The Governing Council of the ECB has adopted a Recommendation to amend Article 22 of the Statute of the ESCB and ECB. The amendment will provide legal basis for Eurosystem to carry out role as central bank of issue under currently proposed review of EMIR and will enable Eurosystem to fulfill mandate of conducting monetary policy and ensuring stability of euro.
The Recommendation was sent to the European Parliament and the Council for the adoption of a Decision amending Article 22. EC will issue an Opinion on this Recommendation. The revised Article 22 would read as follows: “The ECB and national central banks may provide facilities, and the ECB may make regulations, to ensure efficient and sound clearing and payment systems, and clearing systems for financial instruments, within the Union and with other countries.”
The amendment would provide ECB with a clear legal competence in the area of central clearing, which would pave the way for the Eurosystem to exercise the powers that are foreseen for central banks issuing a currency under the EC-proposed European Market Infrastructure Regulation (EMIR) review. These powers include a significantly enhanced role for central banks of issue in the supervisory system of central counterparties (CCPs), particularly with regard to the recognition and supervision of systemically important third-country CCPs clearing significant amounts of euro-denominated transactions. Under the proposed amendments to the EMIR framework, the Eurosystem will be able to continue to fulfil its role as the central bank issuing the single currency. The amendments will allow the Eurosystem to monitor and address risks associated with central clearing activities that could affect the conduct of monetary policy, the operation of payment systems, and the stability of the euro.
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