On 12 May 2016, the Belgian Act of 22 April 2016 partially implementing the Deposit Guarantee Schemes Directive 2014/49/EU (DGSD), the “Implementing Act on Deposit Guarantee Schemes (1)”, was published in the Belgian Official Journal. The Act also entered into force on that same date (with two exceptions).
The previous DGSD, directive 94/19/EC, was based on the principle of minimum harmonisation. As a consequence, a variety of deposit guarantee schemes (DGSs) with very distinct features were applicable in the European Union.
The improved DGSD, adopted on 16 April 2014, is a maximum harmonisation directive enhancing the level playing field and financial stability in the internal market and a next step towards the realization of the Banking Union creating a safer and sounder financial sector in the wake of the financial crisis. The implementation of the DGSD is also important because it is a pre-condition for the future European Deposit Insurance Scheme which aims to provide a stronger and more uniform degree of insurance cover for people with bank deposits in the Banking Union.
The dispositions of the new DGSD include the reinforced protection for depositors, quicker pay-outs and improved information. This Directive also requires that all DGSs are pre-funded to ensure that they will be able to fulfil their obligations towards depositors.
The Belgian Implementing Act on Deposit Guarantee Schemes partially transposes the DGSD with the following main changes to the Banking Act of 25 April 2014 and the Royal Decree of 14 November 2008 on financial stability:
- Adjustments to the aim of the DGSs ;
- Adjustments to the categories of covered deposits and depositors ;
- Additional protection of certain exceptional deposits (protection above the maximum amount of 100,000 EUR) ;
- Quicker pay-outs ;
- Financing of the DGSs ;
- Strengthening of the cooperation within the European Union ; and
- Enhanced information of the depositor.
The European Commission had already formally requested Belgium and nine other Member States in December 2015 to fully implement the new DGSD since the deadline for transposing these rules into national law was 3 July 2015.
22 APRIL 2016. - Wet tot omzetting van richtlijn 2014/49/EU inzake depositogarantiestelsels en houdende diverse bepalingen
22 AVRIL 2016. - Loi transposant la directive 2014/49/UE relative aux systèmes de garantie des dépôts et portant des dispositions diverses
Directive 2014/49/EU of the European Parliament and of the Council of 16 April 2014 on deposit guarantee schemes