Opinion of the European Central Bank of 18 February 2013 on the amended calculation of the annual financial stability contribution (CON/2013/13)
Date: 2013-02-18
Institutions: European Central Bank
Subjects: Belgium, credit institution, financial stability, national law, payment system, securities

EN 

ECB-PUBLIC 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 18 February 2013 

on the amended calculation of the annual financial stability contribution  

(CON/2013/13) 

Introduction and legal basis 

On 5 February 2013, 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  law  amending  the  Law  of  28  December  2011  establishing  a  financial  stability 

contribution (hereinafter the ‘draft law’). The ECB was requested to deliver an opinion under extremely 

urgent circumstances. 

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

Functioning  of  the  European  Union  and the  fifth  and  sixth indents  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,  since  the  draft  law  relates  to  settlement  systems  and  the  rules 

applicable to financial institutions insofar as they materially influence the stability of financial institutions 

and  markets.  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 law 

1.1  

In order to improve the method for calculating the annual financial stability contribution set out in 
the Law of 28 December 2011, on which the ECB was previously consulted2, the draft law aims to 

adjust  the  financial  stability  contribution  according  to  the  level  of  risks  of  the  assets  held  by 

Belgian credit institutions.  

1.2  The  method  for  calculating  the  financial  stability  contribution  –  which  currently  amounts  to 

0.035%  of  all  credit  institutions’  total  liability  after  deduction  of  (i)  deposits  eligible  for 

reimbursement by the Belgian deposit guarantee scheme, and (ii) their regulatory capital, regardless 

of  their  activities  –  would  differ,  depending  on  whether  (a)  the  credit  institution  is  systemically 

important within the meaning of Article 36/3, § 2 of the Law of 22 February 1998 establishing the 

Organic Statute of the Nationale Bank van België/Banque Nationale de Belgique (hereinafter the 

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2  

OJ L 189, 3.7.1998, p. 42.  
CON/2011/103. 

 
 
 
 
                                                 
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‘NBB Statute’) and whether (b) such credit institution acts as depository within the meaning of the 

Royal Decree No 62 of 10 November 1967 on the deposit of fungible financial instruments and the 

settlement of transactions in respect of such instruments.   

1.3  Under  the  draft  law,  the  financial  stability  contribution  for  the  systemically  important  credit 

institutions would be adjusted from 1 January 2014, as they potentially incur a greater market risk 

and are hence more likely to trigger intervention by the stability fund. Such increase is calculated 

on  a  consolidated  basis  and  on  the  basis  of  a  risk  indicator  defined  as  the  ratio  of  (i)  the  total 

financial assets held for trading, after deduction of 80% of the total of derivatives held for trading 

to (ii) the balance sheet total. The preparatory works for the draft law consider such approach in 

line with the structural reform measures currently under discussion in the European Union and the 
United States in order to protect deposit-taking banks against risk-taking activities3. 

1.4  The  systemic  risk  posed  by  credit  institutions  acting  as  a  central  securities  depository  and/or  a 

securities  settlement  system  differs  from  risk  posed  by  other  credit  institutions,  in  view  of  their 

inherently  different  activities,  volatility  of  the  balance  sheet’s  size,  liabilities’  structure  and 

regulatory regime. Hence, the draft law sets out a regime prevailing over the regime applicable to 

systemically  important  credit  institutions.  First,  the  rate  of  the  financial  stability  contribution  is 

increased  from  3.5  to  9.5 basis  points.  Second,  to  limit  the  negative  effects  of  excessive  balance 

sheet  volatility,  such  rate  is  applied  to  an  annual  average  of  month-end  figures  rather  than  such 

amount  calculated  at  31  December  of  the  year  preceding  collection  of  the  financial  stability 

contribution. Third, such rate applies to the total of (i) the amounts due to credit institutions defined 

as any term accounts and any debts resulting from assignments and advances, (ii) amounts due to 

customers defined as any term deposits or deposits with notice, any special deposits and any debts 

to other creditors, (iii) all liabilities represented by securities, and (iv) subordinated liabilities. Such 

adaptations would be applicable to the financial stability contribution for 2013.  

2.  

Specific observations 

2.1  The  ECB  welcomes  the  draft  law,  which  adjusts  the  calculation  of  the  financial  stability 

contribution in proportion to the risk profile of the credit institutions, as defined with reference to 

the importance of its trading activities, off-balance sheet exposure and systemic importance for the 

market  in  question.  In  this  manner,  such  adjustment  would  align  the  calculation  of  the  financial 
stability contribution to that of the annual contribution to the Belgian deposit guarantee scheme45. 

3  

4  

The preparatory works (p. 2) refer to the Vickers proposal which is based on the concept of ring-fencing, i.e. isolating 
from the rest of the banking sector credit institutions that collect deposits from individuals and small and medium-sized 
enterprises. Such works also refer to the Volcker rule in the United States, which aims to reduce excessive risk-taking by 
banks,  by  prohibiting  banks  from  proprietary  trading  and  from  owning  or  sponsoring  private  equity  and  hedge  funds. 
These works refer, finally, to the group of experts appointed in October 2012 by the European Commission and chaired 
by the Governor of the central bank of Finland, Erkki Liikanen, which aims to make deposit banks stronger and to limit 
the risk of involving taxpayers in supporting banking groups excessively engaged in trading activities.  
Decision  No  115/2011  of  23  June  2011  of  the  Belgian  Constitution  Court  required  changes  to  the  calculation  of  the 
annual contribution to the Belgian deposit guarantee scheme. 

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In  addition,  such  amendments  would  contribute  to  the  overall  clarity  and  transparency  of  the 
financing  mechanism of the Resolution Fund6. In that context, the ECB emphasises that Member 

States  should  act  in  a  coordinated  manner  in  order  to  avoid  significant  differences  in  national 

implementation having a counterproductive effect. Against this background, any national measure 

should ensure a sufficiently level playing field within the euro area, which is of key importance to 

maintaining the integrity of the euro area banking system. 

2.2  The  ECB  notes,  nevertheless,  that  any  alignment  of  the  contribution  by  type  of  assets  might 

encourage credit institutions to favour derivative activities at the expense of other trading activities 

which are not exempted under the draft law. Furthermore, this would complicate the cross-border 

harmonisation of derivative activities throughout the European Union.  

2.3  The credit activity of central securities depositaries is mostly limited to intraday credit, which is not 
covered  by  the  micro-prudential  rules  under  Directives  2006/48/EC  and  2006/49/EC7  due  to  the 

difficulty in addressing very short term exposures. Therefore, a different method of calculation of 

the  ratio  is  justified  in  order  to  take  into  account,  on  the  one  hand,  the  short  duration  of  the 

exposure  towards  their  participants  and,  on  the  other  hand,  their  systemic  role  as  utilities  on  the 

market they serve. The ECB nevertheless encourages the Belgian legislator to follow the ongoing 

work  initiated  by  CPSS-IOSCO  and  the  European  Commission  with  respect  to  their  internal 

organisation and the recovery and resolution plans for securities settlement systems, which might 

have an impact on the calculation of the financial stability contribution.  

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

Done at Frankfurt am Main, 18 February 2013. 

[signed] 

The President of the ECB 

Mario DRAGHI 

5  

6  
7  

The  ECB  notes  that  this  amendment  would  also  follow  Article  94(2)(c)  and  (7)  of  the  proposal  for  a  directive  of  the 
European Parliament and of the Council establishing a framework for the recovery and resolution of credit institutions 
and investments firms and amending Council Directives 77/91/EEC and 82/891/EC, Directive 2011/24/EC, 2002/47/EC; 
2004/25/EC, 2005/56/EC; 2007/36/EC and 2001/35/EC and Regulation (EU) No 1093/2010 (COM(2012) 280 final). 
CON/2012/91.  
Directive  2006/48/EC  of  the  European  Parliament  and  of  the  Council  of  14  June  2006  relating  to  the  taking  up  and 
pursuit  of  the  business  of  credit  institutions  (recast)  (OJ  L  177,  30.6.2006,  p.  1),  and  Directive  2006/49/EC  of  the 
European  Parliament  and  of  the  Council  of  14  June  2006  on  the  capital  adequacy  of  investment  firms  and  credit 
institutions (OJ L 177, 30.6.2006, p. 201). 

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