On November 10, 2014, the European Banking Authority (“EBA”) issued a consultation paper on its draft guidelines on methods for calculating contributions to Deposit Guarantee Schemes (“DGSs”). The consultation sets out proposed principles and elements to calculate risk-based contributions to DGSs, and seeks views on setting up sound methods for the calculation of risk-based contributions. The guidelines propose to incentivize institutions to operate under less risky business models. The guidelines also run through various aspects of risk profiles, by listing risk indicators relating to capital, liquidity and funding, asset quality, business model and management, and potential losses for DGSs. The consultation closes on February 11, 2015.

The consultation paper is available at:

http://www.eba.europa.eu/documents/10180/887892/EBA-CP-2014- 35+Draft+CP+on+GL+on+DGS+Contributions.pdf.