BVR

Stress Test – BVR design

EFDI EU Committee Meeting

Bonn, 17th March 2017

Ralf Benna / Frank Kuerten /

Volker Conze / Thorbjoern Karp

1. Specialties of an Institutional Protection Scheme (IPS)

2. Schedule for BVR-ISG Stress Tests

3. First step: Test of the SCV file

17th March 2017 1 | BVR | EFDI EU Committee Meeting

The purpose of our Institutional Protection Scheme

is to avert or remedy imminent or existing financial

difficulties at the member institutions

+

… remedy

Rehabilitation

… avert

Prevention

Saving the TRUST in the Cooperative Banks

(Stability of the whole cooperative banking sector in Germany!)

Avert or remedy imminent or existing

financial difficulties at the member institutions...

B U T : N O r e s o l u t i o n c a s e s O u r „ r e h a b i l i t a t i o n “ i s a k i n d o f „ r e c o v e r y “ !

17th March 2017 BVR | EFDI EU Committee Meeting 2 |

Est. 1934

DGSD kept the national DGSs / IPSs – but on a harmonized level.

Our IPS complied with most of the aspects of the DGSD but some

points had to be adjusted

Areas of adjustements for our IPS to comply with the

DGSD had been „technical aspects“ – solved successfully

and on-time 3rd of July 2015!

■ Create a new „offcially recognized“ deposit protection

scheme as an IPS (Art. 1 (2) c DGSD)

■ Integrate 100.000 EURO reimbursement claim per

depositor in the legal framework of the IPS

■ Sinlge customer view to calculate the covered deposits

■ Basic parameters and internal structures for payout in 7

days – although this is an unrealistic and non-nature case

for an IPS (!)

17th March 2017 BVR | EFDI EU Committee Meeting 3 |

The “Dual System”

The set-up of the Institutional Protection System of the

German Cooperative Banks – The „DUAL SYSTEM“

„Dual

System“

Three core functions of the BVR (as in the by-laws):

(1) Lobbying(2) Strategic Center of

Competence(3) Protection Scheme

100%- ltd. Comp. of BVR

BVR-Sicherungseinrichtung*

(= additional voluntary IPS)BV

R-S

E

BVR-Institutssicherung GmbH*

(= officially recognized DGS

as IPS, as per DGSD & EinSiG)BV

R-I

SG

Accession- and obligation-

declaration of every cooperative

CRR-Institute

* IPS as per Art. 113 (7) CRR

17th March 2017 BVR | EFDI EU Committee Meeting 4 |

Conclusion

No payouts! This would be against the nature of an IPS.

(If necessary) funds are used for rehabilitation (recovery)

measures only (“alternative measures”).

However, all rules set by DGSD burden BVR-ISG (!) as well.

This applies also for the stress test topic…

17th March 2017 BVR | EFDI EU Committee Meeting 5 |

1. Specialties of an Institutional Protection Scheme (IPS)

2. Schedule for BVR-ISG Stress Tests

3. First step: Test of the SCV file

17th March 2017 6 | BVR | EFDI EU Committee Meeting

EBA guidelines on stress tests

of deposit guarantee schemes

According to Art. 4(10) DGSD DGSs have to perform a first stress

test by 3 July 2017.

EBA guidelines require DGSs to

define a programme of test exercises over a period of not less

than two to five years

complete a set of priority tests by 3 July 2019

BVR is cooperating on the stress test matter with

“Einlagensicherungs- und Treuhandgesellschaft mbH” (“EIS”)

17th March 2017 BVR | EFDI EU Committee Meeting 7 |

Basic schedule for BVR-ISG stress tests

SCV file tests (indicators 1, 2, 4) until 30 June 2017

Operational capabilities test (indicators 5 – 14) until 30 June 2018

incl. SCV file tests (indicators 1 – 4)

Operational capabilities test (indicators 5 – 14) until 30 June 2019

incl. SCV file tests (indicators 1 – 4)

incl. cross-border cooperation test (indicators 15 – 19)

incl. funding capabilities test (indicators 20 – 23)

17th March 2017 BVR | EFDI EU Committee Meeting 8 |

1. Specialties of an Institutional Protection Scheme (IPS)

2. Schedule for BVR-ISG Stress Tests

3. First step: Test of the SCV file

17th March 2017 9 | BVR | EFDI EU Committee Meeting

17th March 2017 BVR | EFDI EU Committee Meeting 10 |

BVR

Any questions?

BVR

Thank you !