On Tuesday 16 April, the Governing Council of the European Central Bank (ECB) adopted a single legal act setting a uniform rate of remuneration for non-monetary deposits with the Eurosystem. This rate will be set at the euro short-term rate (€STR) minus 20 basis points. The €STR reflects the overnight borrowing costs in unsecured euros for banks in the euro area.
The ceiling on the remuneration of euro area government overnight deposits remains unchanged, also at €STR minus 20 basis points.
The ECB points out that only a small amount of overnight deposits under the Eurosystem reserve management services (ERMS) framework still need to be brought into line with the new rate. Most overnight deposits held with national central banks under the ERMS framework have already been brought into line with the new uniform rate in 2023.
In addition, the Governing Council has made exceptions for non-monetary deposits held in TARGET by financial market infrastructures domiciled in the European Economic Area (EEA) for guarantee funds and pre-funded accounts, which will be remunerated at the €STR. According to the Governing Council, this is because of the importance of these deposits for the smooth operation of payment systems and financial stability in the eurozone.
These changes will come into force on 1 December.
For further information, visit https://aeur.eu/f/bta (Original version in French by Émilie Vanderhulst)