20 December 2016
Risk Based Contributions to the Deposit Guarantee Scheme
Under the European Union (Deposit Guarantee Schemes) Regulations 2015 (S.I. No. 516 of 2015), the Central Bank of Ireland is required to establish the DGS Contributory Fund in 2016. The Deposit Guarantee Scheme must reach an available financial means of 0.8% of covered deposits by 2024. In order to reach this target level, credit institutions are required to contribute to the DGS Contributory Fund annually based on their covered deposits and degree of risk.
In line with the DGS Regulations, the Central Bank has developed a risk based methodology for the calculation of contributions in accordance with the European Banking Authority’s (“EBA”) “Guidelines on methods for calculating contributions to deposit guarantee schemes”. An outline of the methodology employed by the Central Bank to calculate contributions from credit institutions is available below.
Risk-Based Contributions to the Irish DGS
23 November 2015
The Deposit Guarantee Scheme website is now live, with the most recent information on the scheme.
The Deposit Guarantee Scheme (DGS) protects depositors in the event of a bank, building society or credit union authorised by the Central Bank of Ireland being unable to repay deposits.
Deposits up to €100,000 per person per institution are protected. The DGS is obliged to issue compensation to depositors duly verified as eligible within 20 working days of a credit institution failing.
The DGS is administered by the Central Bank of Ireland and is funded by the credit institutions covered by the scheme. The DGS is part of the Central Bank of Ireland’s strategy to ensure that the best interests of consumers of financial services are protected.