Consultation on Transposition of the Deposit Guarantee Directive
The Minister for Finance, Michael Noonan TD, invites interested parties to make submissions in relation to the transposition of the Deposit Guarantee Directive.
The Directive which applies to all credit institutions, whether banks or credit unions, entered into force on 4 July 2014 and is required to be transposed into Irish law by 3 July 2015 in order to be applied from 4 July 2015.
The Directive has the following objectives:
- to consolidate the existing Directives, due to the number of changes which have taken place since it was first introduced in 1994;
- to introduce greater harmonisation in areas such as the funding mechanism of DGSs, the introduction of risk-based contributions, level of coverage and the harmonisation of the scope of products and depositors covered;
- to allow the DGS greater flexibility in how it is used, e.g., it is just not to be confined to a pay box function, but also can be used in a resolution context for banks.
The consultation period will run from 22 May to 12 June 2015, a period of three weeks.
Download Consultation Paper below:-