Opinion of the European Central Bank of 12 September 2014 on reserve requirements in connection with the introduction of the euro (CON/2014/68)
Date: 2014-09-12
Institutions: European Central Bank
Subjects: Lithuania, credit institution, euro, foreign-exchange reserves, monetary integration, monetary policy, national law

EN 

ECB-PUBLIC 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 12 September 2014 

on reserve requirements in connection with the introduction of the euro 

(CON/2014/68) 

Introduction and legal basis 

On 29 August 2014, the European Central Bank (ECB) received a request from Lietuvos bankas for an 

opinion  on  (a)  a  draft  resolution  amending  the  rules  on  reserve  requirements  for  credit  institutions 

(hereinafter  the  ‘draft  amending  resolution’),  and  (b)  a  draft  resolution  on  the  approval  of  rules  on  the 

calculation  of  the  reserve  base  and  reserve  requirements  for  credit  institutions  (hereinafter  the  ‘draft 

resolution’) (hereinafter collectively referred to as the ‘draft resolutions’). 

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/EC1,  as  the  draft 

resolutions relate to instruments of monetary policy of a non-euro area Member State. 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 resolutions 

1.1  The  draft  resolutions  follow  the  Council  of  the  European  Union’s  decision,  pursuant  to  Article 
140(2) of the Treaty, to abrogate Lithuania’s derogation with effect from 1 January 20152.  

1.2  The  draft  amending  resolution  aims  to  ensure  a  smooth  transition  to  the  Eurosystem’s  minimum 

reserves framework. More specifically, it extends the last reserve maintenance period prior to the 

introduction  of  the  euro  in  Lithuania  until  31  December  2014,  and  introduces  a  new  method  of 

calculation of reserve requirements for the first two reserve maintenance periods in 2015 pursuant 
to  Regulation  (EC)  No  1745/2003  of  the  European  Central  Bank  (ECB/2003/9)3  (hereinafter  the 

‘Regulation’).  

1.3  The  draft  resolution  will  apply  from  the  date  of  Lithuania’s  introduction  of  the  euro.  It  provides 

that reserve requirements will be calculated and notified in line with the Regulation. It also repeals 

1  

2  

3  

Council Decision 98/415/EC of  29 June 1998 on the consultation of the European Central Bank by national authorities 
regarding draft legislative provisions (OJ L 189, 3.7.1998, p. 42). 
Council Decision 2014/509/EU of 23 July 2014 on the adoption by Lithuania of the euro on 1 January 2015 (OJ L 228, 
31.7.2014, p. 29). 
Regulation  (EC)  No  1745/2003  of  the  European  Central  Bank  of  12  September  2003  on  the  application  of  minimum 
reserves (ECB/2003/9) (OJ L 250, 2.10.2003, p.10). 

 
 
 
 
                                                 
ECB-PUBLIC 

the  current  rules  on  reserve  requirements  for  credit  institutions4,  including  the  draft  amending 

resolution. 

2. 

General observations 

The ECB welcomes the changes to Lithuanian law to be effected under the draft resolutions as part of the 

preparations for the introduction of the euro in Lithuania. In terms of monetary policy, which remains a 

competence  of  Lietuvos  bankas  until  the  introduction  of  the  euro,  the  draft  resolutions  should  help 

Lithuanian credit institutions to familiarise themselves with the Eurosystem’s requirements and ensure a 

smooth  transition  to  compliance  with  the  Eurosystem’s  minimum  reserve  framework  starting  from 

1 January 2015. 

3. 

Reserve maintenance periods in 2015 

The  ECB  understands  that  the  first  two  reserve  maintenance  periods  in  2015  provided  for  in  the  draft 
amending resolution5 refer to the maintenance periods set by the Governing Council of the ECB6 on the 

basis  of  Article  7  of  the  Regulation.  The  ECB  recommends  specifying  this  fact  in  the  draft  amending 

resolution in order to distinguish these maintenance periods from the reserve maintenance periods set by 
the Board of Lietuvos bankas under the Lithuanian reserve requirements framework7, since both types of 

maintenance periods are referred to in the same legal act. 

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

Done at Frankfurt am Main, 12 September 2014. 

[signed] 

The President of the ECB 

Mario DRAGHI 

4  

5  
6  

7  

Resolution No 38 of the Board of Lietuvos bankas of 14 March 2002 on the approval of rules on reserve requirements for 
credit institutions (Valstybės žinios, 27.03.2002, No 31-1201). 
See new paragraph 442 of the rules on reserve requirements, to be introduced by the draft amending resolution. 
Press 
http://www.ecb.europa.eu/press/pr/date/2014/html/pr140717_1.en.html  
These maintenance periods are set out in paragraph 20 of the rules on reserve requirements, to be amended by the draft 
amending resolution. 

available 

website 

release 

ECB’s 

2014, 

July 

the 

17 

on 

at: 

of 

2