Deposit Guarantee Scheme (DGS) contributions couning towards the 8% requirement

One question is the basis to which the 8% is to be applied. On this point, Article 44(5) , point (a) , is clear that the 8% is calculated over total liabilities (this includes covered deposits), including own funds.                                                                      The second question is who should contribute to the 8% absorption before using the resultion fun d RF . As regards this question: Article 44(5) , point (a) , subjects the use of the resultion fun d RF for the purposes of Articles 44(3) and (4) to a prior contribution of 8% of total liabilities including own funds, to be made by shareholders, holders of other instruments of ownership, holders of relevant capital instruments and  of other eligible liabilities.The definition of eligible liabilities in Article 2 (1), point (71) , excludes explicitly liabilities that are excluded from the scope of the bail in; this is the case of covered deposits. Therefore, if the bail in of shareholders and eligible liabilities does not reach 8%, resort to the RF is, in principle, not possible and the DGS will step in for covered deposits.  Therefore, if the bail-in of shareholders and bail-inable liabilities does not reach 8%, resort to the resolution fund is, in principle, not possible and the Deposit Guarantee Scheme (DGS) is liable in accordance with Article 109. Disclaimer: The answers clarify provisions already contained in the applicable legislation. They do not extend in any way the rights and obligations deriving from such legislation nor do they introduce any additional requirements for the concerned operators and competent authorities. The answers are merely intended to assist natural or legal persons, including competent authorities and Union institutions and bodies in clarifying the application or implementation of the relevant legal provisions. Only the Court of Justice of the European Union is competent to authoritatively interpret Union law. The views expressed in the internal Commission Decision cannot prejudge the position that the European Commission might take before the Union and national courts.