The EBA is seeking submissions until 2 September 2006 on recommendations on the appropriate reference point for setting the target level of national resolution financing arrangements which flows from a requirement in the Bank Recovery and Resolution Directive to submit a report to the EU Commission on the industry funded resolution funds. The appropriateness of the basis for the target level is currently based on the basis of number of qualitative criteria and historical data and the draft EBA report recommends changing the basis for the target level from covered deposits to a total liability based measure. Following the consultation, the EU Commission may decide to submit a legislative proposal on the basis for the target level for resolution financing arrangements by 31 December 2016. Currently the target level in the EU is 1% of the covered deposits in the EU Member States concerned.