Table
|
DPA Balances
|
|
|
|
|
Year End
|
Banks
|
Credit Union
|
Total
|
|
2012
|
379,390,200.00
|
23,633,580.57
|
403,023,780.57
|
|
2011
|
434,740,900.00
|
0
|
434,740,900.00
|
|
2010
|
537,900,500.00
|
0
|
537,900,500.00
|
|
2009
|
608,262,200.00
|
0
|
608,262,200.00
|
|
2008
|
669,408,300.00
|
0
|
669,408,300.00
|
|
2007
|
526,093,100.00
|
0
|
526,093,100.00
|
The operation of the Deposit Protection Account is governed under European Communities (Deposit Guarantee Scheme) Regulations 1995 (SI No. 168 of 1995).
The table above shows the balance held at year-end in the Deposit Protection Account (DPA) at the Central Bank of Ireland. Each deposit-holding institution is required to maintain a balance on their DPA account of 0.2% of their total deposits (with a minimum amount of €50,000 in the case of all institutions except credit unions). This percentage is calculated annually in December. Interest is paid by the Central Bank on the DPA balances (1). The decline in the DPA balance reflects the drop in deposits in Irish credit institutions.
The IBRC liquidation event is the first occasion on which payment will be made from this account.
IBRC held a balance of €1.3 million in their DPA account at the date of liquidation. This amount will be used in the first instance to fund the DGS pay-out, before the DPA accounts of other institutions are required to provide funds for this event. The cost of the DGS pay-out will be charged against the deposit of each credit institution in proportion to their share of the total balance on the DPA.
The final cost of pay-out will not be known until the Special Liquidators have completed their investigations in the next few weeks.
After the pay-out in respect of the IBRC liquidation event, the Central Bank of Ireland will become an unsecured creditor of IBRC (in liquidation) in respect of the amount paid out under the scheme. If the Central Bank does not secure payment from IBRC (in liquidation) in respect of this unsecured debt, all other contributing institutions will be required to replenish their deposits in the DPA by end 2013, to meet their obligation to hold a DPA balance of 0.2% of total deposits.
1. Section 4 of the Financial Services (Deposit Guarantee Scheme) Act 2009 for credit unions provides that from 30 November 2012, each credit union will be required to maintain in the Deposit Protection Account at the Central Bank of Ireland, an amount equal to 0.2% of the deposits and shares held on behalf of members.
