ECB publishes indicative operational calendars for 2028
The European Central Bank (ECB) today published the indicative calendars for the Eurosystem’s regular tender operations and reserve maintenance periods in 2028.
The indicative calendar for the Eurosystem’s reserve maintenance periods takes into account the calendar for Governing Council meetings in 2028, as well as the calendar for regular tender operations.
The indicative calendar for the Eurosystem’s regular tender operations includes only main refinancing operations (MROs) and three-month longer-term refinancing operations (LTROs). It does not include any supplementary or ad hoc operations which may be carried out in 2028.
Indicative calendar for reserve maintenance periods in 2028 (including maintenance period 8 of 2027)
MP
Relevant GoverningCouncil meeting
Start of MP
End of MP
Reserve base data(monthly reporting)
Reserve base data(quarterly reporting)
Length of MP (days)
8/2027
Thu, 16-Dec-27
Wed, 22-Dec-27
Tue, 08-Feb-28
Oct-27
Sep-27
49
1
Thu, 03-Feb-28
Wed, 09-Feb-28
Tue, 28-Mar-28
Dec-27
Sep-27
49
2
Thu, 23-Mar-28
Wed, 29-Mar-28
Tue, 09-May-28
Jan-28
Dec-27
42
3
Thu, 04-May-28
Wed, 10-May-28
Tue, 13-Jun-28
Mar-28
Dec-27
35
4
Thu, 08-Jun-28
Wed, 14-Jun-28
Tue, 25-Jul-28
Apr-28
Mar-28
42
5
Thu, 20-Jul-28
Wed, 26-Jul-28
Tue, 12-Sep-28
May-28
Mar-28
49
6
Thu, 07-Sep-28
Wed, 13-Sep-28
Tue, 17-Oct-28
Jul-28
Jun-28
35
7
Thu, 12-Oct-28
Wed, 18-Oct-28
Tue, 12-Dec-28
Aug-28
Jun-28
56
8
Thu, 07-Dec-28
Wed, 13-Dec-28
tbd
Oct-28
Sep-28
tbd
ECB adopts opinion on appointment of its future Vice-President
The Governing Council of the European Central Bank (ECB) has adopted an opinion on a recommendation from the Council of the European Union on the appointment of the Vice-President of the ECB.
The Governing Council had no objection to the proposed candidate, Boris Vujčić, who is a person of recognised standing and professional experience in monetary policy or banking matters as required by Article 283(2) of the Treaty on the Functioning of the European Union. Mr Vujčić currently serves as the Governor of Hrvatska narodna banka.
Following the Governing Council’s opinion and an opinion of the European Parliament, the new Vice-President of the ECB will be appointed by the European Council. The Governing Council’s opinion, which will be published shortly in the Official Journal of the European Union, will be made available on the ECB’s website in all official EU languages.
Mr Vujčić will serve a non-renewable eight-year term, with effect from 1 June 2026. He succeeds Luis de Guindos, whose term as Vice-President of the ECB ends on 31 May 2026.
ECB has appointed Thomas Vlassopoulos as Director General Market Infrastructure and Payments
The Executive Board of the European Central Bank (ECB) has appointed Thomas Vlassopoulos as Director General Market Infrastructure and Payments. Mr Vlassopoulos will replace Ulrich Bindseil, who is leaving the ECB.
Thomas Vlassopoulos is currently Deputy Director General Market Operations, a post he has held since May 2021. He previously headed the Monetary Analysis Division and was also Deputy Head of the Financial Stability Surveillance Division. Mr Vlassopoulos joined the ECB’s Directorate General Economics in 2008, from the Bank of Greece. Mr Vlassopoulos holds a master’s degree in economics from the London School of Economics and Political Science.
The Directorate General Market Infrastructure and Payments (DG-MIP) coordinates and supports the operation and development of Eurosystem market infrastructures (TARGET Services), conducts oversight of payment, clearing and settlement systems, and acts as a catalyst for innovation in retail payments as well as exploring new technologies for wholesale central bank money settlement. It is also leading the digital euro project. Mr Vlassopoulos will be responsible for the strategic direction and management of DG-MIP, steering innovation, project workstreams and operational activities for TARGET Services, the digital euro project as well as retail and wholesale payments. He will chair a range of committees and high-level fora, maintaining working relationships with market participants and other stakeholders.
ECB reports loss of €7.9 billion (2023: loss of €1.3 billion)
The European Central Bank’s (ECB’s) financial statements for 2024 show a loss of €7,944 million, which is comparable to the loss of €7,886 million reported in 2023 before the transfer from risk provisions. In 2023 the full release of the provision for financial risks of €6,620 million reduced the loss for that year to €1,266 million, while in 2024 no losses could be covered by this provision as its balance stood at zero. The 2024 loss, like the loss from the previous year, will remain on the ECB’s balance sheet to be offset against future profits. As a result of the loss, there will be no profit distribution to euro area national central banks for 2024.
The losses come after many years of substantial profits and are the result of policy actions taken by the Eurosystem that were necessary to fulfil its primary mandate of maintaining price stability. These policies required the ECB to expand its balance sheet by purchasing financial assets, mostly with fixed interest rates and long maturities. This was accompanied by a corresponding increase in liabilities, on which the ECB pays interest at variable rates. Thus, increases in the ECB’s key interest rates in 2022 and 2023, which were aimed at combating high inflation in the euro area, resulted in immediate increases in interest expenses on these liabilities, while interest income on the ECB’s assets, in particular on securities purchased under the asset purchase programme (APP) and the pandemic emergency purchase programme (PEPP), did not increase to the same extent.
The ECB may still incur losses in the coming years. Should this be the case, any such losses are expected to be lower than those incurred in 2023 and 2024. Thereafter, the ECB is expected to return to making profits. In any case, the ECB can operate effectively and fulfil its primary mandate of maintaining price stability regardless of any losses. Its financial strength is further underlined by its capital and its substantial revaluation accounts, which together amounted to €59 billion at the end of 2024, €13 billion higher than at the end of 2023.
The ECB’s interest income and expenses in 2024 were as follows:
2024€ millions
2023€ millions
Change€ millions
Foreign reserves
2,537
2,382
155
Securities held for monetary policy purposes
3,850
3,467
383
Claims related to the allocation of euro banknotes within the Eurosystem
5,232
4,817
415
NCBs’ claims in respect of foreign reserves transferred
(1,448)
(1,335)
(114)
TARGET balances due from/to NCBs
(15,674)
(14,236)
(1,439)
Other
(1,479)
(2,288)
809
Net interest income/(expense)
(6,983)
(7,193)
210
In 2024, as in 2023, the fact that interest expenses were higher than interest income was mainly driven by the significant interest expense on the ECB’s net TARGET liability. Since this liability was remunerated at the interest rate on the main refinancing operations (MRO rate), the higher average MRO rate of 4.1% in 2024 (2023: 3.8%) resulted in an increase in this expense. The higher average MRO rate also led to increases in the interest income on claims related to the allocation of euro banknotes in circulation and the interest expense payable to the NCBs as remuneration of their claims in respect of foreign reserves transferred to the ECB. The interest income on securities held for monetary policy purposes also increased, mainly on government securities held under the PEPP. The interest income on foreign reserves was higher, largely coming from securities denominated in US dollars.
Write-downs amounted to €269 million (2023: €38 million) and resulted mainly from the decline in the market value of a number of securities held in the US dollar portfolio and the depreciation of the Japanese yen, which led to a reduction in the value of the related currency holding.
Total staff costs increased to €844 million (2023: €676 million), mainly owing to the higher costs of post-employment benefits arising from an amendment to the rules governing the ECB’s pension plans in 2024. Other administrative expenses increased to €626 million (2023: €596 million), mainly owing to higher IT spending in relation to the digital transformation, while also reflecting the impact of inflation.
Supervisory fee income (fees charged to supervised banks to recover expenses incurred by the ECB in the performance of its supervisory tasks) amounted to €681 million (2023: €654 million).
The total size of the ECB’s balance sheet decreased by €33 billion to €641 billion (2023: €673 billion), mainly reflecting the gradual decline in APP holdings owing to redemptions.
Consolidated balance sheet of the Eurosystem
At the end of 2024 the size of the balance sheet of the Eurosystem, which comprises assets and liabilities of the euro area NCBs and the ECB vis-à-vis third parties, stood at €6,428 billion (2023: €6,887 billion). The reduction compared to 2023 was due to the decline in securities held for monetary policy purposes to €4,283 billion (2023: €4,694 billion), mainly owing to redemptions. APP holdings decreased by €353 billion to €2,673 billion, as reinvestment of maturing assets ceased in July 2023, while PEPP holdings decreased by €57 billion to €1,609 billion, with maturing assets being only partially reinvested in the second half of 2024. Furthermore, Eurosystem lending operations decreased to €34 billion (2023: €410 billion), largely as a result of the maturing of the third series of targeted longer-term refinancing operations (TLTRO III). The resulting decline was partially offset by the increase in the euro-equivalent value of the Eurosystem’s holdings of gold to €872 billion (2023: €649 billion) owing to the rise in the market price of gold in euro terms.
Results of the June 2024 Survey on credit terms and conditions in euro-denominated securities financing and over-the-counter derivatives markets (SESFOD)
Credit terms and conditions eased somewhat over the period from March to May 2024
The maximum amount of funding, maximum maturity of funding and demand for funding increased across many types of collateral
Improved liquidity and trading conditions for foreign exchange, interest rate and credit derivatives referencing both sovereigns and corporates
Overall credit terms and conditions eased somewhat between March and May 2024. This outcome was in line with the expectations of a further easing of overall credit terms and conditions that had been expressed in the March 2024 survey. While overall price terms eased more than expected, non-price terms – contrary to expectations – did not tighten and instead remained unchanged. The overall easing of conditions in general, and of price terms in particular, was reflected across all counterparty types. Respondents mainly attributed the easing of price terms to an improvement in general market liquidity, competition from other institutions and improvements in the current or expected financial strength of counterparties. For the first time since the start of the survey in 2013, survey respondents expected overall, price and non-price terms to remain unchanged across all counterparty types for the three months ahead (in this case for the period from June to August 2024).
Chart 1
Realised and expected quarterly changes in overall credit terms and price/non-price terms offered to counterparties across all transaction types
(Q2 2023 to Q3 2024; net percentages of survey respondents)
Source: ECB.
Note: Net percentages are calculated as the difference between the percentage of respondents reporting “tightened somewhat” or “tightened considerably” and the percentage reporting “eased somewhat” or “eased considerably”.
Respondents reported that changes in the practices of central counterparties (CCPs), including margin requirements and haircuts, had not affected price and non-price terms. The amount of resources dedicated to managing concentrated credit exposures increased over the review period, while the use of financial leverage declined somewhat. Respondents reported increases in the intensity of efforts to negotiate more favourable terms, in particular for insurance companies.
Turning to financing conditions for funding secured against the various types of collateral, respondents reported increases in the maximum amount and maximum maturity of funding secured against all collateral types. Respondents reported that haircuts had increased for convertible securities. Financing rates/spreads decreased for domestic and high-quality government bonds but increased for funding secured against all other types of collateral. Small net percentages of participants reported decreased use of CCPs for securities financing transactions involving collateral in the form of domestic and high-quality government bonds. Significant net percentages of respondents reported increases in demand for funding secured against many collateral types, particularly for funding secured against equities and domestic government bonds. Respondents reported mixed results as regards the liquidity and functioning of collateral markets.
Looking at credit terms and conditions for the various types of non-centrally cleared over-the-counter (OTC) derivative, initial margin requirements decreased slightly for commodity derivatives and credit derivatives referencing corporates. Survey respondents reported a mixed picture, with only a few changes as regards the maximum amount of exposure and the maximum maturity of trades. Meanwhile, they reported improved liquidity and trading conditions for foreign exchange, interest rate and credit derivatives referencing both sovereigns and corporates. They also reported that for most derivative types the volume of valuation disputes had decreased, although the duration and persistence of valuation disputes had increased. Terms in new or renegotiated master agreements remained mostly unchanged. Respondents reported no changes as regards the posting of non-standard collateral over the review period.
The results of the June 2024 SESFOD survey, the underlying detailed data series and the SESFOD guidelines are available on the ECB’s website, together with all other SESFOD publications.
The SESFOD survey is conducted four times a year and covers changes in credit terms and conditions over three-month reference periods ending in February, May, August and November. The June 2024 survey collected qualitative information on changes between March and May 2024. The results are based on the responses received from a panel of 25 large banks, comprising 13 euro area banks and 12 banks with head offices outside the euro area.
ECB appoints Thijs van Woerden as Director General Horizontal Supervision
The Executive Board of the European Central Bank has appointed Thijs van Woerden as Director General Horizontal Line Supervision. In his new role Mr van Woerden will be responsible for providing the strategic direction of and managing horizontal line supervision. Alongside other areas of European banking supervision, this business area helps to develop and nurture a common understanding and coordinated approach to supervisory tasks.
In his current role at De Nederlandsche Bank (DNB), which he has held since 2018, Mr van Woerden is responsible for all DNB staff working in Joint Supervisory Teams supervising Dutch significant banks. He previously held managerial roles in DNB’s Insurance Supervision and Supervision Policy Divisions. Before that, he worked at Accenture for several years. He holds a Master’s degree in Economics from the University of Amsterdam. He succeeds Stefan Walter, who leaves at the end of the year, and will take up the role in early 2024.
The thematic supervisory teams of the Directorate General Horizontal Line Supervision perform horizontal tasks relating to all banks subject to European banking supervision. In particular, they support Joint Supervisory Teams by providing expertise on credit risk, capital markets, non-financial risks, business models, capital planning and crisis management, stress testing, supervisory policy, and supervisory methodologies. They conduct benchmarking and industry-wide assessments, such as thematic reviews.
Croatia introduces the euro
Euro banknotes and coins start circulating in Croatia
Hrvatska narodna banka joins Eurosystem
Croatia becomes 20th euro area member
Hrvatska narodna banka now also full member of Single Supervisory Mechanism following period of close cooperation
The euro entered into circulation in Croatia on 1st January 2023, bringing the number of European Union (EU) Member States using the single European currency to 20.
“I welcome Croatia to the euro family and to the ECB Governing Council table in Frankfurt” said Christine Lagarde, President of the European Central Bank. “Croatia worked hard to become the twentieth member of the euro area, and it succeeded. I congratulate the Croatian people. It shows the euro is an attractive currency which brings stability to its members.”
With Croatia joining the euro area, Hrvatska narodna banka, the country’s national central bank, becomes a member of the Eurosystem. The euro area’s central banking system comprises the ECB and the national central banks of those countries whose currency is the euro.
Hrvatska narodna banka also becomes a full member of the Single Supervisory Mechanism, although the country has been part of the close cooperation framework since October 2020. As such, the ECB is currently responsible for directly supervising five significant institutions in the country and overseeing 16 less significant institutions there. As part of its supervisory tasks, the ECB is also responsible for licensing banks and assessing the buyers of qualifying holdings in all banks. Hrvatska narodna banka already has a representative on the ECB’s Supervisory Board.
Hrvatska narodna banka has paid the remainder of its contribution to the capital of the ECB and transferred its contribution to the ECB’s foreign reserve assets. Croatian counterparties of the Eurosystem will be able to participate in ECB open market operations announced after 1 January 2023. A list of credit institutions and branches of credit institutions located in Croatia that are subject to reserve requirements will be published shortly on the ECB’s website, as will lists of branches of Croatian credit institutions located in other EU Member States already using the euro. The ECB announced transitional provisions for minimum reserve requirements on 28 October 2022. Assets located in Croatia that fulfil the necessary requirements will be added to the euro area’s list of eligible collateral.
Croatia joining the euro area as its 20th member also means that the new system of rotating voting rights in the ECB’s Governing Council comes into force as of today, with the rights rotating according to a calendar.
Croatia’s membership of the euro area has also led to changes to the Eurosystem capital subscriptions.
Deutsche Bank publishes 2023 SREP requirements
Deutsche Bank AG has been informed by the European Central Bank (ECB) of its decision regarding prudential capital requirements to be maintained from 1 January 2023 onwards, following the 2022 Supervisory Review and Evaluation Process (SREP). The ECB’s decision requires Deutsche Bank, on a consolidated basis, to maintain a Pillar 2 requirement (P2R) of 2.70% of which at least 1.52% must be covered by Common Equity Tier 1 (CET 1) capital, and 2.03% by Tier 1 capital. Consequently, on 1 January 2023, Deutsche Bank’s Pillar 2 requirement will increase by 20bps of which 11bps need to be covered with CET 1 capital and 15bps with Tier 1 capital. The increase is driven by the ECB’s newly introduced separate assessment of risks stemming from leveraged finance activities.
The ECB’s decision will require Deutsche Bank, on a consolidated basis, to maintain a Common Equity Tier 1 (CET 1) capital ratio of at least 10.55% compared to 10.43% per 30 September 2022. This new CET 1 capital requirement comprises: the minimum Pillar 1 requirement of 4.50%; the Pillar 2 requirement of 1.52%; the capital conservation buffer of 2.50%; a countercyclical buffer of 0.03% (assumed unchanged from 30 September 2022); and the requirement arising from the maximum of the buffers from Deutsche Bank’s designation as a Global Systemically Important Institution (G-SII) or as an Other Systemically Important Institution (O-SII) of 2.00%.
This requirement sets the level below which Deutsche Bank would be required to calculate a Maximum Distributable Amount (MDA). The MDA is used to determine restrictions on distributions, notably in the form of dividends on CET 1 capital, new variable remuneration and coupon payments to holders of Additional Tier 1 instruments.
The ECB has also set new minimum requirements for other capital definitions. 2023 requirements of 12.56% are set for Deutsche Bank’s Tier 1 capital ratio (vs. 12.41% per 30 September 2022) and 15.23% for the Total capital ratio (vs.15.03% per 30 September 2022). In comparison, Deutsche Bank’s last reported consolidated capital ratios were 13.33% CET 1 capital ratio, 15.29% Tier 1 capital ratio and 18.07% Total capital ratio, as of 30 September 2022.
ECB appoints Oscar Arce as Director General Economics
The Executive Board of the European Central Bank (ECB) has appointed Oscar Arce as Director General Economics. The Directorate General Economics monitors, analyses, models and forecasts economic developments and policies, and provides policy advice and secretarial support for monetary policy meetings held by the ECB’s decision-making bodies.
Mr Arce is currently Director for Economics, Statistics and Research at the Banco de España and is a non-voting member of the institution’s Governing Council and Executive Board. He also represents the Banco de España in international fora. Mr Arce will succeed Frank Smets, who is going on unpaid leave for one year before returning to the ECB as Principal Adviser.
Mr Arce initially joined the Banco de España in 2004, before going on to work for the Spanish Government and the Spanish Securities Market Commission (CNMV). He returned to the central bank in 2012. Since then he has held several managerial positions there, including in monetary policy and research. Mr Arce holds a PhD in Economics from the London School of Economics and studied in London and Valladolid.
ECB to redesign euro banknotes by 2024
The European Central Bank (ECB) plans to redesign euro banknotes, working with European citizens in a process that is expected to lead to a final decision in 2024.
The redesign process will start with the creation of focus groups, tasked with gathering opinions from people across the euro area on possible themes for the future euro banknotes. A theme advisory group with one expert from each euro area country will then submit a shortlist of new themes to the ECB’s Governing Council. The members of the advisory group have already been appointed by the ECB based on proposals from euro area national central banks, and are drawn from diverse fields such as history, natural and social sciences, the visual arts and technology. Current euro banknote designs are based on an “ages and styles” theme, represented by windows, doorways and bridges.
“Euro banknotes are here to stay. They are a tangible and visible symbol that we stand together in Europe, particularly in times of crisis, and there is still a strong demand for them,” said ECB President Christine Lagarde. “After 20 years, it’s time to review the look of our banknotes to make them more relatable to Europeans of all ages and backgrounds.”
Following the proposals from the advisory group, the ECB will call on the public for their input on the shortlisted themes. A design competition for the new banknotes will follow, after which the ECB will again consult the public. The Governing Council will take the final decision.
The launch of this process follows a commitment by the ECB’s Governing Council to ensure innovative and secure banknotes that connect with Europeans. The latest Study on the payment attitudes of consumers in the euro area (SPACE) showed that cash remained the most popular means of payment for in-person retail payments in 2019. Despite the increase in cashless payments during the pandemic, the demand for cash has risen owing to cash’s crucial role as a store of value. As part of its Cash 2030 strategy, the Eurosystem is taking concrete steps to guarantee that cash continues to be available and accepted as a means of payment well into the future – including following the possible launch of a digital euro.
“We want to develop euro banknotes that European citizens can identify with and will be proud to use as their money,” said ECB Executive Board member Fabio Panetta. “The process to redesign the euro banknotes will run in parallel with our investigation on a digital euro. Both projects aim to fulfil our mandate of providing safe and secure money to Europeans.”
After completing the design process, the Governing Council will authorise the production of new banknotes and decide on potential issuance dates.
Members of the Theme Advisory Group:
Alice Twemlow (Netherlands), Professor of History, Theory and Sociology of Graphic Design and Visual Culture, University of Amsterdam
Costas Varotsos (Greece), Artist and Professor, Faculty of Architecture, Aristotle University of Thessaloniki
Demetrios Michaelides (Cyprus), Professor Emeritus of Classical Archaeology, University of Cyprus
Elvira Maria Correia Fortunato (Portugal), Vice-Rector, NOVA University of Lisbon
Fabio Beltram (Italy), Professor of Physics of Matter, Scuola Normale Superiore in Pisa
Fintan O’Toole (Ireland), Professor of Irish Letters, Princeton University, and columnist at The Irish Times
Ieva Zībārte (Latvia), Head of Exhibitions, Zuzeum Art Centre
Jana Arbeiter (Slovenia), Assistant Professor and Researcher, Faculty of Social Sciences, University of Ljubljana
Lisa Borgenheimer (Germany), Professor of Information Design, HfG Offenbach am Main
Maaria Wirkkala (Finland), Artist
Marija Marcelionytė-Paliukė (Lithuania), Professor, Vilnius Academy of Arts
Nuria Oliver (Spain), Director and Co-founder, ELLIS Alicante Unit, and Chief Data Scientist, DataPop Alliance
Patrick Sanavia (Luxembourg), Director, Luxembourg National Heritage Office
Peter Aufreiter (Austria), General Director and Scientific Managing Director, Vienna Museum of Science and Technology
Silvia Miháliková (Slovakia), Professor and researcher, Slovak Academy of Sciences, Institute for Sociology, Trnava University
Stéphane Distinguin (France), Founder and CEO, Fabernovel
Stephan Vanfleteren (Belgium), Photographer
Vladimir Taiger (Estonia), Graphic designer, Vaba Maa security printing company
The representative from Malta is pending nomination.