COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT pursuant to Article 294(6) of the Treaty on the Functioning of the European Union concerning the position of the Council on the adoption of a directive of the European Parliament and of the Council amending Directive 2014/49/EU as regards the scope of deposit protection, the use of deposit guarantee schemes funds, cross-border cooperation, and transparency
Date: 2026-03-06
Institutions: Directorate-General for Financial Stability, Financial Services and Capital Markets Union, European Commission
Subjects: EU banking union, bank deposit, credit guarantee, credit institution, cross-border cooperation, financial control, financial legislation, financial stability, financial transparency, management audit

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   EUROPEAN COMMISSION  Brussels, 6.3.2026  COM(2026) 124 final 2023/0115 (COD)  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT  pursuant to Article 294(6) of the Treaty on the Functioning of the European Union  concerning the position of the Council on the adoption of a directive of the European Parliament and of the Council amending Directive 2014/49/EU as regards the scope of deposit protection, the use of deposit guarantee schemes funds, cross-border cooperation, and transparency (Text with EEA relevance)  
 
2023/0115 (COD) 

COMMUNICATION FROM THE COMMISSION 
TO THE EUROPEAN PARLIAMENT 

pursuant to Article 294(6) of the Treaty on the Functioning of the European Union 

concerning the 

position of the Council on the adoption of a directive of the European Parliament and of 
the Council amending Directive 2014/49/EU as regards the scope of deposit protection, 
the use of deposit guarantee schemes funds, cross-border cooperation, and transparency 

(Text with EEA relevance) 

1. 

BACKGROUND 

Date of transmission of the proposal to the European Parliament and 
to the Council 
(document COM(2023) 228 final – 2023/0115 COD): 

19 April 2023. 

Date  of  the  opinion  of  the  European  Economic  and  Social 
Committee: 

13 July 2023. 

Date of the position of the European Parliament, first reading: 

24 April 2024. 

Date of transmission of the amended proposal: 

N/A. 

Date of adoption of the position of the Council: 

5 March 2026. 

2. 

OBJECTIVE OF THE PROPOSAL FROM THE COMMISSION 

The Commission proposed a package of four amending acts to reform the Crisis Management 
and  Deposit  Insurance  (CMDI)  framework.  The  proposed  amendments  to  Directive 
2014/59/EU  as  regards  certain  aspects  of  the  minimum  requirement  for  own  funds  and 
eligible  liabilities  (COM/2023/229  final)  were  adopted  separately  by  the  co-legislators  as 
Directive  (EU)  2024/1174.  The  remaining  three  acts  proposed  amendments  to,  respectively, 
Directive 2014/59/EU, Regulation (EU) 806/2014, and Directive 2014/49/EU.  

The  overarching  objectives  of  the  CMDI  proposal  have  been  to  better  protect  financial 
stability and taxpayers’ money, shield the real economy from the impact of bank failures and 
to  further  enhance  depositor  protection.  The  proposal  aims  to  achieve  those  objectives  by 
improving  the  crisis  management  tools  used  to  manage  the  failure  of  smaller  and  medium-
sized  banks.  The  main  tool  for  achieving  that  goal  is  enabling  resolution  authorities  to  use 
funds from deposit guarantee schemes to finance the implementation of a transfer strategy in 
cases in which the internal loss-absorbing capacity of such a bank is not sufficient to access 
the resolution fund. 

3. 

COMMENTS ON THE POSITION OF THE COUNCIL 

The position of the Council regarding the proposed amendments to Directive 2014/49/EU, as 

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adopted at first reading, fully reflects the political agreement reached between the European 
Parliament and the Council on 25 June 2025. The Commission supports this agreement. The 
main points of this agreement regarding Directive 2014/49/EU are the following: 

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The agreed amendments further frame the use of deposit guarantee schemes (DGS) 
funds outside of resolution. The use of DGS funds for preventive measures remains 
optional  for  Member  States  but  their  use,  becomes  subject  to  additional  conditions 
and safeguards, in particular the least cost test (LCT) which is the same as for use of 
DGS funds in resolution, i.e. capping the intervention at the gross amount of covered 
deposits.  

Similarly,  the  use  of  DGS  funds  for  alternative  measures  in  insolvency  becomes 
subject to the same LCT and further rules governing what types of transfers from the 
failing bank can be financed by DGS as part of those measures. 

Institutional protection schemes (IPS) recognised as DGS are required to maintain an 
ex-ante  target  level  at  0.8%  of  covered  deposits.  They  are  allowed  to  temporarily 
transfer  funds  for  the  purpose  of  supporting  affiliated  institutions’  liquidity  and 
solvency up to a certain limit and subject to safeguards. Those funds should be repaid 
within 7 working days in case of payout or a contribution to the resolution of a credit 
institution affiliated to such an IPS recognised as DGS. 

4. 

CONCLUSION 

The  Commission  supports  the  results  of  the  interinstitutional  negotiations  and  can  therefore 
accept the Council’s position at first reading. 

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