The SRF has been built up over a period of 8 years (2016-2023) and, reached its target level of at least 1% of the amount of covered deposits of credit institutions in all 21 Banking Union countries at the end of 2023.
The individual amount each bank owes is calculated pro-rata to the amount of its liabilities (excluding own funds and covered deposits) in respect of the aggregate liabilities (excluding own funds and covered deposits) of all the credit institutions and certain investment firms in Banking Union countries. Amounts banks owe to the fund are in proportion to the risk profile of each institution.
Going forward, the new backstop to the SRF is planned to be introduced. This is an additional emergency fund, operated by the European Stability Mechanism, that can be called upon and roughly doubles the size of the SRF. The backstop is provided through public money to offer immediate support and confidence to the market and has to be paid back in the years after its use by all of the banks in the Banking Union, so that taxpayers are fully reimbursed.