The legal framework for the Eurosystem's minimum reserve system is enshrined in Article 19 of the Statute of the European System of Central Banks (ESCB Statute), the Council Regulation (EC) on the application of minimum reserves by the European Central Bank and in the ECB Regulation on the application of minimum reserves.
- 19.1 Subject to Article 2, the ECB may require credit institutions in member states to hold minimum reserves on accounts with the ECB and national central banks in pursuance of monetary policy objectives. Regulations concerning the calculation and determination of the required minimum reserves may be established by the Governing Council. In cases of non-compliance the ECB shall be entitled to levy penalty interest and to impose other sanctions with comparable effect.
- 19.2 For the application of this Article, the Council shall, in accordance with the procedure laid down in Article 42, define the basis for minimum reserves and the maximum permissible ratios between those reserves and their basis, as well as the appropriate sanctions in cases of non-compliance.
The application of the ECB Regulation on minimum reserves ensures that uniform conditions obtain for the Eurosystem's minimum reserve system throughout the euro area.
Minimum reserve statistics
Detailed information on the minimum reserve statistics can be obtained from the statistical supplement to the Monthly Bulletin of the European Central Bank where you will find current statistical data on the reserve base of the credit institutions subject to reserve requirements as well as complete data on the concluded reserve maintenance periods and the reserve requirement for the current maintenance period.