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Contributions to the Resolution Fund

Since the transposition of the Bank Recovery and Resolution Directive (BRRD) into Greek legislation in 2015 (Law 4335/2015 only in Greek), the Bank of Greece, in its capacity as national resolution authority, is responsible for calculating the regular ex-ante contributions of credit institutions and for ensuring the collection of such contributions. By virtue of Law 4335/2015, the regular ex-ante contributions for the year 2015 were paid to the National Resolution Fund (NRF), which is the Resolution Scheme of the Hellenic Deposit and Investment Guarantee Fund (HDIGF).

From 2016 onwards, after the Single Resolution Mechanism became fully operational, the Single Resolution Board is responsible for the calculation of contributions for credit institutions within the scope of the SRM, while contributions are pooled in the Single Resolution Fund (SRF). The Bank of Greece is responsible for collecting and transferring the contributions raised at the national level to the SRF by the date specified in the intergovernmental Agreement on the transfer and mutualisation of contributions to the Single Resolution Fund (Law 4350/2015  only in Greek– IGA).

It should be noted that the Bank of Greece continues to calculate the contributions of credit institutions that fall within the scope of the BRRD but no longer within the scope of the SRM Regulation. This is the case with branches authorised in Greece of credit institutions having their head offices in third countries (“domestic branches of third-country institutions” or “Union branches” as termed in the BRRD).

Regular ex-ante contributions to the SRF

The contribution of each institution is calculated pro rata to the amount of its liabilities (excluding own funds) less covered deposits, with respect to the aggregate liabilities (excluding own funds) less covered deposits of all of the institutions authorised in the territories of all of the participating Member States, and is adjusted in proportion to the risk profile of institutions, in accordance with the criteria and methodology laid down in Delegated Regulation 2015/63, as applicable.

Specifically, each year the calculation of the contributions for individual institutions is based on:

(a) a flat contribution, that is pro-rata based on the amount of an institution’s liabilities excluding own funds and covered deposits, with respect to the total liabilities, excluding own funds and covered deposits, of all of the institutions authorised in the territories of the participating Member States; and
(b) a risk-adjusted contribution, that is based on the criteria and methodology laid down in Delegated Regulation 2015/63, as applicable.

Institutional framework

The calculation and collection of the contributions of institutions is governed by:

− Articles 102 to 103 of the BRRD, and Articles 97-98 within Article 2 of Law 4335/2015 (only in Greek);
− Articles 69-70 of the SRM Regulation;
Commission Delegated Regulation (EU) 2015/63;
Commission Delegated Regulation (ΕU) 2016/1434;
Council Implementing Regulation (EU) 2015/81; and
the relevant decisions of the SRB and the Bank of Greece.

Regular ex-ante contributions of domestic branches of third-country institutions

The Bank of Greece, by Decision 31/1/9.5.2016 of its Resolution Measures Committee (only in Greek), adopted rules for the calculation of the regular annual ex-ante contributions of domestic branches of third-country institutions. By this decision, the Bank of Greece established a framework of contribution calculation rules which, to the extent possible, is similar to that applicable to institutions under the remit of the SRM, introducing brackets of flat contributions according to the liabilities (excluding own funds and covered deposits) of domestic branches of third-country institutions.

Extraordinary ex-post contributions

Where the available financial means of the National Resolution Fund or of the Single Resolution Fund are not sufficient to cover the losses, costs or other expenses incurred by the use of the fund in resolution actions, extraordinary ex-post contributions are raised from the institutions authorised in the territories of participating Member States , in order to cover the additional amounts. Such extraordinary ex-post contributions are calculated and allocated between institutions in accordance with the rules of calculation of regular contributions.

The competent resolution authority may defer, in whole or in part, an institution’s payment of extraordinary ex-post contributions if it is necessary to protect its financial position, in accordance with the provisions of Commission Delegated Regulation (EU) 2016/778.

Contributions to the administrative expenditures of the Single Resolution Board (administrative contributions)

Institutions within the scope of the SRM Regulation are required to pay annual contributions to the Single Resolution Board to cover its administrative expenditures. The European Commission, authorised by Article 65 of the SRM Regulation, adopted Delegated Regulation (EU) 1310/2014, laying down the methodology for the calculation of the instalments to be collected in advance to cover the administrative expenditures of the Board during the provisional period, and the procedure and modalities for the collection of such instalments; and Delegated Regulation (EU) 2017/2361 on the final system of contributions to the administrative expenditures of the Single Resolution Board.


 
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