Regulation (EC) No 1348/2007 of the European Central Bank of 9 November 2007 concerning transitional provisions for the application of minimum reserves by the European Central Bank following the introduction of the euro in Cyprus and Malta (ECB/2007/11)
Date: 2007-11-09
Institutions: European Central Bank
Subjects: Cyprus, European Central Bank, European System of Central Banks, Malta, central bank, financial institution, financial legislation, participating country (euro area), reserves

L 300/44

EN

Official Journal of the European Union

17.11.2007

REGULATION (EC) No 1348/2007 OF THE EUROPEAN CENTRAL BANK

of 9 November 2007

concerning transitional provisions for the application of minimum reserves by the European
Central Bank following the introduction of the euro in Cyprus and Malta

(ECB/2007/11)

THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,

branches of credit institutions located in Cyprus or Malta
will be subject to reserve requirements from that date.

Having regard to the Statute of the European System of Central
Banks and of the European Central Bank, and in particular
Article 19.1 and the first indent of Article 47.2 thereof,

Having regard to Council Regulation (EC) No 2531/98 of 23
November 1998 concerning the application of minimum
reserves by the European Central Bank (1),

Having regard to Regulation (EC) No 1745/2003 of
the
European Central Bank of 12 September 2003 on the appli-
cation of minimum reserves (ECB/2003/9) (2),

Having regard to Council Regulation (EC) No 2532/98 of 23
the European
November 1998 concerning the powers of
Central Bank to impose sanctions (3),

Having regard to Council Regulation (EC) No 2533/98 of 23
November 1998 concerning the collection of statistical infor-
mation by the European Central Bank (4), and in particular
Articles 5(1) and 6(4) thereof,

(2)

(3)

(4)

these entities into the minimum
The integration of
reserve system of
the European Central Bank (ECB)
requires the adoption of transitional provisions in order
to ensure smooth integration without creating a dispro-
portionate burden for credit institutions in participating
Member States, including Cyprus and Malta.

Article 5 of the Statute in conjunction with Article 10 of
the Treaty establishing the European Community implies
to design and
an obligation for Member States
implement
appropriate
the
all
measures to collect the statistical information needed to
fulfil the statistical reporting requirements of the ECB and
to ensure timely preparation in the field of statistics to
adopt the euro.

national

level

at

the European Central Bank,

In view of Articles 3.5 and 4.7 of the Rules of Procedure
of
the
Central Bank of Cyprus and the Central Bank of Malta
have been invited to participate in the proceedings
leading to the adoption of this Regulation,

the Governors of

Having regard to Regulation (EC) No 2423/2001 of
the
European Central Bank of 22 November 2001 concerning the
consolidated balance sheet of the monetary financial institutions
sector (ECB/2001/13) (5),

Whereas:

(1)

The adoption of
1 January 2008 means

the euro by Cyprus and Malta on
institutions and

that credit

HAS ADOPTED THIS REGULATION:

Article 1

Definitions

the terms ‘institution’,
this Regulation,
For the purposes of
‘reserve requirement’,
‘reserve base’, and
‘maintenance period’,
‘participating Member State’ have the same meaning as in Regu-
lation (EC) No 1745/2003 (ECB/2003/9).

Article 2

(1) OJ L 318, 27.11.1998, p. 1. Regulation as amended by Regulation

(EC) No 134/2002 (OJ L 24, 26.1.2002, p. 1).

(2) OJ L 250, 2.10.2003, p. 10.
(3) OJ L 318, 27.11.1998, p. 4.
(4) OJ L 318, 27.11.1998, p. 8.
(5) OJ L 333, 17.12.2001, p. 1. Regulation as last amended by Regu-
lation (EC) No 4/2007 (ECB/2006/20) (OJ L 2, 5.1.2007, p. 3).

Transitional provisions for institutions located in Cyprus
or Malta

1.
In derogation from Article 7 of Regulation (EC) No
1745/2003 (ECB/2003/9), a transitional maintenance period
shall run from 1 January 2008 to 15 January 2008 for insti-
tutions located in Cyprus or Malta.

17.11.2007

EN

Official Journal of the European Union

L 300/45

The reserve base of each institution located in Cyprus or
2.
Malta for the transitional maintenance period shall be defined in
relation to elements of its balance sheet as at 31 October 2007.
Institutions located in Cyprus or Malta shall report their reserve
base to the Central Bank of Cyprus or the Central Bank of Malta
respectively in accordance with the ECB’s reporting framework
for monetary and financial statistics, as laid down in Regulation
Institutions located in
(EC) No 2423/2001 (ECB/2001/13).
Cyprus or Malta that benefit
from the derogation under
Article 2(2) of Regulation (EC) No 2423/2001 (ECB/2001/13)
shall calculate a reserve base for the transitional maintenance
period on the basis of their balance sheet as at 30 September
2007.

3.
In respect of the transitional maintenance period, either an
institution located in Cyprus or Malta or its respective national
central bank shall calculate such institution’s minimum reserves.
The party that calculates the minimum reserves shall submit its
calculation to the other party allowing sufficient time for the
latter to verify it and submit revisions. The calculated minimum
reserves, including any revisions thereof, if applicable, shall be
confirmed by the two parties at the latest on 11 December
2007. If the notified party does not confirm the amount of
minimum reserves by 11 December 2007, it shall be deemed
to have acknowledged that the calculated amount applies for
the transitional maintenance period.

4.
Article 3(2) to (4) shall apply mutatis mutandis to insti-
tutions located in Cyprus so that these institutions may, for
their initial maintenance periods, deduct
from their reserve
bases any liabilities owed to institutions in Cyprus or Malta,
the time the minimum reserves are calculated
although at
such institutions will not appear on the list of
institutions
subject to reserve requirements in Article 2(3) of Regulation
(EC) No 1745/2003 (ECB/2003/9).

Article 3(2) to (4) shall apply mutatis mutandis to institutions
located in Malta so that these institutions may, for their initial
maintenance periods, deduct
reserve bases any
liabilities owed to institutions in Cyprus or Malta, although at
the time the minimum reserves are calculated such institutions
will not appear on the list of institutions subject to reserve
(EC) No
2(3)
in Article
requirements
1745/2003 (ECB/2003/9).

of Regulation

from their

Institutions located in other participating Member States
2.
may decide to deduct from their reserve base for the main-
tenance periods from 12 December 2007 to 15 January 2008
and from 16 January to 12 February 2008 any liabilities owed
to institutions located in Cyprus or Malta, even though at the
time the minimum reserves are calculated such institutions will
to reserve
not appear on the list of
requirements
(EC) No
in Article
1745/2003 (ECB/2003/9).

subject
of Regulation

institutions

2(3)

3.
Institutions located in other participating Member States
that wish to deduct liabilities owed to institutions located in
Cyprus or Malta shall, for the maintenance periods from 12
December 2007 to 15 January 2008 and from 16 January to
12 February 2008, calculate their minimum reserves on the
basis of their balance sheet at 31 October and 30 November
2007 respectively and report a table in accordance with
to Regulation (EC) No
footnote 5 of Table 1 of Annex I
2423/2001 (ECB/2001/13)
located in
to the ECB’s minimum
Cyprus or Malta as already subject
reserve system.

showing institutions

This shall be without prejudice to the obligation for institutions
to report statistical
information for the periods concerned in
accordance with Table 1 of Annex I to Regulation (EC) No
2423/2001 (ECB/2001/13), still showing institutions located
in Cyprus or Malta as being banks located in the ‘Rest of the
world’.

The tables shall be reported in accordance with the time limits
and procedures laid down in Regulation (EC) No 2423/2001
(ECB/2001/13).

4.
For the maintenance periods starting in December 2007,
January and February 2008, institutions located in other parti-
cipating Member States that benefit from the derogation under
Article 2(2) of Regulation (EC) No 2423/2001 (ECB/2001/13)
and wish to deduct liabilities owed to institutions located in
Cyprus or Malta, shall calculate their minimum reserves on
the basis of their balance sheet as at 30 September 2007 and
report a table in accordance with footnote 5 of Table 1 of
Annex I
to Regulation (EC) No 2423/2001 (ECB/2001/13)
showing institutions located in Cyprus or Malta as already
subject to the ECB’s minimum reserve system.

Article 3

Transitional provisions for institutions located in other
participating Member States

1.
The maintenance period applicable to institutions located
in other participating Member States pursuant to Article 7 of
Regulation (EC) No 1745/2003 (ECB/2003/9) shall
remain
unaffected by the existence of a transitional maintenance
period for institutions located in Cyprus or Malta.

This shall be without prejudice to the obligation for institutions
to report statistical
information for the periods concerned in
accordance with Table 1 of Annex I to Regulation (EC) No
2423/2001 (ECB/2001/13) still showing institutions located in
Cyprus or Malta as being banks located in the ‘Rest of the
world’.

L 300/46

EN

Official Journal of the European Union

17.11.2007

The tables shall be reported in accordance with the time limits
and procedures laid down in Regulation (EC) No 2423/2001
(ECB/2001/13).

In the absence of specific provisions in this Regulation,
2.
the provisions of Regulations (EC) No 1745/2003 (ECB/2003/9)
shall apply.

Article 4

Entry into force and application

This Regulation shall enter into force on the day following

1.
its publication in the Official Journal of the European Union.

Done at Frankfurt am Main, 9 November 2007.

For the Governing Council of the ECB
The President of the ECB

Jean-Claude TRICHET