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Resolution Levy

Following a recent review and consultation on the Credit Institutions Resolution Fund (CIRF), the Department of Finance has agreed to reduce the resolution levy to 0.0274% of total assets. The following table demonstrates the positive impact of the reduction:

 

Asset Size Current Levy New Levy Reduction
       
€         275,000,000  €         140,525  €        75,350  €         65,175
€         200,000,000  €         102,200  €        54,800  €         47,400
€         150,000,000  €           76,650  €        41,100  €         35,550
€         100,000,000  €           51,100  €        27,400  €         23,700
€           50,000,000  €           25,550  €        13,700  €         11,850
€           25,000,000  €           12,775  €          6,850  €           5,925

At the same time, we took the opportunity to consult with the Department in relation to the Stabilisation Fund. The Department has confirmed it intends to complete a full review of this fund, but has in the meantime reduced the levy from 0.017% to 0.0164% of total assets. The following table demonstrates the positive impact of the reduction:

 

Asset Size Current Levy New Levy Reduction
       
€         275,000,000  €         46,750  €         45,100  €         1,650
€         200,000,000  €         34,000  €         32,800  €         1,200
€         150,000,000  €         25,500  €         24,600  €            900
€         100,000,000  €         17,000  €         16,400  €            600
€           50,000,000  €           8,500  €           8,200  €            300
€           25,000,000  €           4,250  €           4,100  €            150

Resolution Levy

Credit Institutions Resolution Fund Levy (Amendment) Regulations 2019 (S.I No. 494, 2019):

  • The Resolution levy has been reduced from 0.0511% to 0.0274% of total assets
  • The new levy is payable by end of February 2020.
  • The new levy is calculated on total assets as of 30th June 2019

Stabilisation Levy

The revised Stabilisation Levy Regulations are not published yet, the following information is from Department of Finance Press Release:

  • The Stabilisation levy has been reduced from 0.017% to 0.0164% of total assets
  • The new levy is payable by the end of February 2020.
  • The new levy is calculated on total assets as of 30th September 2019

The revised Stabilisation Levy Regulations are still in draft form. We will circulate the Regulations once enacted and published.

CUDA is pleased with these results, that came about after much discussions and submissions to the Department of Finance. That said, we will continue to lobby for further transparency in relation to the upper levels set for these funds and the requirements relating to access (esp. the CBI viability test to access the Stabilisation Fund).

Any questions on any of the above topics, please do not hesitate to contact us (kevin.johnson@cuda.ie / elaine.larke@cuda.ie).