The Eurosystem requires banks to hold a proportion of their liabilities in the form of deposits on accounts with their national central bank: the minimum reserve requirement. This is calculated by applying different reserve ratios to specific liability categories. Compliance with this requirement is determined on the basis of the average daily balances of counterparties' reserve accounts over one reserve maintenance period (6 or 7 weeks). The maintenance period calendar is published regularly (see the section on Eurosystem Calendars). Since 20 September 2023, the remuneration rate on the reserve requirement is equal to 0% (see the section on Key ECB interest rates).
Fulfilment of the minimum reserve requirement
Banks can fulfil their minimum reserve requirement indirectly through an intermediary that is subject to such requirements in Italy. The request for authorization of indirect fulfilment of the requirement must be submitted to the Bank of Italy branches concerned. The request must contain a copy of the agreement drawn up between the parties for managing the minimum reserves indirectly and a declaration certifying their working relationship.
Sanctions
Non-compliance with the minimum reserve requirement is notified when the average closing balance of the bank in the maintenance period falls below the required reserves for the same period. In these cases, the breach is notified and a sanction can be applied (see the section on Key Eurosystem interest rates).
Notice to the public
Information on the minimum reserves, published according to the EU currently applicable provisions, can be found on the main business information providers (Bloomberg, Thomson Reuters).
A list of monetary financial institutions that are subject to minimum reserve requirements is published by the ECB.
Regulations
The main regulations are listed below:
- Council Regulation (EC) No 2531/98 of 23 November 1998 concerning the application of minimum reserves by the European Central Bank
- Council Regulation (EC) No 2532/98 of 23 November 1998 concerning the powers of the European Central Bank to impose sanctions
- Regulation (EU) 2021/378 of the European Central Bank of 22 January 2021 on the application of minimum reserve requirements (recast) (ECB/2021/1)
- European Central Bank Regulation (EC) No 2157/1999 of 23 September1999 on the powers of the European Central Bank to impose sanctions
MRR national data
Detailed information on minimum reserve requirement nationaI data is available in the Publications sector, under Banks and Money: National Data (Latest reports, tables 3.6a and 3.6b).
Contacts
The Bank of Italy branches can be contacted for questions on reserve requirements and the related administrative procedures.
For further information, please contact IT-LIQUIDITYRISK@bancaditalia.it.
