to the maximum allowed amount of eur 50 billion, adjusted downwards by deducting the shares in the ecb ’ s capital subscription key of the eu central banks which will not participate in the euro area at the outset. the transfer will thus be equal to 78. 9153 % of eur 50 billion, i. e. approximately eur 39. 46 billion. the governing council furthermore agreed that this initial transfer should be in gold in an amount equivalent to 15 % of the sum i have just mentioned, with the remaining 85 % being transferred in foreign currency assets. i should stress that the decision on the percentage of gold to be transferred to the ecb will have no implications for the consolidated gold holdings of the escb. the precise modalities of the initial transfer will be finalised before the end of the year. before the end of the current year the governing council will also have to adopt an ecb guideline pursuant to article 31. 3 of the statute of the escb, which will subject all operations in foreign reserve assets remaining with the national central banks - including gold to approval by the ecb. in connection with the setting - up of common market standards, the governing council also reached agreement on a number of issues related to the quotation and publication of reference exchange rates for the euro. specifically, it was agreed to recommend to market participants the “ certain ” method for quoting the exchange rates for the euro ( i. e. 1 euro = x foreign currency units ) and to have daily reference exchange rates for the euro computed and published by the ecb. further details are provided in the separate press release that is being issued to you this morning. ( c ) payment systems issues the governing council decided on the conditions for the participation of the non - euro area eu central banks and credit institutions in the target ( trans - european automated real - time gross settlement express transfer ) system. in target the escb will provide central bank liquidity in the course of the day ( i. e. intraday liquidity ) to the extent necessary to avoid delays in the execution of payment orders. if intraday liquidity is not reimbursed at the end of the day it becomes overnight credit granted by the escb, which, for evident monetary policy reasons, cannot be offered to institutions outside the euro area. nonetheless, non - euro area eu central banks and institutions in those countries will be connected to target. the governing council considered that giving such institutions outside the euro area

sabine lautenschlager : caution should be the life of banking introductory statement by ms sabine lautenschlager, member of the executive board of the european central bank and vice - chair of the supervisory board of the single supervisory mechanism, at the association for financial markets in europe ( afme ) board meeting, frankfurt am main, 22 march 2017. * * * ladies and gentlemen, taking risks is at the heart of any healthy business, including banks. after all, it is the job of banks to take and allocate risks. but as walter bagehot said : “ adventure is the life of commerce, but caution is the life of banking ”. i agree with him. banks are far too important for the economy to indulge in adventures. they enable business by providing loans to companies or by helping them to tap the capital markets. and they also facilitate business by providing services in fields such as payments, mergers and acquisitions, and global trade. banks help the economy to grow and prosper. but they can also badly hurt it ; we saw that in the financial crisis. that ’ s why banks need to be cautious. in practical terms that requires, among other things, sound risk management. and this sets the scene for my short statement today. the topic is risk management. i will begin with some smaller, or rather bank - specific, risk management topics and end with a few big issues. sound risk management depends on good data. it also depends on firm - wide risk aggregation and reporting. those who take decisions must be in the picture. but are they? well, in the crisis we learnt that decision - makers often were not. it systems, data architecture and related processes were not up to the mark. against that backdrop, we assessed how banks aggregate data and report risks. the yardstick was a set of global best practices that were defined by the basel committee on banking supervision. these are known as the bcbs 239 principles. the result of our review : many banks do not meet the global standards. as usual, we will therefore be very explicit on how these banks should improve. and we will closely monitor the progress made by the respective banks to ensure that they meet relevant standards. ladies and gentlemen, good risk data is one thing. but processing such data is another matter. and that leads me to my next topic : internal models. many large banks use these models to calculate their risk - weighted assets, which then serve as a basis for calculating capital