2009年-ECB欧洲央行_Annual_Accounts_2008_28页_416kb

2008 ECB Management Report Summary

1. Nature of the Business

The European Central Bank (ECB) activities for the year ending 31 December 2008 are detailed in the Annual Report. The report provides an overview of the ECB's operations, governance, financial performance, and key financial instruments.

2. Objectives and Tasks

The ECB's objectives and tasks are defined in the Statute of the ESCB (Articles 2 and 3). An overview of performance against these objectives is included in the President's foreword to the Annual Report.

3. Key Resources, Risks, and Processes

Governance of the ECB

Governance details are provided in Chapter 8 of the Annual Report.

Executive Board Members

Members of the Executive Board are appointed by the governments of the Member States, following a recommendation from the EU Council after consultation with the European Parliament and the Governing Council. Their terms and conditions are determined by the Governing Council based on proposals from a committee comprising members from both ECB and EU Council.

Employees

The average number of full-time equivalent staff at the ECB increased from 1,448 in 2007 to 1,499 in 2008. At the end of 2008, 1,536 staff were employed. Further details are available in Note 29 "Staff costs" and Chapter 8, Section 2.

Investment Activities and Risk Management

The ECB's foreign reserves portfolio, held in US dollars, Japanese yen, and gold, is used to fund operations in the foreign exchange market. The ECB also maintains an own funds portfolio to cover operating expenses. Investment activities and risk management are detailed in Chapter 2. A provision against foreign exchange rate, interest rate, and gold price risks was established in 2005 and reached its permitted maximum of €4,014,961,580 by 31 December 2008, following a transfer of €1,339,019,690. This provision, along with the general reserve fund, cannot exceed the value of the capital paid up by the euro area NCBs.

4. Financial Results

Financial Accounts

The ECB's Annual Accounts are prepared by the Executive Board in accordance with the principles established by the Governing Council and approved by the Governing Council before publication. The accounts reflect the ECB's financial position and results of operations.

Financial Results for 2008

• Net income before risk provision: €2,661 million
• Net profit after transfer to risk provision: €1,322 million, distributed to the NCBs

The ECB's net interest income decreased to €2,381 million from €2,421 million in 2007 due to lower US dollar interest income and higher remuneration for NCBs’ claims. Unrealised gains of €3.6 billion from the depreciation of the euro against the US dollar and Japanese yen offset some of the losses. Realised gains from financial operations decreased to €662 million from €779 million in 2007, mainly due to lower gold sales under the Central Bank Gold Agreement. Total administrative expenses increased slightly to €388 million from €385 million in 2007.

Capital Changes

Cyprus and Malta adopted the euro on 1 January 2008, leading to an increase in the ECB's paid-up capital from €4,127 million to €4,137 million. This was due to the remaining capital subscription from these countries.

5. Other Issues

Environmental Issues

In 2008, the ECB prepared an inventory of environmental aspects and a first estimate of its ecological impact, based on its "Environmental Policy Framework." It also initiated an environmental management system compliant with ISO 14001 and EMAS standards, aiming for certification in 2010.

Information Technology Service Management

The ECB was the first central bank to achieve ISO/IEC 20000 certification for IT service management, which improved IT service delivery and user satisfaction.

Accounting Policies

The ECB's financial statements are prepared in accordance with accounting policies that reflect the nature of central bank activity. These include economic reality and transparency, prudence, recognition of post-balance-sheet events, materiality, accruals, going concern, consistency, and comparability.

Recognition of Assets and Liabilities

Assets and liabilities are only recognised when it is probable that future economic benefits will flow to or from the ECB, and when the cost or value can be measured reliably.

Basis of Accounting

The ECB uses historical cost accounting, adjusted for market valuations of marketable securities, gold, and foreign currency assets and liabilities. Transactions are recorded based on settlement dates, with daily accruals for interest and other adjustments.

Gold and Foreign Currency Assets and Liabilities

Foreign currency assets and liabilities are converted into euro using the exchange rate on the Balance Sheet date. Gold is valued at the market price at year-end, using the euro exchange rate against the US dollar.

Securities

Marketable securities are valued at mid-market prices or yield curves. Non-marketable securities and illiquid equity shares are valued at cost, subject to impairment.

Income Recognition

Income and expenses are recognised in the period they are incurred or earned. Realised gains and losses are recorded in the Profit and Loss Account, while unrealised gains and losses are transferred to revaluation accounts or recorded in the Profit and Loss Account if they exceed previous revaluation gains.

Reverse Transactions

Reverse transactions, including repurchase and reverse repurchase agreements, are used to manage liquidity and are recorded in off-balance-sheet accounts. These transactions are not included in the ECB's security holdings.

Off-Balance-Sheet Instruments

Currency instruments such as foreign exchange forwards and swaps are included in the net foreign currency position. Interest rate instruments are revalued based on observable market data and discount factors.

Post-Balance-Sheet Events

Events occurring after the Balance Sheet date but before approval by the Governing Council are adjusted if they materially affect the financial position. Non-material events are disclosed in notes.

Intra-ESCB and Intra-Eurosystem Balances

Bilateral balances between ECB and euro area NCBs via TARGET2 are netted and represented in the ECB's Balance Sheet. The ECB's share of euro banknotes in circulation is 8%, and interest income on these claims is included in net interest income and distributed in the following year.

Fixed Assets

Fixed assets (excluding land) are valued at cost less depreciation. Land is valued at cost. Depreciation is calculated on a straight-line basis, with periods varying by asset type. Capitalised building and refurbishment costs are depreciated over a shorter period to align with the ECB's move to new premises.

Retirement Plan and Post-Employment Benefits

The ECB operates a defined benefit pension scheme for its staff, funded by a long-term employee-benefit fund. The liability is based on the present value of the defined benefit obligation, adjusted for actuarial gains or losses.

Profit and Loss Account

Net income charged to the Profit and Loss Account includes service costs, interest on obligations, expected returns on plan assets, and actuarial gains and losses. The "10% corridor" method is used to amortise net cumulative unrecognised actuarial gains and losses.

Pensions of Executive Board Members

Unfunded pension arrangements for Executive Board members and staff disability benefits are valued annually by independent actuaries and accrued over the term of office or employment.