Subsequently, four banks were put
in resolution on 22 November 2015,
without FITD intervention (the fourth
bank had been added by the Resolution
Authority). The operation was conducted
with application of burden sharing and
transfer of businesses to four bridge
banks. A good-bank-bad bank separati-
on tool was also applied.
-------
On 22 January 2016 FITD organized a
Seminar on Banking Crisis Management
and Deposit Guarantee in the Banking
Union framework.
(see next page)
6
FITD UPDATES (CONT‘)Major issues resulting from the new
were debated, with contributions from
representatives of institutions, banks
and Academia. institutional and regula-
tory framework.
The seminar comprised an introduc-
tion session and three other in-depth
sessions focusing respectively on
recovery plans, resolution and the use of
DGS in the new toolkit for banking crisis
management.
On 11-12 February 2016 FITD organized
in Turin:
• the 2016 ERC Annual Meeting;
• the Workshop on IADI-FSB Core
Principles for Effective Deposit
Insurance Systems; and
• International Conference on “Pre-
venting and Resolving Bank Crises
in the European Banking Union and
Depositor Protection”.
The Conference was split into 3 Panel
Discussions:
1. The European Banking Union:
What‘s done and next steps
2. Resolving Bank Crises: Preparation
and the Use of Resolution Tools
3. DGS role in Resolving Bank Crises.
Representatives from major European
Authorities (EBA, SRB and ECB) opened
discussion in the first panel with a frank
exchange of views. In the other two
panels, speakers from Resolution Autho-
rities, Central Banks, European Commis-
sion, DGSs and others, presented their
experiences and difficulties in dealing
with the new European Framework for
Banking Crisis Management.
On 11 March, FITD welcomed a Japanese
delegation from the Deposit Insurance
Corporation of Japan (DICJ). The three
Japanese representatives indicated
topics they wished to discuss:
1. Current situation after the transpo-
sition of the recast DGSD and BRRD
in Italy
2. Supposed changes in the roles of
the deposit insurer with EU regulati-
ons/directives
3. Financing of Deposit insurance fund
(the procedure of levy, setting the
target and premium rates)
4. Engagement with the procedure of
Resolution
5. Coordination within the EU (DGS,
Resolution, EDIS)
FITD is currently engaged in:
• CP self-assessment;
• Coordination of the two ERC Sub-
groups (Relations between DGSD
and CPs and State Aid Rules and
DGS Interventions);
• Drafting of the Survey for the Third
Interim Report on DGSD Transposi-
tion. When ready it will be sent to all
EU DGSs through the EFDI Secreta-
riat to monitor DGSD implementati-
on in EU and its effects on DGSs;
• H2C initiatives and meetings;
• Leadership of the Banking Union
Working Group: the first draft paper
on “Preliminary views on EDIS”
prepared by the BUWG has been
submitted to EU Committee. The
EU Committee Coordinator is now
collecting feedback from Members
(deadline 31 March 2016).
• in the IADI Subcommittee on
Resolution Issues for Financial
Cooperatives (SRIFC)
News from Members
FYI: 2ND EXCHANGE OF VIEWS AND HEARING ON EDIS IN ECON COMMITTEE
On 7th April 2016 a second exchange
of views on the European Commis-
sion‘s proposal for a European Deposit
Insurance Scheme took place in the
European Parliament‘s ECON Commit-
tee. The video stream is available at
the ECON Committee website.
The exchange of views was continued
on 19th April 2016, the video stream
of which can also be found at the
ECON website.
Moreover, the ECON Committee will
hold a public hearing on EDIS, which
is planned for 23rd/24th May. Please
check the ECON events page for the
schedule.
7
News from Members
7
FSCS AND INTRODUCTION OF RISK-BASED LEVIES FOR THE DEPOSIT SECTOR On 4 March
2016 the
Prudential
Regulatory
Authority (PRA) published a consultation
paper “Implementing risk-based levies
for the Financial Services Compensation
Scheme deposits class – CP7/16”.
The proposed rules advance the PRA’s
general objective by establishing a
sound funding framework for the FSCS
and thereby minimise the adverse effect
that the failure of a PRA-regulated firm
could be expected to have on the stabi-
lity of the UK financial system. A sound
funding framework for the FSCS also
enhances depositor confidence in the
compensation scheme and therefore;
contributes to financial stability.
PRA rules in the Depositor Protection
Rulebook currently require the FSCS
to calculate firm levies solely on the
basis of covered deposits. Article 13 of
the recast Deposit Guarantee Schemes
Directive (DGSD) requires that contri-
butions to Deposit Guarantee Schemes
(DGSs) should additionally be adjusted
for the degree of risk incurred by each
DGS member. The European Banking
Authority (EBA) has issued guidelines
to specify methods for calculating such
contributions, as required by Article
13(3) of the DGSD. The PRA is setting out
its proposed methodology towards the
calculation of such risk-based levies that
would apply to the repayment of both
future compensation costs and existing
legacy costs incurred by the FSCS. This
CP proposes:
• amendments to the rules governing
the funding of the FSCS in Chapters
34, 49 and 42 of the Depositor
Protection Part that would require
the FSCS to adjust compensation
cost levies for the degree of risk
incurred by a DGS member. These
would take effect from the 2017
levy cycle;
• amendments to rules in Chapter
36 of the Depositor Protection
Part requiring the FSCS to similarly
risk-adjust legacy costs levies*; and
• a new statement of policy,
specifying how the PRA intends to
calculate the degree of risk incurred
by a DGS member. Levies for all
deposit-takers would be risk-based,
but the PRA proposes different
calculation methodologies for Capi-
tal Requirements Regulation (CRR)
firms, credit unions and non-EEA
branches due to their different legal
and supervisory regimes.
The consultation closes on 3 June 2016
and CP7/16 is available on the PRA web-
site - http://www.bankofengland.co.uk/
pra/Documents/publications/cp/2016/
cp716.pdf.
* legacy costs levies cover interest and ca-
pital repayment costs in respect of 2008/09
banking crisis and FSCS borrowing from
HM Treasury.
FYI: ECB CONSULTS ON INSTITUTIONAL PROTECTION SCHEMES
In February 2016, the European
Central Bank opened a public consul-
tation on the ECB’s approach for the
recognition of institutional protection
schemes (IPS) for prudential purposes.
Until 15th April 2016, interested parties
were invited to submit their com-
ments, which will be made publically
available following the conclusion of
the consultation along with a feed-
back statement. In addition, a public
hearing was held in Frankfurt on 30th
of March. All relevant documents and
background information including a
web podcast of the hearing can be
found at the ECB website.
8
News from Members
8
TRANSPOSITION OF DIRECTIVE 2014/49/EU IN GREECE
On March 7th, 2016, the Greek law
transposing Directive 2014/49/EU, law
4370/2016 (Government Gazette 37 A’ /
07.03.2016) came into force. Apart of the
mandatory provisions, which were all
transposed, the manner of transposition
of the following national discretions
might be of some interest:
• Temporary High Balances (THB):
THB limit is set at 300,000 euro
for up to six months from the
day when each relevant amount
has been credited. All activities
except marriage are covered, with
the additional requirement that
deposits resulting from divorce and
insurance benefits must exceed
3,000 euro per deposit to be
covered. Two further requirements
have been added: (a) that the credit
of the amount to the account must
take place within a month from
the date on which the respective
activity took place or otherwise
provide proof that the amount
arises from the covered activity and
(b) that depositor request must be
filed within three months from the
date of failure. It is also provided in
the legislation that, in the case of a
joint account, the limit of 300,000
euro applies for the benefit of all
co-beneficiaries, irrespective of the
depositor or the beneficiary con-
cerned by the relevant credit, and
to the total balance of the account
once the coverage limit of 100,000
has been used up.
• Repayment period: A repayment
period of seven working days has
been adopted.
• Currency of repayment: The cur-
rency of repayment is the currency
of the member state where the
account is located.
• Set-off: When calculating the
repayable amount, the credit
balances of deposit accounts are
set off against all manner of coun-
terclaims of the credit institution
against the depositor, insofar and to
the extent that they have become
due and payable on or before the
date of failure.
• Deadline on validity of repayment
claims: A five (5) – year deadline has
been set for the validity of repay-
ment claims
• Third-country branches: Third
country branches in Greece are
required to join TEKE provided that
they are not already covered by
an equivalent deposit insurance
system.
• The provisions on borrowing bet-
ween DGSs, coverage of personal
and occupational pension schemes
and local authorities, old age
provision products and pensions,
and alternative measures, have not
been transposed into the Greek
legal framework.
• Expenses: In addition to the provi-
sion transposing Directive 2014/49/
EU, the new TEKE law provides
that the Funds’ expenses will be
collected by separate contributi-
ons to credit institutions and will
be split into two categories: The
operating expenses, which relate
to the day-to-day operations of the
Fund and are apportioned to credit
institutions primarily on the basis
of their size (proportional partici-
pation in annual contributions of
Deposit Cover Scheme, Investment
Cover Scheme and Resolution
Scheme) and the expenses that
relate to the payout / resolution of a
specific credit institution, which are
primarily attributed to said credit
institution under liquidation.
As a final point, according to the new
law, the new abbreviation of the Hellenic
Deposit and Investment Guarantee Fund
will be TEKE. The acronym HDIGF used
so far will gradually cease to being used.
Member surveys:
Several new member surveys‘ re-
sults have been posted on our in-
ternal website for download.
The most recent additions include:
• Backup Funding (DIA Serbia)
• Publication of information /
Payment methods and payout
timeframe (BDB Germany)
• Joint Accounts (Cyprus)
• Risk-based methodology 3rd
countries (TEKE Greece)
• Implementation DGSD Art. 12
(DIF Latvia)
You can find the survey folder in
the section „Publications“, EFDI
restricted documents.
We wish to thank all respondents
to the surveys for their valuable
input.
9
GERMAN REPORT ON COOPERATION AGREEMENTS AND SOMEONE CALLED EDDIES
One of the substantial changes brought
upon DGSs in the EU by the DGSD is the
requirement for cooperation between
DGSs in cross-border payout procedures.
In this respect, Article 14 of the DGSD
imposes an explicit obligation on each
DGS to enter into cooperation agree-
ments with other DGSs.
Since the passing of the transposition
date, i.e. the 3rd of July 2015, DGSs are
trying to determine how cooperation
between DGSs should be structured and
which requirements need to be met to
ensure a cross-border payout in a timely
manner and in line with the DGSD, the
respective national transposition law
and the Guidelines on cooperation
agreements between deposit guarantee
schemes under Directive 2014/49/EU
on 15 February 2016. At last, with the
publication of the Guidelines on coope-
ration agreements, it is now clear what
the minimum requirements from EBA‘s
perspective are.
In consideration of the complexity
of cross-border payout scenarios, in
particular if several DGSs are involved in
a specific payout, DGSs are working on
the challenging task to set up a contrac-
tual framework for such cooperation.
In particular, the H2C working groups
have been eagerly working on a draft
cooperation agreement, including the
technical specifications with regard to
the transfer of depositor related informa-
tion between DGSs.
In the meantime, on 11 September 2015
to be specific, the German statutory
deposit insurance scheme (EdB) entered
into bilateral agreements regarding
cooperation within the Union under
Article 14 of the DGSD with the Hellenic
Deposit and Investment Guarantee
Fund. We intent to enter into similar
agreements with the Austrian statutory
deposit insurance scheme for private
banks, i.e. the Einlagensicherung der
Banken & Bankiers GmbH soon and
will continue this process as we were
instructed by our supervisory authority
to have cooperation agreements in place
as soon as possible.
However, having the legal framework
in place is just one side of the „coopera-
tion coin“. All cooperation agreements
have in common that the exchange of
payment instruction files as well as any
other data related to a cross-border
payout procedure will have to be trans-
ferred in a secure and reliable manner.
Although, in theory, it may be concei-
vable to set up bilateral information
exchange systems via an SFTP structure,
the tight timeframe for cross-border
payouts set by the EBA renders bilateral
solutions impractical. In particular, set-
ting up SFTP servers and clients and the
administration and maintenance thereof
hardly fit into a complex payout scenario
in which time and efficiency are of the
essence. One just have to think about
the documents depositors may send to a
Host DGS in connection with temporary
high balances. These documents can be
very comprehensive and will have to be
archived and forwarded to the Home
DGS. Also, bilateral solutions will be
more challenging in stress testing.
Therefore, bearing in mind the variety
and number of DGSs involved, we are
of the opinion that a centralised data
exchange system would be the sole
technically and economically viable
solution. To this end, we are currently in
the process of finalising the details of
such a centralised exchange system. The
system will be provided by the Auditing
Association of German Banks (Prüfungs-
verband), the company which, inter
alia, has been providing payout related
services for us since 1969.
The intention is that this centralised
exchange system will not only be used
by us, but by several DGSs, making the
exchange of information easy, secure,
affordable, and reliable. The Auditing
Association of German Banks aims for
a launch of this system, which they
call European DGS to DGS Information
Exchange System (Eddies), within the
next couple of months. If everything
goes according to plan, Eddies shall be
presented to other DGSs in a short time.
Eddies will meet the requirements
stipulated by the DGSD and the EBA
Guidelines and we hope that many DGSs
will join this system. The more DGSs join
one system the easier life of DGSs will
be.
News from Members
10
INVESTOR PROTECTION FUND OF HUNGARY (IPFH) Organizational changes in NDIF and