Date: 11-Dec-2024Category: Not ApplicableState: Union GovernmentCountry: Europe
Decision (EU) 2024/2939 of the European Central Bank of 14 November 2024 amending Decision (EU) 2016/2248 on the allocation of monetary income of the national central banks of Member States whose currency is the euro (ECB/2016/36) (ECB/2024/33)
The European Central Bank (ECB) has amended Decision (EU) 2016/2248 (ECB/2016/36) regarding the allocation of monetary income of national central banks (NCBs) of Eurozone member states.
The amendment aims to refine the operational framework for implementing monetary policy by adjusting the remuneration of differences between a national central bank’s earmarkable assets and its liability base.
The changes also address the treatment of intra-Eurosystem claims and liabilities, particularly concerning TARGET balances and ECB debt certificates within the harmonized balance sheet (HBS).
Key Changes
Article 1(j) of Decision (EU) 2016/2248 is replaced to define the 'reference rate' as the interest rate applied to the deposit facility offered by the Eurosystem.
Annex I of Decision (EU) 2016/2248 is amended to replace paragraph 4 in section A, specifying that net intra-Eurosystem liabilities resulting from TARGET transactions are remunerated at the reference rate and are reported under liability item 10.2 of the HBS. Paragraph 6 in section A is deleted.
Annex II of Decision (EU) 2016/2248 is amended to replace paragraph 4 in section A, specifying that net intra-Eurosystem claims resulting from TARGET transactions are remunerated at the reference rate and are reported under asset item 9.3 of the HBS. Paragraph 5 in section A is replaced, clarifying that net intra-Eurosystem claims on euro banknotes in circulation are included under asset item 9.4 of the HBS. Paragraph 8 in section A is replaced, detailing the treatment of outstanding claims and securities arising from defaults of eligible counterparties or issuers in Eurosystem monetary policy operations, reclassified from asset item 5 to asset item 11.6 of the HBS.
Eurosystem balances should not be reported under HBS liability item 10.2 or asset item 9.3.
TARGET liabilities and claims are to be reported separately from other intra-Eurosystem liabilities and claims under HBS items 10.4 and 9.3 respectively.
These changes are effective from January 1, 2025.
Impact Analysis
National Central Banks (NCBs)
Action Item: Review and update internal accounting procedures and IT systems to align with the new reporting requirements and remuneration framework by January 1, 2025.
European Central Bank (ECB)
Action Item: Update internal guidelines and monitoring mechanisms to reflect the changes in the allocation of monetary income and balance sheet reporting. Communicate changes clearly to NCBs.
Eurosystem Counterparties
Action Item: Review and understand the implications of the amended decision on risk management and collateralization practices.
Financial Markets
Action Item: Monitor market reactions and adjust strategies as necessary in response to changes in the Eurosystem's operational framework.
Key Entities Referenced
European Central Bank (ECB): The central bank of the Eurozone, responsible for monetary policy and overseeing the Eurosystem.
National Central Banks (NCBs): The central banks of the member states whose currency is the euro, forming part of the Eurosystem.
Eurosystem: The monetary authority of the Eurozone, comprising the ECB and the NCBs of member states whose currency is the euro.
Decision (EU) 2016/2248 (ECB/2016/36): The original decision on the allocation of monetary income of the national central banks of Member States whose currency is the euro, which is being amended by this decision.
Guideline (EU) 2015/510 (ECB/2014/60): Guideline on the implementation of the Eurosystem monetary policy framework (General Documentation Guideline).
Harmonised Balance Sheet (HBS): The standardized balance sheet used by the Eurosystem for reporting financial data.
TARGET: The Trans-European Automated Real-time Gross settlement Express Transfer system, a real-time gross settlement system for euro payments.
Official Journal EN
of the European Union L series
2024/2939 11.12.2024
DECISION (EU) 2024/2939 OF THE EUROPEAN CENTRAL BANK
of 14 November 2024
amending Decision (EU) 2016/2248 on the allocation of monetary income of the national central
banks of Member States whose currency is the euro (ECB/2016/36) (ECB/2024/33)
THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,
Having regard to the Treaty on the Functioning of the European Union,
Having regard to the Statute of the European System of Central Banks and of the European Central Bank, and in particular
Article 32 thereof,
Whereas:
(1) On 13 March 2024, the Governing Council decided to introduce changes in the operational framework for
implementing monetary policy. The remuneration of the difference between the value of a national central bank’s
earmarkable assets and the value of its liability base should be altered to minimise the effect on monetary income
that arises from changes in the national central bank’s net financial assets positions. In addition, intra-Eurosystem
claims and liabilities should be remunerated by applying an objective criterion to define the cost of money. In this
context, the interest rate on the deposit facility is considered appropriate.
(2) In the harmonised balance sheet (HBS) no Eurosystem balances should be reported by either the national central
banks under the HBS liability item 10.2 ‘Liabilities related to the issuance of ECB debt certificates’ or by the ECB
under the HBS asset item 9.3 ‘Claims related to the issuance of ECB debt certificates’. The HBS liability item 10.2
should report TARGET liabilities separately from the other intra-Eurosystem liabilities, which should be reported
under the HBS liability item 10.4 ‘Other liabilities within the Eurosystem (net)’. Likewise, the HBS asset item 9.3
should report TARGET claims separately from other intra-Eurosystem claims. For the purposes of allocation of
monetary income, the composition of the liability base and the list of earmarkable assets should be amended to
reflect these aspects.
(3) Therefore, Decision (EU) 2016/2248 of the European Central Bank (ECB/2016/36)(1) should be amended
accordingly,
HAS ADOPTED THIS DECISION:
Article 1
Amendment
1. Article 1(j) of Decision (EU) 2016/2248 (ECB/2016/36) is replaced by the following:
‘(j) “reference rate” means the latest available interest rate applied to the deposit facility offered by the Eurosystem in
accordance with Articles 21 to 23 of Guideline (EU) 2015/510 of the European Central Bank (ECB/2014/60)(*);
_____________
(*) Guideline (EU) 2015/510 of the European Central Bank of 19 December 2014 on the implementation of the
Eurosystem monetary policy framework (General Documentation Guideline) (ECB/2014/60) (OJ L 91,
2.4.2015, p. 3).’
2. Annexes I and II are amended in accordance with the Annex to this Decision.
(1) Decision (EU) 2016/2248 of the European Central Bank of 3 November 2016 on the allocation of monetary income of the national
central banks of Member States whose currency is the euro (ECB/2016/36) (OJ L 347, 20.12.2016, p. 26).
ELI: http://data.europa.eu/eli/dec/2024/2939/oj 1/3EN
OJ L, 11.12.2024
Article 2
Entry into force
This Decision shall enter into force on 1 January 2025.
Done at Frankfurt am Main, 14 November 2024.
The President of the ECB
Christine LAGARDE
2/3 ELI: http://data.europa.eu/eli/dec/2024/2939/ojEN
OJ L, 11.12.2024
ANNEX
1. Annex I of Decision (EU) 2016/2248 (ECB/2016/36) is amended as follows:
(a) in section A, paragraph 4 is replaced by the following:
‘4. Net intra-Eurosystem liabilities resulting from TARGET transactions remunerated at the reference rate
(liability item 10.2 of the HBS).’;
(b) in section A, paragraph 6 is deleted.
2. Annex II of Decision (EU) 2016/2248 (ECB/2016/36) is amended as follows:
(a) in section A, paragraph 4 is replaced by the following:
‘4. Net intra-Eurosystem claims resulting from TARGET transactions remunerated at the reference rate (asset
item 9.3 of the HBS).’;
(b) in section A, paragraph 5 is replaced by the following:
‘5. Net intra-Eurosystem claims on euro banknotes in circulation including those resulting from the
application of Article 4 of this Decision (part of asset item 9.4 of the HBS).’;
(c) in section A, paragraph 8 is replaced by the following:
‘8. Outstanding claims and securities arising from the default of eligible counterparties or issuers in the context
of Eurosystem monetary policy operations, and/or financial assets or claims vis-à-vis third parties
appropriated and/or acquired in the context of the realisation of collateral submitted by defaulted
Eurosystem counterparties in the context of Eurosystem credit operations reclassified from asset item 5 of
the HBS (part of asset item 11.6 of the HBS).’.
ELI: http://data.europa.eu/eli/dec/2024/2939/oj 3/3