Decision (EU) 2015/298 of the European Central Bank of 15 December 2014 on the interim distribution of the income of the European Central Bank (ECB/2014/57)

25.2.2015 EN Official Journal of the European Union L 53/24
DECISION (EU) 2015/298 OF THE EUROPEAN CENTRAL BANK
of 15 December 2014
on the interim distribution of the income of the European Central Bank (ECB/2014/57)
(recast)
THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK
,
Having regard to the Statute of the European System of Central Banks and of the European Central Bank, and in particular Article 33 thereof,
Whereas:
(1) Decision ECB/2010/24 (1) lays down how the European Central Bank (ECB) distributes to the NCBs: (a) its income on euro banknotes in circulation accrued each financial year; and (b) its income arising from securities purchased under the securities markets programme (SMP) earned in each financial year.
(2) Decision ECB/2010/24 needs to be amended to take account of the interim distribution of the ECB's income arising from covered bonds and asset-backed securities purchases undertaken in accordance with Decision ECB/2014/40 (2) and Decision ECB/2014/45 (3). It should therefore be recast in the interests of clarity.
(3) Decision ECB/2010/29 (4) establishes the allocation of euro banknotes in circulation to the NCBs in proportion to their paid-up shares in the ECB's capital. Article 4 of Decision ECB/2010/29 and the Annex to that Decision allocate to the ECB 8 % of the total value of euro banknotes in circulation. The ECB holds intra-Eurosystem claims on NCBs in proportion to their shares in the subscribed capital key, for a value equivalent to the value of euro banknotes that it issues.
(4) Under Article 2(2) of Decision ECB/2010/23 (5), the intra-Eurosystem balances on euro banknotes in circulation are remunerated at the reference rate. Under Article 2(3) of Decision ECB/2010/23, this remuneration is settled by TARGET2 payments.
(5) Recital 7 of Decision ECB/2010/23 states that the income accruing to the ECB on the remuneration of its intra-Eurosystem claims on NCBs related to its share of euro banknotes in circulation should in principle be distributed to the NCBs, in proportion to their shares in the subscribed capital key in the same financial year it accrues, in accordance with decisions of the Governing Council.
(6) In the same manner, the ECB's income arising from securities purchased under the SMP, the third covered bond purchase programme (hereinafter 'CBPP3') and the asset-backed securities purchase programme (ABSPP) should in principle be distributed to the NCBs in proportion to their shares in the subscribed capital key in the same financial year it accrues.
(7) In distributing the ECB's income on euro banknotes in circulation and the ECB's income arising from securities purchased under the SMP, the CBPP3 and the ABSPP, the ECB should take into account an estimate of its financial result for the year that makes due allowance for the need to allocate funds to a provision for foreign exchange rate, interest rate, credit and gold price risks, and for the availability of provisions that may be released to offset anticipated expenses.
(8) In determining the amount of the ECB's net profit to be transferred to the general reserve fund pursuant to Article 33.1 of the Statute of the European System of Central Banks and of the European Central Bank (hereinafter the 'Statute of the ESCB'), the Governing Council should consider that any part of that profit which corresponds to income on euro banknotes in circulation and income arising from securities purchased under the SMP, the CBPP3 and the ABSPP should be distributed to the NCBs in full,