Transparency arrives at the Deposit Guarantee Fund. The body dependent on the Bank of Spain will begin to provide affiliated entities with the different risk indicators that it uses to calculate the annual contributions that provide the depositor protection fund.
The Deposit Guarantee Fund (FGD) has taken another step towards transparency. The body dependent on the Bank of Spain in charge of protecting depositors will begin to reveal to the entities under its umbrella how it calculates the volume of money that each one has to contribute annually.
At the beginning of the month, the Management Committee of the FGD met and agreed to provide the member entities with “the distribution of the risk indicators used to calculate the ordinary contributions to the deposit guarantee compartment, based on their risk profile”, according to the institution.
In other words, the fund directed by José Luis Ballesteros will begin to detail, entity by entity and privately, what its profile is and what risk parameters it takes into account to calculate the annual contributions of each bank. Among other consequences, this information will give the supervised groups the opportunity to decide on potential changes in their asset structure to shift towards a more or less conservative strategy. What the FGD will publicly disclose is the calculation methodology used for the entire sector.
“This information will allow member entities to know their aggregate risk parameter resulting from the aforementioned calculation method,” adds the FGD, which concludes that this decision seeks to improve the fund’s transparency and align it with international standards applied by other guarantee systems. and by European organizations such as the Single Resolution Board.
The FGD has collected this year 1,203.2 million euros in ordinary contributions charged to last year. On December 31, 2021, the fund had more than 5,353 million euros in own resources recorded in the deposit compartment, according to the annual report for the previous year.
This figure is equivalent to 0.6% of all existing guaranteed deposits in the Spanish banking system. The objective of the FGD, like all European protection vehicles, is to have more resources in the immediate future. For this reason, the goal has been set to exceed 0.8% of the total deposits covered before July 3, 2024.
In the last decade, the contributions to the fund by the banks subject to its control have registered an evolution with rises and falls. In 2012, the amount collected from the sector more than doubled (from 885.9 million in 2011 to 1,847.7 million a year later) by beginning to apply a higher minimum ordinary rate of 2 on all deposits. admissible.
In addition, extraordinary contributions began to be collected to meet the cost of bailouts for the financial sector as a result of the crisis, to which had to be added a spill of 2,346 million approved in 2012, which was divided into ten installments and which just ended to pay in February this year.
“Since 2017, only ordinary contributions have been collected, which in the deposit guarantee compartment were set, until 2020, at 1.8” on guaranteed savings. This figure was further reduced last year, leaving it at 1.7.
The Spanish depositor protection system has 115 member entities. During 2021, two banks were registered and another four were discharged, according to the FGD annual report.
