ECB/2019/31 · GlobalLawDB

Contents

Article 1Remuneration of holdings of excess reserves#

1.Holdings of reserves of institutions subject to Article 1 of Regulation (EU) 2021/378 of the European Central Bank (ECB/2021/1)^note held on the institutions’ reserve accounts as defined in Article 2, point (7), of that Regulation, which exceed the reserves required pursuant to Council Regulation (EC) No 2531/98^note and Regulation (EU) 2021/378 (ECB/2021/1) (hereinafter ‘excess reserves’) shall be remunerated as follows:

(a)for institutions that are eligible counterparties in Eurosystem monetary policy operations in accordance with Article 55 of Guideline of the European Central Bank (EU) 2015/510 (ECB/2014/60)^note:

(i)at the deposit facility rate, if they fulfil the access conditions to the deposit facility laid down in Article 22 of Guideline (EU) 2015/510 (ECB/2014/60); and

(ii)at zero percent or the deposit facility rate, whichever is lower, if they do not fulfil the access conditions to the deposit facility laid down in Article 22 of Guideline (EU) 2015/510 (ECB/2014/60);

(b)for institutions that are eligible counterparties in Eurosystem monetary policy operations in accordance with Article 55 of Guideline (EU) 2015/510 (ECB/2014/60) whose access to the Eurosystem’s deposit facility is limited, suspended or excluded due to the application of discretionary measures in accordance with Article 158 of Guideline (EU) 2015/510 (ECB/2014/60):

(i)at the deposit facility rate, for the combined amount held in the deposit facility and as excess reserves not exceeding the limitation as set out in the discretionary measures; and

(ii)at zero percent or the deposit facility rate, whichever is lower, for the amount exceeding the limitation, and in case of suspension or exclusion;

(c)for institutions that are not eligible counterparties in Eurosystem monetary policy operations in accordance with Article 55 of Guideline (EU) 2015/510 (ECB/2014/60), at zero percent or the deposit facility rate, whichever is lower.

Funds excluded from minimum reserves pursuant to Article 3(1), point (d), of Regulation (EU) 2021/378 (ECB/2021/1) shall be remunerated by the relevant NCB in accordance with their terms. If funds that should have been excluded pursuant to Article 3(1), point (d), of Regulation (EU) 2021/378 (ECB/2021/1) were inadvertently included in holdings of minimum reserves and are subsequently excluded from those minimum reserves pursuant to that provision, they shall not be considered to be excess reserves for the period in which they were included and shall be remunerated by the relevant NCB in accordance with Article 9(3) of that Regulation. Funds not held on the institutions’ reserve accounts or on the deposit facility shall be remunerated by the relevant NCB in accordance with the rules applicable to non-monetary policy deposits as set out in Article 2(1), point (c), or Article 2(3), point (b), of Decision (EU) 2024/1209 of the European Central Bank (ECB/2024/11)^note, as applicable.

2.A part of an institution’s holdings of excess reserves on the institution’s reserve accounts as defined in Article 2 of Regulation (EU) 2021/378 (ECB/2021/1) up to a multiple of the institution’s required reserves (hereinafter the ‘allowance’) shall be exempt from the remuneration rule set out in paragraph 1. The multiplier ‘m’ used to calculate the allowance and the interest rate applicable to the exempt holdings of excess reserves shall be specified by the Governing Council and subsequently published on the ECB’s website. Any adjustment to the multiplier ‘m’ and/or to the interest rate applicable to the exempt holdings of excess reserves shall apply from the maintenance period following the announcement of the Governing Council’s decision, unless specified otherwise. The exempt holdings of excess reserves shall be determined on the basis of the average end-of-calendar-day balances over a maintenance period in the institution’s reserve accounts, as defined in Article 2 of Regulation (EU) 2021/378 (ECB/2021/1). Holdings with the Eurosystem’s deposit facility shall not be considered excess reserves.

3.The interest due or earned on exempt and non-exempt holdings of excess reserves shall be deducted by debiting the relevant institution’s reserve accounts, or as the case may be, paid, on the second NCB business day following the end of the maintenance period over which the interest was calculated.

4.In the case of institutions which hold required reserves through an intermediary pursuant to Article 10 or 11 of Regulation (EU) 2021/378 (ECB/2021/1), the allowance shall be calculated as set out in this paragraph. The multiplier ‘m’ used to calculate the allowance shall be applied on the aggregate required reserves to be maintained by the relevant intermediary institution on behalf of itself and all institutions for which it maintains required reserves pursuant to Article 10 or 11 of Regulation (EU) 2021/378 (ECB/2021/1). The interest rate applicable to the exempt holdings of excess reserves shall apply only to excess reserves held on the reserve accounts as defined in Article 2 of Regulation (EU) 2021/378 (ECB/2021/1) of the relevant intermediary.

5.In the event of a prolonged TARGET disruption over several business days, as referred to in Article 187a of Guideline (EU) 2015/510 (ECB/2014/60), paragraphs 1 to 4 shall apply.

Article 2Remuneration of certain deposits held with the ECB#

1.The ECB shall apply the remuneration rates set out in Article 2(4) of Decision (EU) 2024/1209 (ECB/2024/11) to certain deposits held with the ECB as follows:

(a)for accounts maintained in accordance with Decision ECB/2003/14 of the European Central Bank^note, Decision ECB/2010/4 of the European Central Bank^note, Decision ECB/2010/17 of the European Central Bank^note, Decision ECB/2010/31 of the European Central Bank^note, and Council Regulation (EU) 2020/672^note, the remuneration rate as set out in Article 2(4), point (a)(i), of Decision (EU) 2024/1209 (ECB/2024/11);

(b)for other deposit accounts for the European Stability Mechanism and for the European Financial Stability Facility not covered under point (a), the remuneration rate as set out in Article 2(4), point (b), of Decision (EU) 2024/1209 (ECB/2024/11).

However, during any period when deposits referred to under point (a) need to be held in the relevant accounts in advance of the date on which a payment must be made in accordance with the legal or contractual rules applicable to the relevant facility, the ECB shall apply the remuneration rate as set out in Article 2(4), point (a)(ii), of Decision (EU) 2024/1209 (ECB/2024/11).

2.The ECB shall apply the remuneration rate as set out in Article 2(4), point (c)(i), of Decision (EU) 2024/1209 (ECB/2024/11) to the dedicated account maintained with the ECB in accordance with Article 13(2) of Commission Implementing Decision of 14 April 2021 establishing the necessary arrangements for the administration of the borrowing operations under Council Decision (EU, Euratom) 2020/2053 and for the lending operations related to loans granted in accordance with Article 15 of Regulation (EU) 2021/241 of the European Parliament and of the Council^note and used for the purposes of prudential cash holdings in relation to:

(a)the NextGenerationEU programme;

(b)the Instrument for providing support to Ukraine for 2023 (macro-financial assistance +)^note;

(c)any other European Union financing programme as agreed by the ECB and the Commission.

However, for an aggregated amount of deposits held in that dedicated account not exceeding EUR 20 billion, the ECB shall apply the remuneration rate as set out in Article 2(4), point (c)(ii), of Decision (EU) 2024/1209 (ECB/2024/11).

3.The ECB shall apply the remuneration rate as set out in Article 2(4), point (d), of Decision (EU) 2024/1209 (ECB/2024/11) to the dedicated account maintained with the ECB for the purposes of receiving, holding and making transfers of amounts that are allocated to the Ukraine Loan Cooperation Mechanism – established by Regulation (EU) 2024/2773 of the European Parliament and of the Council^note – pursuant to Article 4(1) of that Regulation, for the purpose of Article 5(1), point (a) thereof, and subject to the provisions of Article 8(4) thereof.

Article 3Repeal#

1.Decision ECB/2014/23 is hereby repealed.

2.References to the repealed Decision shall be construed as references to this Decision and shall be read in accordance with the correlation table set out in Annex II.

Article 4Entry into force#

This Decision shall enter into force on the day following that of its publication in the Official Journal of the European Union. It shall apply from the seventh reserve maintenance period of 2019 starting on 30 October 2019.

Annex I

Repealed decision and the amendment thereto

Decision ECB/2014/23	OJ L 168, 7.6.2014, p. 115.
Decision (EU) 2015/509 of the European Central Bank (ECB/2015/9)	OJ L 91, 2.4.2015, p. 1.

Annex II

Corerelation table

Decision ECB/2014/23	This Decision
Article 1	—
Article 2	Article 1
Article 3	—
Article 4	—
Article 5	Article 2
—	Article 3
Article 6	Article 4
—	Annex I
—	Annex II