*All figures and documents available in this section reflect the situation as of the day the Master Decision on the calculation of the 2021 ex-ante contributions (decision SRB/ES/2021/22 of 14 April 2021) was adopted.
Each year, pursuant to Article 70(2) of the Regulation (EU) No 806/2014, the Single Resolution Board determines the annual ex-ante contributions to be raised from institutions within its scope. In this section, please find further information on the 2021 ex-ante contribution cycle and, in particular, on the target level, institutions in scope, the risk adjustment factor, the consultation procedure and the ongoing litigation.
Target level and amount to be collected
- When setting the target level for 2021, the SRB took into account, as it does every year, the requirements as prescribed by the applicable legal framework, i.e. (expected) growth of covered deposits, business cycle, impact on the financial position of institutions, the obligation to spread evenly the contributions throughout the initial period and the obligation to reach the final target level at the end of the initial period (31/12/2023) (Article 69 Regulation (EU) No 806/2014).
- In 2020, the yearly average amount of covered deposits calculated on a quarterly basis for institutions in scope of the SRF amounted to EUR 6 689 billion. This figure represents a yearly growth of 6.9% from 2019. This evolution was mostly driven by unprecedented household savings rates caused by the COVID 19 pandemic and the associated restrictions.
- The gradual improvement in the Covid-19 pandemic situation and the related upward revision of economic growth forecasts suggest a normalisation of the savings rate and, consequently a slower growth of covered deposits going forward. However, the impact that the Covid-19 pandemic may have on the evolution of covered deposits in the coming years remains uncertain.
- Taking into account all the above factors, the SRB adopted a conservative approach with regard to the range of growth rates of covered deposits over the coming years until 2023 and set the total amount of contributions to the SRF for the 2021 ex-ante contribution period (the “annual target level”) at 1/8th of 1.35 % of the covered deposits (calculated quarterly) of all credit institutions authorized in the participating Member States in 2020.
- The total amount of the ex-ante contributions that will be collected by the SRB in June 2021 amounts to EUR 10 414 billion. This amount takes into account the deduction of the 2015 ex-ante contributions and the impact of data restatements and revisions.
Institutions in scope
- In 2021, 3 018 institutions are in the scope of the SRF (down slightly from 3 066 in 2020). The decrease in the number of institutions is mainly due to further market consolidation and/or loss of banking license. For the first time, institutions in Bulgaria and Croatia were part of the SRF contributions cycle.
- The institutions in scope of the SRF could be split further in the following three categories:
- 46% are small institutions eligible for a lump sum contribution under Article 10 and mortgage institutions under Article 11 of the Commission Delegated Regulation (EU) 2015/63;
- 24% are risk-adjusted institutions (that pay 97% of the total amount to be collected) under Article 5-9 Commission Delegated Regulation (EU) 2015/63; and
- 30% are medium institutions (institutions whose total assets are more than EUR 1 000 000 000 equal to, or less than, EUR 3 000 000 000) that are in scope based on Article 8(5) Council Delegated Regulation (EU) 2015/81 and whose contributions consist partly in a lump sum and for the rest are calculated in accordance with the risk-adjusted methodology.
- The distribution of the burden for payment of the 2021 ex-ante contributions did not change significantly compared to 2020 ex-ante contribution cycle. The 20 largest contributors at group level represent 68% of the total 2021 ex-ante contributions, the same share as in 2020 and 2019 ex-ante contribution cycles.
- 2021 Fact Sheet (BG, DE, EL, ES, ET, FI, FR, HR, IT, LT, LV, NL, PT, SK, SL, SV)
- Statistics in summary and collective form (BG, DE, EL, ET, EN, ES, FI, FR, HR, IT, LT, LV, NL, PT, SL, SK, SV)
- How to understand the 2021 Harmonised Annex
Risk adjustment factor in the euro area
The table above shows for the 2021 contribution period the distribution of the risk adjustment factors, computed and rescaled over the range between 0.8 and 1.5 in accordance with Article 9(3) of Commission Delegated Regulation (EU) 2015/63:
- 13% of the risk-adjusted entities (213 institutions) are classified with a risk adjustment factor between 0.8 and 1;
- the risk adjustment factor for 72% of the risk-adjusted entities (1 178 institutions) ranges from 1 to 1.3;
- 14% of the risk-adjusted entities (236 institutions) are classified with a risk adjustment factor ranging from 1.3 to 1.5.
- In 2021, the SRB provided institutions with the possibility to comment on the main elements of the ex-ante calculation decision in order to further enhance transparency and to make the decision making process more robust from a procedural point of view.
- The consultation process, which was launched on 5 March, ran for 10 working days. Institutions were provided with:
- a preliminary draft of the main body of the decision on calculation of contributions for the 2021 cycle; and
- preliminary calculation results: common data-points and the provision of bin thresholds provided visibility on the binning process and allowed for the accurate estimation by the institutions of their individual contributions while yet respecting confidentiality requirements.
- In view of the large number of institutions in scope of the 2021 ex-ante contributions cycle, and in order to complete the consultation procedure in an efficient way within the challenging timeline established under the applicable regulatory framework, a dedicated consultation platform was made available to institutions to facilitate the review of the documents consulted on and the submission of comments.
- 94 institutions in total provided comments. The jurisdictions from which the majority of the submissions were made were France, Germany and Italy. The large majority of comments were submitted in English – around 70%. All the comments received where carefully considered by the SRB and were comprehensively addressed in the 2021 ex-ante calculation decision, in particular Annex III.
- On 23 September 2020, the General Court issued its judgment in the case T-411/17, Landesbank Baden-Württemberg v Single Resolution Board. Two appeals are currently pending before the European Court of Justice against that decision. The Board will take all appropriate steps in respect of the collection of the ex-ante contributions to the SRF taking into account the progress of such proceedings and will take the necessary measures to comply with any judgment handed down by the Court.