EN ECB-PUBLIC 
 
 
OPINION OF THE EUROPEAN CENTRAL BANK 
of 11 June 2014  
on remuneration of minimum reserves 
(CON/2014/42) 
 
Introduction and legal basis 
On 5 June 2014, the European Central Bank (ECB)  received a request from Lietuvos bankas for an 
opinion on a draft resolution amending the Rules on reserve requirements for credit institutions 
(hereinafter the ‘draft resolution’). 
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 Ar ticle 2(2) of Council Decision 98/415/EC1, as the draft 
resolution relates to the instruments of monetary pol icy of a non-euro area Member State. In accordance 
with the first sentence of Article 17.5 of the Rule s of Procedure of the European Central Bank, the 
Governing Council has adopted this opinion. 
 1.  Purpose of the draft resolution 
1.1 Under the current rules, the minimum reserves held by credit institutions in Lietuvos bankas are 
remunerated at the ECB deposit facility rate, and not at the ECB rate for the main refinancing 
operations. 
1.2 Lietuvos bankas wishes to ensure  that credit institutions that hol d minimum reserves with it are not 
under an obligation to pay Lietuvos bankas for th eir holdings in circumstances where a negative 
deposit facility rate is introduced. Therefore, the main purpose of the draft resolution is to amend 
the formula for calculating remuneration on mini mum reserves held by a credit institution in 
Lietuvos bankas.  
1.3 The draft resolution provides that the refere nce rate for the calculation of remuneration on 
minimum reserves shall be either the ECB’s depos it facility rate or zero per cent, whichever is 
higher. 
1.4 The formula reflecting the new calculation of remuneration on minimum reserves will first apply in 
relation to the current Lithuanian minimum rese rves maintenance period ending on 23 June 2014. 
 
                                                 
1  Council Decision 98/415/EC of 29 June 1998 on the consulta tion of the European Central Bank by national authorities 
regarding draft legislative provisions (OJ L 189, 3.7.1998, p. 42). 
ECB-PUBLIC  
2 2. General observations 
 Member States that have not adopted the euro retain their monetary policy powers, including in 
connection with their minimum reserves frameworks. Nevertheless, it is beneficial for them to achieve consistency with the Eurosystem mini mum reserves framework so that their credit 
institutions become acquainted with the reserves re quirements that will apply to them following the 
adoption of the euro by the Member  State where they are established
2.  
 3. Remuneration of minimum reserves  The ECB noted in an earlier opinion
3 that, under the Lithuanian minimum reserves regime, the 
holdings of required reserves are remunerated not by reference to the ECB rate for the main refinancing operations, as specified in Article 8 of Regulation (EC) No 1745/2003 (ECB/2003/9) of 
the European Central Bank
4, but by reference to the ECB deposit facility rate. 
 The ECB has no comments on the draft resolution.  This opinion will be published on the ECB’s website.   Done at Frankfurt am Main, 11 June 2014. 
 
[signed] 
 
The President of the ECB 
Mario DRAGHI 
                                                 
2  See paragraph 2.1 of Opinion CON/2013/79. All EC B opinions are published on the ECB’s website at 
www.ecb.europa.eu. 
3  See paragraph 6 of Opinion CON/2013/79. 
4  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).