EFDI Position Paper: Cooperation of DGSs with other Financial Safety Net Participants
Brussels, 19 June 2025
We are pleased to publish our latest Position Paper, approved by the EU Committee on 4 June 2025. This paper examines how DGSs engage with regulators, supervisors, and resolution authorities across various jurisdictions. It underscores the need for a robust framework that ensures seamless and timely cooperation, especially during crises when swift and aligned action is crucial.
The study aims to:
- Understand the existence and legal basis of both formal and informal information-sharing arrangements;
- Identify the types of data shared, such as bank and supervisory reports – and determine the regularity and structure of such exchanges;
- Explore coordination during payout and resolution processes;
- Assess obstacles to information sharing; and
- Examine cooperation during stress-testing exercises.
Additionally, this paper supports DGSs in strengthening their cooperation frameworks in light of the European Commission’s proposed Crisis Management and Deposit Insurance (CMDI) package reform. The CMDI initiative, still under discussion, seeks to enhance crisis management tools, particularly for small and medium-sized institutions, with the goal of bolstering depositor confidence, preserving financial stability, and reducing reliance on public funds.
The paper also identifies areas for improvement in the cooperation among DGSs and FSN participants, aiming to enhance the resilience, preparedness, and effectiveness of the entire financial safety net.
EFDI would like to thank the co-leaders of the DGSD 3 Working Group (D3I) Ms. Renata Kadlecova and Mr. Peter Nagy as well as the Members of the D3I for the valuable contributions and insights, and, more in particular, Mr. Andras Komar and Professor Dalvinder Singh, for the time, thought, and effort in preparing this important position paper.
For more information, please contact EFDI Secretariat: [email protected]