A4-0332/98

Recommendation of the European Central Bank for a Council Regulation concerning the application of minimum reserves by the European Central Bank (C4-0451/98 - 98/0808(CNS))

The recommendation was approved with the following amendments:

(Amendment 1)

Recital 5

>Original text>

(5) Whereas to be effective as an instrument for the performance of money market management and monetary control functions the system for the imposition of minimum reserves needs to be structured so that the ECB has the ability and flexibility to impose reserve requirements within the context of and dependent upon changing economic and financial conditions among participating Member States; whereas the ECB may impose minimum reserves on liabilities resulting from off-balance-sheet items, in particular those that are either individually or in combination with other on-balance-sheet or off-balance sheet items, comparable with liabilities recorded on the balance sheet, in order to limit the possibilities of circumvention;

>Text following EP vote>

(5)

Whereas to be effective as an instrument for the performance of money market management and monetary control functions the system for the imposition of minimum reserves needs to be structured so that the ECB has the ability and flexibility to impose reserve requirements within the context of and dependent upon changing economic and financial conditions among participating Member States; whereas the ECB may impose minimum reserves on liabilities resulting from off-balance-sheet items, in particular those that are either individually or in combination with other on-balance-sheet or off-balance sheet items, comparable with liabilities recorded on the balance sheet, in order to limit the possibilities of circumvention; whereas the rapid development of off-balance-sheet items, in particular derivatives, requires that they be included in the basis for calculation of reserve requirements, taking due account of their particular characteristics; whereas this is not only desirable in order to support the stability-oriented monetary policy but also contributes to the stability of the whole financial system;

(Amendment 2 )

Recital 5a (new)

>Original text>

>Text following EP vote>

(5a) Whereas no assessment by the ECB concerning the inclusion of derivatives is available as yet; whereas the ECB should address this issue in detail in a further communication on derivatives;

(Amendment 3)

Recital 6a (new)

>Original text>

>Text following EP vote>

(6a) Whereas minimum reserve policy is an important instrument for helping to stabilise short-term interest rates, controlling monetary expansion and credit creation, in particular with a view to possible future developments in the field of electronic money, which could repress the use of bank notes, thus rendering the ECB's tasks more difficult;

(Amendment 4)

Article 1(4a) (new)

>Original text>

>Text following EP vote>

4a. remuneration of minimum reserves: shall mean such interest rates as the ECB may specify on these minimum reserves;

(Amendment 5)

Article 3(3a) (new)

>Original text>

>Text following EP vote>

3a. In view of the significance of the growth of electronic money, this shall be included in the basis for minimum reserves.

(Amendment 6)

Article 4, title

>Original text>

Reserve ratios

>Text following EP vote>

Reserve ratios and remuneration of reserves

(Amendment 7)

Article 4(2a) (new)

>Original text>

>Text following EP vote>

2a. Any remuneration of minimum reserves specified by the ECB shall be close to market rates.

(Amendment 8)

Article 7(3a) (new)

>Original text>

>Text following EP vote>

3a. Sanctions shall not be imposed if the shortfall was unavoidable for unforeseeable reasons or the institution has gone into liquidation.

Legislative resolution embodying Parliament's opinion on the recommendation of the European Central Bank for a Council Regulation concerning the application of minimum reserves by the European Central Bank (C4-0451/98 - 98/0808(CNS))(Consultation procedure)

The European Parliament,

- having regard to the recommendation of the European Central Bank to the Council, 98/0808(CNS) ((OJ C 246, 6.8.1998, p. 6. )),

- having been consulted by the Council pursuant to Article 106(6) of the EC Treaty (C4-0451/98),

- having regard to Rule 58 of its Rules of Procedure,

- having regard to the report of the Committee on Economic and Monetary Affairs and Industrial Policy (A4-0332/98),

1. Approves the recommendation by the European Central Bank, subject to Parliament's amendments;

2. Asks to be consulted again should the Council intend to make substantial modifications to the recommendation by the European Central Bank;

3. Instructs its President to forward this opinion to the Council, the Commission and the European Central Bank.

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