EN ECB -PUBL IC 
 
 
OPINION OF THE EUROPEAN CENTRAL BANK  
of 18 February 2013  
on the amended calculation of the annual financial stability contribution  
(CON/ 2013/13) 
 
Introduction and legal basis  
On 5 February 2013, the European Central Bank (ECB) received a request from  the Nationale Bank van 
België/Banque Nationale de Belgique (NBB), acting on behalf of the Belgian Ministry of  Finance , for an 
opinion on a draft  law amending the  Law of 28 December 2011 establishing a financial stability 
contribution (hereinafter the ‘ draft law’). The ECB was requested to deliver an opinion under extreme ly 
urgen t circumstances.  
The ECB’s competence to deliver an opinion is based on Article 127(4)  and 282(5)  of the Treaty  on the 
Functioning of the European Union and the  fifth and sixth  indent s of Article  2(1) of Council Decision 
98/415/EC of 29 June 1998 on the consultation of the European Central Bank by national authorities 
regarding draft legislative provisions1, since the draft law  relates to settlement  systems and the rules 
applicable to fin ancial institutions insofar as they materially influence the stability of financial institutions 
and markets. In accordance with the first sentence of Article 17.5 of the Rules of Procedure of the 
European Central Bank, the Governing Council has adopted th is opinion.  
 
1.  Purpose of the draft law 
1.1  In order to improv e the method for calculating the annual financial stability contribution set out in 
the Law of 28 December 2011, on which the ECB was previously consulted2, the draft law aims to 
adjust the f inancial stability contribution according to the level of risks of the assets held by 
Belgian credit institutions.  
1.2 The method for calculating the financial stability contribution – which  currently  amounts to 
0.035% of all credit institution s’ total li ability after deduction of (i) deposits eligible for 
reimbursement by the Belgian deposit guarantee scheme, and (ii) their regulatory capital , regardless 
of their activities  – would differ, depending on whether (a) the credit institution is systemically 
important within the meaning of Article 36/3, § 2 of the Law of 22  February 1998 establishing the 
Organic Statute of the Nationale Bank van België/Banque Nationale de Belgique  (hereinafter the 
                                                 
1  OJ L 189, 3.7.1998, p. 42.  
2  CON/2011/103.  
ECB -PUBLIC 
2 ‘NBB Statute’) and whether (b) such credit institution acts as depository within the meaning of the 
Royal Decree No 62 of 10 November 1967 on the deposit of fungible financial instruments and the 
settlement of transactions in respect of such instruments.   
1.3 Under the draft law, the financial stability contribution fo r the systemically important credit 
institutions  would be adjusted from 1 January 2014, as the y potentially incur a greater market risk  
and are hence more likely to trigger intervention by  the stability fund . Such increase is calculated 
on a consolidated basis and on the basis of a risk indicator defined as the ratio of (i) the total 
financial assets held for trading, after deduction of 80% of the total of derivative s held for trading 
to (ii) the balance sheet total . The preparatory works for the draft law cons ider such approach in 
line with the structural reform measures currently under discussion in the European Union and the 
United States in order to protect deposit- taking banks against risk -taking activities3. 
1.4 The systemic risk posed by credit instit utions acting as a central securities depository and/or a 
securities settlement system  differs from risk posed by other credit institutions, in view of the ir 
inherently different activities , volatility of the balance sheet’s size, liabilities’ structure an d 
regulatory regime . Hence,  the draft law sets out a regime prevail ing over the regime applicable to 
systemically important credit institutions . First, the rate of the financial stability contribution is 
increased from 3.5 to 9.5 basis points . Second, to limit the negative effects of excessive balance 
sheet volatility, such rate is applied to an annual average of month- end figures rather than such 
amount calculated at 31 December of the year preceding collection of the financial stability contribution. Third, such rate applies to the total of (i) the amounts due to credit institutions defined 
as any term accounts and any debts resulting from assignments and advances, (ii) amounts due to customers defined as any term deposits or deposits with notice, any spec ial deposits and any debts 
to other creditors, (iii) all liabilities represented by securities , and (iv) subordinated liabilities . Such 
adaptations would be applicable to the financial stability contribution for 2013.  
 
2.  Specific observations  
2.1 The EC B welcomes the draft law, which adjusts the calculation of the financial stability 
contribution in proportion to the risk profile of the credit institutions , as defined with reference to 
the importance of its trading activities, off -balance sheet exposure and systemic importance for the 
market in question. In this manner, s uch adjustment would align the calculation of the financial 
stability contribution to that of the annual contribution to the Belgian deposit guarantee scheme
45. 
                                                 
3  The preparatory works (p. 2) refer to the Vickers proposal which is based on the concept of ring -fencing, i.e. isolat ing 
from the rest of the banking sector credit institutions t hat collect deposit s from individuals and small and medium -sized 
enterprises. Such works also refer to the Volcker rule in the United States, which aims to reduce excessive risk -taking by 
banks, by prohibiting banks from proprietary trading and from owning or sponsoring private equity and hedge funds. 
These works refer, finally, to the group of experts appointed in October 2012 by the European Commission and chaired 
by the Governor of the central bank of Finland, Erkki Liikanen, which aims to make deposit banks stronger and to limit 
the risk of involv ing taxpayers in supporting banking groups excessively engaged in trading activities.  
4  Decision No 115/2011 of 23 June 2011 of t he Belgian Constitu tion Court required changes to the calculation of the 
annual contribution to the Belgian deposit guarantee scheme . 
ECB -PUBLIC 
3 In addition, such amendments would contribute to the overall clarity and transparency of the 
financing mechanism of the Resolution Fund6. In that context, the ECB emphasises that Member 
States should act in a coordinated manner in order to avoid significant differences in national 
implementation having a counterproductive effect. Against this background, any national measure 
should ensure a sufficiently level playing field within the euro area, which is of key importance to 
maintaining the integrity of the euro area banking system . 
2.2 The ECB notes, nevertheless, that any alignment  of the contribution by type of assets might 
encourage credit institutions to favour derivative activities at the expense of other trading activities 
which are not exempted under the draft law. Furthermore , this would complicate the cross -border 
harmonisation of derivative activities throughout the European Union.  
2.3 The credit activity of central securities depositaries is mostly limited to intraday credit, which is not 
covered by the micro -prudential r ules under Directives  2006/48/EC and 2006/49/EC7 due to the 
difficulty in address ing very short term exposures. Therefore, a different method of calculation of 
the ratio is justified in order to take into account, on the one hand, the short duration of the 
exposure towards their participants and, on the other hand, their systemic role as utilities on the 
market they serve. The ECB nevertheless encourages  the Belgian l egislator to follow the ongoing 
work  initiated  by CPSS- IOSCO and the European Commission wit h respect to the ir internal 
organisation and the recovery and resolution plans for securities settlement systems, which might 
have an impact on the calculation of the financial stability contribution.  
 
This opinion will be published on the ECB’s website.  
  
Done at Frankfurt am Main, 18 February 2013.  
 
[signed]   
The President of the ECB  
Mario DRAGHI  
                                                                                                                                                             
5  The ECB notes that this amendment would also follow  Article 94 (2)(c) and (7 ) of the p roposal for a directive of the 
European Parliament an d of the Council establishing a framework for the recovery and resolution of credit institutions 
and investments firms and amending Council Directives 77/91/EEC and 82/891/EC, Directive 2011/24/EC, 2002 /47/EC; 
2004/25/EC, 2005/56/EC; 2007/36/EC and 2001/ 35/EC and Regulation (EU) No 1093/2010 (COM(2012) 280 final ). 
6  CON/2012/91.  
7  Directive  2006/48/EC of the European Parliament and of the Council of 14 June 2006 relating to the taking up and 
pursuit of the business of credit institutions (recast)  (OJ L 1 77, 30.6.2006, p.  1), and Directive 2006/49/EC of the 
European Parliament and of the Council of 14 June 2006 on the capital adequacy of investment firms and credit 
institutions  (OJ L 177, 30.6.2006, p. 201).