On Oct. 25, POR CB announced start of procedure to set parameters.
POR CB announced start of the regulatory procedure to determine parameters to apply to calculate the 2025 annual contributions to the Deposit Guarantee Fund (DGF).
Follows POR CB etc. 2023 issued instruction 27/2023 on contribution for 2023 #94602.
Overview
Procedure relates to determining base contribution rate and minimum contribution to be applied to periodic contributions relating to 2025 to DGF.
Limit of 2025 periodic contribution to fund up to which participating entity may replace contribution payment with irrevocable commitment to pay it at any time if DGF asks.
Procedure initiated in compliance with article 98 of Code of Administrative Procedure.
POR CB submitted draft regulation, explanatory note for consultation by Management Committee of DGF and Portuguese Banking Association (as association representing participating institutions which hold larger volume of deposits).
Based on art 161 DL 298/92 general framework for financial firms and Notice 11/94.
Director of Resolution Department leads the procedure in accordance with delegation of powers granted by POR CB Board published on its website and its bulletin.
Other Aspects
Draft sets basic contribution rate to be in force in 2025 in 0.0009% (same in 2024).
Setting of basic contribution rate at 0.0009% is based on fact that DGF capitalization level with reference to Jun. 30, 2024 was 0.96% i.e. above required level of 0.80%.
Thus, an increased contributory effort is not necessary at the present; more details.
Dec. 2024 Guarantee Fund Set
On Dec. 17, 2024, POR CB issued the new instruction determining the parameters to be applied in calculating the 2025 annual contributions to the Deposit Guarantee Fund.
POR CB Instruction 17/2024, sets base contribution rate and minimum contribution to be applied to periodic contributions relating to 2025 to the Deposit Guarantee Fund.
Also sets the limit of the 2025 periodic contribution to the Deposit Guarantee Fund up to which participating credit institutions may replace the payment of the contribution with an irrevocable commitment to make such payment at any time the Fund requests.
Publication of POR CB Instruction 17/2024 was preceded by publication on website of a statement on initiation of regulatory procedure and consultation with Management Committee of the Deposit Guarantee Fund, and 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 17/2024 will all now come into effect as from Jan. 1, 2025.
