Opinion of the European Central Bank of 30 November 2005 at the request of Česká národní banka on a draft provision concerning the submission of statements by banks and foreign bank branches to Česká národní banka (CON/2005/49)
Date: 2005-11-30
Institutions: European Central Bank
Subjects: Czechia, banking supervision, central bank, disclosure of information, national law, statistics

EN 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 30 November 2005 

at the request of Česká národní banka 

on a draft provision concerning the submission of statements by banks and foreign bank branches 

to Česká národní banka 

(CON/2005/49) 

1. 

On 30 September 2005, the European Central Bank (ECB) received a request from Česká národní 

banka (ČNB) for an opinion on a draft ČNB provision concerning the submission of statements by 

banks and foreign bank branches to Česká národní banka (hereinafter the ‘draft provision’). 

2. 

The  ECB’s  competence  to  deliver  an  opinion  is  based  on  the  fourth  indent  of  Article  2(1)  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  draft  provision  relates  to  the 

collection  of  statistical  information.  In  accordance  with  the  first  sentence  of  Article 17.5  of  the 

Rules of Procedure of the European Central Bank, the Governing Council has adopted this opinion. 

3. 

Currently, ČNB uses the data from statements submitted pursuant to two existing ČNB provisions2 

on  the  submission  of  statements  by  Czech-resident  banks  and  foreign  bank  branches  (hereinafter 

‘respondents’), not only for banking supervision but also to compile statistics for monetary policy 

purposes.  The  draft  provision,  which  will  enter  into  force  on  1  January  2006  (hereinafter  the 

‘effective  date’)  will  replace  those  existing  provisions,  essentially  combining  them  into  a  single 

provision  for  reasons  of  efficiency.  It does  not,  however,  contain  the  methodology  for  compiling 

the  statements  currently  set  out  in  Provision  No  8/2004.  Instead,  the  detailed  methodology  for 

compiling  the  data  sets  (hereinafter  the  ‘methodology’),  which  is  not  the  subject  of  this 

consultation,  will  be  published  and  sent  to  each  respondent  in  electronic  format  on  or  after  the 
effective date. The ECB understands, however, that it follows from a separate ČNB provision3 that 

the  methodology  will  be  legally  binding  on  respondents.  Furthermore,  although  ČNB  has  not 

requested  the  ECB’s  opinion  on  the  methodology,  the  ECB  understands  that  it  will  essentially 

replicate the requirements currently set out in Provision No 8/2004. 

1  
2  

3  

OJ L 189, 3.7.1998, p. 42. 
ČNB Provision No 7 of 9 December 2004 concerning the submission to Česká národní banka of statements by banks and 
foreign  bank  branches  and  ČNB  Provision  No  8  of  15  December  2004  establishing  the  methodology  for  compiling 
statements submitted to Česká národní banka by banks and foreign bank branches (hereinafter ‘Provision No 8/2004’).  
ČNB Provision No 1 of 17 May 2005 establishing the means of transfer and acceptance of automated data statements to 
be  submitted  to  Česká  národní  banka  by  banks  and  foreign  bank  branches,  which  allows  respondents  to  compile 
statements for ČNB on the basis of a methodology which will be transmitted to them electronically. 

 
 
 
                                                      
4. 

It should be recalled that Article 5 of the Statute of the European System of Central Banks and of 

the  European  Central  Bank  and  Article  10  of  the  Treaty  establishing  the  European  Community 

imply  that  national  statistical  authorities  of  Member  States  that  have  not  yet  adopted  the  euro 

(hereinafter ‘non-participating Member States’) are under an obligation to design and implement at 

national  level  all  the  measures  that  they  consider  appropriate  in  order  to  collect  the  statistical 

information  needed  to  fulfil  the  ECB’s  statistical  reporting  requirements.  These  provisions 

therefore also imply that non-participating Member States are under an obligation to make timely 

preparations in the field of statistics in order to adopt the euro. In this context, the ECB notes that it 

is  primarily  the  task  of  the  national  authorities  of  non-participating  Member  States  to  determine 

which detailed reporting requirements and collection methods are the most efficient and effective at 

national level and the least burdensome for the respondents concerned.  

5. 

On  that  basis,  the  ECB  broadly  welcomes  the  draft  provision,  which  appears  to  be  generally 

consistent  with  many  of  the  statistical  reporting  requirements  applying  to  monetary  financial 

institutions (MFIs) that are credit institutions in the Member States that have adopted the euro. 

6. 

The  ECB  notes  that  certain  important  features  of  data  collection  contained  in  Regulation 

ECB/2001/13  are  not  contained  in  the  draft  provision.  First,  whereas  Regulation  ECB/2001/13 
contains  a  definition  of  sectors  other  than  MFIs4,  the  ECB  notes  that  the  draft  provision5  only 

requires respondents to use the list of MFIs and institutions subject to minimum reserves published 

and updated by the ECB and the list of MFIs in the Czech Republic published and updated by ČNB 

when reporting data on their claims and liabilities in respect of MFIs, without defining the non-MFI 

sector.  The  ECB  understands  however  that  it  will  be  possible  to  define  the  non-MFI  sector  by 

means  of  a  system  of  code  classifications,  which  will  be  contained  in  the  methodology  (such 

definition  is  needed  to  obtain  sectoral  data  on  MFIs’  transactions  with  the  non-MFI  sector). 

Furthermore, whereas Regulation ECB/2001/13 requires deposit liabilities and loans to be reported 
at nominal value for statistical purposes6, the ECB notes that the draft provision7 does not expressly 

lay  down  such  requirement,  but  refers  to  such  valuation  being  carried  out  in  accordance  with 

national  and  international  accounting  rules  unless  the  methodological  description  stipulates 

otherwise. The ECB understands that the requirement for deposit liabilities and loans to be valued 

at nominal value for statistical purposes will be contained in the methodology and in the annexes 

thereto.  Although  ČNB  has  not  consulted  the  ECB  on  the  methodology  itself,  the  ECB  is  of  the 

view that if the methodology replicates the essential methodological features currently contained in 

Provision  No  8/2004,  then  it  would  be  broadly  in  line  with  the  requirements  under  Regulation 

ECB/2001/13. 

7. 

Finally,  the  ECB  notes  that  the  reporting  obligations  of  money  market  funds  (MMFs),  although 

also deemed to be MFIs under Regulation ECB/2001/13, are not covered by the draft provision but 

4  
5  
6  
7  

Part 3 of Annex I to Regulation ECB/2001/13. 
Article 7 of the draft provision. 
See Part 1 of Annex I to Regulation ECB/2001/13. 
Article 6(5) of the draft provision. 

2 

                                                      
are currently dealt with under a separate legal act of ČNB8. The ECB understands that pursuant to 

the Act No 6/1993 Coll., on Česká národní banka, as amended, ČNB is authorised to regulate the 

reporting  obligations  of  MMFs  and  other  non-banking  financial  institutions  under  a  separate 

regulation. 

8. 

This opinion will be published on the ECB’s website.  

Done at Frankfurt am Main, 30 November 2005. 

[signed] 

The President of the ECB 

Jean-Claude TRICHET 

8  

ČNB  Decree  No  307/2004  Coll.  on  the  submission  of  information  and  documents  to  Česká  národní  banka  by  entities 
belonging to the financial institutions sector. 

3