Regulatory Alerts2018-01-31
Circular 1/2018 modifying Circular 5/2016 and Circular 8/2015 regarding Deposit Guarantee Fund contributions and risk profiles
The Bank of Spain issued Circular 1/2018 to modify the calculation methods for Deposit Guarantee Fund (FGD) contributions, ensuring they are proportional to the risk profiles of credit institutions, particularly those participating in Institutional Protection Systems (SIPs). The regulation introduces new risk indicators and weighting factors to account for SIP membership, allowing eligible entities to reduce their FGD contributions if their SIP has established an ex ante fund. Additionally, the circular updates information requirements to enable the Bank of Spain to effectively monitor and inspect the financial status of these protection systems.
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