Recital (23)

In order to ensure the resilience of DGSs, their funds should derive from stable and irrevocable contributions. Certain sources of DGS financing, such as expected recoveries against DGS claims deriving from its interventions, are too contingent to be accounted as available financial means that qualify for the DGS’ target level. In order to harmonise DGSs’ conditions for the fulfilment of their target level and to ensure that DGSs’ available financial means are financed by contributions from the industry, funds that qualify to reach the target level should be distinguished from funds that are considered to be complementary sources of financing, such as borrowed funds resulting in debt liabilities of the DGS. However, foreseeable loan repayments can be planned and factored in regular contributions from DGS members, and debt liabilities of the DGS should therefore not be deducted in full from the available financial means that qualify for the target level. To foster the single market for banking by incentivising liquidity support between DGSs and to facilitate the use of the available financial means of an institutional protection scheme (IPS) recognised as a DGS under Directive 2014/49/EU for IPS measures to prevent the failure of its member institutions while avoiding double counting, an outstanding claim on a loan provided to another DGS or on financial means otherwise made available to the IPS account of that IPS recognised as a DGS should count exclusively for the target level of the lending DGS or of the DGS account of the IPS recognised as a DGS.