Deposit Guarantee Fund levies
Since 2016, banks must submit their contributions to the Deposit Guarantee Fund (DGF) every quarter. By 2024 the fund must comprise 0.8% of the deposits guaranteed under the Dutch Deposit Guarantee. You can find a list of current regulations and publications below.
To finance DGS payments, an (ex-ante) Deposit Guarantee Fund (DGF) is being built up since 2016. The DGF is a separate legal entity which is supported by DNB in performing its duties. If the financial means in the fund are insufficient DNB will set extraordinary contributions (ex post). In order to ensure financial means are available on time, DNB can ask the banks to make an advance payment on such extraordinary contributions. In addition, the DGF has the option of attracting funding from third parties. This page provides information on the financing of the Deposit Guarantee Scheme (DGS).
Ex ante fund: contributions and risk methodology
Banks pay quarterly contributions to the DGF since 2016. By 2024 the available financial means in the fund must comprise 0.8% of the deposits covered by the DGS. For the size of the fund at the end of last year, please refer to the most recent annual report of the DGF, which manages the fund. For this purpose, the DGF has a collective and an individualised component. Each quarter, DNB determines what contribution banks individually have to make based on the deposit base of the individual bank and of all banks together. If the covered deposits have increased since the previous calculation of the levies, then supplementary contributions will be set. For a more detailed explanation see the Fact sheet on Contributions to the DGF.
Banks' contributions to the collective part of the fund are determined on the basis of a risk methodology. For this risk weighting, DNB divides banks into four risk categories using different indicators. The risk methodology is laid down in a ministerial regulation. For a more detailed description see the Fact sheet on DGS risk methodology.
Evaluation and recalibration risk methodology December 2022
The risk methodology for the Dutch Deposit Guarantee has been changed by means of an amendment to the ministerial regulation, which was published in the Government Gazette on 1 December 2022. The new risk methodology applies from premium date 31 December 2022.
The reason for the change was the evaluation of the risk methodology in 2021. Risk weighting of premiums is a fundamental part of the revised DGS that came into effect in 2015. Periodic evaluation and recalibration is essential to ensure a correct risk classification and sufficient risk differentiation. DNB therefore evaluated the risk methodology for the Dutch Deposit Guarantee in 2021 and developed a proposal for recalibration.
Stakeholders could respond to the report "Evaluation and recalibration risk method Dutch Deposit Guarantee" (only available in Dutch) until 22 August 2022. DNB has included the received responses in its final advice to the Ministry of Finance, which has subsequently adopted the changed risk method by amending the ministerial regulation.
Extraordinary contributions (ex post)
When the DGS has to repay depositors but the available financial means in the fund are not sufficient to finance the payments, extraordinary contributions are levied. DNB determines these contributions ex post. In order to have financial means available in time, DNB can ask the banks for an advance payment. For a more detailed description see the Fact sheet on Extraordinary Contributions DGS.
If the DGF needs to mobilise means for financing a DGS payout, and the means in the fund and the extraordinary contributions are not made available in time, or are insufficient, the DGF can also attract funding from third parties to bridge the gap. For this purpose, the DGF has entered into a credit facility agreement with a banking consortium. Finally, the DGF can also apply for a loan from the State.
Deposit Guarantee Fund
The DGF was established, as a separate legal entity, in late 2015 to fund the Dutch DGS. The DGF is a legal entity incorporated under public law with registered office in Amsterdam. The DGF's task is to manage the available financial means and ensure they are made available when needed for the execution of the DGS. If a bank should fail, the DGF will fund the repayable amounts that were established by DNB. The DGF can also be deployed to fund resolution instruments. DNB supports the DGF in performing its tasks but, as central bank, is not required to pre-finance DGS compensation since this would contravene the prohibition on monetary financing. On this page you can find the annual reports of the DGF, which offer insight into the activities and developments of the DGF.
- Evaluatie en herkalibratie risicomethodiek Nederlandse Depositogarantie - juli 2022 (Dutch only) (20 July 2022 | 487KB PDF)
Deposit Guarantee Fund – Annual Reports
- Annual Report for 2022 Deposit Guarantee Fund (31 May 2023 | 230KB PDF)
- Annual Report for 2021 Deposit Guarantee Fund (25 April 2022 | 196KB PDF)
- Annual report for 2020 Deposit Guarantee Fund (20 April 2021 | 244KB PDF)
- Annual report for 2019 Deposit Guarantee Fund (12 February 2021 | 194KB PDF)
- Annual report for 2018 Deposit Guarantee Fund (12 February 2021 | 250KB PDF)
- Annual report for 2017 Deposit Guarantee Fund (12 February 2021 | 141KB PDF)
- Annual report for 2016 Deposit Guarantee Fund (12 February 2021 | 113KB PDF)