What changed between the adopted text of 24 Apr 2024 and the adopted text of 26 Mar 2026

Removed:‘9. Member States shall ensure that DGSs have in place adequate alternative funding arrangements to enable them to obtain short-term funding to meet claims against those DGSs. Member States shall ensure that the alternative funding arrangements of DGSs are not financed through public funds.’;

Removed:(f) paragraph 10 is deleted;

Removed:(g) the following paragraphs 11, 12 and 13 are added:

Removed:‘11. Member States shall ensure that in the context of the measures referred to in Article 11(1), (2), (3) and (5), DGSs may use the funds originating from the alternative funding arrangements referred to in Article 10(9)▌, before using the available financial means and before collecting the extraordinary contributions referred to in Article 10(8). ▌

Removed:12. The EBA shall develop draft regulatory technical standards to specify:

Removed:(a) the methodology for the calculation of available financial means qualifying for the target level referred to in paragraph 2, including the delineation of the available financial means of DGSs and the categories of available financial means that derive from contributed funds;

Removed:(b) the details of the process to reach the target level referred to in paragraph 2 after a DGS has used available financial means in accordance with Article 11.

Removed:EBA shall submit those draft regulatory technical standards to the Commission by … [OP – please insert the date = 24 months after the date of entry into force of this Directive].

Removed:Power is delegated to the Commission to supplement this Directive by adopting the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.

Removed:13. By… [OP – please insert the date = 24 months after the date of entry into force of this Directive] The EBA shall develop guidelines to assists DGSs with the diversification of their available financial means and on how DGSs could invest in low-risk assets applicable to the available financial means of DGSs.’;

Removed:(12) Article 11 is replaced by the following:

Removed:‘Article 11

Removed:Use of funds

Removed:1. Member States shall ensure that DGSs use the available financial means referred to in Article 10 primarily to secure repayments to depositors in accordance with Article 8.▌

Removed:2. Member States shall ensure that DGSs use the available financial means to finance the resolution of credit institutions in accordance with Article 109 of Directive 2014/59/EU. Member States shall ensure that resolution authorities determine the amount that a DGS is to contribute to the financing of resolution of credit institutions, after those resolution authorities have consulted the DGS on the results of the least cost test referred to in Article 11e of this Directive. Member States shall ensure that DGSs respond, without delay, to such consultation.

Removed:3. Member States shall allow DGSs to use the available financial means for preventive measures as referred to in Article 11a for the benefit of a credit institution where all of the following applies:

Removed:(a) the credit institution has not been determined as failing or likely to fail, pursuant to Article 32(4) of Directive 2014/59/EU▌;

Removed:(b) the DGS has confirmed that the cost of the measure does not exceed the cost of repaying depositors as calculated in accordance with Article 11e;

Removed:(c) all of the conditions laid down in Articles 11a and 11b are met.

Removed:4. Where available financial means are used for preventive measures or alternative measures as referred to in paragraphs 3 and 5 ▌, the affiliated credit institutions shall without delay provide the DGS with the means used for such measures, where necessary in the form of extraordinary contributions, where any of the following applies:

Removed:(a) the need to repay depositors or to intervene in resolution arises and the available financial means of the DGS amount to less than two-thirds of the target level;

Removed:(b) the available financial means of the DGS fall below 40 % of the target level following the financing of preventive measures, unless the repayment schedule of the institution or institutions to which preventive measures are granted foresees a reimbursement by those institutions within 12 months, resulting in the available financial means exceeding 40 % of the target level.

Removed:5. Where a credit institution is wound up in accordance with Article 32b of Directive 2014/59/EU in order to exit the market or terminate its banking activity, Member States shall allow DGSs to use the available financial means for alternative measures to preserve the access of depositors to their deposits, including the transfer of assets and liabilities and a deposit book transfer, where all of the following apply:

Removed:(a) the DGS confirms that the cost of the measure does not exceed the cost of repaying depositors as calculated in accordance with Article 11e of this Directive;

Removed:(b) ▌all the conditions laid down in Article 11d of this Directive are met;

Removed:(c) where the measure takes the form of a transfer of assets or liabilities, the transfer includes liabilities that take the form of one or more of the following:

Removed:(i) covered deposits;

Removed:(ii) eligible deposits from natural persons and micro, small and medium-sized enterprises;

Removed:(iii) deposits that would be eligible deposits from natural persons and micro, small and medium-sized enterprises were they not made through branches located outside the Union of institutions established within the Union;

Removed:(iv) any liabilities that ranked senior to covered deposits in the national creditor hierarchy of claims in insolvency.’;

Removed:(13) the following Articles 11a to 11e are inserted:

Removed:‘Article 11a

Removed:Preventive measures

Removed:1. ▌Member States shall ensure that DGSs use the available financial means for the preventive measures referred to in Article 11(3), provided that all of the following conditions are met:

Removed:(a) the request of a credit institution for the financing of such preventive measures is accompanied by a note containing measures as referred to in Article 11b;

Removed:(b) the credit institution has consulted the competent authority on the measures envisaged in the note referred to in Article 11b;

Removed:(c) the use of preventive measures by the DGS is linked to conditions imposed on the supported credit institution, involving at least more stringent risk monitoring of the credit institution, accompanied by governance arrangements that facilitate such monitoring, ▌greater verification rights for the DGS and more frequent reporting to the competent authorities;

Removed:(d) the use of the preventive measures by the DGS is conditional upon the depositors’ effective access to covered deposits;

Removed:(e) the affiliated credit institutions are able to pay the extraordinary contributions in accordance with Article 11(4);

Removed:(f) the credit institution complies with its obligations under this Directive, has not already been granted extraordinary public financial support in accordance with Article 32c(1), point (a), of Directive 2014/59/EU in the last five years and has fully complied with the reimbursement schedule or reimbursed any previous extraordinary public financial support or preventive measure;

Removed:(fa) the preventive measures are not used to offset losses that the credit institution or entity has incurred or is likely to incur in the near future, unless the absence of this measure leads to a disruption of financial stability.

Removed:2. Member States shall ensure that DGSs have monitoring systems and decision-making procedures in place that are appropriate for selecting and implementing preventive measures and monitoring affiliated risks.

Removed:3. Member States shall ensure that DGSs may implement preventive measures only where the designated authority has confirmed that all the conditions laid down in paragraph 1 have been met. The designated authority shall notify the competent authority and the resolution authority.

Removed:Where the benefitting institution belongs to an IPS as referred to in Article 1(2), point (c), that IPS shall determine, based on the results of the least cost test referred to in Article 11e, the amount of the available financial means for preventive measures which shall be notified to the designated authority.

Removed:4. Member States shall ensure that the DGS ▌uses its available financial means for capital support measures, including recapitalisations, asset impairment measures and asset guarantees, only where the conditions under Article 11b are met.

Removed:Member States shall ensure that the DGS transfers its holdings of shares or other capital instruments in the supported credit institution▌ as soon as commercial and financial circumstances allow.

Removed:4a. EBA shall develop draft regulatory technical standards to specify the following:

Removed:(a) the conditions referred to in paragraph 1, point (c);

Removed:(b) the monitoring systems and decision-making procedures that DGSs are to have in place in accordance with paragraph 2;

Removed:(c) taking into account the requirements set out in Article 11b, the modalities of cooperation between the resolution authorities, the designated authorities and the competent authorities under paragraphs 1 and 3 of this Article.

Removed:EBA shall submit those draft regulatory technical standards to the Commission by ... [one year from the date of entry into force of this amending Directive].

Removed:Power is delegated to the Commission to supplement this Directive by adopting the regulatory technical standards referred to in the first subparagraph of this paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.

Removed:‘Article 11b

Removed:Requirements for financing preventive measures

Removed:1. Member States shall ensure that credit institutions which request a DGS to finance preventive measures in accordance with Article 11(3) present to the competent authority ▌a note with measures that those credit institutions commit to undertake to secure compliance with the applicable supervisory requirements ▌in accordance with Directive 2013/36/EU and Regulation (EU) No 575/2013.

Removed:2. The note referred to in paragraph 1 shall set out actions to mitigate the risk of deterioration of the financial soundness and strengthen the credit institution’s capital and liquidity position.

Removed:2a. Where the financial means of a DGS are used for preventive measures in accordance with Article 11(3) of this Directive, the competent authority shall require the beneficiary credit institution to update, as applicable, the recovery plan as defined in Article 2(1), point (32), of Directive 2014/59/EU or the group recovery plan as defined in Article 2(1), point (33), of that Directive. The competent authority shall direct the supported credit institution to implement the measures referred to in Article 6(6), third subparagraph, of Directive 2014/59/EU where the conditions under Article 6(6) of that Directive are met.

Removed:3. Member States shall ensure that in the event of a capital support measure under paragraph 1, the available financial means of a DGS covers only the current capital shortfall on the basis of the following elements, as evidenced in the note:

Removed:(a) the initial capital shortfall as identified in a Union stress test, asset quality review or equivalent exercise, or during the supervisory review and evaluation process, as confirmed by the competent authority;

Removed:(b) capital-raising measures to be implemented within six months of submission of the business reorganisation plan;