Key Benefits:
Article 3 of Royal Decree-Law 18/1982 of 24 September on the Deposit Guarantee Funds in the Savings Banks and Credit Union, according to the wording given by the Royal seventh provision of the Royal Decree-Law 18/1982, Decree-Law 12/1995 of 28 December 1995 on urgent measures in the budgetary, tax and financial matters, fixes the contributions of credit institutions to their Deposit Guarantee Fund in 2 per 1,000 of the guaranteed deposits. The Minister for Economic Affairs and Finance is also empowered to reduce the amount of such funds when the assets of a Fund are sufficient to meet their objectives. This power is reiterated in Article 3 of Royal Decree 2606/1996 of 20 December 1996 on the Deposit Insurance Fund of Credit Entities, Article 4 of which defines the guaranteed deposits to be taken into account for the purposes of the the calculation of the contributions.
The Management Company of the Deposit Insurance Fund in Banking Establishments has requested that, given the patrimonial situation achieved by the aforementioned Fund, and in order to approximate the competitive conditions of banks to that of other credit institutions, use this option, reducing annual contributions to 1 per 1,000.
Consequently, on a proposal from the Banco de España, I have:
First.-The amount of the banks ' contributions to the Deposit Insurance Fund in banking establishments is fixed at 1 per 1,000 of the guaranteed deposits.
Second. This Order shall enter into force on the day following its publication in the Official Gazette of the State, and shall also apply to the contributions to be paid in 1997.
Madrid, 12 February 1997.
HANGING OUT AND FIGAREDO
Excmo. Mr. Governor of the Banco de España. Ilmo. Mr. Director-General of the Treasury and Financial Policy.