Choices taken by the Governing Council of the ECB (along with choices setting rates of interest)

Choices taken by the Governing Council of the ECB (along with choices setting rates of interest)


March 2021

26 March 2021

Exterior communication

ECB’s Annual Report 2020

On 24 March 2021 the Governing Council adopted the ECB’s Annual Report 2020, which shall be introduced to the Committee on Financial and Financial Affairs of the European Parliament and made accessible on the ECB’s web site in 22 official languages of the European Union on 14 April 2021.

Financial coverage

Central financial institution compliance with prohibitions on financial financing and privileged entry

On 24 March 2021, in accordance with the Treaty on the Functioning of the European Union (TFEU), which assigns to the ECB the duty of monitoring the compliance of EU central banks with the prohibitions referred to in Articles 123 and 124 of the TFEU and the associated rules, the Governing Council accepted the compliance report protecting the yr 2020. Additional data on this matter shall be accessible in a devoted part of the ECB’s Annual Report 2020, which shall be printed on the ECB’s web site on 14 April 2021.

Market operations

Clarification of collateral eligibility standards utilized to sustainability-linked bonds

On 17 February 2021 the Governing Council clarified that the Eurosystem applies an issuer group strategy and permits sustainability targets to be met by one or a number of entities supplied all entities belong to a single sustainability-linked bond issuer group. This clarification was mirrored within the FAQ on sustainability-linked bonds on the ECB’s web site.

Recast of the rule of thumb on the Eurosystem’s provision of reserve administration providers

On 17 March 2021 the Governing Council adopted Guideline ECB/2021/9 on the Eurosystem’s provision of reserve administration providers in euro to central banks and nations positioned outdoors the euro space and to worldwide organisations and repealing Guideline (EU) 2020/1284 of the European Central Financial institution. The repealed Guideline (EU) 2020/1284 (ECB/2020/34) supplied that Eurosystem central banks needed to adjust to its provisions which aimed toward additional rising transparency in reporting and knowledge sharing inside the Eurosystem from 1 April 2021. The recast Guideline units a brand new deadline for compliance with impact from 1 July 2021 and goals to make sure, inter alia, that Eurosystem reserve administration providers are supplied on a standardised foundation beneath harmonised phrases and circumstances.

Recommendation on laws

ECB Opinion on a proposal for a regulation on Markets in Crypto-assets, and amending Directive (EU) 2019/1937

On 19 February 2021 the Governing council adopted Opinion CON/2021/4 on the request of the Council of the European Union and the European Parliament.

ECB Opinion on the safety of the euro towards counterfeiting in Eire

On 23 February 2021 the Governing council adopted Opinion CON/2021/5 on the request of the Irish Minister for Finance.

ECB Opinion on the participation of the Hellenic Monetary Stability Fund in will increase within the capital of credit score establishments for functions aside from precautionary recapitalisation or decision

On 25 February 2021 the Governing council adopted Opinion CON/2021/6 on the request of the Greek Ministry of Finance.

ECB Opinion on the legal responsibility and audit of the nationwide supervisory authority, the institution of small credit score establishments and necessities on key operate holders of credit score establishments in Estonia

On 26 February 2021 the Governing Council adopted Opinion CON/2021/7 on the request of the Ministry of Finance of the Republic of Estonia.

ECB Opinion on the on the supervision of outsourcing preparations entered into by credit score establishments in Germany

On 26 February 2021 the Governing Council adopted Opinion CON/2021/8 on the request of the German Ministry of Finance.

ECB Opinion on the reform of Latvijas Banka

On 26 February 2021 the Governing Council adopted Opinion CON/2021/9 on the request of the Latvian Ministry of Finance.

ECB Opinion on the auditing of information from multinational enterprise teams to make sure the standard of nationwide accounts and financial statistics in Germany

On 12 March 2021 the Governing Council adopted Opinion CON/2021/10 on the request of the German Federal Ministry for Economic system and Power.

ECB Opinion on the working and technical necessities and the overall phrases and circumstances for fee system operators in Hungary

On 17 March 2021 the Governing Council adopted Opinion CON/2021/11 on the request of the Magyar Nemzeti Financial institution.

ECB Opinion on the mandate and duties of the Magyar Nemzeti Financial institution regarding environmental sustainability

On 19 March 2021 the Governing Council adopted Opinion CON/2021/12 on the request of the Hungarian Ministry of Finance.

ECB Opinion on the creation of a transparency framework for contracts and associated paperwork involving using public funds in Portugal

On 23 March 2021 the Governing Council adopted Opinion CON/2021/13 on the request of the Portuguese Meeting of the Republic.

Company governance

Handover of the secretariat of the working group on euro risk-free charges

On 4 March 2021 the Governing Council took notice of the handover of the secretariat of the working group on euro risk-free charges to the European Securities and Markets Authority (ESMA). The ECB, which has supplied the secretariat to this point, is to stay an observer. The working group was established in 2018 by the ECB, the ESMA, the European Fee and the Belgian Monetary Companies and Markets Authority to steer benchmarks reform efforts in step with the EU Benchmarks Regulation and the suggestions of the Monetary Stability Board. In view of the completion of the working group’s mandate and with regard to ESMA’s competences beneath the EU Benchmarks Regulation and its function as EURIBOR supervisor as of 1 January 2022, ESMA will take over the secretariat in the middle of the second quarter of 2021.

New member of the Market Infrastructure Board

On 12 March 2021 the Governing Council appointed Ms Petia Niederländer, Director of Funds, Danger Administration and Monetary Literacy on the Oesterreichische Nationalbank (OeNB), as a member of the Market Infrastructure Board, with fast impact till 31 Might 2022. Ms Niederländer replaces Mr Stefan Augustin, who’s retiring from the OeNB.

Statistics

Publication of compounded charges and index based mostly on historic euro short-term price values

On 17 March 2021 the Governing Council adopted Guideline ECB/2021/10 amending Guideline (EU) 2019/1265 on the euro short-term price (€STR) and accepted the each day publication of the compounded €STR common charges and index on every TARGET2 enterprise day at 9:15 a.m. CET from 15 April 2021. The Governing Council moreover determined to publish the calculation and publication guidelines of the compounded €STR common charges and index, and the associated modification of the €STR methodology and insurance policies. The publication of compounded charges based mostly on historic €STR values contributes to mitigating systemic danger in situations of benchmark discontinuation, while selling a wider use of the €STR and fostering consistency throughout main foreign money areas within the fallback choices accessible to market contributors. The associated press launch with additional particulars is offered on the ECB’s web site.

Banking supervision

Public information to the strategy of setting administrative pecuniary penalties

On 22 February 2021 the Governing Council didn’t object to a proposal by the Supervisory Board to publish a information to the strategy of setting administrative pecuniary penalties. The doc outlines the ideas and strategies for calculating the penalties used to sanction banks for breaches of prudential necessities and marks an additional step ahead within the transparency of the ECB’s supervisory insurance policies and practices. The information and the associated press launch can be found on the ECB’s banking supervision web site.

ECB Resolution on reporting of funding plans of credit score establishments

On 1 March 2021 the Governing Council didn’t object to a proposal by the Supervisory Board to undertake Resolution (EU) 2021/432 (ECB/2021/7) which amends Resolution EU/2017/1198 of the European Central Financial institution of 27 June 2017 on the reporting of funding plans of credit score establishments by nationwide competent authorities to the European Central Financial institution. The amendments align the reporting to the ECB by nationwide competent authorities and guarantee compliance with the latest harmonised definitions and templates included within the associated tips of the European Banking Authority.

ECB Annual Report on supervisory actions 2020

On 9 March 2021 the Governing Council adopted the ECB Annual Report on supervisory actions 2020 and authorised its publication and transmission to the European Parliament, the Council, the European Fee, the Eurogroup and the nationwide parliaments of the collaborating Member States. The report was printed on the ECB’s banking supervision web site on 23 March 2021, the day on which it was introduced to the European Parliament by the Chair of the Supervisory Board.

ECB Resolution on the full quantity to be levied for supervisory duties for 2020

On 12 March 2021 the Governing Council didn’t object to a proposal by the Supervisory Board to undertake Resolution (EU) 2021/490 (ECB/2021/8) on the full quantity of annual supervisory charges for 2020. Starting with the 2020 payment interval, the ECB now not requires advance fee of the annual supervisory charges. These are levied solely after the top of the related payment interval when the precise annual prices have been decided. The full quantity of annual supervisory charges for 2020 are EUR 514 314 706. The choice and the associated press launch can be found on the ECB’s banking supervision web site.



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