On September 25, 2014, the EBA launched a consultation on proposed guidelines on payment commitments of firms subject to the Deposit Guarantee Schemes Directive (the “DGSD”). The DGSD requires each member state to set up a deposit guarantee scheme or schemes to be funded by ex ante and ex post contributions of any credit institution subject to the Capital Requirements Regulation. The methods for financing a deposit guarantee scheme is harmonized under the DGSD, including by payment commitments of credit institutions which are fully collaterized. The EBA’s proposed guidelines aim to ensure consistency in the application of the criteria and procedures around payment commitments so as to establish a level playing field, prevent regulatory arbitrage and promote legal clarity. The proposed guidelines are intended to provide firms and regulators with guidance on the legal instruments which deposit guarantee schemes and firms should enter regarding payment commitments as well as the eligibility and management of the collateral. The consultation is open until January 2, 2015.
The proposed guidelines are available at: