New fee structure for the correspondent central banking model (CCBM)
The national central banks and the ECB agreed on a new fee structure for the correspondent central banking model (CCBM). After having gained more experience with the use of the CCBM and the costs incurred by the national central banks and the ECB in running the CCBM, the fee has been revised with the primary aim of recovering the costs of the correspondent central bank, which is holding the collateral on behalf of the home central bank, the national central bank that is granting the credit to the counterparty.
The current fee of EUR 5 per CCBM transaction will be replaced therefore by a multiple fee composed of a transaction fee of EUR 30 per transaction and a combined custody and administration fee of 0.0069% per annum. The combined custody and administration fee will be based on the amount of collateral which has been delivered via the CCBM. The home central bank will charge the new fees to its counterparties and pass the revenue on to the correspondent central bank. The home central bank can continue to ask for additional fees to cover its own costs incurred in running the CCBM.
The new fees will come into force on 1 October 1999 which should give sufficient time to adapt the local administrative and legal procedures.
The national central banks will inform their counterparties in due course about the details of the calculation method to be applied.
In addition, statistical information about the cross-border use of collateral for the ESCB's monetary policy and intraday credit operations is now also available at the ECB's Internet website.