Decision of the European Central Bank of 11 November 2010 on the annual accounts of the European Central Bank (recast) (ECB/2010/21) (2011/65/EU) (repealed)

CHAPTER II COMPOSITION AND VALUATION RULES FOR THE BALANCE SHEET

Article 6 Composition of the balance sheet

The composition of the balance sheet shall be based on the structure set out in Annex I.

Article 7 Provision for foreign exchange rate, interest rate, credit and gold price risks

Taking into due consideration the nature of the ECB’s activities, the Governing Council may establish a provision for foreign exchange rate, interest rate, credit and gold price risks in the balance sheet of the ECB. The Governing Council shall decide on the size and use of the provision on the basis of a reasoned estimate of the ECB’s risk exposures.

Article 8 Balance sheet valuation rules

1. Current market rates and prices shall be used for balance sheet valuation purposes unless specified otherwise in Annex I.

2. The revaluation of gold, foreign currency instruments, securities other than those classified as held-to-maturity and non-marketable securities, as well as financial instruments, both on-balance-sheet and off-balance-sheet, shall be performed at the year-end at mid-market rates and prices.

3. No distinction shall be made between price and currency revaluation differences for gold, but a single gold revaluation difference shall be accounted for, based on the euro price per defined unit of weight of gold derived from the euro/US dollar exchange rate on the quarterly revaluation date. For foreign exchange, including on-balance-sheet and off-balance-sheet transactions, revaluation shall take place on a currency-by-currency basis. For the purpose of this Article, holdings of SDRs, including designated individual foreign exchange holdings underlying the SDR basket, shall be treated as one holding. For securities, revaluation shall take place on a code-by-code basis, i.e. same ISIN number/type. Securities held for monetary policy purposes or included in the items ‘Other financial assets’ or ‘Sundry’ shall be treated as separate holdings.

4. Securities classified as held-to-maturity shall be treated as separate holdings, valued at amortised costs and subject to impairment. The same treatment shall apply to non-marketable securities. Securities classified as held-to-maturity may be sold before their maturity in any of the following circumstances:

(a) if the quantity sold is considered not significant in comparison with the total amount of the held-to-maturity securities portfolio;

(b) if the securities are sold during the month of the maturity date;

(c) under exceptional circumstances, such as a significant deterioration of the issuer’s creditworthiness, or following an explicit monetary policy decision of the Governing Council.

Article 9 Reverse transactions

Reverse transactions shall be accounted for in accordance with Article 8 of Guideline ECB/2010/20.

Article 10 Marketable equity instruments

Marketable equity instruments shall be accounted for in accordance with Article 9 of Guideline ECB/2010/20.

Article 11 Hedging of interest rate risk on securities with derivatives

The hedging of interest rate risk shall be accounted for in accordance with Article 10 of Guideline ECB/2010/20.

Article 12 Synthetic instruments

Synthetic instruments shall be accounted for in accordance with Article 11 of Guideline ECB/2010/20.