72. The DGS may require member institutions to pay a minimum contribution (MC) irrespective of the …

The DGS may require member institutions to pay a minimum contribution (MC) irrespective of the amount of their covered deposits by applying either of the following modified calculation formulas to calculate the individual contributions:

• a. In cases where the DGS requires member institutions to pay a part of their total periodic contributions in the form of a minimum contribution in addition to a risk-based contribution:

𝐶 𝑖 = 𝑀𝐶 +(𝐶𝑅 𝑀𝐶1 ∗𝐴𝑅𝑊 𝑖 ∗𝐶𝐷 𝑖 ∗µ)

Where:

MC = Minimum contribution, which is identical for all member institutions; and

𝑝𝑒𝑟𝑖𝑜𝑑𝑖𝑐 𝑡𝑎𝑟𝑔𝑒𝑡 𝑙𝑒𝑣𝑒𝑙− 𝑛∗𝑀𝐶 𝐶𝑅 𝑀𝐶1 = ∑ 𝑛 𝑖=1 𝐶𝐷 𝑖

• b. In cases where the DGS requires member institutions to pay either a risk-based contribution or a minimum contribution, whichever is higher:

𝐶 𝑖 = 𝑀𝑎𝑥 {𝑀𝐶 ;(𝐶𝑅 𝑀𝐶2 ∗𝐴𝑅𝑊 𝑖 ∗ 𝐶𝐷 𝑖 ∗𝜇 ∗ )}

Where:

𝑀𝐶 = Minimum contribution, which is identical for all member institutions;

x = The number of institutions that should only pay the minimum contribution.

The method to determine x is described in Annex 1;

𝑝𝑒𝑟𝑖𝑜𝑑𝑖𝑐 𝑡𝑎𝑟𝑔𝑒𝑡 𝑙𝑒𝑣𝑒𝑙− 𝑥∗𝑀𝐶 𝐶𝑅 𝑀𝐶2 = ∑ 𝑛 𝑖=𝑥+1 𝐶𝐷 𝑖

and

µ ∗ = ∑ 𝑛 𝑖=𝑥+1 ∑ 𝑛 𝑖=𝑥+1 (𝐴𝑅𝑊 𝐶𝐷 𝑖 ∗𝐶𝐷 𝑖 𝑖 )

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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