Regulatory Alerts2011-06-30
Circular 3/2011 of the Bank of Spain on Additional Contributions to Deposit Guarantee Funds
The Bank of Spain issued Circular 3/2011 to implement additional contribution requirements for entities affiliated with deposit guarantee funds that offer time deposits or current accounts with remuneration exceeding published interest rate thresholds. The regulation establishes a 500% risk weight for such excess deposits, calculated quarterly based on specific definitions of deposit remuneration and interest rates, while introducing transitional periods for existing accounts. These measures aim to ensure that entities charging above-market rates contribute proportionally more to the guarantee funds without altering their ordinary contribution bases.
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