Opinion of the European Central Bank of 10 August 2006 at the request of Banka Slovenije on a draft decision on minimum reserves (CON/2006/41)
Date: 2006-08-10
Institutions: European Central Bank
Subjects: Slovenia, foreign-exchange reserves, monetary policy, national law

EN 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 10 August 2006  

at the request of Banka Slovenije on a draft decision on minimum reserves  

(CON/2006/41) 

Introduction and legal basis 

On  26  July  2006  the  European  Central  Bank  (ECB)  received  a  request  from  Banka  Slovenije  for  an 

opinion on a draft decision on minimum reserves (hereinafter the ‘draft decision’). 

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

European  Community  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 draft decision relates to an instrument of monetary policy of a non-participating Member State. 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. 

1.   Purpose of the draft decision 

The  draft  decision  lays  down  a  comprehensive  legal  regime  governing  persons  subject  to  reserve 

requirements  (i.e.  banks  and  savings  banks).  Its  provisions  cover,  inter  alia,  the  reserve  base, 

reserve  ratios,  fulfilment  of  reserve  requirements,  remuneration,  the  special  regime  in  the  case  of 

mergers and divisions, and sanctions for non-compliance with reserve requirements. In comparison 
to the existing Decision on minimum reserves2, the new elements introduced by the draft decision 

are  the  following:  (i)  maintenance  periods  are  aligned  with  the  Eurosystem’s  maintenance  period 

calendar; (ii) the reserve base is calculated on the basis of end-of-month balance sheet information 

reported  within  the  framework  of  statistical  reporting;  and  (iii)  an  allowance  of  EUR  100  000  is 

introduced for all persons subject to reserve requirements. The draft decision is intended to apply 

for  the  last  three  maintenance  periods  in  2006  before  Slovenia  adopts  the  euro,  i.e.  from 

27 September to 31 December 2006. 

1  
2  

OJ L 189, 3.7.1998, p. 42.  
Official Gazette of the Republic of Slovenia, Nos 99/2004 and 9/2005. 

 
 
 
 
 
                                                 
2. 

General observations  

The  ECB  welcomes  the  draft  decision  as  a  part  of  the  intensive  preparations  for  adoption  of  the 

euro in Slovenia. Within the framework of monetary policy, which currently remains a competence 

of Banka Slovenije, the draft decision is intended to make the Slovenian minimum reserves system 

consistent  with  the  Eurosystem  standards  that  will  apply  after  adoption  of  the  euro.  This  step 

should help Slovenian credit institutions to become acquainted with the Eurosystem’s requirements 

and  ensure  a  smooth  start  to  compliance  with  the  Eurosystem’s  reserve  requirements  in 

January 2007. To this end, the draft decision adequately reflects the Eurosystem legal framework 

on minimum reserves, especially Regulation ECB/2003/9 of 12 September 2003 on the application 
of minimum reserves3. 

3. 

Calculation of the reserve base in the last maintenance period of 2006 

3.1  During  the  consultation  procedure,  Banka  Slovenije  suggested  that  the  draft  decision  should  be 

amended  so  as  to  enable  Slovenian  credit  institutions  to  deduct  from  their  reserve  bases  for  the 

maintenance period starting on 13 December 2006 any liabilities owed to Eurosystem institutions 

subject to minimum reserves. 

3.2  The Eurosystem rule, pursuant to which liabilities owed to Eurosystem institutions that are subject 

to Eurosystem reserve requirements may be deducted from the reserve base, is intended to ensure 

that  the  same  liabilities  are  not  made  subject  twice  to  reserve  requirements  imposed  by  the  same 

authority (i.e. the ECB). The ECB notes that until 1 January 2007, this justification will not apply to 

the  Slovenian  minimum  reserves  system,  as  it  will  still  be  Banka  Slovenije  that  imposes  reserve 

requirements on Slovenian institutions and not the ECB. Until Slovenia adopts the euro, however, 

the  monetary  policy  field  (including  minimum  reserves)  falls  within  the  competence  of  Banka 

Slovenije,  and  Banka  Slovenije  may  therefore  decide  to  include  such  a  provision  in  the  draft 

decision. To do so could facilitate a smooth integration into the full Eurosystem minimum reserves 

regime  on  1  January  2007,  as  the  reserve  bases  of  Slovenian  institutions  subject  to  reserve 

requirements  would  already  be  calculated  taking  into  account  liabilities  owed  to  Eurosystem 

institutions subject to minimum reserves. 

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

Done at Frankfurt am Main, 10 August 2006. 

3  

OJ L 250, 2.10.2003, p. 10. 

2 

[signed] 

The President of the ECB 

Jean-Claude TRICHET