Circular CSSF-CPDI 20/21 is a CSSF circular, published 28 May 2020 and updated 13 November 2025. Subject: Fonds de garantie des dépôts Luxembourg (FGDL) – Method for calculating the ex-ante contributions pursuant to Article 182 of the Law of 18 December 2015 on the failure of credit institutions and of certain investment firms. The CSSF marks it as outdated.
\nLegal basis: Law of 18 December 2015 on the resolution and liquidation of banks and investment firms.
\nRelevant for: Credit institutions.
\nKeywords: Deposit Guarantee Schemes.
\nCircular CSSF-CPDI 20/21 as amended by Circular CSSF-CPDI 23/34 Fonds de garantie des dépôts Luxembourg (FGDL) – Method for calculating the ex-ante contributions pursuant to Article 182 of the Law of 18 December 2015 on the failure of credit institutions and of certain investment
\nConseil de protection des déposants et des investisseurs
\nIn case of discrepancies between the French and the English text, the French text shall prevail.
\nCircular CSSF-CPDI 20/21 as amended by Circular CSSF-CPDI 23/34 Re: Fonds de garantie des dépôts Luxembourg (FGDL) – Method for calculating the ex-ante contributions pursuant to Article 182 of the Law of 18 December 2015 on the failure of credit institutions and of certain investment firms (“2015 Law”)
\nLuxembourg, 28 May 2020 To
\nall
\nincorporated
\ncredit under
\ninstitutions Luxemburg
\nlaw, to the branches of non-EU credit institutions, and to POST Luxembourg
\nLadies and Gentlemen, 1.
\nThis circular modifies the calculation method of the total volume of
\nannual contributions that the FGDL collects in relation to the target level referred to in Article 179 of the 2015 Law and in relation to the buffer of financial means referred to in Article 180 of the said law. It also introduces a fairer method for apportioning the annual contributions between member institutions of the FGDL. Circulars CSSF-CPDI 16/01 and 17/06 are repealed. The provisions of this circular depart from paragraphs 35, 37 and 39 of the EBA Guidelines on methods
\nfor
\ncalculating
\ncontributions
\ndeposit
\nguarantee
\nschemes
\n(EBA/GL/2015/10) (“the EBA Guidelines”), which have been applied since 2016. 2.
\nThe risk adjustment, as defined in Annex 1 of Circular CSSF-CPDI 16/01,
\nremains applicable. The text is reproduced in Annex 2 of this circular with one amendment, namely setting the lower bound of the sliding scale applied to the liquidity coverage ratio (LCR) (cf. Table 2 of said Annex 2) to a ratio of 100%, in accordance with Article 38 of Commission Delegated Regulation (EU) 2015/61. 3.
\nParagraph 37 of the EBA Guidelines defines the annual volume of
\ncontributions by dividing the difference between the target level (i.e. 0.8% of covered deposits) and the available financial means by the remaining number of years to reach the target level. By this approach, contributions react with some delay to variations in the total amount of covered deposits. If deposits grow regularly, as in the past, the contributions calculated in accordance with the EBA Guidelines are small at the beginning, but increase significantly towards the end of the period over which the target level must be reached. In case of decreasing covered deposits, the EBA method can lead to the collection of contributions in excess of the target level. This circular defines a calculation method that mitigates that effect by giving more weight to the variation of the volume of covered deposits at the beginning of the build-up cycle of the fund. The definition and explanation of the new method are provided in paragraphs 3 and 4 of this circular’s Annex 1. 4.
\nRegarding the apportionment of the annual volume of contributions
\nbetween member institutions, paragraphs 35 and 39 of the EBA Guidelines provide for a break-down that is proportional to covered deposits, leaving aside the risk adjustment. If the total volume of covered deposits (and hence the target level) increase, all member institutions, including those with constant or decreasing covered deposits, must contribute to adjust the FGDL’s financial means to the higher target level.
\nThe text above is the opening of the document; the PDF carries the whole.
\nDocument page, PDF. Source: Commission de Surveillance du Secteur Financier (CSSF), reproduced with the CSSF's consent. The French text prevails.
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