35. The DGS may reduce the contributions of a member institution that is part of an institutional …

The DGS may reduce the contributions of a member institution that is part of an institutional protection scheme (IPS) according to Article 13(1) third subparagraph of the DGSD by including an additional risk indicator in the calculation method. The IPS membership indicator should reflect the additional solvency and liquidity protection provided by the IPS to the member institution. To that end, the additional risk indicator should measure the amount of the IPS ex-ante funds that are available without delay for both recapitalisation and liquidity funding purposes. This may also include additional funding commitments callable upon request and backed by liquidity reserves held by IPS members. To measure whether these ex ante funds are sufficiently large to provide a credible and effective support for that member institution, the DGS should set them in relation to the size of the IPS member institution.

Requirements for risk indicators

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/