2007/850/EC: Decision of the European Central Bank of 22 November 2007 amending Decision ECB/2001/16 on the allocation of monetary income of the national central banks of participating Member States from the financial year 2002 (ECB/2007/15)
Date: 2007-11-22
Institutions: European Central Bank
Subjects: European Central Bank, European System of Central Banks, Member States' contribution, central bank, euro area, monetary policy

L 333/86

EN

Official Journal of the European Union

19.12.2007

EUROPEAN CENTRAL BANK

DECISION OF THE EUROPEAN CENTRAL BANK

of 22 November 2007

amending Decision ECB/2001/16 on the allocation of monetary income of the national central
banks of participating Member States from the financial year 2002

(ECB/2007/15)

(2007/850/EC)

THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,

(4)

This Decision is without prejudice to the liabilities of
issuing authorities, pursuant to Decision ECB/2001/15
of 6 December 2001 on the issue of euro banknotes (2).

Having regard to the Statute of the European System of Central
Banks and of the European Central Bank (hereinafter the ‘ESCB
Statute’), and in particular Article 32 thereof,

(5)

Whereas:

(1)

(2)

Article 32 of the ESCB Statute lays down general rules
for the allocation of monetary income of national central
banks (NCBs) of Member States that have adopted the
euro. The general rules laid down in Article 32 of the
ESCB Statute also apply to the income resulting from the
write-off of euro banknotes that have been withdrawn
from circulation.

the ESCB Statute,

to Article 32.7 of

Article 32.5 of the ESCB Statute specifies that the sum of
the NCBs’ monetary income is allocated to the NCBs in
proportion to their paid up shares in the ECB’s capital.
Pursuant
the
Governing Council
to take all other
is competent
measures necessary for the application of Article 32.
This includes the competence to take account of other
factors when deciding on the allocation of
income
resulting from the write-off of euro banknotes that
have been withdrawn from circulation. In this context,
the principles of equal treatment and fairness require that
account be taken of the time period during which the
withdrawn euro banknotes were issued. The allocation
key for this specific income must therefore reflect both
the relevant share in the ECB’s capital and the length of
the issue phase.

Express

Transfer

Article 14(2) of Guideline ECB/2007/2 of 26 April 2007
on a Trans-European Automated Real-time Gross
system (TARGET2) (3)
settlement
provides that
replace the
the TARGET2 system will
current TARGET system. The NCBs of Member States
that have adopted the euro will migrate to TARGET2
in accordance with the schedule specified in Article 13
of Guideline ECB/2007/2. Furthermore, certain NCBs of
Member States that have not adopted the euro will
connect
to TARGET2 on the basis of a separate
agreement with the ECB and the NCBs of Member
therefore
States
necessary to update the references
in
Decision ECB/2001/16 of 6 December 2001 on the allo-
cation of monetary income of the national central banks
of participating Member States from the financial year
2002 (4).

that have adopted the euro.

is
It
to ‘TARGET’

(6)

Some further changes to Decision ECB/2001/16 are also
needed in relation to the measurement of monetary
income and the treatment of frontloaded euro banknotes,

HAS DECIDED AS FOLLOWS:

Article 1

Decision ECB/2001/16 is amended as follows:

1. Article 1 is amended as follows:

(3)

The withdrawal of euro banknotes needs to be regulated
by separate decisions to be taken pursuant to Article 5 of
Decision ECB/2003/4 of 20 March 2003 on the denomi-
nations, specifications, reproduction, exchange and with-
drawal of euro banknotes (1).

(1) OJ L 78, 25.3.2003, p. 16.

The following definitions are inserted after the definition of
‘daily foreign exchange reference rate’:

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

ECB/2006/25 (OJ L 24, 31.1.2007, p. 13).

(3) OJ L 237, 8.9.2007, p. 1.
(4) OJ L 337, 20.12.2001, p. 55. Decision as last amended by Decision

ECB/2006/7 (OJ L 148, 2.6.2006, p. 56).

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Official Journal of the European Union

L 333/87

‘(n) “withdrawn euro banknotes” means any euro banknote
type or series that has been withdrawn from circulation
by a decision of the Governing Council taken pursuant
to Article 5 of Decision ECB/2003/4;

3. Withdrawn euro banknotes shall be written off as
follows:

(o) “issue key” means the average subscribed capital key
series of

issue phase of

type or

a

during the
withdrawn euro banknotes;

(p) “issue phase”,

in relation to a euro banknote type or
series, means the period starting on the date on which
the first issue of a euro banknote of this type or series is
recorded in the liability base and ending on the date on
which the last issue of a euro banknote of this type or
series is recorded in the liability base;

(a) On the write-off date, the ECB’s and the NCBs’ balance
sheet items “banknotes in circulation” shall be reduced
by the total amount of withdrawn euro banknotes still in
the actual amounts of
circulation. For this purpose,
withdrawn euro banknotes that were put into circulation
shall be adjusted to their pro-rata amounts calculated in
accordance with the issue key, and the differences shall
be settled among the ECB and the NCBs.

(b) The adjusted amount of withdrawn euro banknotes shall
be written off from the balance sheet item “banknotes in
circulation” to the NCBs’ profit and loss accounts.

(q) “to write off” means

to eliminate withdrawn euro
banknotes from the balance sheet item “banknotes in
circulation”.’

(c) Each NCB shall establish a provision for withdrawn euro
banknotes that are still expected to be exchanged. The
provision shall be equivalent to the relevant NCB’s share
in the total amount of the provision calculated using the
issue key.

2. Article 3(3) is replaced by the following:

‘3. Where the value of an NCB’s earmarkable assets
exceeds or falls short of the value of its liability base, the
difference shall be offset by applying the reference rate to the
value of the difference.’

4. Withdrawn euro banknotes that are exchanged after
the write-off date shall be recorded in the books of the
NCB that has accepted them. The inflow of withdrawn
euro banknotes shall be redistributed among NCBs at least
once a year by applying the issue key, and the differences
shall be settled between them. Each NCB shall set off the
pro-rata amount against its provision or, in the event that
the inflow exceeds the provision, record a corresponding
expense in its profit and loss account.

3. The following Article 5a is inserted after Article 5:

The Governing Council shall review the total amount

5.
of the provision on an annual basis.’

‘Article 5a

Calculation and allocation of income resulting from the
write-off of euro banknotes

1. Withdrawn euro banknotes shall remain part of the
liability base until
they are exchanged or written off,
whichever event occurs first.

4. Annex I is amended in accordance with Annex I to this

Decision.

5. Annex II is amended in accordance with Annex II to this

Decision.

The Governing Council may decide to write off
2.
withdrawn euro banknotes,
in which case it shall specify
the write-off date and the total amount of the provision to
be made for those withdrawn euro banknotes that are still
expected to be exchanged.

6. All references in Decision ECB/2001/16 to ‘TARGET’ shall be
construed as references to ‘TARGET2’ once the relevant NCB
has migrated to TARGET2.

L 333/88

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Official Journal of the European Union

19.12.2007

Article 2

Final provision

This Decision shall enter into force on 1 January 2008.

Done at Frankfurt-am-Main, 22 November 2007.

The President of the ECB

Jean-Claude TRICHET

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Official Journal of the European Union

L 333/89

ANNEX I

Annex I to Decision ECB/2001/16 is amended as follows.

The following subparagraph is inserted at the end of paragraph 1 in Part A:

‘In the event that the cash change-over date is a day on which TARGET/TARGET2 is closed, the liability of a new
Eurosystem NCB which results from euro banknotes that have been frontloaded pursuant to Guideline ECB/2006/9
of 14 July 2006 on certain preparations for the euro cash changeover and on frontloading and sub-frontloading of
euro banknotes and coins outside the euro area (1) and have then entered into circulation before the cash change-
over date form part of the liability base (as part of the correspondent accounts under liability item 10.4 of the HBS)
until the liability becomes part of the intra-Eurosystem liabilities resulting from TARGET/TARGET2 transactions.

___________
(1) OJ L 207, 28.7.2006, p. 39.’

Annex II to Decision ECB/2001/16 is amended as follows.

ANNEX II

The following paragraph is inserted at the end of Part A, after the paragraph ending ‘as at 31 December 2002’:

‘6. claims resulting from euro banknotes that have been frontloaded pursuant to Guideline ECB/2006/9 and have
then entered into circulation before the cash change-over date (part of asset item 4.1 of the HBS until the cash
change-over date and thereafter part of the correspondent accounts under asset item 9.5 of the HBS), but only
until such claim becomes part of the intra-Eurosystem claims resulting from TARGET/TARGET2 transactions.’