Financial Stability Authority to collect EUR 320 million in ex-ante contributions from credit institutions
The Single Resolution Board (SRB) has calculated the amounts of ex-ante contributions for the year 2022. The total ex-ante contributions to be collected from all nearly 3,000 institutions in the euro area in scope of the contributions amount to approximately EUR 13.7 billion. After this year some EUR 66 billion has been collected into the Single Resolution Fund (SRF). The target level of the SRF is assessed to be approximately EUR 80 billion at the end of the transition period in 2023.
The Finnish Financial Stability Authority (FFSA) has submitted the SRB’s decisions on ex-ante contributions to the Finnish credit institutions and, by decisions made by it on 28 April, ordered the contributions payable by the end of May.
This year, the FFSA collects a total of EUR 320 million from Finnish institutions to the SRF. The contributions payable by Finnish institutions represent an average growth of 19% from the previous year. In 2021, the FFSA collected a total of approximately EUR 270 million in ex-ante contributions from the Finnish credit institutions.
In accordance with the SRM Regulation, the target level of the SRF at the end of 2023 is at least 1% of the amount of covered deposits of credit institutions authorised in all participating Member States. During 2021, the growth in covered deposits decelerated compared to the growth rate in 2020 to 6.5% (in 2020 the growth rate calculated from quarterly figures was 7%). The SRB has assessed that the growth in covered deposits will normalise close to its historic average in the coming years. To ensure that the target level is achieved within the prescribed time, the SRB has decided to apply a level of 1.6% of covered deposits in the calculation of the contributions for the year 2022. The coefficient used in the determination of the target level is higher than last year (1.35%), which is part of the reason for the higher total amount of ex-ante contributions and institution specific fees.
Changes in the institution-specific indicators describing the risk exposure also result in changes in the amount of ex-ante contributions. The number of credit institutions operating in the Finnish banking sector is relatively small. Therefore, a change in an individual credit institution's indicator affects the ex-ante contribution of the institution concerned, but it may also have a major impact on the relative risk exposure of other credit institutions operating in Finland. Therefore, the ex-ante contributions imposed on some credit institutions decreased slightly, whereas for some they increased significantly.
National ex-ante contributions from investment firms in 2022
In addition to the ex-ante contributions, the FFSA also collects national contributions to the national resolution fund of approximately EUR 12 000 from certain investment firms. The target level for the national resolution fund to be achieved by 2024 is approximately EUR 143 000.
Further information, please contact Resolution Expert Kristiina Tuomikoski (vakausmaksut(at)rvv.fi)