CP167 - Consultation on the methodology for calculating contributions to the DGS

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Overview

Description

Central Bank of Ireland (Central Bank) is designated as the national authority in the State that carries out the functions and duties of a designated authority for the purposes of Directive 2014/49/EU (the Deposit Guarantee Scheme (DGS) Directive). This Directive was transposed into Irish legislation in the form of the S.I. No. 516 of 2015 (the DGS Regulations) which provides the legal basis for the DGS in Ireland.

The Central Bank is proposing to change the method used to calculate annual contributions to the DGS from the current flow‑based approach to a stock‑based approach, to take effect from Q3 2026. This follows a review of the 2016 European Banking Authority (EBA) Guidelines and a public consultation in 2022 by the EBA, which resulted in the issuing of new guidelines EBA/GL/2023/02 (2024 EBA Guidelines), in 2023, applicable from 3 July 2024.

The Central Bank’s aim is to make contribution requests more proportionate for member institutions, now that this new stock-based approach is available to use by the EBA and that the funds held in Irish DGS has reached its minimum target level of 0.8% of covered deposits in the State. A member institution’s contribution calculated using the stock-based approach should more closely reflect changes in its risk profile and the level of covered deposits it holds. It also introduces the possibility that a member institution’s past contributions could place it in credit against future contributions.

The Central Bank welcomes the views of industry on this proposal by 5pm on Friday 17 Apil 2026. 

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Consultation Paper Document

CP167 - Consultation on the methodology for calculating contributions to the DGS | pdf 379 KB