(1)

Minimum reserves have until now been remunerated at the European Central Bank’s (ECB) main refinancing operations rate. In order to align the minimum reserves remuneration more closely with money market conditions, the Governing Council decided on 27 October 2022 to set such remuneration at the Eurosystem’s deposit facility rate (DFR). Under the prevailing market and liquidity conditions, the DFR better reflects the rate at which funds may be invested in money market instruments if not held as minimum reserves and the rate at which banks may borrow funds in the money market to fulfil minimum reserves. The change in the remuneration of minimum reserves seeks to ensure that the Eurosystem minimum reserves system neither puts a burden on the banking system in the euro area, nor hinders the efficient allocation of resources. In order to ensure an effective transition, the remuneration change should be aligned with the beginning of the maintenance period, starting on 21 December 2022.

(2)

To ensure legal clarity and transparency, as a follow-up to the Governing Council’s decision on 17 February 2022 to review the remuneration of non-monetary policy deposits at Eurosystem level, it is appropriate to also define the remuneration treatment of funds initially included in holdings of minimum reserves that are subsequently considered to fulfil the conditions of Article 3(1)(d) of Regulation (EU) 2021/378 of the European Central Bank (ECB/2021/1) (2), and thus are excluded from an institution’s reserve holdings under that act.

(3)

This Regulation should apply from 21 December 2022.

(4)

Therefore, Regulation (EU) 2021/378 (ECB/2021/1) should be amended accordingly,