Guideline (EU) 2023/[XX] of the European Central Bank of 5 April 2023 amending Guideline (EU) 2019/671 on domestic asset and liability management operations by the national central banks (ECB/2023/8)

The ECB has amended Guideline (EU) 2019/671 on domestic asset and liability management operations by the NCBs.
The present amendment of Guideline (EU) 2019/671 reduces the frequency of the assessment of the implementation of the guideline to be submitted by the ECB to the Governing Council from one year to two years. Consequently, the frequency with which the NCBs inform the ECB of the related organizational arrangements is also reduced from one year to two years.
The remuneration of government deposits is subject to certain ceilings, which have been adjusted temporarily by Decision (EU) 2022/1521 of the ECB, yet which will not be in force after 30 April 2023. The remuneration ceiling applicable to such deposits held with NCBs will be adjusted from 1 May 2023, so that with respect to government deposits other than government deposits related to an adjustment program, it will be set at the euro STR minus 20 basis points, and the possibility of a more favorable remuneration of government deposits up to a certain threshold will be removed.
The decision aims to provide incentives for a gradual and orderly reduction of those deposits held with the NCBs, thereby minimizing the risk of adverse effects on market functioning and ensuring the smooth transmission of monetary policy.
The guideline takes effect on the day of its notification to the NCBs, and the NCBs shall take the necessary measures to comply with this guideline and apply them from 1 May 2023. NCBs shall notify the ECB of the texts and means relating to the measures specified in Article 1, point (2) by 17 April 2023, at the latest.