Opinion of the European Central Bank of 30 September 2011 on minimum reserves (CON/2011/75)
Date: 2011-09-30
Institutions: European Central Bank
Subjects: Czechia, Eurosystem, credit institution, credit union, foreign-exchange reserves, monetary policy, national law

EN 

ECB-PUBLIC 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 30 September 2011 

on minimum reserves 

(CON/2011/75) 

Introduction and legal basis 

On  16  August  2011  the  European  Central  Bank  (ECB)  received  a  request  from  Česká  národní  banka 

(CNB)  for  an  opinion  on  a  draft  provision  of  the  Czech  National  Bank  stipulating  the  terms  and 

conditions for creating minimum reserves (hereinafter the ‘draft provision’). 

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 provision relates to instruments of monetary policy of a Member State that has 

not adopted the euro. 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 provision 

The  draft  provision  will  replace  CNB  provision  No  2  of  23  September  2003,  stipulating  the  terms  and 

conditions  for  creating  minimum  reserves.  Among  other  changes  to  the  CNB  provision,  the  draft 
provision extends to credit unions the obligation to hold minimum reserves2, which currently applies only 

to  banks  and  foreign  bank  branches,  following  the  CNB  Bank  Board’s  decision  of  12  May  2011.  The 

draft provision covers, among other things, the reserve base, reserve ratio, compliance  with the reserve 

requirement, remuneration, a sanction for non-compliance with the reserve requirement and the holding 

of minimum reserves in the event of the winding-up, conversion, transfer of the business or division of a 
bank or credit union. The text has been simplified3 and refined in line with changes to related legislation.   

2. 

General observations  

Although  Member  States  that  have  not  adopted  the  euro  retain  their  powers  in  the  field  of  monetary 

policy, including in connection with their minimum reserves frameworks, it is nevertheless beneficial to 

achieve  consistency  with  the  Eurosystem  minimum  reserves  framework  so  that  their  credit  institutions 

1  
2  

3  

OJ L 189, 3.7.1998, p. 42.  
Under Law No 6/1993 Coll. on Česká národní banka (hereinafter the ‘CNB Law’), CNB may require banks, foreign bank 
branches and credit  unions  to hold  minimum  reserves.  The  CNB  Law also  provides  the  basic conditions  for  minimum 
reserves and authorises CNB to adopt a provision in this respect.  
Technical details will be specified separately in CNB’s Official Information published in respect of the draft provision 
(see, for example, Article 2(4) and Article 5(1) and (4) of the draft provision).  

 
 
 
                                                 
ECB-PUBLIC 

become  acquainted with the reserve requirements that will apply to them following the adoption of the 

euro  in  the  Member  State  where  they  are  established.  The  legal  framework  for  the  Eurosystem’s 

minimum  reserve  system  consists  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 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  sector6.  Article  11  and  Annex  III  to  Regulation 

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

Regulation for minimum reserves purposes.   

3. 

Specific observations  

3.1  Under  the  draft  provision,  the  credit  institutions’  minimum  reserves  calculations  may  be  revised 

during  the  reserve  maintenance  period,  in  particular  in  case  of  corrections  made  to  erroneous 

reporting of liabilities in the statistical statements. In this context, the ECB would like to point out 

that  the  Eurosystem’s  minimum  reserves  framework  considers  the  credit  institutions’  minimum 

reserves calculations to be ‘frozen’ at the start of the relevant reserve maintenance period. 

3.2  Finally, the ECB understands that the statistical reporting requirements used to calculate the reserve 

base of banks and foreign bank branches  are  aligned with Regulation ECB/2008/32, and that the 

CNB is preparing an amendment to the statistical reporting requirements for credit unions for the 

purpose of calculating credit unions’ minimum reserves.  

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

Done at Frankfurt am Main, 30 September 2011. 

[signed] 

The President of the ECB 

Jean-Claude TRICHET 

4  
5  
6  

OJ L 318, 27.11.1998, p. 1. 
OJ L 250, 2.10.2003, p. 10. 
OJ L 15, 20.1.2009, p. 14. 

2