Opinion of the European Central Bank of 26 November 2010 on the minimum reserves framework (CON/2010/84)
Date: 2010-11-26
Institutions: European Central Bank
Subjects: Estonia, Eurosystem, foreign-exchange reserves, monetary integration, monetary policy, national law

EN 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 26 November 2010 

on the minimum reserves framework 

(CON/2010/84) 

Introduction and legal basis 

On 25 October 2010, the European Central Bank (ECB) received a request from Eesti Pank for an opinion 

on the draft Governor decree on the procedure for calculating and complying with the reserve requirement 

(hereinafter the ‘draft decree’). 

The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the 

Functioning of the European Union 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  decree  relates  to  monetary  policy  instruments.  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 decree 

The draft decree will fine-tune the minimum reserve framework in Estonia to the Eurosystem minimum 
reserve  system  in  preparation  for  the  introduction  of  the  euro  in  Estonia  on  1  January  20112.  The  draft 

decree will create a single legal act on minimum reserves that will apply from 1 January 2011 and will 

repeal the earlier legal acts.  

2. 

General observations 

2.1   Opinion  CON/2010/603  addressed  similar  provisions,  noting  that  Estonia  will  be  subject  from 

1 January  2011  to  the  ECB’s  minimum  reserves  framework,  consisting  of:  (i) Article  19  of  the 

Statute of the European System of Central Banks and of the European Central Bank; (ii) Council 

Regulation  (EC)  No  2531/98  of  23  November  1998  concerning  the  application  of  minimum 
reserves by the European Central Bank4; (iii) Regulation ECB/2003/9 of 12 September 2003 on the 

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4  

OJ L 189, 3.7.1998, p. 42.  
As decided at a meeting of the Economic and Financial Affairs Council on 13 July 2010. 
All ECB opinions are published on the ECB’s website at www.ecb.europa.eu.  
OJ L 318, 27.11.1998, p. 1. 

 
 
 
 
 
                                                 
application  of  minimum  reserves5;  and  (iv)  in  relation  to  the  definition  and  calculation  of  the 

reserve base, Regulation ECB/2008/32 of 19 December 2008 concerning the balance sheet of the 
monetary  financial  institutions  sector  (recast)6.  Article  11  and  Annex  III  to  Regulation 

ECB/2008/32 require the use of the statistical information by credit institutions reported under this 

Regulation  for  minimum  reserves  purposes.  Special  rules  set  out  in  this  Regulation  prevail  over 

Regulation  ECB/2003/9  and  concern  small  credit  institutions,  group  reporting  and  reserve 

requirements in the case of mergers. 

2.2  Decision  ECB/2010/18  of  26  October  2010  on  transitional  provision  for  the  application  of 
minimum reserves by the European Central Bank following the introduction of the euro in Estonia7 

ensures  that  the  relevant  institutions  are  integrated  smoothly  into  the  Eurosystem’s  minimum 

reserve  system  without  placing  a  disproportionate  burden  on  them.  While  the  regular  reserve 

maintenance period runs from 8 December 2010 to 18 January 2011, this Decision provides for a 

transitional maintenance period from 1 to 18 January 2011 for the imposition of minimum reserve 

requirements  on  institutions  located  in  Estonia.  Furthermore,  the  Decision  sets  out  specific  rules 

governing the application of minimum reserve requirements during the transitional period and, in 

particular, describes the method for calculating the reserve base in relation to the transitional period 

for liabilities owed to institutions located in Estonia.  

2.3  Taking  into  account  Opinion  ECB/2010/60,  the  draft  Decree  provides  legal  clarity  and  secures  a 

smooth transition to the Eurosystem minimum reserves framework from 1 January 2011. 

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

Done at Frankfurt am Main, 26 November 2010. 

[signed] 

The President of the ECB 

Jean-Claude TRICHET 

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OJ L 250, 2.10.2003, p. 10. 
OJ L 15, 20.1.2009, p. 14. 
OJ L 285, 30.10.2010, p. 7. 

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