Opinion of the European Central Bank of 14 August 2002 at the request of Sveriges Riksbank on a draft legislative proposal to amend the Sveriges Riksbank Act (1988:1385) with regard to the collection of balance-of-payments statistics and the liquidity criterion for securities used in monetary policy operations (CON/2002/21)
Date: 2002-08-14
Institutions: European Central Bank
Subjects: Sweden, balance of payments, central bank, data collection, national law, statistics

EN

OPINION OF THE EUROPEAN CENTRAL BANK

of 14 August 2002

at the request of Sveriges Riksbank

on a draft legislative proposal to amend the Sveriges Riksbank Act (1988:1385) with regard to

the collection of balance-of-payments statistics and the liquidity criterion for securities used in

monetary policy operations

(CON/2002/21)

1. 

On 3 June 2002, the European Central Bank (ECB) received a request from Sveriges Riksbank

for  an  opinion  on  a  draft  proposal  to  amend  the  Sveriges  Riksbank  Act  with  regard  to  the

collection  of  balance-of-payments  statistics  and  the  liquidity  criterion  for  securities  used  in

monetary policy operations (the ‘legislative proposal’).

2. 

The  ECB’s  competence  to  deliver  an  opinion  is  based  on  Article 105(4)  of  the  Treaty

establishing  the  European  Community  and  the  third  and  fourth  indents  of  Article  2(1)  and

Article  2(2)  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,  as  the

legislative  proposal  contains  provisions  concerning  Sveriges  Riksbank,  the  collection,

compilation and distribution of monetary, financial, banking, payment systems and balance-of-

payments statistics, and instruments of monetary policy. In accordance with the first sentence of

Article 17.5 of the Rules of Procedure of the European Central Bank, the Governing Council of

the ECB has adopted this opinion.

3. 

Some  of  the  amendments  suggested  in  the  legislative  proposal  refer  to  a  change  in  the  data

collection system and  to  a  clarification  of  the  reporting  requirements  for  balance-of-payments

statistics.  The  proposed  legislative  change  has  become  necessary  due  to,  inter  alia,  the

replacement  of  the  so-called  BOK  system  for  reporting  individual  foreign  payments  via

Swedish  banks  for  balance-of-payments  purposes  with  a  questionnaire-based  system  for  the

collection of data with effect from 1 January 2003. In relation to the collection of information

from  individual  reporters,  the  explanatory  text  of  the  legislative  proposal  states  that  the  new

system  does  not  entail  any  changes  in  the  duty  to  provide  the  Riksbank  with  the  information

1

OJ L 189, 3.7.1998, p. 42.

                                                
needed  for  its  balance-of-payments  statistics  as  set  out  in  the  second  paragraph  of  Chapter  6,

Article 9 of the Sveriges Riksbank Act. As is also explained, the reporting of financial markets

statistics  will  remain  unchanged.  The  ECB  has  no  objection  to  the  replacement  of  the  BOK

system with a new questionnaire-based system.

4. 

The explanatory text accompanying the legislative proposal further explains that, in connection

with  the  switch  to  the  new  data  collection  system,  Sveriges  Riksbank  has  decided  that  some

parts  of  the  new  process  will  be  transferred  to  the  central  statistics  authority  in  Sweden,

Statistiska  centralbyrån  (Statistics  Sweden).  The  explanatory  text  points  out  that  Sveriges

Riksbank  will  continue  to  have  the  main  responsibility  for  balance-of-payments  statistics,

covering  the  publication  and  distribution  of  these  statistics,  their  quality,  documentation  and

reporting  to  international  bodies.  The  new  system  for  the  collection  of  balance-of-payments

statistics is scheduled to enter into force on 1 January 2003 and the Riksbank has commissioned

Statistics Sweden to produce parts of the  balance-of-payments  statistics  (trade in  services  and

transfer  payments,  as  well  as  some  parts  of  the  financial  account)  for  a  period  of  one  year,

which  may  then  be  extended. Moreover, it follows from  the  legislative  proposal  that  the  new

system does not entail any changes in the obligation for credit institutions and other third parties

to  provide  information  to  the  Riksbank  for  its  balance-of-payments  statistics  according  to

Chapter  6,  Article  9  of  the  Sveriges  Riksbank  Act.  The  explanatory  text  considers  that  the

second  paragraph  of  Chapter  6,  Article  9  of  the  Riksbank  Act  does  not  prevent  Sveriges

Riksbank from delegating the collection of statistics to another party, such as Statistics Sweden,

in spite of the duty of disclosure to the Riksbank. Accordingly, the duty of disclosure will also

apply to the provision of information to Statistics Sweden. The Riksbank Act does not therefore

need to be amended on account of Statistics Sweden producing parts of the statistics. In view of

these clarifications, the ECB takes note that the legislative proposal suggests that the wording of

Chapter  6,  Article  9  of  the  Sveriges  Riksbank  Act  will  continue  to  impose  an  obligation  to

provide  the  relevant  information  to  the  Riksbank  even  if  Statistics  Sweden  is  collecting  the

information on behalf of the Riksbank.

5. 

The ECB has no objection to the transfer to Statistics Sweden of specific parts of the production

of the identified elements  of the  balance-of-payments  statistics2  as long  as  Sveriges  Riksbank

retains full responsibility for all related activities and policies. In particular, it is assumed that

the  Riksbank  will  remain  fully  responsible  for  the  methodology  and  the  transmission  of  the

relevant  data  to  the  ECB.  The  ECB  understands  that  the  transfer  of  the  above  statistical

activities will be laid down in a separate agreement between Sveriges Riksbank and Statistics

Sweden. The ECB would very much appreciate the opportunity to also review and comment on

such  draft  agreement.  Sweden  is  presently  a  Member  State  with  a  derogation  and  the  ECB

requirements  in  the  field  of  balance-of-payments  and  international  investment  position

2 

The collection of data on trade services and transfer payments, as well as some parts of the financial accounts.

2

                                                
statistics3  only  apply  to  the  national  central  banks  of  the  Eurosystem  (NCBs).  However,  the

ECB  encourages  non-participating  Member  States  to  adopt  such  legislative  provisions  as  are

necessary to comply with these requirements in view of the future enlargement of the euro area.

At the same time, the ECB encourages the national central banks of non-participating Member

States to only enter into agreements that are consistent with these requirements. In this respect,

the  ECB  would  like  to  refer  inter  alia  to  Article  9.2  and  Article  14.3  of  the  Statute  of  the

European  System  of  Central  Banks  and  of  the  European  Central  Bank.  According  to  these

Articles,  the  ECB  and  the  NCBs  shall  carry  out  the  ESCB-related  tasks  as  specified  in  the

Treaty and the Statute. This will also apply to Sveriges Riksbank as soon as Sweden adopts the

euro and the Riksbank becomes a fully integrated part of the Eurosystem.

6. 

To the extent that the legislative  proposal  refers to  parts  of  the  balance-of-payments  financial

account, the ECB would also like to stress that access to individual data collected by Statistics

Sweden should not be denied to the Riksbank or to the ECB on the grounds of confidentiality or

otherwise. This is an important requirement that should apply in all cases, notably in order to

allow quality checks on the data collected by Statistics Sweden under the new arrangement.

7. 

Besides  balance-of-payments  statistics,  the  Riksbank  currently  also  compiles  international

investment position statistics, thus following the recommendations of the Balance of Payments

Manual of the IMF (fifth edition). Both the Sveriges Riksbank Act and the legislative proposal

provide  a  legal  basis  for  the  collection  of  data  on  transactions  for  the  purpose  of  balance-of-

payments statistics, but no explicit reference is made to international investment positions. The

proposed  amendments  to  the  Sveriges  Riksbank  Act  would  seem  to  offer  an  opportunity  to

clarify matters in this respect. To this end, the ECB would like to suggest a slight rewording of

the second paragraph of Chapter 6, Article 9 of the Sveriges Riksbank Act.4

8. 

The  second  type  of  amendments  to  the  Sveriges  Riksbank  Act  contained  in  the  legislative

proposal  will  abolish the liquidity  requirement  for  securities  that  the  Riksbank  buys  and  sells

under  repurchase  transactions  for  monetary  policy  purposes.  In  this  respect,  the  legislative

proposal  notes  that  there  is  no  equivalent  liquidity  criterion  for  intra-day  credit  granted  for

payment  system  purposes  or  for  other  types  of  monetary  policy  operations,  where  the  only

requirement is for the collateral to be ‘adequate’. Moreover, a reference is made to the fact that

the  Riksbank  Act  contains  such  a  liquidity  criterion  for  the  Riksbank’s  buying  and  selling  of

debt instruments in pursuance of its foreign exchange policy. It is not proposed to remove this

liquidity criterion for foreign exchange operations in view  of the  need for the  Riksbank  to  be

3 

4 

Guideline ECB/2000/4 of 11 May 2000 on the statistical reporting requirements of the ECB in the field of balance-of-
payments  statistics,  the  international  reserves  template  and  international  investment  position  statistics,  OJ  L  168,
23.6.2001, p. 25.
For instance, the draft provision could be slightly reworded along the following lines: “The performer of cross-border
transactions  and/or  recipient  of  assets  and  liabilities  with  foreign  connections  has  an  obligation  to  provide  the
Riksbank with such information and to present such documents concerning cross-border transactions undertaken, and
assets and liabilities with foreign connections received on his own behalf or on behalf of a customer, as are needed as
a foundation for the Riksbank’s balance-of-payments and international investment position statistics.”

3

                                                
able  to  sell  its  foreign  securities  quickly  in  case  of  currency  interventions.  According  to  the

legislative  proposal,  securities  are  treated  differently  where  the  Riksbank  receives  them  as

collateral  in  order  to  protect  the  Riksbank  in  the  event  of  the  default  of  a  counterparty  in

connection  with  a  repurchase  transaction  for  monetary  policy  purposes.  According  to  the

proposal, there is in this case no need for the securities to be liquid.

9. 

The  ECB  has  no  objection  with  regard  to  the  proposed  abolition  of  the  liquidity  criterion  for

certain  monetary  policy  operations,  though  would  observe  that  the  requirement  of  ‘adequate

collateral’  may  be  interpreted  as  also  containing  an  element  whereby  the  collateral  must  be

realisable  without  undue  delay.  However,  to  expressly  maintain  a  specific  statutory  liquidity

requirement  in  addition  to  the  requirement  of  adequate  collateral  is  not  necessary  for  the

operations now under consideration.

10.  The  ECB  confirms  that  it  has  no  objection  to  the  competent  national  authorities  making  this

opinion publicly available at their discretion.

Done at Frankfurt am Main on 14 August 2002.

The President of the ECB

[signed]

Willem F. DUISENBERG

4