Financial Stability Authority collects EU contributions to the Single Resolution Fund amounting to EUR 111.6 million
In 2016, the Single Resolution Board (SRB) was for the first time responsible for calculating credit institutions' resolution fund contributions.
Compared with last year, there were some changes in the determination of the contributions that led to a clear increase in the contributions.
By virtue of Regulation (EU) 2014/806 (SRM Regulation) concerning the Single Resolution Mechanism, the target level of the Single Resolution Fund must be reached in eight years. Last year, a ten-year period for contributions to build up the Fund was applied in accordance with the Directive (EU) 2014/59 on bank recovery and resolution (BRR Directive). In itself, this change increased the amount of contributions by 25%.
In addition, the SRB decided to raise the target level for 2016 contributions by 0.05% in order to ensure that the Single Resolution Fund's target level of at least 1% of covered deposits is reached by 2024 (a total of about EUR 53.5 billion). In itself, this change increased the amount of contributions by 5%.
According to the Council Implementing Regulation (EU) 2015/81, an adjusted methodology was used in the calculation of the annual target level so that this year the national target level according to the BRR Directive was weighted at 60% and the common euro area target level according to the SRM Regulation was weighted at 40%. In itself, this change increased the amount of contributions by about 22%.
Based on the Council Implementing Regulation, the SRB has decided to reduce the amount of the contribution payable by each institution by one eighth (1/8) of the 2015 contribution transferred to the Single Resolution Fund. This reduced the amount of contributions by about 9%.
Finnish deposit banks continue to receive compensation for the bank levies they paid in 2013–2014.
The Financial Stability Authority will complete the collection of EU contributions by the end of May, and they will be transferred to the Single Resolution Fund by the end of June.
The above changes only applied to credit institutions. Investment firms pay contributions to the national resolution fund, and this year a total of about EUR 5,500 in contributions will be collected from investment firms.
For further information, please contact Jaakko Suni, Economist (tel. +358 295 253 540, jaakko.suni(at)rvv.fi).