Cooperation between DGSs across the Union is vital to ensure fast and cost-efficient depositor repayment where credit institutions conduct banking services through branches in other Member States. In view of technological advancements that promote the use of cross-border transfers and remote identification, the DGS of the home Member State should be allowed to make the repayments directly to depositors at branches located in another Member State, provided that the administrative burden and costs are lower than if the repayment were carried out by the DGS of the host Member State. That flexibility should complement the current cooperation mechanism which requires the DGS of the host Member State to repay depositors in branches on behalf of the DGS of the home Member State. To preserve depositor confidence in both host and home Member State DGSs, EBA should issue guidelines to assist DGSs to participate in such cooperation, inter alia by including a list of circumstances and conditions under which a DGS of the home Member State could decide to repay depositors at branches located in the host Member State.
Text as published in the Official Journal, reproduced verbatim (including any typographical quirks of the source). For the authentic version, see EUR-Lex.
