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The Deposit Guarantee Schemes Directive (DGSD) aims at ensuring a uniform level of protection for depositors throughout the EU. The cross-border nature of many of the EU's credit institutions calls for effective cooperation between the DGSs and relevant authorities to ensure financial stability in the EU, including when a credit institution fails and there is a need for the DGSs to pay out depositors. The DGSD stipulates that, in order to facilitate effective cooperation, there must be written agreements in place between DGSs.
The proposed Guidelines specify the objectives and minimum content of those cooperation agreements, with the aim of ensuring a consistent and coherent approach across Member States, thus contributing to strengthen the European system of national DGSs. In addition, these draft Guidelines include a multilateral framework cooperation agreement, which the DGSs should adhere to, still allowing for bilateral agreements in specific cases.
In addition, to ensure that depositors in EU branches of credit institutions headquartered in other Member States are treated equally to those in the home Member State, these Guidelines provide further guidance on the process of depositors' payout for cross-border institutions.
Comments on this consultation can be sent to the EBA by 29 October 2015. A public hearing will then take place at the EBA premises on 7 October 2015 from 14.00 to 16.00 UK time.