2005/831/EC: Decision of the European Central Bank of  17 November 2005  on the distribution of the income of the European Central Bank on euro banknotes in circulation to the national central banks of the participating Member States  (ECB/2005/11)
Date: 2005-11-17
Institutions: European Central Bank
Subjects: European Central Bank, European System of Central Banks, central bank, financial regulation, provision

26.11.2005

EN

Official Journal of the European Union

L 311/41

EUROPEAN CENTRAL BANK

DECISION OF THE EUROPEAN CENTRAL BANK

of 17 November 2005

on the distribution of the income of the European Central Bank on euro banknotes in circulation to
the national central banks of the participating Member States

(ECB/2005/11)

(2005/831/EC)

THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,

Having regard to the Statute of the European System of Central
Banks and of the European Central Bank, and in particular
Article 33 thereof,

of the national central banks of participating Member
States from the financial year 2002 (3), the intra-Euro-
system balances on euro banknotes in circulation are
remunerated at the reference rate. Under Article 2(3) of
Decision ECB/2001/16, this remuneration is settled by
TARGET payments.

Whereas:

(1)

(2)

In order to allow funds to be allocated to a provision for
foreign exchange rate, interest rate and gold price risks, it
is necessary to recast Decision ECB/2002/9 of 21
November 2002 on the distribution of the income of
the European Central Bank on euro banknotes in circu-
lation to the national central banks of the participating
Member States (1). Furthermore, for operational reasons,
it is more appropriate to distribute the income of the
European Central Bank (ECB) on euro banknotes in circu-
lation only once for each financial year, instead of each
quarter.

Decision ECB/2001/15 of 6 December 2001 on the issue
of euro banknotes (2) establishes the allocation of euro
banknotes in circulation to the national central banks
(NCBs)
in proportion to their paid-up shares in the
ECB’s capital. Article 4 of Decision ECB/2001/15 and
the Annex to that Decision allocates to the ECB 8 % of
the total value of euro banknotes in circulation. The ECB
holds intra-Eurosystem claims on NCBs in proportion to
their shares in the subscribed capital key, for a value
equivalent to the value of euro banknotes that it issues.

(3)

Under Article 2(2) of Decision ECB/2001/16 of 6
December 2001 on the allocation of monetary income

(4)

(5)

(6)

that

Recital 6 to Decision ECB/2001/16 states
the
income accruing to the ECB on the remuneration of its
intra-Eurosystem claims on NCBs related to its share of
euro banknotes in circulation should in principle be
in accordance with the
distributed to the NCBs
decisions of the Governing Council,
in proportion to
their shares in the subscribed capital key in the same
financial year it accrues.

In distributing the income accruing to the ECB on the
remuneration of
its intra-Eurosystem claims on NCBs
related to its share of euro banknotes in circulation,
its
the ECB should take into account an estimate of
financial result for the year that makes due allowance
for
to a provision for
foreign exchange rate, interest rate and gold price risks,
and for the availability of provisions that may be released
to offset anticipated expenses.

the need to allocate funds

In determining the amount of the ECB’s net profit to be
transferred to the general reserve fund pursuant to Article
33.1 of
should
consider that any part of that profit which corresponds
to income on euro banknotes in circulation should be
distributed to the NCBs in full,

the Governing Council

the Statute,

(1) OJ L 323, 28.11.2002, p. 49.
(2) OJ L 337, 20.12.2001, p. 52. Decision as last amended by Decision

ECB/2004/9 (OJ L 205, 9.6.2004, p. 17).

(3) OJ L 337, 20.12.2001, p. 55. Decision as amended by Decision

ECB/2003/22 (OJ L 9, 15.1.2004, p. 39).

L 311/42

EN

Official Journal of the European Union

26.11.2005

HAS DECIDED AS FOLLOWS:

Article 1

Definitions

For the purposes of this Decision:

(a)

‘participating Member States’ shall mean Member States
which have adopted the euro in accordance with the
Treaty establishing the European Community;

(b) ‘NCBs’ shall mean national central banks of participating

(c)

Member States;
‘intra-Eurosystem balances on euro banknotes in circulation’
shall mean the claims and liabilities arising between a NCB
and the ECB and between a NCB and the other NCBs as a
result of
application of Article 4 of Decision
the
ECB/2001/15;

(d) ‘ECB’s income on euro banknotes in circulation’ shall mean
the income accruing to the ECB on the remuneration of its
intra-Eurosystem claims on NCBs related to its share of euro
banknotes in circulation as a result of the application of
Article 2 of Decision ECB/2001/16.

Article 2

Interim distribution of

the ECB’s

income on euro

banknotes in circulation

The ECB’s income on euro banknotes in circulation shall
1.
be due in full to the NCBs in the same financial year it accrues
and shall be distributed to the NCBs in proportion to their paid-
up shares in the subscribed capital of the ECB.

2.
The ECB shall distribute to the NCBs its income on euro
banknotes in circulation earned in each financial year on the
second working day of the following year.

The amount of the ECB’s income on euro banknotes in
3.
circulation may be reduced in accordance with any decision by
the ECB's Governing Council on the basis of the Statute in
respect of expenses incurred by the ECB in connection with
the issue and handling of euro banknotes.

Article 3

Derogation from Article 2

In derogation from Article 2:

to distribute part or all of

1. the Governing Council shall decide before the end of the
the ECB’s
financial year not
income on euro banknotes in circulation in accordance
with Article 2 to the extent necessary to ensure that the
amount of
the distributed income does not exceed the
ECB’s net profit for that year if on the basis of a reasoned
estimate prepared by the Executive Board the Governing
Council expects that the ECB will have an overall annual
loss or will make an annual net profit that is less than the
estimated amount of its income on euro banknotes in circu-
lation;

2. the Governing Council may decide before the end of the
financial year to transfer part or all of the ECB’s income
on euro banknotes in circulation to a provision for foreign
exchange rate, interest rate and gold price risks.

Article 4

Final provisions

Decision ECB/2002/9 is

1.
to the
repealed Decision shall be construed as references to this
Decision.

repealed. References

This Decision shall enter into force one day following its

2.
adoption.

Done at Frankfurt am Main, 17 November 2005.

The President of the ECB

Jean-Claude TRICHET