Partial Compliance with EBA Guidelines on the Delimitation and Reporting of Available Financial Means of Deposit Guarantee Schemes (EBA/GL/2021/17)

OPINION

Partial Compliance with EBA Guidelines on the Delimitation and Reporting of Available Financial Means of Deposit Guarantee Schemes (EBA/GL/2021/17)

The Prudential Control and Resolution Authority (ACPR) had declared itself partially compliant with the European Banking Authority (EBA) guidelines on the delimitation and reporting of the available financial means of deposit guarantee schemes (EBA/GL/2021/17). These guidelines define the resources of deposit guarantee schemes (DGS) to be taken into account to verify that the target is reached. They specify in particular that only funds resulting directly or indirectly from contributions by DGS members are considered as available financial means retained for reaching the target level.

Borrowed funds by a DGS are thus not considered as available financial means retained for reaching the target level. The ACPR had declared itself non-compliant with paragraph 21 of these guidelines, regarding the conditions for lifting contributions in case of loan repayment. Point (b) of this paragraph provided that loan repayment occurring within six years after a DGS intervention should not result in the available financial means for reaching the target being less than two-thirds of the target level. Compliance with this point added conditions on the lifting of contributions and reaching the target that are contrary to French law, which provides, in such cases, the possibility of lifting contributions only so that they are sufficient "to raise, within a period of six years, the available financial means [...] when the following conditions are met: 1° The target level mentioned above has already been reached; 2° The available financial means under this mechanism have fallen below two-thirds of this target following the use of funds" (Article 1 of the Order of October 27, 2015 taken for the application of point 4° of Article L. 312-16 of the Monetary and Financial Code).

As a result of the entry into force of the new EBA guidelines EBA/GL/2023/02, the ACPR is able to lift its partial non-compliance regarding this paragraph 21 of EBA/GL/2021/17 as of July 3, 2024, as that paragraph was repealed on the same date by the EBA/GL/2023/02 guidelines.

The ACPR remains, however, non-compliant with paragraph 24 of the guidelines (EBA/GL/2021/17), regarding the treatment of loans between DGS, which provides that "funds that a DGS lends to another DGS in accordance with Article 12 of the DGSD should not be taken into account for available financial means, therefore neither for the available financial means retained for reaching the target level nor for the other available financial means of the lending DGS". Thus, in the event of a loan granted to another DGS, compliance with this paragraph would entail a requirement to raise new contributions contrary to current French law, which explicitly excludes borrowed sums from the resources of the Deposit Guarantee and Resolution Fund (FGDR) that can allow reaching the target, but does not provide for the deduction of lent sums (Article 17-2 of the Order of October 27, 2015 relating to the financial resources of the FGDR).

These guidelines, with the exception of paragraph 24 (to which the ACPR has declared itself non-compliant), are applicable to the FGDR, which must do everything in its power to respect them, in accordance with the provisions of Articles 16 and 26 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of November 24, 2010 establishing the European Banking Authority.

This opinion repeals the previous opinion issued by the ACPR on the guidelines (EBA/GL/2021/17).

Download the opinion

Partial Compliance with EBA Guidelines on the Delimitation and Reporting of Available Financial Means of Deposit Guarantee Schemes (EBA/GL/2021/17) (PDF - 153.49 Ko)

Find the associated EBA guidelines

Guidelines on the delimitation and reporting of available financial means (AFM) of deposit guarantee schemes (DGS)

Previous opinion issued by the ACPR on the guidelines (EBA/GL/2021/17) (repealed)

Partial Compliance with EBA Guidelines on the Delimitation and Reporting of Available Financial Means of Deposit Guarantee Schemes (EBA/GL/2021/17) (PDF - 462.92 Ko)

Updated on May 14, 2025