4.3. Covered deposits (CD)

In relation to Article 7(3) of the DGSD, if a member institution does not accurately determine the precise amount of covered deposits in beneficiary accounts or ascertained maximum possible amount of covered deposits in such accounts, the DGS should assume that all funds in the beneficiary accounts are covered for the purpose of calculating contributions. Where a member institution reports the precise amount of covered deposits in such accounts, or an ascertained maximum possible amount of covered deposits in beneficiary accounts, the DGS should take these figures into account when calculating the member institution’s contributions. The competent authority in cooperation with the designated authority should determine which information is necessary to take into account the precise amount or the ascertained maximum possible amount of covered deposits in a beneficiary account. In any case, the DGS should be able to ascertain the maximum possible amount of covered deposits if it has the information about the number of people who are absolutely entitled to the sums held in a beneficiary account by multiplying that number by the coverage level according to Article 6 of the DGSD. The DGS may reflect temporary high balances for the purpose of ascertaining the maximum possible amount of covered deposits.

For the purpose of calculating the contributions to the DGS fund, in other cases where there is uncertainty regarding the eligibility and coverage of a particular individual deposit in practice, the DGS should assume that the deposits are covered. The DGS may include temporary high balances for the purpose of calculating the contributions to the DGS fund.