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Date: 25-Jul-2024 Category: Not Applicable State: Union Government Country: Europe

Decision (EU) 2024/2023 of the European Central Bank of 3 July 2024 amending Decision ECB/2004/2 adopting the Rules of Procedure of the European Central Bank (ECB/2024/18)

Issued by European Central Bank · Not Applicable

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Executive Summary & Key Takeaways

What it means

  • Decision (EU) 2024/2023 amends Decision ECB/2004/2, which adopts the Rules of Procedure of the European Central Bank (ECB). The amendments aim to enhance efficiency in the functioning of decision-making bodies, taking into account experience gained since the ECB was conferred supervisory tasks. The decision also reflects technological developments and introduces more flexibility in the renewal of the Vice-Chair of the Supervisory Board.

Key Changes

  • Meetings of the Governing Council may be held by videoconferencing unless at least three Governors object.
  • Attendance at Governing Council meetings is restricted to members, the President of the Council of the European Union, and a member of the European Commission.
  • Minutes of the Governing Council proceedings are to be approved at the subsequent meeting (or earlier by written procedure) by members with voting rights and signed by the President or the Secretary of the Governing Council.
  • The term of office of the Vice-Chair of the Supervisory Board is five years and may be extended, but cannot extend beyond their mandate as a member of the Executive Board.
  • Rules on qualified majority voting in the Supervisory Board, which have ceased to apply, are deleted.
  • Procedural rules regarding decisions on the authorization of credit institutions, mirroring requirements in Regulation (EU) No 1024/2013, are deleted.
  • Decisions of the Supervisory Board are deemed adopted when at least 55% of the Supervisory Board members representing at least 65% of the total population, cast a vote in favor. A blocking minority must include at least the minimum number of Supervisory Board members representing 35% of the total population, plus one member.
  • Supervisory Board meetings will normally be held on the premises of the ECB, and the proceedings will be provided to the Governing Council regularly for information.
  • ECB Regulations are adopted by the Governing Council and signed by the President.
  • ECB Guidelines are adopted by the Governing Council, notified, and signed by the President. Any ECB Guideline that is to be officially published shall be translated into the official languages of the Union.
  • ECB Instructions are adopted by the Executive Board, notified, and signed by the President or any two Executive Board members. Any ECB Instruction that is to be officially published shall be translated into the official languages of the Union.
  • ECB guidelines related to supervisory tasks pursuant to Article 4(3) and Article 6(5), point (a), of Regulation (EU) No 1024/2013 shall be adopted by the Governing Council, and thereafter notified and signed by the President.
  • ECB instructions related to supervisory tasks pursuant to Article 6(3), Article 6(5), point (a), and Articles 7(1), 7(4), 9(1) and 30(5) of Regulation (EU) No 1024/2013 shall be adopted by the Governing Council, and thereafter notified and signed by the President. They shall state the reasons on which they are based.

Impact Analysis

Supervisory Board

  • Action Item: Ensure that Supervisory Board members are aware of the changes to the voting rules and the process for Vice-Chair renewal.

European Central Bank (ECB)

  • Action Item: Review and update internal documentation and procedures to reflect the new rules. Communicate changes to relevant staff.

Governing Council

  • Action Item: Adapt to the new procedures for Governing Council meetings and minute approvals.

Credit Institutions

  • Action Item: Credit institutions should be aware of the simplified regulatory landscape.

Key Entities Referenced

European Central Bank (ECB): The central bank of the Eurozone, responsible for monetary policy and the supervision of credit institutions. Governing Council: The main decision-making body of the ECB. Supervisory Board: Responsible for the planning and execution of the ECB's supervisory tasks. Executive Board: Responsible for the day-to-day management of the ECB. Council of the European Union: A legislative body of the European Union. European Commission: The executive branch of the European Union. Decision ECB/2004/2: The original decision adopting the Rules of Procedure of the European Central Bank. Regulation (EU) No 1024/2013: Council Regulation conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions.
Official Source Record View Original Source →
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Official Journal EN of the European Union L series 2024/2023 25.7.2024 DECISION (EU) 2024/2023 OF THE EUROPEAN CENTRAL BANK of 3 July 2024 amending Decision ECB/2004/2 adopting the Rules of Procedure of the European Central Bank (ECB/2024/18) THE GOVERNING COUNCIL 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 12.3 thereof, Whereas: (1) In order to enhance efficiency in the functioning of the decision-making bodies, and taking into account the experience gained since the conferral of supervisory tasks on the ECB by Council Regulation (EU) No 1024/2013(1), the requirement for the President’s signature of the minutes of the proceedings of the Governing Council and the rule on the provision of the proceedings of Supervisory Board meetings to the Governing Council should be adjusted, editorial clarifications made and technological developments reflected in the ECB Rules of Procedure. (2) For the same reason, additional flexibility should be introduced to allow the renewal of the five-year term of office of the Vice-Chair of the Supervisory Board while maintaining the current limitation that the term of office of the Vice- Chair of the Supervisory Board should not extend beyond the end of their mandate as member of the Executive Board, also in the context of a renewal. (3) Two provisions in the ECB Rules of Procedure are redundant and should be deleted. First, rules on qualified majority voting in the Supervisory Board, which have ceased to apply, should be deleted. Second, procedural rules with regard to the adoption of decisions on the authorisation of credit institutions, mirroring requirements in Regulation (EU) No 1024/2013, should also be deleted. (4) Therefore, Decision ECB/2004/2(2)should be amended accordingly, HAS ADOPTED THIS DECISION: Article 1 Amendments Decision ECB/2004/2 is amended as follows: (1) Article 2.5 is replaced by the following: ‘Meetings may also be held by means of videoconferencing, unless at least three Governors object.’; (2) Article 3.1 is replaced by the following: ‘Except as provided herein, attendance at meetings of the Governing Council shall be restricted to its members, the President of the Council of the European Union and a member of the European Commission.’; (1) Council Regulation (EU) No 1024/2013 of 15 October 2013 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions (OJ L 287, 29.10.2013, p. 63). (2) Decision ECB/2004/2 of the European Central Bank of 19 February 2004 adopting the Rules of Procedure of the European Central Bank (OJ L 80, 18.3.2004, p. 33). ELI: http://data.europa.eu/eli/dec/2024/2023/oj 1/3EN OJ L, 25.7.2024 (3) Article 5.2 is replaced by the following: ‘The minutes of the proceedings of the Governing Council shall be approved at the subsequent meeting (or if necessary earlier by written procedure) by the members of the Governing Council who had a voting right at the meeting to which the minutes refer and shall be signed by the President or by the Secretary of the Governing Council in order to certify them.’; (4) Article 13b.5 is replaced by the following: ‘The term of office of the Vice-Chair of the Supervisory Board shall be five years and may be extended in accordance with the procedure for appointment as set out in paragraph 3. It shall, however, not extend beyond the end of his/her mandate as member of the Executive Board.’; (5) Article 13c is amended as follows: (a) point (i) is deleted; (b) point (ii) is replaced by the following: ‘(ii) Decisions shall be deemed adopted when at least 55 % of the Supervisory Board members representing at least 65 % of the total population, cast a vote in favour. A blocking minority must include at least the minimum number of Supervisory Board members representing 35 % of the total population, plus one member, failing which the qualified majority shall be deemed attained.’; (c) point (iii) is deleted; (6) Article 13f is replaced by the following: ‘Article 13f Supervisory Board meetings The Supervisory Board shall normally hold its meetings on the premises of the ECB. The proceedings of the Supervisory Board meetings shall be provided to the Governing Council, on a regular basis, for information.’; (7) Article 13i is deleted; (8) Article 17.1 is replaced by the following: ‘ECB Regulations shall be adopted by the Governing Council and signed by the President.’; (9) Article 17.2 is replaced by the following: ‘ECB Guidelines shall be adopted by the Governing Council, and thereafter notified, in one of the official languages of the Union, and signed by the President. They shall state the reasons on which they are based. Any ECB Guideline that is to be officially published shall be translated into the official languages of the Union.’; (10) Article 17.6 is replaced by the following: ‘ECB Instructions shall be adopted by the Executive Board, and thereafter notified, in one of the official languages of the Union, and signed by the President or any two Executive Board members. Any ECB Instruction that is to be officially published shall be translated into the official languages of the Union.’; (11) Article 17a.2 is replaced by the following: ‘ECB guidelines related to supervisory tasks pursuant to Article 4(3) and Article 6(5), point (a), of Regulation (EU) No 1024/2013 shall be adopted by the Governing Council, and thereafter notified and signed by the President.’; (12) Article 17a.3 is replaced by the following: ‘ECB instructions related to supervisory tasks pursuant to Article 6(3), Article 6(5), point (a), and Articles 7(1), 7(4), 9(1) and 30(5) of Regulation (EU) No 1024/2013 shall be adopted by the Governing Council, and thereafter notified and signed by the President. They shall state the reasons on which they are based.’. 2/3 ELI: http://data.europa.eu/eli/dec/2024/2023/ojEN OJ L, 25.7.2024 Article 2 Entry into force This Decision shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. Done at Frankfurt am Main, 3 July 2024. The President of the ECB Christine LAGARDE ELI: http://data.europa.eu/eli/dec/2024/2023/oj 3/3

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