Recital (30)

While the primary role of DGSs is the repayment of covered depositors, interventions outside payout can prove more cost-effective for DGSs and ensure uninterrupted access to deposits by facilitating transfer strategies. DGSs may be required to contribute to the resolution of credit institutions. In addition, in some Member States, DGSs may finance preventive measures to restore the long-term viability of credit institutions, or alternative measures in insolvency. Such preventive and alternative measures can play an effective role in the continuum of crisis-management tools, in order to maintain depositor confidence and financial stability. Member States which have not provided for preventive and alternative measures in their national law prior to the date of entry into force of this Directive should therefore consider building the necessary capacity of their DGSs and other relevant authorities in order to implement such measures in the future. Following an assessment of the preparedness of Member States and the experience of the application of preventive and alternative measures, the Commission should present its assessment to the European Parliament and to the Council accompanied, where relevant, by a legislative proposal. While such preventive and alternative measures can significantly improve the protection of deposits, it is necessary to subject such measures to adequate safeguards, including in the form of a harmonised least-cost test, in order to ensure a level playing field and the effectiveness and cost-efficiency of such measures. Such safeguards should only apply to interventions financed with the DGS’s available financial means regulated under this Directive.