Decision of the European Central Bank of 25 November 2010 on the allocation of monetary income of the national central banks of Member States whose currency is the euro (recast) (ECB/2010/23) (2011/66/EU) (repealed)

Article 4 Adjustments to intra-Eurosystem balances

1. For the purposes of monetary income calculation, each NCB’s intra-Eurosystem balances on euro banknotes in circulation shall be adjusted by a compensatory amount determined in accordance with the following formula:

C = (K – A) × S

where:

C

is the compensatory amount,

K

is the euro amount for each NCB that results from the application of the subscribed capital key to the average value of banknotes in circulation during the reference period, whereby the amount of banknotes in circulation denominated in the national currency of a Member State that adopts the euro shall be translated into euro at the daily foreign exchange reference rate during the reference period,

A

is the average euro value for each NCB of banknotes in circulation during the reference period, translated into euro at the daily foreign exchange reference rate during the reference period,

S

is the following coefficient for each financial year, starting with the cash changeover date:

Financial year	Coefficient
Cash changeover year	1
Cash changeover year plus 1 year	0,8606735
Cash changeover year plus 2 years	0,7013472
Cash changeover year plus 3 years	0,5334835
Cash changeover year plus 4 years	0,3598237
Cash changeover year plus 5 years	0,1817225

2. The sum of the compensatory amounts of the NCBs shall be zero.

3. Compensatory amounts shall be calculated each time a Member State adopts the euro or when the ECB’s subscribed capital key changes.

4. When an NCB joins the Eurosystem, its compensatory amount shall be allocated to the other NCBs in proportion to the respective shares of the other NCBs in the subscribed capital key, with the sign (+/–) reversed, and shall be in addition to any compensatory amounts already in force for the other NCBs.

5. The compensatory amounts and the accounting entries to balance those compensatory amounts shall be recorded on separate intra-Eurosystem accounts in the books of each NCB with a value date of the cash changeover date and the same value date of each following year of the adjustment period. The accounting entries to balance the compensatory amounts shall not be remunerated.

6. By derogation from paragraph 1, on the occurrence of specific events relating to changes in patterns of banknote circulation, as set out in Annex III to this Decision, each NCB’s intra-Eurosystem balances on euro banknotes in circulation shall be adjusted in accordance with the provisions set out in that Annex.

7. The adjustments to intra-Eurosystem balances provided for in this Article shall cease to apply from the first day of the sixth year following the relevant cash changeover year.