The government has recently proposed changing how the Deposit Guarantee System ("DGS") in the Netherlands is financed. Under the proposed system, banks would contribute to the DGS each quarter in advance. The contributions would be added to the deposit guarantee fund from which compensation claims can be paid. If there is insufficient money in the fund, the shortfall will be shared between banks. Banks will no longer be able to take part in the system for free - even a bankrupt bank will have contributed to the system. By having a risk-differentiated contribution, banks bearing the least risk will pay the lowest premiums. In addition, the costs will be spread out over time so that banks will no longer be faced with one high charge.