LegalizeCouncil Regulation (EC) No 2531/98 of 23 November 1998 concerning the application of minimum reserves by the European Central Bank
1998R2531 — EN — 26.01.2002 — 001.001
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Amended by:
COUNCIL REGULATION (EC) No 2531/98
of 23 November 1998
concerning the application of minimum reserves by the European Central Bank
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Protocol (No 3) on the Statute of the European System of Central Banks and of the European Central Bank (the ‘Statute’) and in particular to Article 19.2 thereof,
Having regard to the recommendation of the European Central Bank (the ‘ECB’) (1),
Having regard to the opinion of the European Parliament (2),
Having regard to the opinion of the Commission (3),
Acting in accordance with the procedure laid down in Article 106(6) of the Treaty establishing the European Community (hereinafter referred to as the ‘Treaty’) and in Article 42 of the Statute and under the conditions set out in Article 43.1 of the Statute and paragraph 8 of the Protocol (No 11) on certain provisions relating to the United Kingdom of Great Britain and Northern Ireland,
HAS ADOPTED THIS REGULATION:
Article 1
Definitions
For the purposes of this Regulation:
1.‘participating Member State’ shall mean a Member State which has adopted the single currency in accordance with the Treaty;
2.‘national central bank’ shall mean the central bank of a participating Member State;
3.‘institution’ shall mean any entity in a participating Member State which, under the terms of Article 19.1 of the Statute, the ECB may require to hold minimum reserves;
4.‘reserve ratio’ shall mean such percentage of the basis for minimum reserves as the ECB may specify in accordance with Article 19.1 of the Statute;
5.‘sanctions’ shall mean fines, periodic penalty payments, penalty interest and non-interest-bearing deposits.
Article 2
Right to exempt institutions
The ECB may, on a non-discriminatory basis, exempt institutions from minimum reserves in accordance with criteria established by the ECB.
Article 3
Basis for minimum reserves
The basis for minimum reserves which the ECB may require institutions to hold according to Article 19.1 of the Statute shall include, subject to the provisions specified in paragraphs 2 and 3 of this Article:
(i)liabilities of the institution resulting from the acceptance of funds, together with
(ii)liabilities resulting from off-balance-sheet items, but excluding
(iii)fully or partly liabilities which are owed to any other institution according to modalities which shall be specified by the ECB, and
(iv)liabilities which are owed to the ECB or to a national central bank.
For liabilities in the form of negotiable debt instruments, the ECB may specify, as an alternative to the provision in paragraph 1 (iii), that liabilities which are owed by one institution to another shall be fully or partly deducted from the basis for minimum reserves of the institution to which they are owed.
The ECB may, on a non-discriminatory basis, allow the deduction of specific types of assets from categories of liabilities forming part of the basis for minimum reserves.
Article 4
Reserve ratios
Reserve ratios, which the ECB may specify according to Article 19.1 of the Statute, shall not exceed 10 % of any relevant liabilities forming part of the basis for minimum reserves but may be 0 %.
Subject to paragraph 1, the ECB may, on a non-discriminatory basis, specify differing reserve ratios for specific categories of liabilities forming part of the basis for minimum reserves.
Article 5
Regulatory power
For the purpose of Articles 2, 3 and 4, the ECB shall adopt, where appropriate, regulations or decisions.
Article 6
Right to collect and verify information
The ECB shall have the right to collect from institutions the information necessary for the application of minimum reserves. Such information shall be confidential.
The ECB shall have the right to verify the accuracy and quality of the information which institutions provide to demonstrate compliance with the minimum reserve requirements. The ECB shall notify the institution of its decision to verify data or to effect their compulsory collection.
The right to verify data shall include the right to:
(a)require the submission of documents;
(b)examine the books and records of the institutions;
(c)take copies or extracts from such books and records; and
(d)obtain written or oral explanations.
When an institution obstructs the collection and/or verification of information, the participating Member State in which the relevant premises are located shall afford the necessary assistance, including ensuring access to the premises of the institution, so that the abovementioned rights can be exercised.
The ECB may delegate to the national central banks the execution of the rights to which paragraphs 1 to 3 refer. In accordance with the first indent of Article 34.1 of the Statute, the ECB shall be empowered to specify further in a regulation the conditions under which the right to verify may be exercised.
Article 7
Sanctions in cases of non-compliance
Where an institution fails to hold all or part of the minimum reserves imposed in accordance with this Regulation and ECB regulations or decisions associated herewith, the ECB may impose either of the following sanctions:
(a)a payment of up to 5 percentage points above the ESCB's marginal lending rate or twice the ESCB's marginal lending rate, in both cases applied to the amount of the minimum reserves which the relevant institution fails to provide;
(b)the requirement for the relevant institution to establish a non-interest-bearing deposit with the ECB or the national central banks up to 3 times the amount of the minimum reserves which the relevant institution fails to provide. The maturity of the deposit shall not exceed the period during which the institution fails to hold the minimum reserves.
Whenever a sanction is imposed in accordance with paragraph 1, the principles and procedures set out in Regulation (EC) No 2532/98 shall apply. However, Article 2(1) and (3) and Article 3(1), (2), (3) and (4) of that Regulation shall not be applicable, and the periods referred to in Article 3(6) ————— and (8) thereof shall be reduced to fifteen days.
Where an institution fails to comply with the obligations deriving from this Regulation or ECB regulations or decisions associated therewith, other than those set out in paragraph 1, sanctions in cases of such failure and the limits and conditions relating to the imposition of such sanctions shall be those set out in Regulation (EC) No 2532/98.
Article 8
Final provisions
This Regulation shall enter into force on the day of its publication in the Official Journal of the European Communities.
Article 5 shall apply from the date of entry into force of this Regulation. The remaining Articles shall apply from 1 January 1999.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
(1) OJ C 246, 6. 8. 1998, p. 6.
(2) OJ C 328, 26. 10. 1998.
(3) Opinion delivered on 8 October 1998 (not yet published in the Official Journal).
(4) See page 4 of this Official Journal.
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