Regulation (EU) 2021/378 of the European Central Bank of 22 January 2021 on the application of minimum reserve requirements (recast) (ECB/2021/1)

• Celex Number: 32021R0378
• ELI: http://data.europa.eu/eli/reg/2021/378/oj
• Published date: 03 March 2021
• Date: 03 March 2021
• Official Gazette Publication: Official Journal of the European Union, L 073, 3 March 2021

3.3.2021 EN Official Journal of the European Union L 73/1

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REGULATION (EU) 2021/378 OF THE EUROPEAN CENTRAL BANK

of 22 January 2021

on the application of minimum reserve requirements (recast) (ECB/2021/1)

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 to Article 19(1) 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),

Whereas:

(1) Regulation (EC) No 1745/2003 of the European Central Bank (ECB/2003/9) (3) has been substantially amended several times. Since further amendments are to be made, that Regulation should be recast in the interests of clarity.

(2) Under Article 6 of Regulation (EC) No 2531/98, the European Central Bank (ECB) has the right to collect from institutions the information necessary for the application of minimum reserve requirements, and to verify the accuracy and quality of the information which institutions provide to demonstrate compliance with those requirements. In order to reduce the overall reporting burden, it is appropriate that the statistical information regarding the monthly balance sheet collected pursuant to Regulation (EU) 2021/379 of the European Central Bank (ECB/2021/2) (4) be used for the regular calculation of the reserve base of credit institutions.

(3) Increased transparency and clarity on a number of issues relating to the application of minimum reserve requirements is necessary, in particular with regard to: (a) the conditions relating to the application of minimum reserve requirements to institutions; (b) the fact that national central banks (NCBs) of the Member States whose currency is the euro (euro area NCBs) may decide to suspend or exclude access of institutions to Eurosystem’s open market operations and standing facilities (Eurosystem monetary policy operations); (c) the conditions by which funds should be counted as reserves for the purpose of fulfilling minimum reserve requirements; (d) the requirements for applications for permission to hold minimum reserve indirectly through an intermediary institution; and (e) the conditions for the withdrawal of permission to hold minimum reserves indirectly through an intermediary institution.

(4) In order for the Eurosystem’s minimum reserve requirements system to be effective, it is also necessary to further specify minimum reserve requirements as regards the calculation, notification, acknowledgement and maintenance of minimum reserves, as well as reporting and verification.

(5) It is appropriate that the information reported by intermediaries on the reserve base be sufficiently detailed to allow for accurate reporting under Regulation (EU) 2021/379 (ECB/2021/2). In addition, where the parent institution is granted permission to report the reserve base on an aggregated basis pursuant to this Regulation, it is appropriate that it reports the reserve base data on an aggregated basis to the relevant NCB in accordance with Regulation (EU) 2021/379 (ECB/2021/2).

(6) In order to ensure an appropriate balance between ensuring the accuracy of data on minimum reserves and the smooth application of the regulatory framework, and in order to avoid having to re-issue valid and applicable permissions, any intermediaries that have been granted permission to report the reserve base on an aggregated basis under Regulation (EC) No 1745/2003 (ECB/2003/9) should be able to continue such reporting without having to apply for a new permission.

(7) In accordance with Article 19(1) of the Statute of the European System of Central Banks and of the European Central Bank, the ECB may require credit institutions established in Member States whose currency is the euro (euro area Member States) to hold minimum reserves on accounts with the ECB and euro area NCBs. Since credit institutions hold accounts with the NCB in their respective jurisdiction, it is appropriate that such reserves should be held solely on accounts with NCBs.

(8) Regulation (EC) No 2531/98 and Regulation (EC) No 2532/98 establish the ECB’s power to impose sanctions for infringement of statistical reporting requirements including for non-compliance with the minimum reserve requirements laid down in this Regulation.

(9) In order to ensure legal certainty, it is necessary that the provisions of this Regulation, which are aligned with the amendment to the definition of ‘credit institutions’ in Regulation (EU) No 575/2013 of the European Parliament and the Council (5) (pursuant to Regulation (EU) 2019/2033 of the European Parliament and of the Council (6)), apply at the same time as that amendment on 26 June 2021. However, for operational reasons, it is necessary to provide that the provisions on reserve holdings apply from 28 July 2021, the first day of the fifth maintenance period in 2021,

HAS ADOPTED THIS REGULATION:

Article 1

Subject matter and scope

This Regulation establishes the minimum reserve requirements for the following institutions:

(a) credit institutions which are either: (i) authorised in accordance with Article 8 of Directive 2013/36/EU of the European Parliament and of the Council (7); or (ii) exempt from such authorisation pursuant to Article 2(5) of Directive 2013/36/EU;

(b) branches of credit institutions, including branches established in Member States whose currency is the euro (euro area Member State) of credit institutions with neither their registered office nor their head office located in a euro area Member State; but excluding branches established outside of a euro area Member State of credit institutions which are established in a euro area Member State.

Article 2

Definitions

For the purposes of this Regulation, the following definitions apply:

(1) ‘minimum reserves’ means the amount of funds that an institution is required to hold as reserves in its reserve accounts with the relevant national central bank;

(2) ‘minimum reserve requirements’ means all the requirements that institutions are required to comply with pursuant to this Regulation in relation to minimum reserves as regards the calculation, notification, acknowledgement, and maintenance of minimum reserves, and reporting and verification;

(3) ‘euro area Member State’ means a Member State whose currency is the euro;

(4) ‘credit institution’ means ‘credit institution’ as defined in Article 4(1)(1) of Regulation (EU) No 575/2013;

(5) ‘branch’ means ‘branch’ as defined in Article 4(1)(17) of Regulation (EU) No 575/2013;

(6) ‘relevant NCB’ means the national central bank (NCB) of the euro area Member State in which the institution is resident;

(7) ‘reserve accounts’ means the accounts in which an institution holds its reserves with the relevant NCB;

(8) ‘reserve base’ means the sum of the eligible liabilities used for calculating the minimum reserves of an institution;

(9) ‘reserve ratio’ means the percentage applied to items of the reserve base for calculating an institution’s minimum reserves;

(10) ‘maintenance period’ means the period over which compliance with minimum reserve requirements is assessed;

(11) ‘end-of-day balance’ means the reserve holdings at the time when the finalisation of payment activities has taken place and entries relating to access to the standing facilities of the Eurosystem have been made;

(12) ‘NCB business day’ means any day on which a particular NCB is open for the purpose of conducting Eurosystem monetary policy operations;

(13) ‘TARGET2 business day’ means any day on which TARGET2 is open for the settlement of payment orders as defined in Guideline ECB/2012/27 of the European Central Bank (8);

(14) ‘resident’ means any natural or legal person residing in any of the euro area Member States within the meaning of Article 1(4) of Council Regulation (EC) No 2533/98 (9);

(15) ‘merger’ means an operation whereby one or more credit institutions (the acquired institutions), on being dissolved without going into liquidation, transfer all their assets and liabilities to another credit institution (the acquiring institution), which may be a newly established credit institution;

(16) ‘division’ means an operation whereby one credit institution (the institution being divided), on being dissolved without going into liquidation, transfers all its assets and liabilities to more than one institution (the recipient institutions), which may be newly established credit institutions.

Article 3

Reserve holdings

1. Institutions referred to in Article 1 shall hold minimum reserves, calculated in accordance with Article 6, as follows:

(a) the average end-of-day balance on one or more reserve accounts over the maintenance period shall be equal to or shall exceed the amount calculated for that period in accordance with Article 6;

(b) minimum reserves shall be held on reserve accounts, denominated in euro, with the relevant NCBs in each euro area Member State in which they are established;

(c) settlement accounts with the NCBs may be used as reserve accounts for the purposes of this Regulation;

(d) funds subject to any legal, contractual, regulatory or other restriction that

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