Determination of annual contributions
The annual contribution represents the sum of all the amounts institutions are required to contribute to the Resolution Fund in the particular year. When determining the annual contribution, the CNB will take into consideration the Resolution Fund’s target level, which is to be reached by 31 December 2024.
The CNB is obliged by law, after consulting the Financial Market Guarantee System, to publish the total annual contribution on a yearly basis in CNB Official Information. The amount of the total annual contribution to the Resolution Fund determined in line with Article 4 of the Regulation for individual periods is given in the table:
|Year||Amount of the total contribution
The amount of the total annual contribution to the Resolution Fund is determined as
TAC – total annual contribution to the Resolution Fund
RFtarget – target level of the Resolution Fund in 2024
RFactual – current level of the Resolution Fund
t – calendar year for which TAC is set
mae – coefficient factoring in the business cycle
The CNB calculates the mae coefficient as the sum of the unadjusted mae and the contributions of the business cycle and the financial cycle. The mae (excluding the cyclical contribution) always equals 1. The contribution of the business cycle is based on the average value of the output gap in the last four known quarters and the next four quarters according to the CNB forecast published in the Inflation Report. The output gap is the average of output gap values calculated using the Cobb-Douglas production function and the Kalman filter. The contribution of the financial cycle is based on the average value of the Financial Cycle Indicator for the last four known quarters. The evolution of the Financial Cycle Indicator is published in the Financial Stability Report.
The mae values for the individual periods are given in the table: