Financial Stability Authority collects from credit institutions EUR 121.9 million in EU contributions to the Single Resolution Fund for 2017
The Single Resolution Board (SRB) has calculated the amounts of EU contributions for 2017. The Financial Stability Authority will forward the SRB decisions on these contributions to Finnish credit institutions and will this year collect from them a total of EUR 121.9 million for the Single Resolution Fund (SRF). The amount is EUR 10.3 million (9.2%) higher than in the previous year.
By virtue of Regulation (EU) 2014/806 on the Single Resolution Mechanism (SRM Regulation), the target level of the SRF at the end of the eight-year initial period in 2024 is at least 1% of the amount of covered deposits of credit institutions authorised in all of the participating Member States. As in the previous year, the SRB has decided to apply a level of 1.05% of covered deposits in the calculation of 2017 contributions in order to ensure achievement of the target level within the prescribed time.
Compared with last year, the amount of contributions was increased by adjustments in the initial period related to the calculation of contributions according to Council Implementing Regulation (EU) 2015/81, on the basis of which the common euro area target level according to the SRM Regulation was weighted in the calculation of 2017 contributions at 60% (in 2016: 40%) and the national target level according to the BRR Directive at 40% (60%). Structural changes in the Finnish credit institutions sector also increased the amount of contributions. Using the weighting applied last year, the contributions for this year would have been EUR 112.1 million.
Deposit banks that paid bank levies in 2013–2014 will also this year receive compensation for their contributions.
Based on the Council Implementing Regulation, the SRB has decided, as last year, to reduce the amount of the contribution payable by each institution by one eighth of the 2015 contribution transferred to the Single Resolution Fund. This reduced the amount of contributions by about 7%.
The Financial Stability Authority will complete the collection of EU contributions by the end of May, and will transfer them to the Single Resolution Fund by the end of June.
About EUR 11,000 in contributions for 2017 will be collected by the Financial Stability Authority from investment firms building up the national resolution fund.
For further information, please contact Riku Thilman, Economist (tel. +358 295 253 542, riku.thilman(at)rvv.fi).