New ECB Regulation in the field of minimum reserves
At its meeting on 18 April 2002, the Governing Council of the ECB approved a new Regulation on the application of minimum reserves, which amends the Regulation of 1 December 1998 (ECB/1998/15).
The main aim of the new Regulation is to clarify a number of issues with regard to minimum reserves. According to the new Regulation, electronic money institutions will be subject to minimum reserve requirements. The Regulation further introduces the automatic exemption of institutions from minimum reserve requirements in the event that their licence has been withdrawn or renounced, as well as in the event that they are subject to winding-up proceedings. This automatic exemption is considered adequate for reasons of administrative efficiency. Finally, the formula concerning the calculation of the remuneration of holdings of required reserves has been adjusted owing to the possibility of more than one main refinancing operation being settled on the same day (which may be the case under a "split tender", for instance).
The Regulation was published today in the Official Journal of the European Communities and is available on the ECB's website. It will enter into force on 24 May 2002.