Decisions taken by the Governing Council of the ECB (in addition to decisions setting interest rates)

October 2014

EMBARGO

TRANSMISSION EMBARGO until 3 p.m. CET on 17 October 2014

Market operations

Asset-backed securities and covered bond purchase programmes

On 2 October 2014 the ECB announced operational details of its asset-backed securities and covered bond purchase programmes, which were approved on that day by the Governing Council. The programmes will last at least two years and aim at enhancing the transmission of monetary policy and supporting the provision of credit to the euro area economy. The eligibility principles established under the Eurosystem collateral framework will apply to asset purchases, which will commence in the fourth quarter 2014, starting with covered bonds in the second half of October. The related press release, together with two technical annexes providing detailed information on each of the programmes, is available on the ECB’s website.

Reporting on monetary policy portfolios

To establish a comprehensive approach to the publication of data on the portfolios of securities held for monetary policy purposes and in order to incorporate the different settlement practices of primary market issuance, the Governing Council decided on 15 October 2014 to publish the value of all monetary policy portfolios held by the Eurosystem with a weekly frequency. Consequently, the “Open market operations” page on the ECB’s website, as well as the Weekly Financial Statement, will show the aggregated value and the movements compared with the week before, as well as a breakdown of the individual portfolios. The daily publication of data on the previous covered bond purchase programmes will be discontinued. The new reporting practice will commence on 21 October 2014.

ECB Decision on the third covered bond purchase programme

On 15 October 2014 the Governing Council adopted Decision ECB/2014/40 on the implementation of a third covered bond purchase programme. The Decision sets out the eligibility criteria and procedures for the purchases to be conducted under this programme from October 2014 onwards. The Decision is available on the ECB’s website.

Payment systems and market infrastructure

Ad hoc assessment of a securities settlement system (SSS) and link against the standards for the use of SSSs in Eurosystem credit operations

On 9 October 2014 the Governing Council approved the assessment of the Lithuanian SSS (CSDL) and its direct link to Clearstream Banking S.A. as eligible for use in Eurosystem credit operations. The comprehensive lists of eligible SSSs and links are available on the ECB’s website.

Advice on legislation

ECB Opinion on the separation and regulation of banking activities in France

On 19 September 2014 the Governing Council adopted Opinion CON/2014/70 at the request of the French Minister for Finance and Public Accounts.

ECB Opinion on the publication of the annual percentage rate of charge for consumer credit agreements in Estonia

On 2 October 2014 the Governing Council adopted Opinion CON/2014/71 at the request of the Ministry of Justice of Estonia.

ECB Opinion on further rules applicable to specific consumer loan contracts in Hungary

On 10 October 2014 the Governing Council adopted Opinion CON/2014/72 at the request of the Hungarian Ministry of the National Economy.

ECB Opinion on conflict of interest rules for members of the governing bodies and executives of the Banca d’Italia

On 13 October 2014 the Governing Council adopted Opinion CON/2014/73 at the request of the Italian Minister responsible for Simplification and Public Administration.

ECB Opinion on financial transparency, payment services and electronic money in Denmark

On 14 October 2014 the Governing Council adopted Opinion CON/2014/74 at the request of the Danish Financial Supervisory Authority.

International and European cooperation

Eurosystem contribution to the European Commission’s public consultation on the mid-term review of the Europe 2020 strategy

On 6 October 2014 the Governing Council approved a Eurosystem contribution to the European Commission’s public consultation on the mid-term review of the Europe 2020 strategy. The Eurosystem contribution calls for a stronger focus on ambitious structural reforms aimed at increasing potential growth and creating high levels of employment, and reiterates the Eurosystem message that the need to ensure well-functioning labour and product markets, sustainable fiscal policies and sound financial systems are of particular importance for the monetary union. The Eurosystem contribution will soon be published on the ECB’s website.

Banking supervision

Decision on the implementation of separation between the monetary policy and supervision functions of the European Central Bank

On 17 September 2014 the Governing Council adopted Decision ECB/2014/39 on the implementation of separation between the monetary policy and supervision functions of the European Central Bank. Such separation is required by Article 25(2) of Council Regulation (EU) No 1024/2013, which provides that the ECB must carry out its supervisory tasks without prejudice to and separately from its tasks relating to monetary policy and any other tasks. The Decision is available on the ECB’s website.

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