Industry Funding Levy Information for Credit Institutions

In 2017, following a consultation process CP108 New Methodology to Calculate Funding Levies, the Central Bank implemented a new methodology for the calculation of levies payable by credit institutions.  This new calculation, which is similar to that used by the ECB, is described in detail below.  For further details, please see ‘Significant Changes in 2017’ in section 2 of the Guide To Industry Funding Regulations 2017.

Category A1

Irish authorised Credit Institutions significant supervised entities within the meaning of the SSM Framework Regulation (Regulation (EU) No. 468/2014 of the European Central Bank (ECB/2014/17)) which were admitted to the Credit Institutions (Eligible Liabilities Guarantee) Scheme 2009 (the "ELG Scheme institutions").

Each credit institution in this sub-category shall be liable to pay an Industry Funding Levy consisting of the sum of a minimum amount and a variable amount as set out in the Table 1 below:

  Table 1
  Minimum Levy plus Variable Levy  
  Credit Institutions  Minimum Levy  Variable Levy
A1  Irish authorised credit institutions including significant supervised entities within the meaning of the SSM Framework Regulation (Regulation  EU) No. 468/2014 of the European Central Bank (ECB/2014/17)) — which were admitted to the Eligible Liabilities Guarantee Scheme 2009 (“the ELG Scheme Institutions”)

 

 

 

 

€154,352

Variable Levy (V) is calculated as follows:

V =[(S+G)* 50%]* C

Where:

S= the credit institution’s percentage share of the sum of total assets for category A1 (based on the credit institution’s report in FINREP template F01.01 row 380 for the period 31 December 2020[1]);

G = the credit institution’s percentage share of the sum of total risk exposure for category A1 (based on the credit institution’s report in COREP template C02.00 row 010 for the period 31 December 2020);

C= the proportion of total variable amount for category A1

The values of S, G and C relevant to their levy calculations will be communicated directly by the Central Bank to each credit institution.       
 

[1] For credit institutions whose year-end is October, data for the period 31 October 2020 will be used.  

Note:  The funding requirement relates principally to the recovery of 2020 costs but is adjusted for balancing items and deferred income from previous years and such other approved adjustments. 

Category A2: Credit Institutions authorised in another EEA state or the UK operating in Ireland on a branch basis

Category A3: Credit institutions authorised in another EEA state operating in Ireland on a freedom of services basis

Credit institutions within sub-categories A2 and A3 are obliged to pay a flat rate levy of €27,000 as set out in Table 2 below.

Table 2

Credit Institutions authorised in another EEA State

Minimum Levy Payable

A2

Credit Institutions authorised in another EEA state or the UK operating in Ireland on a branch basis

 

 

 

€27,000.

A3

Credit Institutions authorised in another EEA state operating in Ireland on a Freedom of Services basis.

No levy invoices will be issued.

Credit Institutions – Supplementary levies

Credit institutions (where appropriate) will continue to be liable to pay supplementary levies to the Central Bank for the purposes of providing sufficient funds to recover costs arising from :

  1. the conduct of inquiries and investigations under Part IIIC of the Central Bank 1942;
  2. tracker mortgage examination, investigation and related issues; and
  3. significant changes to business models and/or activities

These supplementary levies will be set out in separate levy invoices sent to relevant credit institutions
Click here to read more on the annual levying process