On Oct. 25, POR CB started procedure to determine base rate, other.
POR CB announced start of regulatory procedure to determine base rate for the 2025 additional periodic contribution to the Resolution Fund by the banking sector.
Procedure initiated in compliance with article 98 Code of Administrative Procedure.
Submitted draft regulation and explanatory note for consultation to Management Committee of Resolution Fund and Portuguese Banking Association (as association representing participating firms that, together, hold the largest volume of deposits).
Under art 11 DL 24/2013, Notice 1/2013, applicable per art 14, n 5 Law 23-A/2015.
Director of Resolution Department leads procedure in line accordance with delegation of powers granted by Board of Directors published on POR CB website and bulletin.
Other Aspects
Setting of rate takes into special consideration objective of stabilizing effort global contribution from banking sector to fund in amount close to EUR 250 million and assumption that contribution of sector in 2025 will correspond to EUR 189 million.
That sum is equivalent to that collected in 2024; per currently available data, base rate of 0.049% (in draft instruction) will correspond to total value of additional periodic contributions of EUR 60.5 to 62.9 million, for all institutions participating in the fund.
Dec. 2024 Resolution Fund Set
On Dec. 17, 2024, POR CB issued new instruction determining rate to be applied to the objective tax base of additional periodic contributions to the Resolution Fund in 2025.
POR CB Instruction 18/2024, sets additional periodic contributions to Resolution Fund.
By issuing this regulatory instrument, POR CB acted according with powers conferred Art. 11 of Decree-Law 24/2013 of Feb. 19, set out in POR CB Notice 1/2013 of Mar. 26.
Publication of POR CB Instruction 18/2024 was preceded by publication on website of a statement on initiation of regulatory procedure and its consultation with the Resolution Fund's Management Committee, as well as with the Portuguese Banking Association.
In POR CB Consultation Report, published with the Instruction, it is possible to consult a summary of the comments received as well as the analysis carried out by POR CB.
The terms of Instruction 18/2024 will all now come into effect as from Jan. 1, 2025.
