Opinion of the European Central Bank of 10 May 2012 on supervision-related operating costs (CON/2012/35)
Date: 2012-05-10
Institutions: European Central Bank
Subjects: Belgium, central bank, financial institution, financial supervision, national law, operating cost

EN 

ECB-PUBLIC 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 10 May 2012 

on supervision-related operating costs 

(CON/2012/35) 

Introduction and legal basis 

On 23 March 2012, the European Central Bank (ECB) received a request from the Nationale Bank van 

België/Banque Nationale de Belgique (NBB), acting on behalf of the Belgian Ministry of Finance, for an 

opinion on a draft royal decree on the operating costs of the Nationale Bank van België/Banque Nationale 

de Belgique in relation to the supervision of financial institutions, implementing Article 12bis, § 4 of the 

Law  of  22  February  1998  establishing  the  Organic  Statute  of  the  Nationale  Bank  van  België/Banque 

Nationale de Belgique (hereinafter the ‘draft royal 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 the third indent of Article 2(1) 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 royal decree contains provisions concerning the NBB. 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 royal decree 

1.1  The draft royal decree is part of the reform of the Belgian financial supervisory structures towards a 

‘twin-peaks’  type  model  under  which  the  NBB  is  the  sole  authority  responsible  for  the  financial 
sectors’ micro- and macro-prudential stability2.  

1.2  The draft royal decree defines the arrangements under which the NBB’s operating costs in relation 
to the supervision of financial institutions are to be borne by such institutions3, in accordance with 
Article 12bis, § 4 of the Law of 22 February 19984. Each year, the NBB determines the share of its 
operating  costs5  related  to  the  supervision  of  the  insurance  and  banking  sectors,  using  a  cost 

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OJ L 189, 3.7.1998, p. 42.  
The ECB discussed this reform in Opinions CON/2010/7 and CON/2011/5. 
Article 1, §1 of the draft royal decree. 
See paragraph 1.5.4 and 3.3 of Opinion CON/2011/5. 
The  operating  costs  are  broadly  defined  to  include:  personnel  costs,  administrative  costs,  depreciation  of  tangible  and 
intangible assets and other costs that need to be attributed to the supervision of financial institutions (Article 1 §2 of the 
draft royal decree).  

 
 
 
 
                                                           
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calculation application6. In order to pre-finance these costs, which can only be determined at year-

end, the supervised institutions must pay a yearly contribution determined on the basis of 90% of 

the  NBB’s  actual  operating  cost  for  the  previous  year  relating  to  the  respective  sector.  Specific 
allocation  criteria  are  then  applied  to  this  amount  to  calculate  the  individual  contributions7.  A 
special contribution is charged to systemically relevant insurance companies and credit institutions8 
to  reflect  the specific  supervisory  tasks  entrusted  to the  NBB9.  The  NBB  informs  the  supervised 

institutions  of  the  basic,  and  possibly  specific,  contribution  that  they  must  pay  by  30  September 

each  year.  Where  individual  contributions  collected  from  the  banking  and/or  insurance  sectors 

appear  to  exceed  the  NBB’s  actual  supervision-related  operating  costs  relating  to  the  respective 
sector,  the  surplus  is  repaid  to  the  institutions  concerned10.  Conversely,  any  shortfall  between 

individual  contributions  collected  and  the  NBB’s  actual  operating  costs  for  the  relevant  sector is 
made up by requiring an additional contribution from the relevant supervised institutions11. Finally, 

the  NBB  may  charge  affected  insurance  undertakings  or  credit  institutions  for  exceptional  costs 
incurred in the context of their supervision12. 

1.3  The NBB’s operating costs relating to the supervision of financial institutions from other sectors13 

are covered by a lump sum. This contribution does not depend on the NBB’s actual operating costs 
and is calculated by the NBB in accordance with the criteria set out in the draft royal decree14.  

2.   General observation 

The ECB welcomes the consultation submitted by the Belgian authorities15. In view of the arrangements 

set out in the draft royal decree, the ECB understands that the exercise of the new tasks transferred to the 

NBB will be adequately financed by contributions from supervised institutions and will not result in any 

losses for the NBB. Therefore, the ECB considers that the draft royal decree meets the requirements for a 

national central bank to be financially independent.  

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The  methods  used  and  the  total  amount  to  be  borne  by  each  of  the  two  sectors  are  certified  each  year  by  the  NBB’s 
auditor; explanations are provided in the NBB’s annual financial statements (Article 1, §2 of the draft royal decree).  
Article 2, §1 to 5 (insurance sector) and Articles 7 to 9 (banking sector) of the draft royal decree. 
Article 2, §2 2° (insurance sector) and Article 7 2° (banking sector) of the draft royal decree. Where several institutions 
belonging to one group are considered to be systemic, the additional contribution is paid by only one of them. See also 
Article 13, §3 with regard to clearing institutions, settlement institutions and assimilated entities. 
Article 36/3 of the Law of 22 February 1998. 
i.e. it is either actually reimbursed or set-off  against the contribution due by the institution for the following  year. See 
Article 3 (insurance sector) and 10 (banking sector) of the draft royal decree. 
Article 4 (insurance sector) and 11 (banking sector) of the draft royal decree. 
Article  5  (insurance  sector)  and  12  (banking  sector)  of  the  draft  royal  decree.  See  also  Article  13,  §5  with  regard  to 
clearing institutions, settlement institutions and assimilated entities. 
Clearing institutions, settlement institutions, assimilated entities, payment institutions and mutual guarantee companies. 
Article 13 to 15 of the draft royal decree. 
Paragraph 3.3 of CON/2011/5. 

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

Done at Frankfurt am Main, 10 May 2012. 

[signed] 

The President of the ECB 

Mario DRAGHI 

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