Date: 2022-10-27Category: Not ApplicableState: Union GovernmentCountry: Europe
Decision (EU) 2022/2071 of the European Central Bank of 20 October 2022 on transitional provisions for the application of minimum reserves by the European Central Bank following the introduction of the euro in Croatia (ECB/2022/36)
Executive Summary:
This decision by the European Central Bank (ECB) establishes transitional provisions for applying minimum reserves following Croatia's adoption of the euro on January 1, 2023. It outlines specific rules for institutions located in Croatia and other Eurozone member states to ensure a smooth integration into the Eurosystem's minimum reserve framework. Key deadlines include a transitional maintenance period from January 1, 2023, to February 7, 2023, for Croatian institutions, and a confirmation deadline of December 20, 2022, for minimum reserve calculations.
Key Points / Main Content:
Transitional Provisions for Croatian Institutions:
* A transitional maintenance period for Croatian institutions runs from January 1, 2023, to February 7, 2023.
* The reserve base for this period will be defined in relation to the institution’s balance sheet at October 31, 2022. Some institutions will calculate based on September 30, 2022 balance sheets.
* Minimum reserves for Croatian institutions must be calculated and confirmed by both the institution and Hrvatska narodna banka by December 20, 2022.
* Croatian institutions can deduct liabilities owed to other institutions within Croatia from their reserve bases.
Transitional Provisions for Institutions in Other Eurozone Member States:
* The existing maintenance period for institutions in other Eurozone member states remains unaffected.
* These institutions may deduct liabilities owed to Croatian institutions from their reserve base for the maintenance periods from December 21, 2022, to February 7, 2023, and from February 8, 2023, to March 21, 2023.
* Institutions choosing to deduct liabilities to Croatian institutions must calculate minimum reserves based on balance sheets from October 31, 2022, and December 31, 2022, respectively, and report statistical information showing Croatian institutions as part of the ECB's minimum reserve system.
* Specific rules apply to institutions benefiting from derogations under Article 91 or 2 or Article 95, point a, of Regulation EU 2021/379.
Final Provisions:
* The decision took effect upon notification and applies from November 1, 2022.
* Regulations EU 2021/378 and EU 2021/379 apply in the absence of specific provisions in this decision.
Impact Analysis:
Hrvatska narodna banka:
* Impact: Responsible for requesting and collecting reserve base information from Croatian institutions, verifying minimum reserve calculations, and confirming the amounts with the institutions.
* Action Required: Request reserve base reports, verify calculations, and confirm minimum reserve amounts with Croatian institutions by December 20, 2022.
Institutions Located in Croatia:
* Impact: Subject to minimum reserve requirements starting January 1, 2023, and must comply with transitional provisions.
* Action Required: Report reserve base to Hrvatska narodna banka, calculate minimum reserves, and confirm the calculated amount with Hrvatska narodna banka by December 20, 2022.
Institutions Located in Other Eurozone Member States:
* Impact: May choose to deduct liabilities owed to Croatian institutions from their reserve base, requiring adjusted calculations and statistical reporting.
* Action Required: Decide whether to deduct liabilities, adjust reserve base calculations and statistical reporting accordingly for the specified maintenance periods.
Key Entities Referenced
European Central Bank: The central bank of the Eurozone and the European Union, responsible for monetary policy.
Croatia: A Member State of the European Union that adopted the euro on 1 January 2023, making its institutions subject to the ECB's minimum reserve requirements.
Eurosystem: The monetary authority of the Eurozone, comprising the European Central Bank and the national central banks of the Member States that have adopted the euro.
Council Regulation EC No 253198: A regulation concerning the application of minimum reserves by the European Central Bank.
Council Regulation EC No 253298: A regulation concerning the powers of the European Central Bank to impose sanctions.
Council Regulation EC No 253398: A regulation concerning the collection of statistical information by the European Central Bank.
Regulation EU 2021/378: A regulation of the European Central Bank on the application of minimum reserve requirements (ECB/2021/1).
Regulation EU 2021/379: A regulation of the European Central Bank on the balance sheet items of credit institutions and of the monetary financial institutions sector (ECB/2021/2).
27.10.2022 EN Official Journal of the European Union L 277/215
DECISION (EU) 2022/2071 OF THE EUROPEAN CENTRAL BANK
of 20 October 2022
on transitional provisions for the application of minimum reserves by the European Central Bank
following the introduction of the euro in Croatia (ECB/2022/36)
THE EXECUTIVE BOARD OF THE EUROPEAN CENTRAL BANK,
Having regard to the Statute of the European System of Central Banks and of the European Central Bank, and in particular
Article 19.1 and the first indent of Article 46.2 thereof,
Having regard to Council Regulation (EC) No 2531/98 of 23 November 1998 concerning the application of minimum
reserves by the European Central Bank(1),
Having regard to Council Regulation (EC) No 2532/98 of 23 November 1998 concerning the powers of the European
Central Bank to impose sanctions(2),
Having regard to Council Regulation (EC) No 2533/98 of 23 November 1998 concerning the collection of statistical
information by the European Central Bank(3), and in particular Articles 5(1) and 6(4) thereof,
Having regard to Regulation (EU) 2021/378 of the European Central Bank of 22 January 2021 on the application of
minimum reserve requirements (ECB/2021/1)(4),
Having regard to Regulation (EU) 2021/379 of the European Central Bank of 22 January 2021on the balance sheet items
of credit institutions and of the monetary financial institutions sector (ECB/2021/2)(5),
Whereas:
(1) The adoption of the euro by Croatia on 1 January 2023means that institutions located in Croatia will be subject to
minimum reserve requirements from that date in accordance with Regulation (EU) 2021/378 (ECB/2021/1).
(2) The integration of these entities into the minimum reserve system of the Eurosystem requires the adoption of
transitional provisions in order to ensure their smooth integration without creating a disproportionate burden for
institutions in Member States whose currency is the euro, including Croatia.
(3) Article 5 of the Statute of the European System of Central Banks and of the European Central Bank implies that the
ECB, assisted by the national central banks, collects the necessary statistical information from the competent
national authorities or directly from economic agents also to ensure timely preparation in the field of statistics in
view of the adoption of the euro by a Member State,
HAS ADOPTED THIS DECISION:
Article 1
Definitions
For the purposes of this Decision, the definitions in Article 2 of Regulation (EU) 2021/378 (ECB/2021/1) apply.
(1) OJ L 318, 27.11.1998, p. 1.
(2) OJ L 318, 27.11.1998, p. 4.
(3) OJ L 318, 27.11.1998, p. 8.
(4) OJ L 73, 3.3.2021, p. 1.
(5) OJ L 73, 3.3.2021, p. 16.L 277/216 EN Official Journal of the European Union 27.10.2022
Article 2
Transitional provisions for institutions located in Croatia
1. In derogation from Article 8 of Regulation (EU) 2021/378 (ECB/2021/1), a transitional maintenance period shall run
from 1 January 2023to 7 February 2023for institutions located in Croatia.
2. The reserve base of each institution located in Croatia for the transitional maintenance period shall be defined in
relation to its balance sheet at 31 October 2022. Hrvatska narodna banka shall request institutions located in Croatia to
report to it their reserve base in accordance with Regulation (EU) 2021/379 (ECB/2021/2). Hrvatska narodna banka shall
request institutions located in Croatia that benefit from the derogation under Article 9(1) or (2) or Article 9(5), point (a), of
Regulation (EU) 2021/379 (ECB/2021/2) to calculate the reserve base for the transitional maintenance period on the basis
of their balance sheets at 30 September 2022.
3. In respect of the transitional maintenance period, either an institution located in Croatia or Hrvatska narodna banka
shall calculate such institution’s minimum reserves. The party that calculates the minimum reserves shall submit its
calculation to the other party allowing sufficient time for the latter to verify it and submit revisions. The calculated
minimum reserves, including any revisions thereof, shall be confirmed by the two parties at the latest on 20 December
2022. If the notified party does not confirm the amount of minimum reserves by 20 December 2022, it shall be deemed
to have acknowledged that the calculated amount applies for the transitional maintenance period.
4. Article 3(2) to (4) of this Decision shall apply mutatis mutandis to institutions located in Croatia so that these
institutions may, for their initial maintenance periods, deduct from their reserve bases any liabilities owed to institutions in
Croatia, although at the time the minimum reserves are calculated such institutions will not appear on the list of institutions
subject to minimum reserve requirements referred to in Article 3(3) of Regulation (EU) 2021/378 (ECB/2021/1).
Article 3
Transitional provisions for institutions located in other Member States whose currency is the euro
1. The maintenance period applicable to institutions located in other Member States whose currency is the euro
pursuant to Article 8 of Regulation (EU) 2021/378 (ECB/2021/1) shall remain unaffected by the transitional maintenance
period for institutions located in Croatia.
2. Institutions located in other Member States whose currency is the euro may decide to deduct from their reserve base
for the maintenance periods from 21 December 2022 to 7 February 2023 and from 8 Februaryto 21 March 2023 any
liabilities owed to institutions located in Croatia, although at the time the minimum reserves are calculated such
institutions will not appear on the list of institutions subject to minimum reserve requirements referred to in Article 3(3)
of Regulation (EU) 2021/378 (ECB/2021/1).
3. Institutions located in other Member States whose currency is the euro that decide to deduct liabilities owed to
institutions located in Croatia pursuant to paragraph 2 shall, for the maintenance periods from 21 December 2022 to
7 February 2023and from 8 Februaryto 21 March 2023, calculate their minimum reserves on the basis of their balance
sheets at 31 October 2022and 31 December 2022respectively and report statistical information in accordance with Part
1 of Annex III to Regulation (EU) 2021/379 (ECB/2021/2) showing institutions located in Croatia as already subject to the
ECB’s minimum reserve system.
This shall be without prejudice to the obligation for institutions to report statistical information for the periods concerned
in accordance with Table 1 in Part 2 of Annex I to Regulation (EU) 2021/379 (ECB/2021/2), still showing institutions
located in Croatia as being banks located in the ‘Rest of the world’.
The tables shall be reported in accordance with the time limits and procedures laid down in Regulation (EU) 2021/379
(ECB/2021/2).27.10.2022 EN Official Journal of the European Union L 277/217
4. For the maintenance periods starting in December 2022 and February 2023, institutions located in other Member
States whose currency is the euro that benefit from the derogation under Article 9(1) or (2) or Article 9(5), point (a), of
Regulation (EU) 2021/379 (ECB/2021/2) and decide to deduct liabilities owed to institutions located in Croatia pursuant
to paragraph 2 shall calculate their minimum reserves on the basis of their balance sheet at 30 September 2022and report
statistical information in accordance with Part 1 of Annex III to Regulation (EU) 2021/379 (ECB/2021/2) showing
institutions located in Croatia as already subject to the ECB’s minimum reserve system.
For the maintenance periods starting in March and May 2023, institutions located in other Member States whose currency
is the euro that benefit from the derogation under Article 9(1) or (2) or Article 9(5), point (a), of Regulation (EU) 2021/379
(ECB/2021/2) and decide to deduct liabilities owed to institutions located in Croatia pursuant to paragraph 2 shall calculate
their minimum reserves on the basis of their balance sheet at 31 December 2022, and report statistical information in
accordance with Part 1 of Annex III to Regulation (EU) 2021/379 (ECB/2021/2) showing institutions located in Croatia as
already subject to the ECB’s minimum reserve system.
This shall be without prejudice to the obligation for institutions to report statistical information for the periods concerned
in accordance with Table 1 in Part 2 of Annex I to Regulation (EU) 2021/379 (ECB/2021/2) still showing institutions
located in Croatia as being banks located in the ‘Rest of the world’.
The statistical information shall be reported in accordance with the time limits and procedures laid down in Regulation (EU)
2021/379 (ECB/2021/2).
Article 4
Final provisions
1. This Decision shall take effect on the day of its notification to the addressees.
2. It shall apply from 1 November 2022.
3. In the absence of specific provisions in this Decision, the provisions of Regulations (EU) 2021/378 (ECB/2021/1) and
(EU) 2021/379 (ECB/2021/2) shall apply.
Article 5
Addressees
This Decision is addressed to Hrvatska narodna banka, institutions located in Croatia and institutions located in other
Member States whose currency is the euro.
Done at Frankfurt am Main, 20 October 2022.
The President of the ECB
Christine LAGARDE