APPROVAL OF THE REVIEW OF EFDI COOPERATION MULTILATERAL AGREEMENT
Brussels, 20 June 2025
We are very happy to announce that EFDI published a revised version of the EFDI Home DGS – Host DGS Cooperation Multilateral Agreement (Version 2.0). The EU Committee has approved the reviewed version during its meeting held in Madrid on 4th June 2025.
EFDI drafted this Agreement back in 2016 for cross-border payouts to develop a framework for reimbursement procedures for credit institutions with branches in other EU Member States.
The objective of the Agreement is to facilitate an effective cooperation between Deposit Guarantee Schemes (DGSs) and, where appropriate, the designated authorities in the EU. With this Agreement, EFDI assists DGSs to fulfil the requirements under Article 14 (5) of the Directive 2014/49/EU of 16 April 2014 on deposit guarantee schemes (DGSD) and the EBA Guidelines on cooperation agreements between DGSs.
In particular, the Agreement specifies, in advance, various aspects of the DGS repayment process of depositors at branches and other aspects of cooperation between DGSs. This is helpful, because it avoids having to reach ad hoc agreements in times of stress of a credit institution. In this vein, the DGSs will be ready for a Payout Event.
Version 2.0 of the Agreement
In a nutshell and among other changes, the most important updates in Version 2.0 of the Agreement can be summarized as follows:
ü Voluntary Extension of Cooperation: DGSs can, if allowed by national regulations, voluntarily extend cooperation terms to the reimbursement process of depositors in other Member States that are serviced via cross-border services instead of branches, or non-resident depositors. In such cases, cooperation with the local DGS can contribute to the speed and quality of the reimbursement of depositors in another Member State.
ü Exchange of Information in going concern: the scope and frequency of the exchange of information in going concern is increased, since information is crucial for the crisis preparedness of DGSs.
ü Use of Third Parties by Host DGS: the possibility for the Home DGS to require the Host DGS to replace a non-EU third-party provider has been removed. Instead, DGSs can make bilateral agreements on information sharing regarding the use of Third Parties. The Host DGS must include data protection and confidentiality safeguards (e.g., GDPR) in agreements with third parties.
ü Data Protection and Confidentiality: the existing provision was updated to align with regulatory changes (GDPR) and proposals on data retention. As the default, the Home DGS is the Data Controller and the Host DGS is the Data Processor. If both jointly determine data purposes and methods, a Joint Controller model would then apply.
Version 2.0 of the Agreement will enter into force once all signatories of the 2016 Agreement formally signed to it.
We would like to thank the co-leaders of the Cross Border Working Group Ivy Jeuken and Borja Peletero for their tireless work and commitment during this process.
We would like to extend a heartful thank you as well to the Subgroup Leaders whose contributions were as well key during this review process:
- H2C Communications Sub-Group: Zuzana Suchá and Robert Meulenbroek
- H2C Finance Sub-Group: Antoaneta Geala and Arnaud Schangel
- H2C Legal Sub-Group: Ana Lillo Cervantes, and Anneka Beccarelli and former co-leader Clara Cohen
- H2C Operations Sub-Group: Arnaud Ribadeau Dumas and Tormod Skjærpe
Last but not least to all the Members of the EU Committee, CBWG and CBWG’s Subgroups for their active participation and valuable insights and contributions, which have played a decisive role in achieving this important milestone.
You can find the new text here.