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 consists of two sub-categories A1a and A1b.

A1a – Significant supervised entities within the meaning of the SSM Framework Regulation (Regulation (EU) No. 468/2014 of the European Central Bank (ECB/2014/17)) that 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. 

Minimum amount:     €393,194

Variable amount:

The variable amount (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 20 for the period 31 December 2017[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 2017);

C = the proportion of total variable amount for category A1 relevant to this sub-category A1a.

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

In addition, in 2018 credit institutions in sub-category A1a will be liable to pay two separate supplementary levies to the Central Bank of Ireland for the purposes of providing the Central Bank with sufficient funds:

  1. for the conduct of pre-enquiry investigations relating inquiries that may be held by the Central Bank under Part IIIC of the Central Bank 1942, and

     

  2. to enable it to conduct its broad examination of tracker mortgage related issues, as commenced in 2015 and notified to each relevant lender.

[1] For credit institutions whose year-end is October, data for the period 31 October 2017 will be used.

These supplementary levies will be set out in separate levy invoices sent to credit institutions.

A1b – Irish authorised Credit Institutions that are outside the scoop of sub-category A1a and that are

  • Significant supervised entities within the meaning of the SSM Framework Regulation (Regulation (EU) No. 468/2014 of the European Central Bank (ECB/2014/17)),
  • Subsidiaries of significant supervised entities within the meaning of the SSM Framework Regulation where that subsidiary provides retail banking services to individuals and businesses in the State through its branch network
  • Less significant supervised entities within the meaning of the SSM Framework Regulation that have been deemed ‘high priority’ by the European Central Bank

Each credit institution in this sub-category shall be liable to pay a levy contribution consisting of the sum of a minimum amount and a variable amount.

Minimum amount:                     €314,555

Variable amount

The variable amount (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 2017[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 2017);

C = the proportion of total variable amount for category A1 relevant to this sub-category A1b.

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

Since 2017, credit institutions in sub-category A1b have been liable to pay a supplementary levy to the Central Bank for the purposes of providing the Central Bank with sufficient funds to enable it to conduct its broad examination of tracker mortgage related issues, as commenced in 2015 and notified to each relevant lender. 

In 2018, credit institutions in sub-category A1b will also be liable to pay a supplementary levy to the Central Bank for the purposes of providing the Central Bank with sufficient funds to enable it to consider significant changes to the activities of that institution.

These supplementary levies will be set out in levy invoices sent to each relevant credit institution.


[1] For credit institutions whose year-end is October, data for the period 31 October 2017 will be used.

Category A2 consists of two sub-categories A2a and A2b.

A2a - Non-retail subsidiaries of Significant Institutions, non high-priority Less Significant Institutions, relevant Credit Institutions authorised pursuant to Section 9A of the Central bank Act 1971

Each credit institution in this sub-category shall be liable to pay a levy contribution consisting of the sum of a minimum amount and a variable amount.

Minimum amount:                     €20,117

Variable amount

The variable amount (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 A2 (based on the credit institution’s report in FINREP template F01.01 row 380 for the period 31 December 2017[1]);

G = the credit institution’s percentage share of the sum of total risk exposure for category A2 (based on the credit institution’s report in COREP template C02.00 row 010 for the period 31 December 2017);

C = the total variable amount to be recovered for sub-category A2a.

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

Since 2017, credit institutions in sub-category A2a have been liable to pay a supplementary levy to the Central Bank for the purposes of providing the Central Bank with sufficient funds to enable it to conduct its broad examination of tracker mortgage related issues, as commenced in 2015 and notified to each relevant lender. 

In 2018, credit institutions in sub-category A2a will also be liable to pay a supplementary levy to the Central Bank for the purposes of providing the Central Bank with sufficient funds to enable it to consider significant changes to the activities of that institution.

This supplementary levy will be set out in a levy invoice sent to each relevant credit institution.


[1] For credit institutions whose year-end is October, data for the period 31 October 2017 will be used.

A2b - Credit Institutions authorised in another EEA state operating in Ireland on a branch basis

Credit institutions authorised in another EEA state operating in Ireland on a branch basis are obliged to pay a flat rate levy of €20,117.

A3 - Credit institutions authorised in another EEA state operating in Ireland on a cross border basis

Credit institutions authorised in another EEA state operating in Ireland on a cross border basis are obliged to pay a flat rate levy of €20,117.  No levy notice will be issued.

Since 2017, credit institutions in sub-category A3 have been liable to pay a supplementary levy to the Central Bank for the purposes of providing the Central Bank with sufficient funds to enable it to conduct its broad examination of tracker mortgage related issues, as commenced in 2015 and notified to each relevant lender.

Click here to read more on the annual levying process

Certain credit institutions will also be liable to pay the Credit Institutions Resolution Fund levy. Click here for further details.