+(iii) Stock-based contributions method
---+76. Where the competent authority in cooperation with the designated authority allows the DGS to …
---+77. To calculate 𝐢𝑅 π‘ π‘‘π‘œπ‘π‘˜βˆ’π‘π‘Žπ‘ π‘’π‘‘ , the DGS should apply paragraph 15, but should modify paragraph 16 …
---+78. The sum of net contributions of previous periods of all n member banks of the DGS should be …
---+79. The DGS should establish the sum of previous contributions of member institution β€˜i’ for either …
---+80. The competent authority in cooperation with the designated authority may require the DGS to …

(iii) Stock-based contributions method

(iii) Stock-based contributions method

1. Overview

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76. Where the competent authority in cooperation with the designated authority allows the DGS to …

Where the competent authority in cooperation with the designated authority allows the DGS to apply a stock-based contribution method instead of the flow-based contribution method, the DGS should apply the following calculation formula instead of the one described in paragraph 14:

𝐢 𝑖 = 𝐢𝑅 π‘ π‘‘π‘œπ‘π‘˜βˆ’π‘π‘Žπ‘ π‘’π‘‘ βˆ—π΄π‘…π‘Š 𝑖 βˆ—πΆπ· 𝑖 βˆ—Β΅βˆ’βˆ‘π‘›π‘’π‘‘ 𝐢 𝑖 π‘œπ‘“ π‘π‘Ÿπ‘’π‘£π‘–π‘œπ‘’π‘  π‘π‘’π‘Ÿπ‘–π‘œπ‘‘π‘ 

Where:

𝐢𝑅 π‘ π‘‘π‘œπ‘π‘˜βˆ’π‘π‘Žπ‘ π‘’π‘‘= Stock-based contribution rate (identical for all member institutions in a given period)

βˆ‘π‘›π‘’π‘‘ 𝐢 𝑖 π‘œπ‘“ π‘π‘Ÿπ‘’π‘£π‘–π‘œπ‘’π‘  π‘π‘’π‘Ÿπ‘–π‘œπ‘‘π‘  = The sum of contributions of member institution

β€˜i’ for previous periods net of any adjustments.
77. To calculate 𝐢𝑅 π‘ π‘‘π‘œπ‘π‘˜βˆ’π‘π‘Žπ‘ π‘’π‘‘ , the DGS should apply paragraph 15, but should modify paragraph 16 …

To calculate 𝐢𝑅 π‘ π‘‘π‘œπ‘π‘˜βˆ’π‘π‘Žπ‘ π‘’π‘‘ , the DGS should apply paragraph 15, but should modify paragraph 16 as follows where the denominator needs to be at least equal to 1:

(π‘šπ‘–π‘›π‘–π‘šπ‘’π‘š) π‘π‘’π‘Ÿπ‘–π‘œπ‘‘π‘–π‘ π‘‘π‘Žπ‘Ÿπ‘”π‘’π‘‘ 𝑙𝑒𝑣𝑒𝑙 =

(π‘šπ‘–π‘›π‘–π‘šπ‘’π‘š) π‘ π‘‘π‘œπ‘π‘˜ π‘π‘Žπ‘ π‘’π‘‘ π‘‘π‘Žπ‘Ÿπ‘”π‘’π‘‘ 𝑙𝑒𝑣𝑒𝑙 π‘“π‘œπ‘Ÿ π‘‘β„Žπ‘’ π‘π‘’π‘Ÿπ‘Ÿπ‘’π‘›π‘‘ π‘π‘’π‘Ÿπ‘–π‘œπ‘‘ =

π‘šπ‘–π‘›π‘–π‘šπ‘’π‘š π‘‘π‘Žπ‘Ÿπ‘”π‘’π‘‘ π‘™π‘’π‘£π‘’π‘™βˆ’π‘žπ‘’π‘Žπ‘™π‘–π‘“π‘–π‘’π‘‘ π‘Žπ‘£π‘Žπ‘–π‘™π‘Žπ‘π‘™π‘’ π‘“π‘–π‘›π‘Žπ‘›π‘π‘–π‘Žπ‘™ π‘šπ‘’π‘Žπ‘›π‘  (𝑄𝐴𝐹𝑀) π‘Ÿπ‘’π‘šπ‘Žπ‘–π‘›π‘–π‘›π‘” π‘›π‘’π‘šπ‘π‘’π‘Ÿ π‘œπ‘“ π‘π‘’π‘Ÿπ‘–π‘œπ‘‘π‘  𝑒𝑛𝑑𝑖𝑙 π‘‘β„Žπ‘’ π‘šπ‘–π‘›π‘–π‘šπ‘’π‘š π‘‘π‘Žπ‘Ÿπ‘”π‘’π‘‘ 𝑙𝑒𝑣𝑒𝑙 β„Žπ‘Žπ‘  π‘‘π‘œ 𝑏𝑒 π‘Ÿπ‘’π‘Žπ‘β„Žπ‘’π‘‘ +𝑄𝐴𝐹𝑀

𝑖𝑛 π‘Žπ‘π‘π‘π‘œπ‘Ÿπ‘‘π‘Žπ‘›π‘π‘’ π‘€π‘–π‘‘β„Ž π΄π‘Ÿπ‘‘π‘–π‘π‘™π‘’ 10(2)π‘œπ‘“ π‘‘β„Žπ‘’ 𝐷𝐺𝑆𝐷
78. The sum of net contributions of previous periods of all n member banks of the DGS should be …

The sum of net contributions of previous periods of all n member banks of the DGS should be equal to the QAFM of the DGS:

βˆ‘π‘› βˆ‘π‘›π‘’π‘‘ 𝐢 𝑖 π‘œπ‘“ π‘Žπ‘™π‘™ π‘π‘Ÿπ‘’π‘£π‘–π‘œπ‘’π‘  π‘π‘’π‘Ÿπ‘–π‘œπ‘‘π‘  = 𝑄𝐴𝐹𝑀 𝑖=1
79. The DGS should establish the sum of previous contributions of member institution β€˜i’ for either …

The DGS should establish the sum of previous contributions of member institution β€˜i’ for either all previous periods, or for an adequate period of time for which the DGS is able to establish the previous contributions of all member institutions, or according to an adequate proxy that reflects the past contributions of member institution β€˜i’ . For each member institution β€˜i’ the DGS should count that sum of previous contributions net of adjustments, stemming for instance from DGS interventions or recoveries, so that paragraph 78 is respected.
80. The competent authority in cooperation with the designated authority may require the DGS to …

The competent authority in cooperation with the designated authority may require the DGS to replace the π΄π‘…π‘Š 𝑖 and 𝐢𝐷 𝑖 in the formula in paragraph 76 with the (weighted) average of the π΄π‘…π‘Š 𝑖 and the (weighted) average of 𝐢𝐷 𝑖 over a few periods. Where that is the case, the DGS should select the number of periods over which to take the average to avoid strong fluctuations in the contributions of member institutions. This requirement does not dispense the DGS to meet its minimum target level according to the deadlines set out in Article 10(2) first and third subparagraph of the DGSD.

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

Requirements

3. Related Standards

Standards
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