Balance sheet item

Categorisation of contents of balance sheet items

Valuation principle

Assets

1  Gold and gold receivables

Physical gold, i.e. bars, coins, plates, nuggets, in storage or ‘under way’. Non-physical gold, such as balances in gold sight accounts (unallocated accounts), term deposits and claims to receive gold arising from the following transactions: (i) upgrading or downgrading transactions; and (ii) gold location or purity swaps where there is a difference of more than one business day between release and receipt

Market value

2  Claim on non-euro area residents denominated in foreign currency

Claims on counterparties resident outside the euro area including international and supranational institutions and central banks outside the euro area denominated in foreign currency

2.1  Receivables from the International Monetary Fund (IMF)

(a)  Drawing rights within the reserve tranche (net)

National quota minus balances in euro at the disposal of the IMF. The No 2 account of the IMF (euro account for administrative expenses) may be included in this item or under the item ‘Liabilities to non-euro area residents denominated in euro’

(a)  Drawing rights within the reserve tranche (net)

Nominal value, translation at the foreign exchange market rate

(b)  Special drawing rights

Holdings of special drawing rights (gross)

(b)  Special drawing rights

Nominal value, translation at the foreign exchange market rate

(c)  Other claims

General arrangements to borrow, loans under special borrowing arrangements, deposits within the framework of the Poverty Reduction and Growth Facility

(c)  Other claims

Nominal value, translation at the foreign exchange market rate

2.2  Balances with banks and security investments, external loans and other external assets

(a)  Balances with banks outside the euro area other than those under asset item ‘Other financial assets’

Current accounts, fixed-term deposits, day-to-day money, reverse repo transactions

(a)  Balances with banks outside the euro area

Nominal value, translation at the foreign exchange market rate

(b)  Security investments outside the euro area other than those under asset item ‘Other financial assets’

Notes and bonds, bills, zero bonds, money market paper, equity instruments held as part of the foreign reserves, all issued by non-euro area residents

(b)(i)  Marketable securities other than held-to-maturity

Market price and foreign exchange market rate

Any premiums or discounts are amortised

(b)(ii)  Marketable securities classified as held-to-maturity

Cost subject to impairment and foreign exchange market rate

Any premiums or discounts are amortised

(b)(iii)  Non-marketable securities

Cost subject to impairment and foreign exchange market rate

Any premiums or discounts are amortised

(b)(iv)  Marketable equity instruments

Market price and foreign exchange market rate

(c)  External loans (deposits) to non-euro area residents other than those under asset item ‘Other financial assets’

(c)  External loans

Deposits at nominal value, translated at the foreign exchange market rate

(d)  Other external assets

Non-euro area banknotes and coins

(d)  Other external assets

Nominal value, translation at the foreign exchange market rate

3  Claims on euro area residents denominated in foreign currency

(a)  Security investments inside the euro area other than those under asset item ‘Other financial assets’

Notes and bonds, bills, zero bonds, money market paper, equity instruments held as part of the foreign reserves, all issued by euro area residents

(a)(i)  Marketable securities other than held-to-maturity

Market price and foreign exchange market rate

Any premiums or discounts are amortised

(a)(ii)  Marketable securities classified as held-to-maturity

Cost subject to impairment and foreign exchange market rate

Any premiums or discounts are amortised

(a)(iii)  Non-marketable securities

Cost subject to impairment and foreign exchange market rate

Any premiums or discounts are amortised

(a)(iv)  Marketable equity instruments

Market price and foreign exchange market rate

(b)  Other claims on euro area residents other than those under asset item ‘Other financial assets’

Loans, deposits, reverse repo transactions, sundry lending

(b)  Other claims

Deposits and other lending at nominal value, translated at the foreign exchange market rate

4  Claims on non-euro area residents denominated in euro

4.1  Balances with banks, security investments and loans

(a)  Balances with banks outside the euro area other than those under asset item ‘Other financial assets’

Current accounts, fixed-term deposits, day-to-day money, reverse repo transactions in connection with the management of securities denominated in euro

(a)  Balances with banks outside the euro area

Nominal value

(b)  Security investments outside the euro area other than those under asset item ‘Other financial assets’

Equity instruments, notes and bonds, bills, zero bonds, money market paper, all issued by non-euro area residents

(b)(i)  Marketable securities other than held-to-maturity Market price

Any premiums or discounts are amortised

(b)(ii)  Marketable securities classified as held-to-maturity

Cost subject to impairment

Any premiums or discounts are amortised

(b)(iii)  Non-marketable securities

Cost subject to impairment

Any premiums or discounts are amortised

(b)(iv)  Marketable equity instruments

Market price

(c)  Loans to non-euro area residents other than those under asset item ‘Other financial assets’

(c)  Loans outside the euro area

Deposits at nominal value

(d)  Securities issued by entities outside the euro area other than those under asset item ‘Other financial assets’

Securities issued by supranational or international organisations, e.g. the European Investment Bank, irrespective of their geographical location

(d)(i)  Marketable securities other than held-to-maturity

Market price

Premiums/discounts are amortised

(d)(ii)  Marketable securities classified as held-to-maturity

Cost subject to impairment

Any premiums or discounts are amortised

(d)(iii)  Non-marketable securities

Cost subject to impairment

Any premiums or discounts are amortised

4.2  Claims arising from the credit facility under ERM II

Lending according to the ERM II conditions

Nominal value

5  Lending to euro area credit institutions related to monetary policy operations denominated in euro

Items 5.1 to 5.5: transactions according to the respective monetary policy instruments described in Annex I to Guideline ECB/2000/7 of 31 August 2000 on monetary policy instruments and procedures of the Eurosysten (1)

5.1  Main refinancing operations

Regular liquidity-providing reverse transactions with a weekly frequency and normally a maturity of one week

Nominal value or repo cost

5.2  Longer-term refinancing operations

Regular liquidity-providing reverse transactions with a monthly frequency and normally a maturity of three months

Nominal value or repo cost

5.3  Fine-tuning reverse operations

Reverse transactions, executed as ad hoc transactions for fine-tuning purposes

Nominal value or repo cost

5.4  Structural reverse operations

Reverse transactions adjusting the structural position of the Eurosystem vis-à-vis the financial sector

Nominal value or repo cost

5.5  Marginal lending facility

Overnight liquidity facility at a pre-specified interest rate against eligible assets (standing facility)

Nominal value or repo cost

5.6  Credits related to margin calls

Additional credit to credit institutions, arising from value increases of underlying assets regarding other credit to these credit institutions

Nominal value or cost

6  Other claims on euro area credit institutions denominated in euro

Current accounts, fixed-term deposits, day-to-day money, reverse repo transactions in connection with the management of security portfolios under the asset item ‘Securities of euro area residents denominated in euro’, including transactions resulting from the transformation of former foreign currency reserves of the euro area, and other claims. Correspondent accounts with non-domestic euro area credit institutions. Other claims and operations unrelated to monetary policy operations of the Eurosystem

Nominal value or cost

7  Securities of euro area residents denominated in euro

Securities other than those under asset item ‘Other financial assets’: Equity instruments, notes and bonds, bills, zero bonds, money market paper held outright including government securities stemming from before EMU denominated in euro; ECB debt certificates purchased for fine-tuning purposes

(i)  Marketable securities other than held-to-maturity

Market price

Any premiums or discounts are amortised

(ii)  Marketable securities classified as held-to-maturity

Cost subject to impairment

Any premiums or discounts are amortised

(iii)  Non-marketable securities

Cost subject to impairment

Any premiums or discounts are amortised

(iv)  Marketable equity instruments

Market price

8  General government debt denominated in euro

Claims on government stemming from before EMU (non-marketable securities, loans)

Deposits/loans at nominal value, non-marketable securities at cost

9  Intra-Eurosystem claims

9.1  Claims related to promissory notes backing the issuance of ECB debt certificates

Only an ECB balance sheet item

Promissory notes issued by NCBs, due to the back-to-back agreement in connection with ECB debt certificates

Nominal value

9.2  Claims related to the allocation of euro banknotes within the Eurosystem

Claims related to the ECB’s banknote issue, according to Decision ECB/2001/15 of 6 December 2001 on the issue of euro banknotes (2)

Nominal value

9.3  Other claims within the Eurosystem (net)

Net position of the following sub-items:

(a)  net claims arising from balances of TARGET2 accounts and correspondent accounts of NCBs, i.e. the net figure of claims and liabilities — see also liability item ‘Other liabilities within the Eurosystem (net)’

(a)  Nominal value

(b)  other intra-Eurosystem claims that may arise, including the interim distribution of ECB seigniorage income to NCBs

(b)  Nominal value

10  Items in course of settlement

Settlement account balances (claims), including the float of cheques in collection

Nominal value

11  Other assets

11.1  Coins of euro area

Euro coins

Nominal value

11.2  Tangible and intangible fixed assets

Land and buildings, furniture and equipment including computer equipment, software

Cost less depreciation

Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. The useful life is the period over which a fixed asset is expected to be available for use by the entity. Useful lives of individual material fixed assets may be reviewed on a systematic basis, if expectations differ from previous estimates. Major assets may comprise components with different useful lives. The lives of such components should be assessed individually

The cost of intangible assets includes the price for the acquisition of the intangible asset. Other direct or indirect costs are to be expensed

Capitalisation of expenditure: limit based (below EUR 10 000 excluding VAT: no capitalisation)

11.3  Other financial assets

— Participating interests and investments in subsidiaries, equities held for strategic/policy reasons

— Securities including equities, and other financial instruments and balances including fixed-term deposits and current accounts held as an earmarked portfolio

— Reverse repo transactions with credit institutions in connection with the management of securities portfolios under this item

(a)  Marketable equity instruments

Market price

(b)  Participating interests and illiquid equity shares, and any other equity instruments held as permanent investments

Cost subject to impairment

(c)  Investment in subsidiaries or significant interests

Net asset value

(d)  Marketable securities other than held-to-maturity

Market price

Premiums/discounts are amortised

(e)  Marketable securities classified as held-to-maturity or held as a permanent investment

Cost subject to impairment

Any premiums or discounts are amortised

(f)  Non-marketable securities

Cost subject to impairment

(g)  Balances with banks and loans

Nominal value, translated at the foreign exchange market rate if the balances/deposits are denominated in foreign currencies

11.4  Off-balance-sheet instruments revaluation differences

Valuation results of foreign exchange forwards, foreign exchange swaps, interest rate swaps, forward rate agreements, forward transactions in securities, foreign exchange spot transactions from trade date to settlement date

Net position between forward and spot, at the foreign exchange market rate

11.5  Accruals and prepaid expenditure

Income not due in, but assignable to the reported period. Prepaid expenditure and accrued interest paid (i.e. accrued interest purchased with a security)

Nominal value, foreign exchange translated at market rate

11.6  Sundry

(a)  Advances, loans and other minor items. Loans on a trust basis

(a)  Nominal value or cost

(b)  Investments related to customer gold deposits

(b)  Market value

(c)  Net pension assets

(c)  As per Article 22(3)

12  Loss for the year

Nominal value

(1)   OJ L 310, 11.12.2000, p. 1.

(2)   OJ L 337, 20.12.2001, p. 52.

Balance sheet item

Categorisation of contents of balance sheet items

Valuation principle

1

Banknotes in circulation

Euro banknotes issued by the ECB, according to Decision ECB/2001/15

Nominal value

2

Liabilities to euro area credit institutions related to monetary policy operations denominated in euro

Items 2.1, 2.2, 2.3 and 2.5: deposits in euro as described in Annex I to Guideline ECB/2000/7

2.1

Current accounts (covering the minimum reserve system)

Euro accounts of credit institutions that are included in the list of financial institutions subject to minimum reserves according to the Statute. This item contains primarily accounts used in order to hold minimum reserves

Nominal value

2.2

Deposit facility

Overnight deposits at a pre-specified interest rate (standing facility)

Nominal value

2.3

Fixed-term deposits

Collection for liquidity absorption purposes owing to fine-tuning operations

Nominal value

2.4

Fine-tuning reverse operations

Monetary policy-related transactions with the aim of liquidity absorption

Nominal value or repo cost

2.5

Deposits related to margin calls

Deposits of credit institutions, arising from value decreases of underlying assets regarding credits to these credit institutions

Nominal value

3

Other liabilities to euro area credit institutions denominated in euro

Repo transactions in connection with simultaneous reverse repo transactions for the management of securities portfolios under asset item ‘Securities of euro area residents denominated in euro’. Other operations unrelated to Eurosystem monetary policy operations. No current accounts of credit institutions

Nominal value or repo cost

4

ECB debt certificates issued

Only an ECB balance sheet item

Debt certificates as described in Annex I to Guideline ECB/2000/7

Discount paper, issued with the aim of liquidity absorption

Nominal value

5

Liabilities to other euro area residents denominated in euro

5.1

General government

Current accounts, fixed-term deposits, deposits repayable on demand

Nominal value

5.2

Other liabilities

Current accounts of staff, companies and clients including financial institutions listed as exempt from the obligation to hold minimum reserves - see liability item 2.1, etc.; fixed-term deposits, deposits repayable on demand

Nominal value

6

Liabilities to non-euro area residents denominated in euro

Current accounts, fixed-term deposits, deposits repayable on demand including accounts held for payment purposes and accounts held for reserve management purposes: of other banks, central banks, international/supranational institutions including the Commission of the European Communities; current accounts of other depositors. Repo transactions in connection with simultaneous reverse repo transactions for the management of securities denominated in euro. Balances of ►M1  TARGET/TARGET2 ◄ accounts of central banks of Member States that have not adopted the euro

Nominal value or repo cost

7

Liabilities to euro area residents denominated in foreign currency

Current accounts. Liabilities under repo transactions; usually investment transactions using foreign currency assets or gold

Nominal value, translation at year-end foreign exchange market rate

8

Liabilities to non-euro area residents denominated in foreign currency

8.1

Deposits, balances and other liabilities

Current accounts. Liabilities under repo transactions; usually investment transactions using foreign currency assets or gold

Nominal value, translation at the year-end foreign exchange market rate

8.2

Liabilities arising from the credit facility under ERM II

Borrowing according to the ERM II conditions

Nominal value, translation at the year-end foreign exchange market rate

9

Counterpart of special drawing rights allocated by the IMF

SDR-denominated item which shows the amount of SDRs that were originally allocated to the respective country/NCB

Nominal value, translation at the year-end foreign exchange market rate

10

Intra-Eurosystem liabilities

10.1

Liabilities equivalent to the transfer of foreign reserves

ECB balance sheet item, denominated in euro

Nominal value

10.2

Other liabilities within the Eurosystem (net)

Net position of the following sub-items:

(a)  net liabilities arising from balances of ►M1  TARGET/TARGET2 ◄ accounts and correspondent accounts of NCBs i.e. the net figure of claims and liabilities -see also asset item ‘Other claims within the Eurosystem (net)’

(a)  Nominal value

(b)  other intra-Eurosystem liabilities that may arise, including the interim distribution of ECB income on euro banknotes to NCBs

(b)  Nominal value

11

Items in course of settlement

Settlement account balances (liabilities), including the float of giro transfers

Nominal value

12

Other liabilities

12.1

Off-balance sheet instruments revaluation differences

Valuation results of foreign exchange forwards, foreign exchange swaps, interest rate swaps, forward rate agreements, forward transactions in securities, foreign exchange spot transactions from trade date to settlement date

Net position between forward and spot, at the foreign exchange market rate

12.2

Accruals and income collected in advance

Expenditure falling due in a future period but relating to the reporting period. Income received in the reported period but relating to a future period

Nominal value, foreign exchange translated at market rate

12.3

Sundry

(a)  Taxation suspense accounts. Foreign currency credit or guarantee cover accounts. Repo transactions with credit institutions in connection with simultaneous reverse repo transactions for the management of securities portfolios under asset item ‘Other financial assets’. Compulsory deposits other than reserve deposits. Other minor items. Liabilities on a trust basis

(a)  Nominal value or (repo) cost

(b)  Customer gold deposits

(b)  Market value

(c)  Net pension liabilities

(c)  As per Article 22(3)

13

Provisions

For foreign exchange rate, interest rate and gold price risks, and for other purposes e.g. expected future expenses and contributions according to Article 49.2 of the Statute with respect to central banks of Member States whose derogations have been abrogated

Cost/nominal value

14

Revaluation accounts

(a)  Revaluation accounts related to price movements for gold, for every type of euro-denominated securities, for every type of foreign currency-denominated securities, for options; market valuation differences related to interest rate risk derivatives; revaluation accounts related to foreign exchange rate movements for every currency net position held, including foreign exchange swaps/forwards and SDRs

(b)  Special revaluation accounts stemming from contributions according to Article 49.2 of the Statute with respect to central banks of Member States whose derogations have been abrogated - see Article 11(2)

Revaluation difference between average cost and market value, foreign exchange translated at market rate

15

Capital and reserves

15.1

Capital

Paid-up capital

Nominal value

15.2

Reserves

Legal reserves, according to Article 33 of the Statute and contributions according to Article 49.2 of the Statute with respect to central banks of Member States whose derogations have been abrogated

Nominal value

16

Profit for the year

Nominal value

(EUR million) (1)

Assets

Reporting year

Previous year

Liabilities

Reporting year

Previous year

1  Gold and gold receivables

2  Claims on non-euro area residents denominated in foreign currency

2.1  Receivables from the IMF

2.2  Balances with banks and security investments, external loans and other external assets

3  Claims on euro area residents denominated in foreign currency

4  Claims on non-euro area residents denominated in euro

4.1  Balances with banks, security investments and loans

4.2  Claims arising from the credit facility under ERM II

5  Lending to euro area credit institutions related to monetary policy operations denominated in euro

5.1  Main refinancing operations

5.2  Longer-term refinancing operations

5.3  Fine-tuning reverse operations

5.4  Structural reverse operations

5.5  Marginal lending facility

5.6  Credits related to margin calls

6  Other claims on euro area credit institutions denominated in euro

7  Securities of euro area residents denominated in euro

8  General government debt denominated in euro

9  Intra-Eurosystem claims

9.1  Claims related to promissory notes backing the issuance of ECB debt certificates

9.2  Claims related to the allocation of euro banknotes within the Eurosystem

9.3  Other claims within the Eurosystem (net)

10  Items in course of settlement

11  Other assets

11.1  Coins of euro area

11.2  Tangible and intangible fixed assets

11.3  Other financial assets

11.4  Off-balance sheet instruments revaluation differences

11.5  Accruals and prepaid expenses

11.6  Sundry

12  Loss for the year

1  Banknotes in circulation

2  Liabilities to euro area credit institutions related to monetary policy operations denominated in euro

2.1  Current accounts covering the minimum reserve system

2.2  Deposit facility

2.3  Fixed-term deposits

2.4  Fine-tuning reverse operations

2.5  Deposits related to margin calls

3  Other liabilities to euro area credit institutions denominated in euro

4  ECB debt certificates issued

5  Liabilities to other euro area residents denominated in euro

5.1  General government

5.2  Other liabilities

6  Liabilities to non-euro area residents denominated in euro

7  Liabilities to euro area residents denominated in foreign currency

8  Liabilities to non-euro area residents denominated in foreign currency

8.1  Deposits, balances and other liabilities

8.2  Liabilities arising from the credit facility under ERM II

9  Counterpart of special drawing rights allocated by the IMF

10  Intra-Eurosystem liabilities

10.1  Liabilities equivalent to the transfer of foreign reserves

10.2  Other liabilities within the Eurosystem (net)

11  Items in course of settlement

12  Other liabilities

12.1  Off-balance sheet instruments revaluation differences

12.2  Accruals and income collected in advance

12.3  Sundry

13  Provisions

14  Revaluation accounts

15  Capital and reserves

15.1  Capital

15.2  Reserves

16  Profit for the year

Total assets

Total liabilities

(1)   The ECB may alternatively publish exact euro amounts, or amounts rounded in a different manner.

(EUR million) (1)

Profit and loss account for the year ending 31 December …

Reporting year

Previous year

1.1.1

Interest income on foreign reserve assets

1.1.2

Interest income arising from the allocation of euro banknotes within the Eurosystem

1.1.3

Other interest income

1.1

Interest income

1.2.1

Remuneration of NCBs’ claims in respect of foreign reserves transferred

1.2.2

Other interest expense

1.2

Interest expense

1

Net interest income

2.1

Realised gains/losses arising from financial operations

2.2

Write-downs on financial assets and positions

2.3

►M2  Transfer to/from provisions for foreign exchange rate, interest rate and gold price risks ◄

2

Net result of financial operations, write downs and risk provisions

3.1

Fees and commissions income

3.2

Fees and commissions expense

3

Net income/expense from fees and commissions (2)

4

Income from equity shares and participating interests

5

Other income

Total net income

6

Staff costs (3)

7

Administrative expenses (3)

8

Depreciation of tangible and intangible fixed assets

9

Banknote production services (4)

10

Other expenses

(Loss)/profit for the year

(1)   The ECB may alternatively publish exact euro amounts, or amounts rounded in a different manner.

(2)   The breakdown between income and expense may alternatively be provided in the explanatory notes to the annual accounts.

(3)   Including administrative provisions.

(4)   This item is used in case of outsourced banknote production (for the cost of the services provided by external companies in charge of the production of banknotes on behalf of the central banks). It is recommended that the costs incurred in connection with the issue of euro banknotes should be taken to the profit and loss account as they are invoiced or otherwise incurred, see also Guideline ECB/2006/16.

Decision ECB/2002/11

This Decision

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Article 7

Article 7

Article 8

Article 8

Article 9

Article 9

Article 10

Article 10

Article 11

Article 11

Article 12

Article 12

Article 13

Article 13

Article 14

Article 14

Article 15

Article 15

Article 16

Article 16

Article 17

Article 17

Article 18

Article 18

Article 19

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Article 20

Article 19

Article 21

Article 20

Article 22

Article 21

Article 23

Article 22

Article 24