Mr. Aidan Carrigan:

The answer, as Mr Sheridan has stated, is that there will be further Commission legislation which will set out the exact parameters for the calculation of the rates. I might as well read into the record what the Commission outlined. It said the contributions will be calculated in a way that will reflect different types of bank and their business models. First, the contributions will be calculated in line with the draft bank recovery and resolution directive on the basis of criteria taking into account the amount of liabilities, minus own funds, and covered deposits of each bank and adjust it then to their risk profile. This means that banks which were financed almost exclusively by deposits would in practice have very low contributions. Second, contributions would be risk based, reflecting different risk inherent in different types of banking activity. That is the principle that is being reflected in the directive which sets out the legislative principles. There is another stage of level two legislation, delegated legislation, whereby the Commission will set out the exact criteria to be applied and it is only then that it will be clear what the range will be. The overriding principle is that the total of the fund will only equal 1% of the covered deposits of all banks in member states.