To that end, the precise amount
that individual credit institutions will have to pay each year to their
respective resolution funds needs to be determined. This amount will depend on
the bank's size and risk profile. The risk adjustment of individual
contributions in proportion to the risk profile of institutions is based on
criteria set out in the Bank Recovery and Resolution Directive but these
criteria have to be specified in greater detail by the Commission in a
delegated act. As regards the institutions in the Banking Union, the Commission
is empowered to propose to the Council an implementing act to specify the
methodology for the calculation of contributions on the basis of the same risk
factors identified in the delegated act applying to national resolution
funds.
Commissioner Barnier
said: "I want to hear the views of all stakeholders on the design
of the bank levy - it is one of the key elements to ensure that the financial
sector bears the costs of bank failures, not the taxpayer. The levy must be
balanced and reflect the risks of banks with different risks, business models
and sizes."
An on-line public consultation
paper has been launched to collect comments from stakeholders on the proposed
contribution framework under the Commission's delegated act and the
Commission proposal for a Council implementing act. The deadline for sending
contributions is 14 July 2014.
What does the public
consultation cover?
Input is requested on key
elements related to the calculation of contributions:
-
Calculation of contributions:
What should be the level at which the contributions of groups are calculated:
individual or consolidated level?
-
Application of the principle of
proportionality: Should small credit institutions be treated in a special way
compared to what they would pay on the basis of a general formula that would
apply to all credit institutions? Should small credit institutions pay a flat
fee only or just a lump sum? What should be the threshold –in terms of
size- for the definition of small credit institutions?
-
Weight of the flat contribution
versus risk adjusted contribution: Should the flat part be the most prominent
part of the contributions or should the risk-adjusted part be the most
prominent part of the contributions?
-
Individual risk indicators: What
should be the respective weight of each risk pillar, as set out in the BRRD,
and of each risk indicator within each risk pillar?
Who can contribute to the public
consultation?
All stakeholders can participate
but input from credit institutions and investment is particularly
welcome.
How can they contribute to the
consultation?
Stakeholders are invited to
reply to this public consultation by answering the online questionnaire
available from the link below:
http://ec.europa.eu/internal_market/consultations/2014/credit-institution
s-contributions/index_en.htm
The website also provides an
accompanying Note with additional information on the Bank Recovery and Resolution Directive
(BRRD) and the Single Resolution Mechanism
Regulation (SRM).
What are the next
steps?
The answers to the public
consultation will contribute to the Commission's proposals and help it find
the right calibration of the texts implementing the resolution financing
arrangements.
The information collected during
the consultation will be assessed by the Commission services and will be
presented to the Expert Group on Banking, Payments and Insurance,
which meets on a regular basis.
It will further inform the work
of the European Commission services on the delegated act under the BRRD and the
proposal for a Council implementing act under the Single Resolution Mechanism,
which the Commission intends to adopt simultaneously in September
2014.
The delegated act will then be
subject to a right of objection by Council and Parliament within three months
extendible by further three months, while the proposed Council implementing act
will have to be discussed and adopted in Council.
For more
information:
http://ec.europa.eu/internal_market/consultations/2014/credit-institution
s-contributions/index_en.htm
http://ec.europa.eu/internal_market/finances/banking-union/single-resolut
ion-mechanism/index_en.htm
http://ec.europa.eu/internal_market/bank/crisis_management/index_en.htm#b
rrd