Circular No. 357 on Deposit Protection Systems

COMMISSION BANCAIRE ET FINANCIERE
Prudential Control
Brussels, 2 March 1995.
CIRCULAR No. 357

Madam,
Sir,

You will find attached the text of the protocol concluded on 4 January 1995 by the Institute of Rediscount and Guarantee regarding deposit protection systems with credit institutions.

On 27 December 1994 and on 3, 7 and 8 February 1995, the Institute of Rediscount and Guarantee sent a circular letter to credit institutions indicating, among other things, the elements to be taken into consideration for fixing the amount of the individual contribution of credit institutions to the new protection fund. You will also find a copy in the annex.

I draw your particular attention to the second paragraph of Article 23 of the Protocol. This provision provides for the certification by the approved auditor or the approved audit firm with a credit institution of the elements notified to the Institute which are necessary for determining the calculation base for its contribution according to the directives fixed by the Institute.

It should be noted that this information is to be considered as forming an integral part of the periodic report statements referred to in Article 44 of the Law of 22 March 1993 on the status and control of credit institutions.

The role of collaboration of the approved statutory auditor or approved auditor in the control exercised by the Commission Bancaire et Financière as defined in Article 55 of the said Law and in its implementing measures also applies to this type of document. The certification, which is requested of the approved auditor in the protocol, must therefore be understood as the confirmation of the periodic statements transmitted by credit institutions, provided for in Article 55, 2nd paragraph, and defined in Chapter E of the Commission's directives to statutory auditors with credit institutions.

. . . /

avenue Louise 99 1050 Brussels Tel.: (02)535.22.11 Fax: (02)535.23.23

COMMISSION BANCAIRE ET FINANCIERE P. 2

If the approved auditor has remarks to make regarding the accuracy of the elements notified by the credit institution to the I.R.G., he will inform the Commission Bancaire et Financière without delay by means of a special report, which will alert the Institute.

I finally draw your attention to the fact that, exceptionally for the contributions related to 1995, the assets to be taken into consideration will be determined on the basis of the accounting situation finalized on 31 December 1994.

Please accept, Madam, Sir, the expression of my distinguished sentiments.

Protocol relating to the deposit protection system with credit institutions

Between:

1° The Institute of Rediscount and Guarantee, a public utility institution created by Royal Decree No. 175 of 13 June 1935, hereinafter designated "the Institute", represented by Messrs W. Fraeys, President, and F. Vanbever, General Director, duly authorized by the Management Committee;

2° The Belgian Banks Association, represented by Messrs F. Chaffart, President, and M. De Smet, General Director;

3° The following credit institutions:

a) Algemeen Beroepskrediet,
Caisse Luxembourgeoise de Credit Professionnel et de Depots, Credit Professionnel des Cantons de l'Est, Credit Professionnel Interfederal, Credit Professionnel de Liege, Credit Professionnel de la Province de Namur, Deposito- en Kredietkas voor de Middenstand, Federale Kas voor het Beroepskrediet, Middenstands Deposito- en Kredietkantoor, Onderling Beroepskrediet - B.M.O.V., Onderling Beroepskrediet - B.M.W.V., Oostvlaams Beroepskrediet, Westvlaamsch Beroepskrediet, represented by Mr J. Zenner, President of the Federal Union of Professional Credit Associations of Belgium, duly authorized for this purpose,

b) Argenta Spaarbank, S.A., represented by Mr J. Van Hoeve, Member of the Management Committee,

c) Centrale Kredietverlening, S.A., represented by Mr M. A. G. Van Meerhaeghe, President of the Board of Directors,

d) Fidisco, S.A., represented by Mr J. Smets, Managing Director, and Mr F. Asselman, Director,

e) HBK-Banque d'epargne, S.A., represented by Mr P. Van Genegen, Managing Director,

f) Krediet- en Financiële Maatschappij, S.A., represented by Mr P. Borghgraef, Managing Director.

Having regard to Directive 94/19/EC of 30 May 1994 of the European Parliament and of the Council on deposit-guarantee schemes;

Having regard to the Law of 22 March 1993 on the status and control of credit institutions, in particular Articles 22 and 110 et seq.;

Having regard to Royal Decree No. 175 of 13 June 1935, in particular Article 1, first paragraph, and Article 4, 2°, as interpreted by the Law of 16 March 1982, and Article 7bis, introduced by the Law of 23 December 1994;

Considering that Belgium is required, as from 1 July 1995, to put in place a system for the protection of deposits with credit institutions in accordance with the provisions of European law in this matter; that it is however desirable to put it in place with effect from 1 January 1995;

Considering that the Institute may, by virtue of the aforementioned provisions of its organic law, intervene for the benefit of depositors in the event of the failure or threat of failure of credit institutions;

Considering that it is necessary to put in place a regime that will ensure continuity in the protection of deposits but which will be unique for all credit institutions, which will be in accordance with the provisions of European law in this matter and which will be adapted according to the experience acquired on the basis of previous systems;

Considering that the aforementioned Law of 23 December 1994 amended the organic law of the Institute insofar as it concerns, in particular, the composition of the Management Committee for deliberations relating to the management of deposit protection systems established or managed by the Institute; that it is the Management Committee thus enlarged that is referred to in the present protocol;

Considering that it is necessary to create an intervention fund to finance the repayments and interventions decided upon within the framework of the present protocol;

Considering that it is necessary to fund this fund through annual contributions from credit institutions calculated on the basis of the amount of their commitments liable to be subject to repayments;

Considering that it is necessary to benefit the new deposit protection system from the resources constituted within the framework of previous systems while taking the necessary provisions to provide for the use of the resources of these systems prior to those of the new system;

Considering that it is necessary to maintain the possibility of interventions in the event of a threat of failure of a credit institution;

Considering that it is necessary to take into account the provisions of European law relating, on the one hand, to the coverage of the commitments of branches of Belgian law credit institutions located in other Member States of the European Community, and, on the other hand, to the complementary coverages that may be requested by branches in Belgium of credit institutions subject to the law of other Member States of the European Community as well as the possibility of requiring, if necessary, the adherence of branches of credit institutions subject to the law of States not members of the European Community;

Considering that the nature of the Institute requires that the execution of its commitments provided for by the present protocol cannot exceed the amount available in the intervention fund; that it is, thus, making use of the reservation made in the penultimate recital of the European directive in this matter, which states as follows:
"considering that the directive cannot have the effect of engaging the responsibility of Member States or their competent authorities towards depositors, provided that they have ensured the establishment or official recognition of one or more systems guaranteeing deposits or credit institutions themselves and ensuring the compensation or protection of depositors under the conditions defined by the directive;"

It is agreed as follows:

Chapter I - Principles

Article 1
The purpose of this protocol is to provide the Institute with the financial means enabling it to organize a system for the protection of public deposits with credit institutions in the event of the failure or threat of failure of an adhering credit institution and to fix the conditions, limits and modalities of the financing, by credit institutions, of this protection system.

It concerns:

1° the interventions made by the Institute at the charge of the fund referred to in Articles 23 et seq. and aiming, in the cases referred to in Article 3, Article 33 and Article 44, to reimburse, in accordance with Section 2 of Chapter II, certain assets received by the failed credit institution;

2° the interventions decided by the Institute at the charge of the fund referred to in Articles 23 et seq., to allow, in the cases provided for in Section 3 of Chapter II, the liquidation, financial rehabilitation or takeover, in whole or in part, of the activities of an adhering credit institution whose good performance of commitments is compromised.

Chapter II - Interventions with regard to Belgian law credit institutions

Section 1 - Scope of application

Article 2
This Chapter applies to Belgian law credit institutions subject to the control of the Commission Bancaire et Financière by virtue of the Law of 22 March 1993 on the status and control of credit institutions, with the exception of communal savings banks.

Section 2 - Repayment of deposits in the event of failure of a Belgian law credit institution

Sub-section 1 - Principles

Section 1 - Cases of failure

Article 3
The Institute reimburses, within the limits, conditions and modalities defined in Sub-sections 2 and 3, depositors of deposits entrusted to a credit institution,

1° when this credit institution has been declared bankrupt or has filed a petition for a court-approved arrangement; or

2° when, even in the absence of a judgment declaring bankruptcy or filing a petition for a court-approved arrangement, the Commission Bancaire et Financière has notified it that it has found that the financial situation of the credit institution has led it to refuse to repay a due deposit and no longer allows it, in the immediate future and within a short period, to proceed with the repayment of such deposits.

Section 2 - Eligible assets for repayment

Article 4
The following are eligible for repayment, without prejudice to the provisions of the following Articles, assets denominated in Belgian francs, ECU or in the currency of another Member State of the European Community, resulting from

1° deposit accounts;

2° cash certificates, bonds or other banking debt securities if these certificates, bonds or securities are registered or held in account or in overdraft deposit according to the modalities and limits fixed in Article 6, 2°.

Section 3 - Exclusions

Article 5
The following are not eligible for repayment:

1° the assets of companies falling into the following categories:

a) Belgian or foreign credit institutions acting in their own name and for their own account;

b) Belgian law financial institutions within the meaning of Article 3, 5 1st, 5° of the Law of 22 March 1993 on the status and control of credit institutions and similar financial institutions established abroad;

c) Belgian companies governed by the Law of 9 July 1975 on the control of insurance companies, Belgian pension or retirement funds not subject to this law and foreign insurance, pension or retirement institutions with a similar activity;

d) Belgian or foreign collective investment undertakings;

e) companies or enterprises, subject to Belgian law or the law of another Member State of the European Community, whose size is such that they are not authorized to draw up an abbreviated balance sheet in accordance with Article 11 of the Fourth Directive (78/660/EEC) of the Council of 25 July 1978, based on Article 54, Section 3 under g) of the Treaty and concerning the annual accounts of certain forms of companies, as well as companies or enterprises of comparable size subject to the law of a non-member State of the European Community;

2° the assets of the State, Belgian or foreign regional, provincial or local authorities as well as all Belgian or foreign public interest bodies subject to these authorities or associations formed between them;

3° the assets of directors, managers and other persons participating in the effective management of the credit institution as well as the assets of personally liable partners and of persons or companies who hold directly or indirectly at least 5% of the capital of the credit institution, the assets of persons responsible for the statutory audit of the accounts or the accounting situation of the credit institution as well as the assets of persons participating in the effective management of other companies in the group to which the credit institution belongs; by group is meant the set of companies that control directly or indirectly the credit institution as well as the subsidiaries of these companies and of the credit institution within the meaning of the regulations on the annual accounts of credit institutions;

4° the assets of spouses and relatives up to the second degree of the persons referred to in 3° as well as those of third-party agents of the depositors referred to in 3°;

5° the assets of other companies in the group to which the credit institution belongs; the group is understood as under 3°;

6° the assets for which the depositor has obtained from the credit institution, on an individual basis, interest rates and financial benefits exceeding those granted by it at the same time for assets of the same nature, same currency, same category, same duration and same amount, and which have contributed to aggravating the financial situation of the credit institution;

7° the assets belonging to the categories listed in Article 2 of Council Directive 89/299/EEC of 17 April 1989 concerning the own funds of credit institutions without regard, however, to the restrictive conditions contained in this provision, as well as those listed in Article 3 of the same Directive;

8° the assets arising from operations for which a final criminal conviction for money laundering has been pronounced, within the meaning, in Belgium, of Article 3 of the Law of 11 January 1993 or within the meaning, abroad, of Article 1 of Council Directive 91/308/EEC of 10 June 1991 on preventing the use of the financial system for the purpose of money laundering;

9° commitments arising from the signing of commercial paper, such as own acceptances and promissory notes.

Sub-section 2 - Determination of the amount of deposits liable to be repaid

Article 6
For the determination of repayments, the following rules are taken into account:

1° all eligible claims in accordance with Articles 4 and 5 of the same holder on the same credit institution or on the same bankruptcy estate are added together after legal or conventional compensation with the debts of this holder;

2° cash certificates, bonds and other banking debt securities are taken into consideration insofar as they are registered or held in account or in overdraft deposit with the issuing credit institution or, if the issuer does not organize an account or overdraft deposit service for such values, with the institution designated by the issuer, notified to the Institute and which accepts to provide the issuer with the necessary data for the calculation of the contribution to be paid by it in accordance with Articles 23 and 24.

If the conversion to registered form or to account or overdraft deposit took place less than one month before the occurrence of the failure determined in accordance with Article 3, the aforementioned assets will only be admitted for repayment if their holder establishes their good faith.

The following are also eligible for repayment: cash certificates, bonds and other banking debt securities of which the holder proves:

a) either, if they are in the name of another person, that he became owner prior to the date of failure determined in accordance with Article 3,

b) either, if they have been entrusted in account or in overdraft deposit in the name of another person, that he is owner by virtue of an acquired right prior to the date of failure determined in accordance with Article 3.

The non-registered cash certificates, bonds and other banking debt securities issued by the National Caisse de Credit Professionnel or by an association approved by it are taken into consideration insofar as the conversion to account or overdraft deposit is carried out with the National Caisse de Credit Professionnel or one of these associations. These same securities issued by credit institutions forming a federation within the meaning of Article 61 of the aforementioned Law of 22 March 1993 are taken into consideration, whether the conversion to account or overdraft deposit is carried out with the central body or with one of the affiliated institutions;

3° eligible assets for repayment are taken into consideration up to their principal or nominal value, due or accrued income and the value of their possible accessories on the day of the occurrence of the circumstances referred to in Article 3;

4° assets held in a cash or securities account on which at least two persons have rights as members of an association, group or undivided ownership not endowed with legal personality are, apart from the cases provided for in 5°, considered as belonging to a single depositor; however, if those who can assert rights on the aforementioned assets are identified or identifiable, the share belonging to each of them will be taken into account; in the absence of proof to the contrary, the shares of the beneficiaries are presumed equal;

11.

5° assets held in a cash or securities account on the entirety of which at least two persons have rights that can be exercised under the signature of only one of these persons, acting in a capacity other than that of agent, are reimbursed according to the shares belonging to the persons having rights on these assets; in the absence of proof to the contrary, the shares of the beneficiaries are presumed equal;

6° assets registered on accounts opened in the name of professionals not falling under financial professions and exclusively affected to the holding and movement of third-party funds are, for the application of this Section, recognized as claims belonging to these third parties only if the accounts are sub-categorized in the name of these third parties in the accounting of the credit institution or if their share is established by the account holder on the basis of communications made during deposits, transfers and withdrawals;

7° assets held by a person acting in their own name but for the account of a third party are considered as belonging to this third party if the latter was determined or determinable on the date of occurrence of the circumstances referred to in Article 3;

8° if the creditor has debts or commitments towards the credit institution that cannot be subject to the compensation provided for in 1°, the repayment is only carried out after deduction of their amount, unless these debts and commitments are secured by guarantees deemed sufficient, other than the assets for which repayment is requested.

Sub-section 3 - Interventions

Section 1 - Conditions for intervention

Article 7
In the case of credit institutions forming a federation within the meaning of Article 61 of the aforementioned Law of 22 March 1993 or for the commitments of a credit institution of which one or more other credit institutions are jointly liable, the Institute is only required to make repayments after depositors have unsuccessfully requested repayments respectively from the central body of the federation or from the jointly liable institutions.

Section 2 - Amount of intervention

Article 8
The Institute reimburses the holder the amount of eligible assets with a maximum fixed at the equivalent in Belgian francs of 20,000 ECU. For cases of failure established in accordance with Article 3 up to 31 December 1999, this amount is however fixed at the equivalent in Belgian francs of 15,000 ECU. The equivalent in Belgian francs of the amounts fixed above in ECU is established according to the average market rates on the day the circumstances described in Article 3 occur.

The amount of assets in ECU or foreign currencies is converted into Belgian francs according to the average market rates on the day of occurrence of the circumstances described in Article 3. These assets are reimbursed in Belgian francs.

13.

Article 9
Eligible assets arising from commitments of branches established in another Member State of the European Community of a Belgian law credit institution adhering to the system are reimbursed, on an equal footing with those arising from commitments of Belgian head offices and agencies, within the limits fixed by Article 8. The Management Committee of the Institute deliberating with the majority of 2/3 provided for in Article 7bis, Section 2 of Royal Decree No. 175 of 13 June 1975 may in individual cases extend the reimbursement, under the same conditions and limits, to the commitments of branches established in a State not a member of the European Community.

For cases of failure occurring up to 31 December 1999, the amount of the intervention for the benefit of holders of assets with the branches referred to in this Article is, if necessary, limited to the amount of the cover provided by the corresponding guarantee system of the State of establishment of the branch, for similar credit institutions and for assets denominated in the currencies referred to in Article 4.

By derogation from Article 8, second paragraph, assets are reimbursed in the currency of the country of establishment of the branch.

Section 3 - Limits placed on the execution of the Institute's commitments

Article 10
In the event of the occurrence of one of the circumstances described in Article 3, if the Institute is of the opinion that the resources of the deposit protection system will not be sufficient to repay all eligible assets, the Institute proceeds, based on the information available to it, in particular from the curator, to an estimate, on the one hand, of the total amount of repayments that would have to be made on the basis of the dis-

14.

provisions of the present protocol, and, on the other hand, of the resources available to the Institute, including the contributions provided for in Articles 23 et seq. and the resources of the previous systems.

If the Institute considers that the resources available are insufficient to cover all eligible assets, it shall apply the provisions of Article 11.

Article 11
If the Institute considers that the resources available are insufficient to cover all eligible assets, it shall apply the provisions of Article 12.

Article 12
In the event of a shortage of resources, the Institute shall reduce the amount of repayments proportionally for all eligible assets, subject to the minimum guarantee provided for in Article 8.

Article 13
The Institute may, in exceptional circumstances, request additional contributions from credit institutions adhering to the system, in accordance with the provisions of Articles 23 et seq.

Article 14
The Institute shall publish annually a report on the operation of the deposit protection system, including the amount of contributions collected and the amount of interventions made.

Article 15
The present protocol shall enter into force on 1 January 1995.

Done at Brussels, on 4 January 1995.

For the Institute of Rediscount and Guarantee:
W. Fraeys
President

F. Vanbever
General Director

For the Belgian Banks Association:
F. Chaffart
President

M. De Smet
General Director

For the Federal Union of Professional Credit Associations of Belgium:
J. Zenner
President

For Argenta Spaarbank, S.A.:
J. Van Hoeve
Member of the Management Committee

For Centrale Kredietverlening, S.A.:
M. A. G. Van Meerhaeghe
President of the Board of Directors

For Fidisco, S.A.:
J. Smets
Managing Director

F. Asselman
Director

For HBK-Banque d'epargne, S.A.:
P. Van Genegen
Managing Director

For Krediet- en Financiële Maatschappij, S.A.:
P. Borghgraef
Managing Director

14. positions provided for by Articles 4 to 6, 8 and 9, and, on the other hand, from the unrecoverable portion of claims against the establishment in question.
The Institute may defer repayments until it has been able to carry out the estimations provided for in the first paragraph and, at the latest, until the expiration of the time limits fixed in accordance with Article 12.
According to the procedures fixed by it, the Management Committee of the Institute proportionally reduces repayments to the available amount of the intervention fund if the amount of the latter remaining available on the date of the occurrence of the events referred to in Article 3 is less than the estimated unrecoverable amount of repayments that would have to be made on the basis of the provisions of Articles 4 to 6, 8 and 9, added to the charges related to the repayment. When, following a reduction made in accordance with the third paragraph, the available amount of the fund on the date of this reduction has not been entirely distributed, the surplus and the recoveries with respect to the estimates are attributed to holders of eligible deposits, without being able to increase the total repayments, taking into account the provisions of the fifth paragraph, beyond the ceilings provided for in the provisions of Articles 8 and 9. The reconstruction of available resources of the deposit protection system, by the effect of ordinary contributions or by the effect of the call for supplementary contributions, as regulated in Article 24, serves, by priority, to complement the repayments that had to be reduced pursuant to this Article. The Institute is entitled, until the final accounting, to postpone the payment of supplementary repayments provided for in paragraphs 4 and 5 if these repayments do not reach, per depositor, at least the equivalent of 500,000 Belgian Francs calculated in accordance with Article 8, first paragraph, third sentence.

15.
Section 4 - Intervention Procedure
Article 11
The Institute shall publish in the Belgian Moniteur the existence of circumstances described in Article 3 as well as the time limits foreseeable for the repayment.
It shall publish the same information according to the official or usual modes in the States of establishment of the branches referred to in Article 9, first paragraph.
Article 12
The Institute proceeds to the repayment of eligible deposits within a period of 3 months from the date of the decision or the finding provided for by Article 3 and without prejudice to Article 7.
The Institute may request from the Banking and Financial Commission, in very exceptional circumstances and for repayments relating to a specific credit institution, up to three extensions of this time limit. These extensions may not exceed, each, 3 months. The expiration of the time limits fixed in paragraphs 1 and 2 does not prejudice the right to repayment on the part of a holder of eligible deposits who has not been able to assert in time, for legitimate reasons recognized by the Institute, his right to repayment.

16.
Article 13
Repayment requests from holders of eligible deposits at headquarters and agencies located in Belgium are submitted on forms established by the Institute in one of the official languages in Belgium in accordance with the rules prescribed in Belgium regarding the use of these languages. Those relating to deposits held at branches established in other States are submitted on forms established by the Institute, in one or more of the official languages of these States in accordance with the rules prescribed by their national law regarding the use of these languages.
Article 14
In the event of bankruptcy or a court-approved arrangement, the creditor must have declared his claim and this claim must have been admitted. In any case, the claim must not have already been the subject of a distribution of bankruptcy dividends or a court-approved payment.
Article 15
Unless in the cases provided for in Article 12, third paragraph, the repayment request must, under penalty of forfeiture, be submitted to the Institute at the latest upon the expiration of a period of 2 months from the date of the publicity given by the Institute in accordance with Article 11. The Institute may extend this time limit in the cases and within the limits provided for in Article 12, second paragraph. It publishes its decision in accordance with Article 11.

17.
Article 16
Notwithstanding the time limits provided for in Article 12, the Institute may, in case of doubt regarding the validity of the elements produced in support of the repayment request, suspend the repayment until proof of these elements is provided to it.
Article 17
Repayment can only be made if:
1° the holder of eligible deposits expressly and simultaneously subrogates the Institute in his claim; 2° in cases where the holder is only partially repaid, he waives, to the extent of what he has received, the benefit of Article 1252 of the Civil Code and accepts, for the same amount, that the Institute be repaid with priority; 3° the holder signs the declarations regarding the conditions imposed for the implementation of this section by the Institute; 4° the holder of eligible deposits assigns these to the Institute for the purpose of its intervention and any subsequent procedures following this intervention. The Institute manages the assets thus assigned in the common interest of the holder and of itself. It pays to the holder what it has recovered, deducting the amount of the repayment made.

18.
Article 18
The Institute does not repay eligible deposits if the holder has made false declarations for the application of the deposit protection system or has committed fraud, particularly with respect to this system or with respect to the laws and decrees applicable to credit institutions or to the relations between credit institutions and their clients.
Article 19
Until a final judicial decision has been rendered, the Institute suspends the repayment of eligible deposits when their holder or one of their holders or any other person having rights on these deposits has been charged with a money laundering offense, of which these deposits are the supposed product, within the meaning, in Belgium, of Article 3 of the Law of 11 January 1993 or within the meaning, abroad, of Article 1 of the Council Directive of the European Communities No 91/308/EEC of 10 June 1991 on preventing the use of the financial system for the purpose of money laundering. Sub-section 4 - Information of Depositors
Article 20
Paragraph 1. The Institute will publish in the Belgian Moniteur the conditions, limits and procedures for the repayment obligations of eligible deposits as provided for by this section. It will also publish any modifications thereto.
It will ensure the publication of the names of credit institutions that have adhered to this protocol as well as those that cease to be covered by the system subject to this protocol.

19.
In the event of the occurrence of one of the circumstances provided for in
Article 3, it communicates to any interested party, in the language
determined in accordance with Article 13, the conditions, criteria and procedures for repayment.
Paragraph 2. Member credit institutions are required, respecting the rules fixed by the King, to inform in writing effective or potential depositors, in the languages determined in accordance with Article 13, on the coverage resulting from the protection system subject to this protocol, on the essential characteristics of this system and on the address of the Institute. These institutions are prohibited from making use, in their advertising, for purposes other than purely informative, of the coverage of their commitments by the deposit protection system.
Section 3 - Intervention in the context of a liquidation, financial restructuring or takeover of the activities of a credit institution
Article 21
When the Institute provides, in accordance with Article 1, paragraph 2, 2°, its financial support to allow the realization of a liquidation, financial restructuring or total or partial takeover of the activities of an affiliated credit institution whose good faith commitments are compromised, this intervention may be charged to the fund governed by Chapter III, within the limits of the available amount of that fund, when, deliberating by the special majority provided for by Article 'this, Section 2 of the Royal Decree No 175 of 13 June 1935, the Management Committee of the Institute is of the opinion, a) that such an intervention is less costly than an intervention made pursuant to Section 2; or

b) that it is indicated, in the general interest of the monetary system and of credit, to prevent the risk of failure of the credit institution in question.
Article 22
The Management Committee of the Institute decides, according to the majority rules referred to in Article 21, the supplementary calls, as provided for in Article 24, intended to finance the interventions subject to this section.
Chapter III - On the intervention fund
Article 23
Each affiliated credit institution pays to the Institute an annual contribution of 0.20 per mille of the amount, on 30 September of the previous year, of eligible deposits within the meaning of Articles 4 to 6, with the exception of deposits held at branches referred to in Article 9, first paragraph, second sentence. This contribution is paid, value on 1 January. In the case of federations referred to in Article 7, the calculation of the contribution is based on the global situation of the federation. The credit institution notifies the Institute without delay of the elements necessary for determining the basis for calculating its contribution according to the directives fixed by the Institute. It has these elements certified by the approved auditor or the approved audit firm associated with it. Without prejudice to Article 51, Sections 5 to 7, the obligation to pay the contribution provided for in the first paragraph is suspended in whole or in part when the resources of the fund referred to in Article 25, paragraphs 1 to 4, and related to a specific institution

21. reach, on 1 January of a year, 0.5% of the base on which the contribution of this institution would be established, on 30 September of the previous year.
Article 24
If the resources of the fund referred to in Article 25 do not allow for the full execution of one or more interventions required in the circumstances provided for in Sections 2 and 3 of Chapter II, the Institute calls for the payment of supplementary sums. These calls may not be greater than what is required by the interventions that the fund must cover. They may not exceed, per calendar year, 0.4 per mille of the amount, on 30 September of the previous year, of eligible deposits within the meaning of Articles 4 to 6.
Article 25
The repayments and other interventions of the Institute provided for by this protocol are charged to the intervention fund. This fund is formed by 1° the balance of the deposit protection funds prior to this protocol; 2° all contributions paid by credit institutions pursuant to this section; 3° the proceeds from the investment of the deposits and contributions referred to in 2° and 4°; 4° the liquidity held by the Institute on behalf of the fund under another title than the payments and proceeds referred to in 2° and 3°;

22.
5° special funds allocated to it temporarily or definitively and, this, under the conditions eventually provided for by the legal, regulatory, contractual or other provisions providing for these funds.
The available amount of the fund is understood after deduction of 1° the repayments and interventions that are charged to the fund pursuant to Sections 2 and 3 of Chapter II; 2° the provisions necessary for the execution of the obligations arising from the charges referred to in Article 26, second paragraph.
Article 26
Are charged to the intervention fund, within the limits fixed in Articles 10, 21 and 22:
1° the estimated unrecoverable amount of repayments that the Institute has made in accordance with Chapter II, Section 2; 2° the amount of interventions made in accordance with
Chapter II, Section 3.
The Institute may also, within the same limits, charge to the fund:
1° the remuneration due to it for the management of the deposit protection system subject to this protocol; 2° the financial charges related to loans granted by it or contracted by it with financial institutions or intermediaries to prefinance, in whole or in part, the repayments and interventions referred to in the first paragraph;

23.
3° the other charges resulting from the preparation, execution and recovery of the interventions referred to in the same first paragraph.
Article 27
The charges to be borne by the intervention fund in accordance with Article 26 are imputed by the Institute in the following order:
1° on the liquidity actually held by it on behalf of the fund in accordance with Article 25, first paragraph, 4°; 2° on the balance of the fund relating to the deposit protection system prior to this protocol corresponding to the category of credit institutions to which the institution in question belongs and this proportionally to the balance of each institution relative to the total balance of this system; 3° on the proceeds from its investments; 4° on the contributions that affiliated credit institutions must have paid pursuant to Articles 23 and 24. The special funds referred to in Article 25, first paragraph, 5° are used respecting the conditions of their allocation to the fund and, failing that, for the purposes and according to the procedures determined by the Management Committee of the Institute. By derogation from the first paragraph, the remuneration of the Institute referred to in Article 26, second paragraph, 1° is imputed on the contributions provided for in the first paragraph, 4°.

24.
Article 28
The annual contribution provided for in Article 23 and the supplementary contributions provided for in Article 24 are paid to the Institute for the entire duration of validity of this protocol.
Article 29
In the case of interventions required, after
1 January 1995, by the situation of credit institutions whose entire or part of their commitments are guaranteed by the State pursuant to express legal provisions, the following rules apply in accordance with Article 110sexies of the Law of 22 March 1993:
1° the financing provided for by this protocol is ensured only after the operation of the State guarantee provided for by the express legal provisions, taking into account, if necessary, Article 113, second paragraph of the Law of 17 June 1991; The Institute may, at the expense of the guarantor, lend its support to the State for the execution of repayments benefiting from its guarantee; 2° the financing provided for by this protocol is, for the surplus, ensured in the following order:
a) first, by the call on the special guarantee of the State subject to Article 110sexies of the Law of 22 March 1993 and this for the institutions referred to in this provision; b) then, by the resources of the fund as defined by Article 25 and according to the allocation regulated by Article 27.

25.
In the case of interventions necessitated by the situation of credit institutions whose commitments are not or are no longer guaranteed by the State pursuant to express legal provisions but for which the deposit protection system subject to this protocol benefits from the special guarantee provided for by Article 110sexies of the Law of 22 March 1993, the provisions of the first paragraph, 2° are applicable.
Chapter IV - Regime for branches of credit institutions subject to the law of other Member States of the European Community
Section 1 - Scope of Application
Article 30
This Chapter is applicable to branches governed by Articles 65 et seq. of the Law of 22 March 1993 on the status and control of credit institutions, which make use of the option open by Article 110ter, Section 1 of the Law of 22 March 1993 or which find themselves in the conditions fixed by Article 110ter, Section 2 of the same Law.
Section 2 - Application for Adhesion
Article 31
Credit institutions referred to in Article 30 have the right to adhere to the deposit protection system subject to this protocol in order to complete, in the event of failure, the coverage resulting from the deposit protection system existing in the State from which they derive and to bring the total intervention of the two systems to the level of protection provided for by this protocol for a Belgian credit institution.

26.
Article 32
Applicant credit institutions provide the Institute with all explanations and justifications requested by it for the purpose of processing their application.
Section 3 - Cases of Intervention
Article 33
The Institute intervenes, within the limits provided for in Section 4, to repay eligible deposits within the meaning of Chapter II, Section 2, only in cases where the courts of the State of origin of the credit institution or the competent authority of that State have taken the decisions or made the findings referred to in Article 3 or decisions or findings equivalent in the meaning of Directive No 94/19/EC.
Section 4 - Amount of Intervention
Article 34
The Institute repays to the holder of eligible deposits within the meaning of Articles 4 et seq. held at the branch, the difference between the intervention of the deposit protection system of the country of origin and the amount of intervention provided for in Article 8.
Article 35
Articles 10 to 20 are applicable to the limits and procedures for repayment of eligible deposits in the cases provided for by this Chapter.

27.
Section 5 -
Article 36
Cooperation with the deposit protection systems of other States of the European Community The Institute collaborates closely with foreign deposit protection bodies from other States of the European Community. It exchanges with them the information necessary for the functioning and interventions of their respective systems. The Institute will conclude, if necessary, conventions with these foreign bodies to regulate its collaboration with them as well as to determine, in accordance with this protocol, the limits and consequences of the support between the systems they manage, as well as those of the interventions that these systems ensure.
Section 6 - Financing
Article 37
The provisions of Articles 23, 24 and 28 are applicable to the financing of the interventions provided for by this Chapter.
The contributions are, however, due only on bases established according to the difference in coverage between the deposit protection system of the State of origin of the branch and the system provided for by Chapter II of this protocol.
Article 38
The interventions provided for in Section 3 of this Chapter are charged to the intervention fund in accordance with Articles 25, 26, first paragraph, 1° and second paragraph and 27.

28.
Article 39
In the event of a breach by a branch referred to in Articles 30 and 31 of its obligations resulting from this protocol, the Institute takes the measures and provisions provided for by Article 110ter, Section 1, second paragraph of the Law of 22 March 1993.
Section 7 - Special Cases
Article 40
Branches in Belgium of Greek and Spanish credit institutions referred to in Article 110ter, Section 2 of the Law of 22 March 1993 are required to adhere, until 31 December 1999, to this protocol. Their contribution is fixed in accordance with Articles 23 et seq. On 1 January 2000, the principal sums from their contributions that have not been reduced by interventions are returned to them. For the surplus, Articles 35 and 38 are applicable to them.
Chapter V - Regime for branches of credit institutions subject to the law of States not members of the European Community
Section 1 - Scope of Application
Article 41
This Chapter is applicable to branches governed by Articles 79 et seq. of the Law of 22 March 1993 on the status and control of credit institutions, which are required to participate in the deposit protection system subject to this protocol pursuant to Article 110, first paragraph and third paragraph, second sentence, of the aforementioned Law of 22 March 1993.

29.
Section 2 - Adhesion
Article 42
Must apply for adhesion to the deposit protection system subject to this protocol, the branches of credit institutions subject to the law of a State not a member of the European Community whose eligible deposits, within the meaning of Articles 4 to 6, held at the branch established in Belgium are not covered by a deposit protection system of that State or are not covered by such a system to at least the extent resulting, for Belgian credit institutions, from the deposit protection system organized by Chapter II of this protocol.
Article 43
Credit institutions referred to in Section 1 provide the Institute with all explanations and justifications necessary to verify the conditions provided for in Article 42.
Section 3 - Cases of Intervention
Article 44
The Institute intervenes, within the limits provided for in Section 4, only to repay eligible deposits within the meaning of Chapter II, Section 2, when the courts of the State of origin of the credit institution or the competent authority of that State have taken the decisions or made the findings referred to in Article 3 or taken decisions or made findings having equivalent scope regarding the availability of deposits.

30.
Section 4 - Amount of Intervention
Article 45
When eligible deposits, within the meaning of Articles 4 to 6, held at a branch referred to in Section 1 are not covered by a deposit protection system organized in the State of origin, the rules of Chapter II, Section 2 are applicable.
When eligible deposits, within the meaning of Articles 4 to 6, held at the branch are covered by a deposit protection system established in the State of origin but do not receive coverage reaching that provided for by Chapter II, Section 2, the provisions of Articles 34 and 35 are applied.
Section 5 - Cooperation with the deposit protection systems of States not members of the European Community
Article 46
The Institute collaborates closely with foreign deposit protection bodies from States not members of the European Community. It exchanges, with them, the information necessary for the functioning and interventions of their respective systems.
The Institute will conclude, if necessary, conventions with these foreign bodies to regulate its collaboration with them as well as to determine, in accordance with this protocol, the limits and consequences of the support between the systems they manage, as well as those of the interventions that these systems ensure.

31.
Section 6 - Financing and Information
Article 47
Branches of credit institutions subject to the law of a non-member State of the European Community, whose liabilities are not covered by a deposit protection system established in that State, and which have applied for membership in accordance with Article 42, are governed by the provisions of Chapter III, with the exception of Article 26, first paragraph, Article 20, and Article 29.

Branches of credit institutions subject to the law of a non-member State of the European Community, whose liabilities are covered by a protection system established in that State, but where the coverage is lower than that provided for in Chapter II, Section 2 of this Protocol, are governed by the provisions of Articles 37 and 38.

The contributions of the branches referred to in this Chapter and the revenues accruing from these contributions are credited to separate accounts and are managed separately from the scheme organized under Chapter II.

Chapter VI - Organization
Article 48
The Institute publishes annually in its report a statement of the intervention fund as well as a report on the management thereof.

32.
Chapter VII - Miscellaneous Provisions
Article 49
Eligible assets taken into consideration for the calculation of the contribution of institutions due on January 1, 1995, are determined according to the accounting position as of December 31, 1994.

Payment of the contribution must be made, value March 31, 1995.

Branches of credit institutions subject to the law of another State which, after the effective date of this Protocol, are transformed into Belgian law institutions are required to make payments from January 1 following their approval as a Belgian law credit institution.

A credit institution that adheres, from January 1, 1995, to this Protocol immediately after its approval or registration in accordance with Articles 7, 65, and 79 of the Law of March 22, 1993, makes the first payment, prescribed respectively by Articles 23, 37, and 47 of this Protocol, effective from January 1 following its approval or registration.

Article 50
In the event of cessation of activities of a Belgian law credit institution or a branch of a foreign institution adhering in accordance with Articles 31 and 42, without there being a default within the meaning of Articles 3, 33, or 44, the amount of its contributions still available at that time remains at the disposal of the deposit protection system.

33.
Article 51
§ 1. The assets which, on the date of entry into force of this Protocol, appear, by virtue of the deposit protection systems preceding the present system, to the credit of the Institute in accounts with credit institutions, and the assets appearing similarly to the credit of the National Credit for Professional Credit Fund in accounts with associations approved by it, remain in these accounts for the funding of the intervention fund referred to in Article 25.

§ 2. The assets which, on the date of entry into force of this Protocol, appear, by virtue of the deposit protection systems preceding the present system, to the credit of the Institute in accounts with branches of institutions subject to the law of Member States of the European Community and which continue to participate in the deposit protection system in accordance with Chapter IV, remain in these accounts for the funding of the intervention fund referred to in Article 25 pro rata to the coverage still assumed by the fund regarding the liabilities of these branches. The balance is returned to the branches. The assets pertaining to branches that do not adhere to the deposit protection system in accordance with Article 31 are fully reimbursed to them.

§ 3. The assets which, on the date of entry into force of this Protocol, appear, by virtue of the deposit protection systems preceding the present system, to the credit of the Institute in accounts with branches of institutions subject to the law of non-member States of the European Community, remain in these accounts for the funding of the separate management referred to in Article 47, third paragraph, pro rata to the coverage still assumed by the fund regarding the liabilities of these branches. The balance is returned to the branches. The assets pertaining to branches that do not adhere to the deposit protection system in accordance with Article 42 are fully reimbursed to them.

34.
§ 4. The special contributions provided for in Article 110quater of the Law of March 22, 1993, and paid for the admission of a credit institution during the year 1995 are allocated as stated in § 1.

The special contributions provided for in Article 110quater of the Law of March 22, 1993, and paid for the admission of a credit institution during a year subsequent to 1995 are added to the contributions referred to in Article 25, first and second paragraphs.

§ 5. The assets with the fund referred to in Article 25 originating from contributions paid under one of the deposit protection systems succeeded by the system subject to this Protocol or from special contributions paid in accordance with § 4, first paragraph, are reimbursed to the concerned institutions as follows.

For the year in which the total available, including the balance originating from the systems succeeded by the present system, of contributions of a private Belgian law credit institution added to the revenues accruing thereto should reach, for the first time, 0.5% of the base on which the rate of the contribution referred to in Article 23, first paragraph, applies, the payment of the contribution due for that year in application of Article 23, third paragraph, is effected. The available balance originating, for this institution, from the systems succeeded by the present system, is made available to it.

§ 6. The guarantee of 3 billion provided for in Article 110sexies of the Law of March 22, 1993, is, for the financing of the fund provided for in Article 25, distributed among the credit institutions for which it is attributed and ends as follows.

35. a) The amount of the 3 billion guarantee is distributed among the credit institutions concerned in proportion to the sums these institutions have paid to the State, during the period 1985-1994, on account of the guarantee premium provided for in Article 91, § 2 of the Law of August 1, 1985. b) The tranche of the guarantee pertaining to an institution is taken into consideration for the determination of the limit of 0.5% provided for in Article 23, third paragraph. c) For the year in which the total available of contributions of a credit institution subject to this paragraph, added to the revenues relating thereto and the amount of the share of the guarantee pertaining to this institution, should reach, for the first time, 0.5% of the base on which the rate of the contribution referred to in Article 23, first paragraph, applies, the payment of the contribution due for that year in application of Article 23, third paragraph, is effected. The guarantee still existing at that time ends.

§ 7. § 5 applies, mutatis mutandis, to the unreimbursed assets existing on the date of entry into force of this Protocol, originating from contributions of a branch governed by § 2 or § 3 and whose liabilities are still covered in whole or in part by this Protocol.

§ 8. The system organized by this Protocol takes over the rights and obligations subsisting on the date of entry into force of this Protocol for the benefit or to the charge of the deposit protection systems it replaces. The available assets originating from these systems are allocated in the manner regulated in Articles 25, 10, 38, and 47, taking into account the reimbursements provided for in §§ 2 and 3 of this Article.

36.
Chapter VIII - Entry into Force - Execution - Modification and Denunciation
Article 52
This Protocol is submitted for adherence by credit institutions established in Belgium not personally signatories and required to be participants by virtue of Article 110 of the Law of March 22, 1993, within 15 days of its signature, by registered letter or with acknowledgment of receipt.

Adherence is notified to the Institute within 15 days in the same forms.

The Institute communicates to the Banking and Financial Commission the name of the Belgian law credit institutions or the branches of foreign credit institutions required to be participants who have not communicated their adherence to this Protocol within the period fixed in the first paragraph.

For the application of this Protocol, institutions personally signatory to this Protocol are considered as adherents.

Article 53
For the application of Article 6, 2°, the condition of nominative or deposit in account or overdraft is not required, for cash certificates, bonds, and other banking debt securities issued before January 1, 1995, except from July 1, 1995. However, in the event of occurrence, before July 1, 1995, of one of the circumstances referred to in Article 3, the holder must prove, other than by the mere fact of their possession, that he was the owner on the date of occurrence of the default.

37.
Article 54
The Institute ensures the implementation of this Protocol and takes the execution measures that prove necessary, without responsibility towards the adhering credit institutions and branches.

Article 55
This Protocol is concluded for an indefinite duration.

The Management Committee of the Institute may adapt the elements included in Articles 4 to 6, 8, and 9, taking into account, in particular, the available amount of the Fund or the evolution of European law regarding deposit protection. These adaptations have no effect on reimbursement procedures already opened.

Without prejudice to the second paragraph, this Protocol may be modified, at any time, at the request of the Institute or at the request of a majority of adhering credit institutions and branches gathering, furthermore, together, at the last annual deadline, at least 80% of the total eligible assets held by all credit institutions and branches. The proposed modification is adopted in case of agreement of the Institute and the credit institutions and branches determined as above. All adhering credit institutions or branches are bound by the modifications thus adopted.

This Protocol may be denounced, with a notice of at least twelve months, given by the Institute or by the adhering credit institutions and branches fulfilling the same majority conditions as those stated in the third paragraph. The commitments of the Institute subsist, beyond the denunciation, within the limits fixed by law.

38.
A modification or denunciation of the Protocol cannot impair the execution of interventions in progress at the time of the modification or denunciation.

This Protocol would cease to produce its effects if a legal deposit protection system were to enter into force in credit institutions.

Article 56
Without prejudice to Article 51, § 8, the following are terminated on the date of entry into force of this Protocol:
1° The Protocol of November 30, 1984, relating to the deposit protection system with banks, as subsequently amended; 2° The Protocol of November 30, 1984, relating to the deposit protection system with private savings banks, as subsequently amended; 3° The Protocol relating to the deposit protection system with professional credit associations which entered into force on January 1, 1988.

Article 57
This Protocol is drawn up in French and Dutch, both versions being authentic.

A copy in each language, initialed on each page, is deposited with the Institute to serve as authentic text.

39.
Article 58
This Protocol produces its effects on January 1, 1995.

Done at Brussels, in twenty-one French copies and twenty-one Dutch copies, on January 4, 1995.

To the attention of the Management. our references Brussels HD/AB - 8039 1994-12-27 Deposit Protection - Circular Letter addressed to Belgian law credit institutions.

Gentlemen,

Following the European directive on deposit guarantees and following negotiations between the authorities and the sector, a new deposit protection system will enter into force in our country on January 1, 1995.

This new protection system is based on the one hand on the draft law relating to deposit protection systems with credit institutions and on the other hand on a Protocol which is the result of negotiations between all concerned parties and which will be signed by the sector and the IRG as soon as the law has been promulgated.

The new deposit protection system provides for the creation of an intervention fund financed by annual contributions of 0.20 per thousand of the amount, as of September 30 of the preceding year, of assets repayable in the event of default of a credit institution. Exceptionally for the contributions relating to 1995, the assets to be taken into consideration will be determined on the basis of the accounting position closed on December 31, 1994.

In order to allow you to prepare in advance the administrative provisions necessary for the determination of the calculation base of your contribution on December 31, 1994, we are sending you, attached, a circular letter indicating the elements to be taken into consideration to fix the amount of your contribution to the new protection fund.

Follow-up no. 1 to letter HD/AB - 8039 of December 27, 1994.

We also inform you that the directives formulated in the attached circular letter may still be modified eventually depending on the final texts of the law and the Protocol to be signed by the representatives of the credit institution sector and by the Institute.

As soon as the law and the Protocol have a definitive character, the Institute will invite you to communicate to it the amounts as defined in its circular. Subsequently, you will be asked to pay, value March 31, 1995, your contribution to the Intervention Fund of the deposit protection system on an account number whose coordinates will be communicated to you in due course.

We ask you to accept, Gentlemen, the assurance of our distinguished consideration.

A. Bevernage
Division Head
H. Debremaeker
Deputy Director

INSTITUTE OF REFINANCING AND GUARANTEE
Brussels, December 27, 1994.

. . . the calculation base of contributions to the future deposit protection system .
Elements to be notified by Belgian law credit institutions.

Provisions
1.1. The provisions below have been established on the principle that the assets to be included in the calculation base of the contribution must coincide as much as possible with those susceptible to be reimbursed in accordance with Articles 4 and 5 of the Protocol relating to deposit protection. The Institute reserves the right to adapt the provisions below after consultation with the sector and the Banking and Financial Commission if it proves that this objective is no longer achieved, notably following modifications in banking practice.

1.2. The figures to be communicated by the credit institution to the IRG are presented in the form of the schema included in the annex so that the amount of assets in BEP and that of assets denominated in a currency of another Member State of the European Community or the ECU is specified.

1.3. For the determination of the assets serving as the base for the calculation of the contribution, reference is made, where appropriate, to items of schema A, in which the amounts to be communicated to the IRG must be determined on the basis of internal information.

When the credit institution excludes assets that should not be taken into consideration (see 2.1.1. and 2.1.2. below) and of which it determines the amount on the basis of internal information, it will ensure to avoid any double counting that risks erroneously reducing the calculation base. Furthermore, the assets excluded from the calculation base must be individually identifiable.

1.4. The amounts communicated to the IRG must be certified by the approved auditor or the approved audit firm attached to the credit institution.

2.1. Assets resulting from account deposits.
2.1.1.
2.1.2.
The starting base is item 221.9 of schema A (on a consolidated basis) from which the credit institution may eliminate all assets with its branches established in a non-member State of the European Community and/or those denominated in a currency other than that of a Member State of the European Community or the ECU.

Subject to the second paragraph of point 1.3 and to the extent that they are included in the starting base as defined above (2.1.1.), the credit institution may exclude from the contribution base the following assets resulting from:
1° deposits linked to mortgage loans, described in chapter EL, section 2 of the commentary of schema A.
2° deposits of public administrations, described in chapter I, section 2, § 7, B, 1 of the commentary of schema A.
3° deposits of other financial institutions, described in chapter I, section 2, § 7, B, 2, 5° of the commentary of schema A.
4° deposits of pension funds.
5° deposits of holdings not covered by the item "financial institutions".
6° deposits of Belgian companies submitting complete balance sheets. For the application on 31.12.1994 of this exclusion, all deposits equal to or greater than BEF 20 million are presumed to belong to such companies.
For subsequent years, the exclusion of these assets will be determined on the basis of a file containing VAT numbers. The practical procedure to follow will be communicated subsequently by the IRG.
7° deposits of foreign companies submitting complete balance sheets. Due to practical difficulties in determining these deposits in the current situation, the credit institution is authorized to exclude all assets held by foreign companies.
8° deposits of non-financial companies of the same group. The credit institution is authorized to exclude assets of enterprises that come into consideration for consolidation.

By companies, one must understand, in points 5° to 8° above, those belonging to the sector of "non-financial companies and quasi-companies" described in chapter I (p. 37) of the commentary of schema A.
27.12.94

2.2. Debts represented by a title.
2.2.1. The credit institution is required to communicate the amounts of assets resulting from:
1° cash certificates
2° bonds

The credit institution communicates to the IRG the assets that are either nominative or held in account or in overdraft with it.

The amount of these assets is to be determined, on the basis of internal information, in items 232 and 233 of schema A (on a consolidated basis).

The amounts communicated must also include assets held in account or in overdraft with another institution, when the credit institution does not organize an account or overdraft service for such values. The credit institution communicates to the IRG, for information purposes, the name of the institution it has designated for this purpose.

2.2.2. Subject to the second paragraph of point 1.3, the following may be excluded from the contribution base:

assets with branches of Belgian law credit institutions established outside the European Community;
assets denominated in a currency other than that of a Member State of the European Community or the ECU.
27.12.94

Belgian law credit institutions by virtue of Article 23 of the Protocol on the protection of
deposits

Name and address of the declaring credit institution:

Figure as of December 31, 1994:

The figures to be mentioned in the table below must be calculated according to the directives established by the IRG in its note of December 27, 1994. The figures to be filled in are understood after deduction of exclusions (points 2.1.2. and 2.2.2.).

Assets resulting from millions of BEF

Bonds denominated in other currencies

Obligations (2.2)

Certified on,

Signature of the approved auditor or the approved audit firm

Name of the institution organizing an account or overdraft service for cash certificates or bonds issued by the declaring credit institution (see 2.2.1.):

27.12.94

INSTITUTE OF REFINANCING AND GUARANTEE
Brussels, February 3, 1995.

DEPOSIT PROTECTION SYSTEM.
Communication of the calculation base and contribution for the year 1995, by branches of credit institutions subject to the law of a Member State of the European Community.

Provisions
1.1. The provisions below have been established on the principle that the assets to be included in the calculation base of the contribution must coincide as much as possible with those susceptible to be reimbursed in accordance with Articles 4 and 5 of the Protocol relating to deposit protection. The Institute reserves the right to adapt the provisions below after consultation with the sector and the Banking and Financial Commission if it proves that this objective is no longer achieved, notably following modifications in banking practice.

1.2. The figures to be communicated by the branch to the IRG are presented in the form of a schema (p. 4 of the note in annex) so that the amount of assets in BEP and that of assets denominated in a currency of another Member State of the European Community or the ECU is specified.

When the branch excludes assets that should not be taken into consideration (see 2.1.1. and 2.1.2. below) and of which it determines the amount on the basis of internal information, it will ensure to avoid any double counting that risks erroneously reducing the calculation base. Furthermore, the assets excluded from the calculation base must be individually identifiable.

1.4. The branch is invited to have the amounts communicated to the IRG confirmed by the approved auditor or the approved audit firm attached to it.

2.1. Assets resulting from deposit accounts.

2.1.1. The starting base is item 221.9 of Schema A (on a territorial basis) from which the branch may exclude all assets denominated in a currency other than that of a Member State of the European Community or the ECU.

2.1.2. Subject to the second paragraph of point 1.3 and to the extent that they are included in the starting base as defined above (2.1.1.), the branch may exclude from the contribution base the following assets resulting from:

1° deposits linked to mortgage loans, described in Chapter III, Section 2 of the commentary on Schema A.

2° deposits of public administrations, described in Chapter I, Section 2, § 7, B, 1 of the commentary on Schema A.

3° deposits of other financial institutions, described in Chapter I, Section 2, § 7, B, 2, 5° of the commentary on Schema A.

4° deposits of pension funds.

5° deposits of holdings not covered by the item "financial institutions".

6° deposits of Belgian companies submitting complete accounts. For the application as of 31.12.1994 of this exclusion, all deposits equal to or greater than BEF 20 million are presumed to belong to such companies. For subsequent years, the exclusion of these assets will be determined on the basis of a file containing VAT numbers. The practical procedure to be followed will be communicated subsequently by the IRG.

7° deposits of foreign companies submitting complete accounts. Given the practical difficulties in determining these deposits in the current situation, the branch is authorized to exclude all assets held by foreign companies.

8° deposits of non-financial companies of the same group. The branch is authorized to exclude assets of enterprises that are taken into account for consolidation.

By "companies" is meant, in points 5° to 8° above, those belonging to the sector of "non-financial companies and quasi-companies" described in Chapter I (p. 37) of the commentary on Schema A.

03.02.95

2.2. Liabilities represented by a title.

2.2.1. The branch is requested to communicate the amounts of assets resulting from:

1° treasury bills

2° bonds

The branch communicates to the IRG the assets which are either registered or held in account or overdraft deposit with it.

The amount of these assets is to be determined, on the basis of internal information, in items 232 and 233 of Schema A (on a territorial basis).

The amounts communicated must also include assets held in account or overdraft deposit with another institution, when the branch does not organize an account or overdraft deposit service for such values. The branch communicates to the IRG, for information purposes, the name of the institution it has designated for this purpose.

2.2.2. Subject to the second paragraph of point 1.3, assets denominated in a currency other than that of a Member State of the European Community or the ECU may be excluded from the contribution base.

03.02.95

In accordance with Article 37 of the law

Name and address of the declaring branch:

Figures as of December 31, 1994:

The figures to be mentioned in the table below must be calculated according to the directives established by the IRG in its note of February 3, 1995. The figures to be provided are understood after deduction of exclusions (points 2.1.2. and 2.2.2.).

Assets resulting from

Deposits in account (2.1)

Treasury bills (2.2)

Bonds (2.2)

TOTAL in BEF

denominated in BEF

(in thousands

of BEF)

center-value in

thousands of BEF

of assets denominated

in the other

currencies of the

European

or in

ECU

Confirmed on

Signature of the approved auditor or the approved audit firm

TOTAL

(in thousands

of BEF)

Name of the institution that organizes an account or overdraft deposit service for the treasury bills or bonds issued by the declaring branch (see 2.2.1.):

03.02.95

INSTITUTE FOR RETIREMENT PENSIONS AND GUARANTEES

Brussels, February 7, 1995.

Notification by Belgian credit institutions of the calculation base and contribution relating to the year 1995.

1.1. The provisions below have been established on the principle that the assets to be included in the calculation base of the contribution must coincide as much as possible with those likely to be reimbursed in accordance with Articles 4 and 5 of the Protocol on the protection of deposits. The Institute reserves the right to adapt the provisions below for subsequent years, after consultation with the sector and the Banking and Financial Commission, if it appears that this objective is no longer achieved, notably following changes in banking practice.

1.2. The figures to be communicated by the credit institution to the IRG are presented in the form of the schema reproduced in the annex (p. 4) so as to specify the amount of assets in BEF and that of assets denominated in a currency of another Member State of the European Community or the ECU.

1.3. For the determination of the assets serving as the basis for the calculation of the contribution, reference is made, where appropriate, to items of Schema A, in which the amounts to be communicated to the IRG must be determined on the basis of internal information.

When the credit institution excludes assets that should not be taken into consideration (see 2.1.1. and 2.1.2. below) and which it determines the amount on the basis of internal information, it will ensure to avoid any double counting that risks erroneously reducing the calculation base. Furthermore, the assets excluded from the calculation base must be individually identifiable.

1.4. The credit institution concerned shall have the communicated amounts confirmed by the approved auditor or the approved audit firm with it.

2.1. Assets resulting from deposit accounts.

2.1.1.

The starting base is item 221.9 of Schema A (on a social basis) from which the credit institution may exclude all assets with its branches established in a non-member State of the European Community and/or those denominated in a currency other than that of a Member State of the European Community or the ECU.

2.1.2. Subject to the second paragraph of point 1.3 and to the extent that they are included in the starting base as defined above (2.1.1.), the credit institution may exclude from the contribution base the following assets resulting from:

1° deposits linked to mortgage loans, described in Chapter III, Section 2 of the commentary on Schema A.

2° deposits of public administrations, described in Chapter I, Section 2, § 7, B, 1 of the commentary on Schema A.

3° deposits of other financial institutions, described in Chapter I, Section 2, § 7, B, 2, 5° of the commentary on Schema A.

4° deposits of pension funds.

5° deposits of holdings not covered by the item "financial institutions".

For subsequent years, the exclusion of these assets will be determined on the basis of a file containing VAT numbers. The practical procedure to be followed will be communicated subsequently by the IRG.

7° deposits of foreign companies submitting complete accounts. Given the practical difficulties in determining these deposits in the current situation, the credit institution is authorized to exclude all assets held by foreign companies.

8° deposits of non-financial companies of the same group. The credit institution is authorized to exclude assets of enterprises that are taken into account for consolidation.

By "companies" is meant, in points 5° to 8° above, those belonging to the sector of "non-financial companies and quasi-companies" described in Chapter I (p. 37) of the commentary on Schema A.

07.02.95

2.2. Liabilities represented by a title.

2.2.1. The credit institution is requested to communicate the amounts of assets resulting from:

1° treasury bills

2° bonds

The credit institution communicates to the IRG the assets which are either registered or held in account or overdraft deposit with it.

The amount of these assets is to be determined, on the basis of internal information, in items 232 and 233 of Schema A (on a social basis).

The amounts communicated must also include assets held in account or overdraft deposit with another institution, when the credit institution does not organize an account or overdraft deposit service for such values. The credit institution communicates to the IRG, for information purposes, the name of the institution it has designated for this purpose.

2.2.2. Subject to the second paragraph of point 1.3, the following may be excluded from the contribution base:

assets with branches of Belgian credit institutions established outside the European Community;
assets denominated in a currency other than that of a Member State of the European Community or the ECU.

07.02.95

Name and address of the credit institution:

The figures as of December 31, 1994 in the table below are calculated according to the directives established by the IRG in its note of February 7, 1995. The figures provided are understood after deduction of exclusions (points 2.1.2. and 2.2.2.).

Assets resulting from

Deposits in account (2.1)

Treasury bills (2.2)

Bonds (2.2)

TOTAL in BEF

denominated in BEF

(in thousands

of BEF)

center-value in

thousands of BEF

of assets denominated

in the other

currencies of the

European

Community or in

ECU

TOTAL

(in thousands

of BEF)

Confirmed on

Signature of the approved auditor or the approved audit firm

Name of the institution that organizes an account or overdraft deposit service for the treasury bills or bonds issued by the declaring credit institution (see 2.2.1.):

07.02.95

INSTITUTE FOR RETIREMENT PENSIONS AND GUARANTEES

Brussels, February 8, 1995.

Communication of the calculation base and contribution for the year 1995,

by branches of credit institutions operating under the law

of a non-member State of the European Community.

1.1. The provisions below have been established on the principle that the assets to be included in the calculation base of the contribution must coincide as much as possible with those likely to be reimbursed in accordance with Articles 4 and 5 of the Protocol on the protection of deposits. The Institute reserves the right to adapt the provisions below, after consultation with the sector and the Banking Commission, if it appears that this objective is no longer achieved, notably following changes in banking practice.

1.2. The figures to be communicated by the branch to the IRG are presented in the form of a schema (p. 4 of the note in the annex) so as to specify the amount of assets in BEF and that of assets denominated in a currency of another Member State of the European Community or the ECU.

When the branch excludes assets that should not be taken into consideration (see 2.1.1. and 2.1.2. below) and which it determines the amount on the basis of internal information, it will ensure to avoid any double counting that risks erroneously reducing the calculation base. Furthermore, the assets excluded from the calculation base must be individually identifiable.

1.4. The branch is invited to have the amounts communicated to the IRG confirmed by the approved auditor or the approved audit firm with it.

Provisions

2.1. Assets resulting from deposit accounts.

1° deposits linked to mortgage loans, described in Chapter III, Section 2 of the commentary on Schema A.

2° deposits of public administrations, described in Chapter I, Section 2, § 7, B, 1 of the commentary on Schema A.

3° deposits of other financial institutions, described in Chapter I, Section 2, § 7, B, 2, 5° of the commentary on Schema A.

4° deposits of pension funds.

5° deposits of holdings not covered by the item "financial institutions".

8° deposits of non-financial companies of the same group. The branch is authorized to exclude assets of enterprises that are taken into account for consolidation.

By "companies" is meant, in points 5° to 8° above, those belonging to the sector of "non-financial companies and quasi-companies" described in Chapter I (p. 37) of the commentary on Schema A.

08.02.95

2.2. Liabilities represented by a title.

2.2.1. The branch is requested to communicate the amounts of assets resulting from:

1° treasury bills

2° bonds

The branch communicates to the IRG the assets which are either registered or held in account or overdraft deposit with it.

The amount of these assets is to be determined, on the basis of internal information, in items 232 and 233 of Schema A (on a territorial basis).

08.02.95

In accordance with Article 37 of the law

Name and address of the declaring branch:

Figures as of December 31, 1994:

The figures to be mentioned in the table below must be calculated according to the directives established by the IRG in its note of February 8, 1995. The figures to be provided are understood after deduction of exclusions (points 2.1.2. and 2.2.2.).

Assets resulting from

denominated in BEF

(in thousands

of BEF)

center-value in

thousands of BEF

of assets denominated

in the other

currencies of the

European

Community or in

ECU

Deposits in account (2.1)

Treasury bills (2.2)

Bonds (2.2)

TOTAL in BEF

Confirmed on

Signature of the approved auditor or the approved audit firm

Name of the institution that organizes an account or overdraft deposit service for the treasury bills or bonds issued by the declaring branch (see 2.2.1.):

08.02.95

Lineage: No known changes

Similar documents from other regulators