Definitions
For the purposes of this Decision, the following definitions apply:
(1)
‘deposit’ means a credit balance in euro or in another currency resulting from funds held in an account with an NCB or the ECB or from temporary situations deriving from other services provided by an NCB or the ECB, giving rise to a liability recorded on that NCB’s or the ECB’s balance sheet, and which that NCB or the ECB is required to repay under the applicable contractual or regulatory conditions, including overnight and fixed term deposits;
(2)
‘€STR’ means the euro short-term rate as defined in Article 2(2) of Guideline (EU) 2019/1265 of the European Central Bank (ECB/2019/19) ( 5 ) and published by the ECB;
(3)
‘€STR OIS’ means an overnight index swap (OIS) as defined in Article 1(25) of Regulation (EU) No 1333/2014 of the European Central Bank (ECB/2014/48) ( 6 ) , where the periodic floating interest rate payments refer to €STR as the overnight index rate;
(4)
‘non-monetary policy deposits’ means deposits that are not executed to implement the single monetary policy as decided by the Governing Council and that fall within the scope of one of the following:
(a)
Guideline (EU) 2019/671 (ECB/2019/7) on domestic asset and liability management operations by the national central banks;
(b)
Guideline (EU) 2024/1211 (ECB/2024/13) on the Eurosystem’s provision of reserve management services in euro to central banks and countries located outside the euro area and to international organisations;
(c)
Guideline (EU) 2022/912 (ECB/2022/8) on a new-generation Trans-European Automated Real-time Gross Settlement Express Transfer system (TARGET);
(d)
Decision (EU) 2022/911 of the European Central Bank (ECB/2022/22) ( 7 ) concerning the terms and conditions of TARGET-ECB;
(e)
Decision (EU) 2019/1743 (ECB/2019/31) on the remuneration of holdings of excess reserves and of certain deposits.
Remuneration of non-monetary policy deposits
1. The remuneration of deposits held with NCBs and falling within the scope of Guideline (EU) 2019/671 (ECB/2019/7) shall be subject to the following ceilings:
(a)
for the following government deposits denominated in euro:
(i)
for overnight deposits: €STR minus 20 basis points;
(ii)
for fixed term deposits: €STR OIS rate with corresponding maturity minus 20 basis points;
(iii)
for overnight government deposits related to an adjustment programme: either zero per cent or €STR minus 20 basis points, whichever is higher;
(iv)
for fixed term government deposits related to an adjustment programme: either zero percent or €STR OIS rate with corresponding maturity minus 20 basis points, whichever is higher;
(b)
for government deposits denominated in currencies other than in euro: the corresponding rates for the currency concerned and applying the same spread referred to in point (a);
(c)
for deposits other than government deposits, denominated in euro:
(i)
for overnight deposits: €STR minus 20 basis points;
(ii)
for fixed term deposits: €STR OIS rate with corresponding maturity minus 20 basis points;
(d)
for deposits other than government deposits, denominated in other currencies: the corresponding rates for the currency concerned and applying the same spread referred to in point (c).
2. The remuneration of deposits held with NCBs and falling within the scope of Guideline (EU) 2024/1211 (ECB/2024/13) shall be as follows:
(a)
for cash overnight investment services:
(i)
for Tier 1 investment facility: €STR minus 20 basis points;
(ii)
for Tier 2 investment facility: the actual rate at which funds are placed in the market minus a margin as decided from time to time by the Governing Council and provided that this kind of investment shall only be made if the remuneration is above the remuneration of excess cash balances;
(iii)
for excess cash balances: €STR minus 20 basis points;
(b)
for fixed term deposits:
(i)
for fixed term deposits on an agency basis: the actual rate at which funds are placed in the market minus a margin as decided from time to time by the Governing Council;
(ii)
for fixed term deposits on a principal basis with maturity shorter than seven calendar days: €STR OIS rate with corresponding maturity minus 20 basis points;
(iii)
for fixed term deposits on a principal basis with a maturity of at least seven calendar days: a rate not exceeding the rate achieved when reversing the deposit in the market.
3. The remuneration of deposits falling within the scope of Guideline (EU) 2022/912 (ECB/2022/8) and Decision (EU) 2022/911 (ECB/2022/22) shall be as follows:
(a)
for government deposits denominated in euro held in TARGET the remuneration set-out in paragraph 1 (a) applies;
(b)
for non-monetary policy deposits held in TARGET other than government deposits referred to in point (a), except where point (c) applies: either zero percent or €STR minus 20 basis points, whichever is lower;
(c)
for overnight balances held on a TIPS AS technical account or on an RTGS AS technical account for AS settlement procedure D, and guarantee funds held by European Economic Area financial market infrastructures, including those held on an AS guarantee fund account: €STR minus 0 basis points;
(d)
for TARGET balances of connected NCBs:
(i)
for balances up to and including 10 % of the daily average value of transactions: €STR minus 20 basis points;
(ii)
for balances exceeding those under point (i): either zero percent or €STR minus 20 basis points, whichever is lower.
4. The remuneration of deposits held with the ECB falling within the scope of Decision (EU) 2019/1743 (ECB/2019/31) shall be as follows:
(a)
for accounts maintained in accordance with Decisions ECB/2003/14 ( 8 ) , ECB/2010/4 ( 9 ) , ECB/2010/17 ( 10 ) and ECB/2010/31 ( 11 ) of the European Central Bank, and Council Regulation (EU) 2020/672 ( 12 ) :
(i)
€STR minus 20 basis points, except where point (ii) applies;
(ii)
during any period when deposits need to be held in the relevant accounts in advance of the date on which a payment must be made in accordance with the legal or contractual rules applicable to the relevant facility: either zero percent or €STR minus 20 basis points, whichever is higher;
(b)
for other deposit accounts for the European Stability Mechanism and for the European Financial Stability Facility not covered under point (a): €STR minus 20 basis points;
(c)
for the dedicated account maintained in accordance with Article 13(2) of Commission Implementing Decision of 14 April 2021 establishing the necessary arrangements for the administration of the borrowing operations under Council Decision (EU, Euratom) 2020/2053 and for the lending operations related to loans granted in accordance with Article 15 of Regulation (EU) 2021/241 of the European Parliament and of the Council ( 13 ) and used for the purposes of prudential cash holdings in relation to the NextGenerationEU program, the Instrument for providing support to Ukraine for 2023 (macro-financial assistance+) ( 14 ) , or other Union financing programmes as agreed by the ECB and the European Commission:
(i)
€STR minus 20 basis points, except where point (ii) applies;
(ii)
for an aggregated amount of deposits not exceeding EUR 20 billion: either zero percent or €STR minus 20 basis points, whichever is higher.
5. Where a negative interest rate applies to any of the deposits referred to in this Article, the deposit holder shall owe interest to the relevant NCB or the ECB, and the relevant NCB or the ECB may debit the relevant deposit account accordingly.
Sharing of information on non-monetary policy deposits
1. Where the ECB considers, on a case-by-case basis, that it is necessary for assessing potential impacts on the implementation of monetary policy, NCBs shall share with the ECB complete information on non-monetary policy deposits, including details on the following:
(a)
account holders;
(b)
the remuneration applied;
(c)
the amounts held with the relevant NCB.
2. Information received by the ECB pursuant to paragraph 1 shall be shared within the ECB, and by the ECB within the Eurosystem, on a strict need-to-know basis.
Entry into force
1. This Decision shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union .
2. It shall apply from 1 December 2024.
