Introduction (1) VIII Meeting of Central Bank Legal Advisors June 2007 Madrid

Transcription

1 Introduction (1) VIII Meeting of Central Bank Legal Advisors June 2007 Madrid Bernd Krauskopf General Counsel Deutsche Bundesbank Bundesbank Profit and Loss Account 2006 (extract) Net interest income Net result of financial operations, write-downs and risk provisions Net income from fees and commissions Net result arising from allocation of monetary income Total net income Staff costs Other administrative expenses Depreciation on tangible and intangible fixed assets Banknote printing Profit for the year Mio Central bank profit: result after deducting expenses from income Seigniorage: g income related to issuance of legal tender Monetary income: income related to issuance of banknotes calculated according to a special method under EC law 1 2 1

2 Introduction (2) Introduction (3) Eurosystem no legal personality System of legally and financially autonomous central banks National central banks (NCBs) have own balance sheets under national law NCBs are heterogeneous with regard to size, staff, income and costs NCBs bear own costs while carrying out tasks of the Eurosystem and tasks attributed by national law Distribution of NCBs profits matter of national law Common decision-making Decentralised implementation General e rule: one man one vote principle p Exception: Shareholder issues votes weighted according to NCBs shares in ECB capital monetary income of NCBs: shareholder issue 3 4 2

3 Overview Definition of monetary income Substantive provisions of the ESCB Statute Excursus: Financial situation of the ECB Consequences of EMU Allocation of monetary income onwards Definition of monetary income under the ESCB Statute Income accruing to the NCBs in the performance of the Eurosystem ss monetary policy function derived from assets held against banknotes in circulation and deposit liabilities to credit institutions earmarked in line with Governing Council decisions 5 6 3

4 Substantive provisions of the ESCB Statute (1) Substantive provisions of the ESCB Statute (2) Legal basis: Article 32 ESCB-Statute Monetary income to be pooled and reallocated Allocation to the NCBs at the end of each financial year Allocation according to each NCB s share in ECB capital Potential deduction from monetary income before distribution: costs incurred in connection with the issue of banknotes Specific losses arising from monetary policy operations ECB loss 7 8 4

5 Excursus: The ECB s financial situation Consequences of EMU Shareholders: NCBs ECB capital: 5,76 billion euro Fully paid-up subscriptions by euro-area NCBs: 4,00 billion euro Transferred foreign reserves: 40,04 billion euro Profit distributed to euro-area NCBs OeNB BNB/ NBB DNB BdE BoG BdI BdP SP CBIFSA BS BcL BdF BBk ECB capital allocation Changeover to new system changes parameters: Governing Council adopts transitional provisions Single currency area with a system of central banks causes impact on NCBs income positions NCB A Share in banknotes in circulation = net contributor of monetary income Share in ECB capital key net recipient of = monetary income Share in banknotes in circulation NCB B Share in ECB capital key

6 Situation from 1999 to 2001 Transitional situation; not expressly foreseen in Treaty 1999 to only national cash in circulation: Single currency area, but national banknotes. Income resulting from national banknotes not included in the allocation scheme General rules for 2002 onwards Banknotes in circulation Synthetic ECB share: 8 % 92% allocated to NCBs in accordance with their ECB capital shares Income arising from specific earmarked assets: loans to credit institutions net claims on other euro-area NCBs gold

7 Situation in 2002 Situation from 2003 to 2007 Dual circulation of national and euro banknotes Decision(s) of the Governing Council reflecting past circulation of national banknotes Smoothing applies for a period of five years Adjustment of the value of banknotes in circulation by a factor reflecting past circulation of national banknotes Factor decreasing in the course of time

8 Situation from 2008 onwards Smoothing ceases to apply to old Eurosystem NCBs applies to enlargements of the Eurosystem after 2002 Thank you for your attention Bernd Krauskopf General Counsel Deutsche Bundesbank