Thu. Sep 19th, 2024

The Commission has today decided to send letters of formal notice to Croatia, Malta and Hungary on the grounds of incorrect transposition of the Deposit Guarantee Scheme Directive (2014/49/EU).

This Directive is part of the regulatory framework that was put in place to create a safer and sounder financial sector in the wake of the 2008 financial crisis. Under EU rules, deposit guarantee schemes protect depositors’ savings by guaranteeing deposits of up to €100,000 and help prevent the mass withdrawal of deposits in the case of bank failure, which can create financial instability. The deadline for the transposition of these rules into national law was 3 July 2015.

The concerned Member States had notified a complete transposition of the Directive. Nevertheless, following an in-depth assessment of the notified measures, the Commission has concluded that some provisions of the Directive are not correctly transposed into national law. The incorrect transposition concerns the provisions of the Deposit Guarantee Scheme Directive related to the payment commitments and alternative funding arrangements (Malta), protection of absolutely entitled depositors and transfer of contributions between deposit guarantee schemes (Croatia) and set off of due liabilities (Hungary).

Without a satisfactory response from these Member States within two months, the Commission may decide to address a reasoned opinion.

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