EN ECB -PUBLIC  
 
OPINION OF THE EUROPEAN CENTRAL BANK  
of 4 November  2020 
on the aboli tion of the special levy on selected financial institutions  
(CON/20 20/28) 
 
Introduction and legal basis  
On 30 September 2020 the European Central Bank (ECB) received a request from the Mi nistry of 
Finance of the Slovak Republic  for an opinion on a draft law abolishing  a special levy on selected 
financial institutions and on certain measures in connection with th is aboli tion (hereinafter the ‘draft law’ )1.  
The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the 
Functioning of the European Union and the sixth indent of Article  2(1) of Council Decision 98/415/EC2, as 
the draft law relates to  rules applicable to financial institutions insofar as t hey materially influence the 
stability of financial institutions and markets . In accordance with the first sentence of Article 17.5 of the 
Rules of Procedure of the European Central Bank, the Governing Council has adopted this opinion.  
 
1.  Purpose of the draft law 
1.1 Law No 384/2011 Coll. on a special levy on selected financial institutions and on amendments of 
certain laws (hereinafter the ‘ Law No 384/2011 ’)3 imposes  an obligation on banks and branches of 
foreign banks operating in Slovakia (hereinafter collectively referred to as  the ‘bank s’) to pay a 
special levy . The proceeds of this special levy  are State financial assets with the designated 
purpose of cover ing costs related to the resolution of financial crises in the banking sector and 
protect ing the financial stability of the Slovak banking sector , including the replenishment of the 
Deposit Protection Fund necessary for expenses due to the payment of compensation for 
unavailable deposits. The draft law abolishes the special levy on selected financial institutions as of 
1 January 2021 and repeals Law No 384/2011.   
1.2 The draft law stipulates that the balances  of the collected levies will remain S tate financial asset s in 
accordance with Law No 523/2004 on general government budgetary rules and amending certai n 
laws4. The explanatory memorandum to the draft law states that the intention is to use these 
assets in accordance with the Memorandum of Understanding concluded between the Ministry of 
                                                 
1  Návrh zákona o zrušení osobitného odvodu vybraných fi nančných inštitúcií a o niektorých opatreniach súvisiacich s 
jeho zrušením . 
2  Council Decision 98/415/EC of 29 June 1998 on the consultation of the European Central Bank by national 
authorities regarding draft legislative provisions ( OJ L 189, 3.7.1998, p. 42). 
3  Zákon č. 384/ 2011 Z.z. o osobitnom odvode vybraných finančných inštitúcií a o doplnení niektorých zákonov.  
4  Zákon č.523/2004 Z.z. o rozpočtových pravidlách verejnej správy a o zmene a doplnení niektorých zákonov.  
ECB -PUBLIC  
2 Finance of the Slovak Republic and the Slovak Banking Association in June 2020  to fund the 
activities of the Slovak Development Fund, which will focus on supporting and financing 
development programs of the Slovak Government5. A smaller p art of the funds6 will also  be used to 
strengthen the Slovak Deposit Protection Fund and the Slovak Crisis Resolution Fund,  and to 
reimburse eligible expenses of the Crisis Resolution Council pursuant to Law No 371/2014 on 
resolution in the financial market and on amendments to certain laws7.  
 
2. Abolit ion of the levy and the use of procee ds 
The aboli tion of the levy may contribute to an increase of the capital generation capacity of credit 
institutions and support lending to the real economy.8 The ECB welcomes the intended use of part of the 
collected funds for strengthening the Slovak Deposit Protection Fund and the Slovak Crisis Resolution 
Fund, which will contribute to improving the resilience of , and confidence in,  the financial sector. 
However , following up on its observations in its past opinions9, the ECB is of the view  that the use of a 
large portion of levies already collected for purposes unrelated to financial stability would weaken the 
overall robustness of the financial sector if no concomitant safeguards to enhance its stability  are put in 
place. An example of such a safeguard would  be a mechanism designed to allow  all the funds that have 
been  already collected from the financial sector  to be available in the event  of a crisis . 
 
This opinion will b e published on EUR -Lex. 
 
 
Done at Frankfurt am Main, 4 November  2020 .  
 
[signed]  
 
The Pres ident of the ECB  
Christine  LAGARDE  
                                                 
5  Although the Memorandum of U nderstanding expresses the intention regarding supporting and financing 
development programs of the Slovak Government, the exact modalities of the distribution of funds is not yet 
specified by law. 
6  See the Memorandum of Understanding concluded between t he Ministry of Finance of the Slovak Republic and the 
Slovak Banking Association in June 2020.  
7  Zákon č.371/2014 Z.z. o riešení krízových situácií na finančnom trhu a o zmene a doplnení niektorých zákonov.  
8  See paragraph 2.3 of Opinion CON/2019/40. All ECB opinions are published on EUR -Lex. 
9  See, for example,  paragraph 3.2.1 of Opinion CON/2010/62, paragraph 2.1 of Opinion CON/2011/29, 
paragraph 3.2.1 of Opinion CON/2011/66, paragraph 2.1 of Opinion CON/2012/53, paragraph s 3.1.1 and 3.1.2 of 
Opinion CON /2015/43 and paragraph 2.1 of Opinion CON/2019/40.