Contributions to the Resolution Fund

Since 2015, the Bank of Greece, in its capacity as national resolution authority, has been responsible for calculating the regular ex-ante contributions of credit institutions and settling the respective procedures.

These 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 - TEKE).

From 2016 onwards, after the Single Resolution Mechanism became fully operational, the Single Resolution Board is responsible for the calculation of the 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 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 - IGA).

It should be noted that the Bank of Greece continues to calculate the contributions for credit institutions that fall within the scope of only the BRRD and not of the SRM Regulation. The branches of credit institutions with head offices in third countries, that are authorised in Greece, fall into this category (“domestic branches of third-country institutions” or “Union branches” as termed in the BRRD).

Regular ex-ante contributions to the SRF

The individual contribution of each institution is calculated:

The individual 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;
  • after it is adjusted in proportion to the risk profile of each institution, in accordance with the criteria and methodology laid down in Delegated Regulation 2015/63, as currently in force.

More specifically, the calculation of individual institutions’ contributions for each year 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 currently in force. 

Institutional framework for collection of contributions

The calculation and collection of the contributions of institutions is governed by the provisions of the following Directives and Regulations:

The calculation and collection of the contributions of institutions is governed by the provisions of the following Directives and Regulations:

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

The Bank of Greece, according to Decision 31/1/9.5.2016 of its Resolution Measures Committee, set the rules for the calculation of the regular annual ex-ante contributions of domestic branches of third-country institutions.
The Bank of Greece, according to Decision 31/1/9.5.2016 of its Resolution Measures Committee, set the 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  as close as possible to that applicable to institutions under the remit of the SRM. More specifically, it introduced brackets of flat contributions according to the total liabilities (excluding own funds) less covered deposits of domestic branches of third-country institutions.

Extraordinary ex-post contributions

Extraordinary ex-post contributions are raised from the institutions authorised in the territories of participating Member States in order to cover any additional amounts required in the event that the available financial means of the National Resolution Fund or of the Single Resolution Fund are not sufficient.

Extraordinary ex-post contributions are raised from the institutions authorised in the territories of participating Member States in order to cover any additional amounts required in the event that the available financial means of the National Resolution Fund or of the Single Resolution Fund are not sufficient.

In this case, the additional amounts required for covering losses, costs or other expenses incurred by the use of the fund in resolution are covered through extraordinary ex-post contributions.

Such extraordinary ex-post contributions are calculated and allocated between institutions in accordance with the rules of calculation of regular contributions.

If deemed necessary, the competent resolution authority may defer, in whole or in part, an institution’s payment of extraordinary ex-post contributions in order 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.

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  issued Delegated Regulation (EU) 1310/2014, which laid down the methodology for calculating and collecting in advance the administrative contributions during the provisional period, and Delegated Regulation 2017/2361 that sets forth the final system for covering the administrative expenditure of the Single Resolution Board.

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