EN ECB-PUBLIC  
 
 
OPINION OF THE EUROPEAN CENTRAL BANK 
of 12 September 2014 
on reserve requirements in connection with the introduction of the euro 
(CON/2014/68) 
 
Introduction and legal basis 
On 29 August 2014, the European Central Bank (ECB) received a request from Lietuvos bankas for an 
opinion on (a) a draft resolution amending the rules on reserve requirements for credit institutions (hereinafter the ‘draft amending resolution’), and (b ) a draft resolution on the approval of rules on the 
calculation of the reserve base and reserve requiremen ts for credit institutions (hereinafter the ‘draft 
resolution’) (hereinafter collectively refe rred to as the ‘draft resolutions’). 
The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the 
Functioning of the European Union and Article 2(2) of Council Decision 98/415/EC
1, as the draft 
resolutions relate to instruments of monetary policy of a non-euro area Member State. In accordance with 
the first sentence of Article 17.5 of the Rules of Pr ocedure of the European Central Bank, the Governing 
Council has adopted this opinion. 
 
1.  Purpose of the draft resolutions 
1.1 The draft resolutions follow the Council of th e European Union’s decision, pursuant to Article 
140(2) of the Treaty, to abrogate Lithuania’s derogation with effect from 1 January 20152.  
1.2 The draft amending resolution aims to ensure a smooth transition to th e Eurosystem’s minimum 
reserves framework. More specifically, it extends the last reserve maintenance period prior to the 
introduction of the euro in Lithuania until 31 De cember 2014, and introduces a new method of 
calculation of reserve requirements for the first two reserve maintenance periods in 2015 pursuant 
to Regulation (EC) No 1745/2003 of the European Central Bank (ECB/2003/9)3 (hereinafter the 
‘Regulation’).  
1.3 The draft resolution will apply from the date of Lithuania’s introduction of the euro. It provides 
that reserve requirements will be calculated and no tified in line with the Regulation. It also repeals 
                                                 
1  Council Decision 98/415/EC of 29 June 1998 on the consultation of the European Central Bank by national authorities 
regarding draft legislative provisions (OJ L 189, 3.7.1998, p. 42). 
2  Council Decision 2014/509/EU of 23 July  2014 on the adoption by  Lithuania of the euro on 1 January 2015 (OJ L 228, 
31.7.2014, p. 29). 
3  Regulation (EC) No 1745/2003 of the European Central Bank of 12 September 2003 on the application of minimum 
reserves (ECB/2003/9) (OJ L 250, 2.10.2003, p.10). 
ECB-PUBLIC  
2 the current rules on reserve requirements for credit institutions4, including the draft amending 
resolution. 
 
2. General observations 
The ECB welcomes the changes to Lithuanian law to be effected under the draft resolutions as part of the 
preparations for the introduction of the euro in Lit huania. In terms of monetary policy, which remains a 
competence of Lietuvos bankas until the introduction of the euro, the draft resolutions should help 
Lithuanian credit institutions to familiarise themselves  with the Eurosystem’s requirements and ensure a 
smooth transition to compliance with the Eurosystem’s minimum reserve framework starting from 1 January 2015. 
 
3. Reserve maintenance periods in 2015  
The ECB understands that the first two reserve mainte nance periods in 2015 provided for in the draft 
amending resolution
5 refer to the maintenance periods set by the Governing Council of the ECB6 on the 
basis of Article 7 of the Regulation. The ECB recomm ends specifying this fact in the draft amending 
resolution in order to distinguish these maintenance periods from the reserve maintenance periods set by 
the Board of Lietuvos bankas under the L ithuanian reserve requirements framework7, since both types of 
maintenance periods are referred to in the same legal act. 
 
This opinion will be published on the ECB’s website.   
 
Done at Frankfurt am Main, 12 September 2014. 
 
[signed] 
 
The President of the ECB 
Mario DRAGHI 
 
 
                                                 
4  Resolution No 38 of the Board of Lietuvos bankas of 14 March 2002 on the approval of rules on reserve requirements for 
credit institutions ( Valstybės žinios , 27.03.2002, No 31-1201). 
5  See new paragraph 442 of the rules on reserve requirements, to be introduced by the draft amending resolution. 
6  Press release of 17 July 2014, available on the ECB’s website at: 
http://www.ecb.europa.eu/press/pr/date/2014/html/pr140717_1.en.html   
7  These maintenance periods are set out in paragraph 20 of the rules on reserve requirements, to be amended by the draft 
amending resolution.