Information for counterparties

This page offers DNB’s counterparties information on the implementation of the monetary policy transactions of the Eurosystem.

Minimum reserve requirements

Credit institutions established in the euro area are obliged to hold minimum reserves at their national central bank under Council Regulation (EC) no. 2531/98 of 23 November 1998 and the Regulation of the European Central Bank of 12 September 2003 (ECB/2003/9). You can find information on the minimum reserves in Annex 1 of Guideline (EU) of the European Central Bank on the implementation of the Eurosystem monetary policy framework ('the General Documentation') and Article 32 of the Monetary Policy Transactions Conditions of De Nederlandsche Bank. Both documents may be downloaded below

Reporting
The amount of minimum reserves to be held by each institution is determined in relation to its reserve base, which is defined in relation to elements of its balance sheet. The balance sheet data are calculated by the institutions themselves and reported to DNB within the general framework of the ECB’s money and banking statistics. You can find more information on the reporting requirements  'under User documentation ’09-07-2015 Socio-economic reporting manual 2015’. Should you have any questions please contact monrap@dnb.nl.


Fulfilling the reserve requirement

Institutions that meet their reserve requirement independently are obliged to hold an account with DNB. They have two options:

  • An account in the Payments Module (PM) of TARGET2
  • An account in the Home Accounting Module (HAM) of TARGET2

An account in the PM enables the institution to participate independently in payment transactions. An account in HAM can only be used for its reserve requirements. You can find more information on how to open and manage an account at DNB on the DNB website under Payments.

In some cases, institutions may hold their minimum reserves indirectly through an intermediary. For further information please contact fm.dealingroom@dnb.nlor call +31 20 520 5000.

Monitoring
Each institution may deduct a uniform lump-sum allowance from their reserve requirement. The lump-sum allowance now amounts to EUR 100,000. An account at DNB is required if the minimum reserve obligation exceeds zero. If the obligation is less than zero after deduction of the lump-sum allowance, a zero reserve requirement applies. It is up to the institution to monitor its own reserve base and to timely contact DNB to open an account, so that the necessary infrastructure will be ready when the institution’s reserve requirement exceeds zero.

Implications of mergers / separations
Mergers and separations influence the level of the minimum reserve requirements. Institutions are requested to timely contact the Financial Markets Division. Please contact fm.dealingroom@dnb.nlor call +31 20 520 5000.

Access to standing facilities and participation in monetary policy operations

Institutions subject to reserve requirements generally have access to the standing facilities of the Eurosystem (deposit facility and marginal lending facility) and can participate in the Eurosystem’s monetary policy operations. Institutions wishing to participate as monetary counterparties of the Eurosystem must meet some additional requirements, as listed in Part 3 of the Monetary Policy Transactions Conditions.

The Monetary Policy Transactions Conditions contains the rules by which Dutch counterparties may take part in monetary policy operations and access the Eurosystem’s facilities. In addition to the Monetary Policy Transactions Conditions the General Terms and Conditions of De Nederlandsche Bank also apply.

Please note that Decisions of the ECB without addressees have direct effect and thus are also applicable to the contractual relationship between DNB and its monetary counterparties. A reference to these Decisions of the ECB can be found on the ECB website (see link below).

In addition to the above mentioned standard conditions additional conditions apply for participation in the Targeted Long Term Refinancing Operations (both TLTROs as well as TLTROs-II). The relevant documentation can be found at the bottom of this page.

In order to gain access to participation in monetary policy transactions, please contact:fm.dealingroom@dnb.nl, tel. +31 20 520 5000.

Purchase programs 

As of the beginning of March 2015 the Eurosystem national central banks, including DNB, started buying central government bonds and bonds issued by a number of national and European institutions. This public sector purchase programme (PSPP) complements two purchase programs launched in the last months of 2014, under which asset-backed securities (ABS) and covered bonds are bought. The intention is to buy EUR 60 billion a month under the three programmes, until the end of September 2016 or in any case until the Governing Council of the ECB sees evidence of a sustained adjustment in the path of inflation in accordance with the objective for price stability.

DNB purchases covered bonds and securities issued by the Dutch government and national agencies through market transactions with its own counterparties. Eligible counterparties for purchases shall be those eligible for the Eurosystem’s monetary policy instruments, together with counterparties used by the Eurosystem for the investment of its euro-denominated portfolios.DNB also conducts reverse auctions for part of its outright purchases under the PSPP.More information is available on the page ‘Reverse auctions under the PSPP’.

The securities purchased by DNB under the PSPP will be made available for securities lending. More information is available on the page “QE & securities lending”.