EN
OPINION OF THE EUROPEAN CENTRAL BANK
of 8 August 2003 
at the request of Sveriges Riksbank on a draft law amending the Sveriges Riksbank Act
(CON/2003/15)
1. On 9 July 2003, the European Central Bank (ECB) received a request from the Sveriges Riksbank
for an opinion on a draft proposal to amend the Sveriges Riksbank Act ( lag (1988:1385) om
Sveriges riksbank , as amended) (the ‘legislative proposal’).
2. The ECB’s competence to deliver an opinion is based on the second indent of Article 105(4) of the
Treaty and the third indent of Article 2(1) of Council Decision 98/415/EC of 29 June 1998 on theconsultation of the ECB by national authorities regarding draft legislative provisions
1 as the draft
legislative proposal relates to Sveriges Riksbank. In accordance with the first sentence ofArticle 17.5 of the Rules of Procedure of the ECB, the Governing Council of the ECB has adoptedthis opinion.
3. The legislative proposal concerns a proposal from Sveriges Riksbank to the Swedish Parliament
(Sveriges riksdag ) to enact certain amendments to the Sveriges Riksbank Act ( lagen (1988:1385)
om Sveriges Riksbank ). One part of the proposal is to give the Riksbank the right to issue
regulations and fines with regard to the Swedish payment system. The existing competence ofSveriges Riksbank related to the promotion of a safe and efficient payment system (Chapter 1,Article 2 of the Riksbank Act) primarily aims at reducing systemic risk. This is achieved through
the Riksbank’s oversight of payment systems in general and the provision of settlement facilities inits national RTGS system, RIX. The existing statutory rules provide a legal basis for the Riksbankto issue regulations concerning the reporting obliga tions of institutions with regard to information
that the Riksbank considers necessary to oversee the stability of the payment system (Chapter 6,Article 9 of the Riksbank Act). The existing legal provisions do not, however, extend generally tothe Riksbank’s competence to promote a safe and efficient payment system. According to theRiksbank’s explanations in the legislative proposal, possible future developments with regard toRIX, including the possibility of involving external  parties in the running of parts of the system,
will require changes in the manner in which participants in RIX and other parties are regulated.Moreover, in the area of securities settlement, there is already, according to the legislativeproposal, a need for increased cooperation between Sveriges Riksbank’s payment system, RIX, and
                                                
1 OJ L 189, 3.7.1998, p. 42.
2the Swedish system for the settlement of securities transactions, the Securities Register Centre
(Värdepapperscentralen, VPC ). In addition, the legislative proposal includes, as part of the
promotion of a safe and efficient payment system, a reference to the Riksbank’s current task ofproviding banknotes and coins within Sweden (for which Sveriges Riksbank has a monopoly underChapter 9, Article 13 of the Constitution Act ( regeringsformen )). Also in this latter respect, the
Riksbank notes that the envisaged changes to the Swedish arrangements for the handling ofbanknotes and coins, whereby third parties (not wholly owned by the Riksbank) will managecertain operational tasks, entail new control and regulation requirements. 
4. In view of these considerations, the Riksbank proposes that Chapter 1, Article 2, of the Riksbank
Act incorporate a general right for the Riksbank to issue regulations concerning its task ofpromoting a safe and efficient payment system. It is also proposed that a new Article 2(a) be addedto Chapter 11 of the Riksbank Act specifying that the Riksbank may when necessary order orprohibit actions by third parties, in order to ensure compliance with regulations issued underChapter 1, Article 2, of the Riksbank Act. Under this proposed provision, the Riksbank may orderparties to act to ensure compliance with a regulation issued to promote the safety and efficiency ofthe payment system or, conversely, prohibit a certain action in breach of such a regulation. In eachcase, the Riksbank may prescribe that non-compliance with such orders will be punishable throughthe payment of a fine. 
5. Article 105(2) of the Treaty and Article 3.1 of the Statute of the European System of Central Banks
and of the European Central Bank (the Statute of the ESCB) include as a basic central bank task the
promotion of the smooth operation of payment systems. For the national central banks of theMember States that have adopted the euro, which together with the ECB constitute the Eurosystem,
these Articles provide a legal basis for the oversight of payment systems. In addition, thecompetence of the Eurosystem for the oversight of payment systems results from Article 22 of theStatute of the ESCB, which includes a reference to the ECB’s regulatory power. According toArticle 22 of the Statute of the ESCB, ‘the ECB and national central banks may provide facilities,and the ECB may make regulations, to ensure efficient and sound clearing and payment systemswithin the Community and with other countries.’ Article 34 of the Statute of the ESCB refers to theECB’s power to make regulations and states that such ‘[a] regulation shall have generalapplication. It shall be binding in its entirety and directly applicable in all Member States.’
2 Within
the Eurosystem, oversight activities are generally performed at the level of the national centralbanks, in line with the common oversight policy defined for the Eurosystem by the GoverningCouncil of the ECB. The aim of the oversight of clearing and payment systems is the maintenanceof systemic stability, the promotion of efficiency and the safeguarding of the transmission channelfor monetary policy. In particular, payment arrangements are of crucial importance for the conductof monetary policy in both a strategic and operational sense. This approach excludes interferencefrom any Community or national body, other than a central bank acting within the framework of
                                                
2 Article 34.2, first paragraph, of the ESCB Statute.
3the Eurosystem or the European System of Central Banks (ESCB), in the Eurosystem’s oversight
competence.
6. According to Chapter 1, Article 2, of the Sveriges Riksbank Act, it is a basic task of Sveriges
Riksbank to promote a safe and efficient payment system. As explained in the legislative proposal,the aim of Sveriges Riksbank in performing this task is to reduce systemic risk. In this respect,Article 2 of Chapter 1 of the Sveriges Riksbank Act provides the legal basis for the Riksbank’spayment systems oversight function. The ECB welc omes and supports Sveriges Riksbank’s aim of
further formalising its oversight function and clarifying and enhancing its regulatory powers in thisfield. This is particularly important since the present formulation of the statutory basis for theRiksbank to issue such regulations appears to lim it their scope to specific reporting obligations of
institutions. From the ECB’s perspective, granting Sveriges Riksbank such extended regulatorypowers will also facilitate the regulation of participants’ and other parties’ activities in the SwedishTARGET component RIX. This might prove particular ly useful, and in some situations necessary,
irrespective of Sweden’s adoption of the euro and Sveriges Riksbank’s integration into theEurosystem, if in the future RIX were, for example,  to involve external third parties in the running
of parts of the system. The ECB understands that the Riksbank’s payment systems oversightfunction also covers securities clearing and settlement systems. However, for the sake of clarity, itwould be advisable to make an explicit reference in the Sveriges Riksbank Act to the Riksbank’ssecurities clearing and settlement systems oversight function.  
7. The proposed amendments will thus make it possible for Sveriges Riksbank to carry out one of its
main tasks in a more effective manner. They will also bring the Sveriges Riksbank Act further in
line with the Statute of the ESCB, in particular with the above-mentioned Article 22 of the Statute,which will facilitate Sveriges Riksbank’s adherence to the Eurosystem oversight regime in thefuture. In this connection, one could mention that the ECB has so far not issued a regulation on theconduct of oversight under Article 22 of the Statute of the ESCB. The majority of national centralbanks carry out this function on the basis of th eir own statutes and/or organic laws without any
additional explicit and detailed statutory provisions. The ECB would also point out the need toconsider the consistency of any future regulation that Sveriges Riksbank may adopt underChapter 1, Article 2, of the amended Sveriges Riksbank Act with the Eurosystem oversight policy.For central banks of Member States that have adopted the euro, such consistency is an importantrequirement.
8. When it comes to the handling of banknotes and coins, the legislative proposal indicates that
Sveriges Riksbank intends to transfer the distribution and storage of cash recorded on theRiksbank’s balance sheet to third parties in the private cash distribution sector, in order to improvethe efficiency of cash handling. This implies giving greater responsibility to third parties for thetasks traditionally carried out by the Riksbank and their subsidiaries. In this respect, new regulatoryneeds arise as the Riksbank has to be able to influence the cash handling procedures and securitystandards. Moreover, conditions have to be laid down in order to exercise supervision of the third
4parties that may be involved in the cash handling. From the ECB’s point of view, the right to issue
regulations and to stipulate penalties for non-compliance will enhance the power of the Riksbank toregulate and control third parties in view of their possible involvement in cash handling as a part ofthe ongoing structural change in this field. Against the above background related to the promotionof the smooth operation of the Swedish payment system, and taking into account Article 16 of theStatute of the ESCB, the ECB has no objections to the proposed amendments with regard to thehandling of banknotes and coins.
9. Another aspect of the legislative proposal relates to Sveriges Riksbank’s management of the
Swedish gold and currency reserve. According to the existing provisions of the first paragraph ofArticle 7 of Chapter 7 of the Sveriges Riksbank Act, the ‘Riksbank may, with or without interestcompensation, receive deposits of currencies or gold from other sovereign states,intergovernmental bodies and Swedish and foreign banks.’ The same provision also states that the‘Riksbank may make such deposits with Swedis h and foreign banks.’ The legislative proposal
includes a suggestion to amend this provision in order to somewhat extend the range of possiblecounterparties for such deposits, without negatively affecting the high level of requirementsregarding soundness and credit worthiness. In addition to the legal technical change with regard tothe terminology for referring to foreign banks,  the proposed changes would entail the addition of
explicit references to the International Bank of Reconstruction and Development (IBRD), the Bankfor International Settlements (BIS) and other central banks. 
10. These suggestions for amendments of the legal provisions concerning the Riksbank’s deposits in
the form of currencies or gold are partly intended to represent a terminological adjustment withoutany substantive change compared to the current practice of Sveriges Riksbank and, in this respect,the ECB has no objections. To the extent that the legislative proposal entails an extension of therange of possible counterparties for deposits, such  as for the IBRD, the ECB would agree with the
proposal to add explicit references to the Riksbank Act clarifying who the Riksbank’s potentialcounterparties are. As a general observation, the ECB notes and appreciates that the Riksbankapplies, and will continue to apply, very high standards with regard to the soundness and creditworthiness of parties that are accepted as counterparties for its gold and currency deposits in anyspecific case. 
511. The ECB confirms that it has no objection to the competent national authorities making this
opinion publicly available at their discretion. This  opinion will be published on the ECB’s website
six months after the date of its adoption.
Done at Frankfurt am Main on 8 August 2003.
Member of the Executive Board of the ECB Member of the Executive Board of the ECB
[signed] [signed]
Tommaso PADOA-SCHIOPPA Gertrude TUMPEL-GUGERELL