Information for counterparties

Minimum reserve requirements

Credit institutions within the euro area must hold minimum reserves with the national central bank of their country of establishment. This is pursuant to Council Regulation (EC) No 2531/98 of 23 November 1998 and the Regulation of the European Central Bank of 12 September 2003 (ECB/2003/9). Information on the minimum reserve regulation is included in:

◾Annex I of the Guideline (EU) of the European Central Bank on the implementation of the Eurosystem monetary policy framework (the ‘General Documentation’)

◾Article 32 of the Monetary Policy Transactions Conditions (MPTC) of De Nederlandsche Bank.

Both these documents are listed as downloadable files at the bottom of this page.

Reporting

The amount of reserves to be held is determined on the basis of the institution’s reserve base. The reserve base is determined on the basis of balance sheet items. The institutions calculate the items included in the reserve base themselves and report these to DNB. They are obliged to do so in the general context of the ECB’s monetary and banking statistics. For more information on reporting requirements, please refer to the DNB website on Balance Sheet Items reporting (Balance Sheet Items (BSI)). In case of other questions regarding reporting, please contact monrap@dnb.nl .

Fulfilment of the minimum reserve requirement

 Institutions which independently fulfil their minimum reserve requirement must have an account with DNB.

An account in CLM of TARGET must be used for holding.

Read more about opening and maintaining an account with DNB.

In appropriate cases, institutions are offered the possibility to hold their minimum reserve indirectly via an intermediary. For more information about the possibilities with respect to indirect holding of reserves, please contact fm.dealingroom@dnb.nl  or call +31 20 520 50 00.

Monitoring

When calculating the reserve requirement, institutions may deduct a standardised lump sum allowance. The amount of this allowance is EUR 100,000. If the minimum reserve requirement exceeds zero, a DNB account is required to hold the minimum reserve. If, following deduction of the standardised allowance, the reserve requirement ends up negative, a so-called zero requirement will apply. It is the responsibility of the institution itself to monitor the reserve base and to contact DNB in good time to open an account, in order that the required infrastructure is in place when the reserve requirement exceeds the zero line.

Consequences of mergers, demergers and split-offs

Mergers, demergers and split-offs have consequences for the determination of minimum reserve requirements. Institutions are requested to contact DNB in good time on these matters by emailing fm.dealingroom@dnb.nl  or calling +31 20 520 50 00.

Access to standing facilities and participation in monetary policy operations

In principle, institutions with a minimum reserve requirement have access to the Eurosystem’s standing facilities, i.e. the deposit facility and the marginal lending facility. They can also, in principle, participate in the Eurosystem’s monetary policy operations. In order to act as a true monetary counterparty of the Eurosystem, a number of additional conditions must be met by the institution.

Additional conditions for policy operations/facilities

These conditions are specified in Part 3 of the Monetary Policy Transactions Conditions (MPTC). This sets out the rules for participation in monetary policy operations/facilities for Dutch counterparties. In addition to the conditions laid down in the MPTC, the General Terms and Conditions of the Nederlandsche Bank apply. The General Terms and Conditions of DNB can be found on this webpage.In addition to the Monetary Policy Transactions Conditions and the General Terms and Conditions, ECB Decisions without addressees are also directly applicable to the contractual relationship between DNB and its monetary counterparties. Read more about ECB Decisions.

Access to the Targeted Longer-Term Refinancing Operations (TLTRO, TLTRO-II and TLTRO-III) is subject to additional conditions besides the standard terms and conditions referred to above. You will find the relevant documentation under the heading ‘Monetary operations’ at the bottom of this page.

Practical considerations

If you would like to participate in monetary policy operations, please email fm.dealingroom@dnb.nl or call + 31 20 520 50 00