2007年-ECB欧洲央行_Annual_Accounts_2006_23页_479kb

ECB 2006 Management Report Summary

1. Nature of the Business

The European Central Bank (ECB) conducts its activities as outlined in the Annual Report, focusing on monetary policy, financial stability, and the management of foreign reserves. The ECB operates within the European System of Central Banks (ESCB) and is responsible for the euro area's monetary policy.

2. Objectives and Tasks

• The ECB's objectives and tasks are defined in the Statute of the ESCB (Articles 2 and 3).
• These are further elaborated in the President's foreword to the Annual Report.

3. Key Resources, Risks and Processes

Governance of the ECB

• The ECB is governed by the Governing Council.
• Members of the Executive Board are appointed by the governments of the Member States, with recommendations from the EU Council and consultation with the European Parliament.

Employees

• The average number of staff (full-time equivalent) increased from 1,331 in 2005 to 1,360 in 2006, with a total of 1,367 employees at year-end.
• Staff costs rose due to increased headcount and pension charges.
• Executive Board emoluments were €2.2 million in 2006 (€2.1 million in 2005).

Investment Activities and Risk Management

• The ECB manages a foreign reserves portfolio, funded by the euro area NCBs, and is used for foreign exchange market operations.
• The ECB's own funds portfolio includes paid-up capital, general reserves, and income from investments.
• Risk management includes provisions for foreign exchange, interest rate, and gold price risks.

4. Financial Results

Balance Sheet (As at 31 December 2006)

• Total Assets: €105,766,455,243 (up from €102,331,056,422 in 2005)
  • Gold and gold receivables: €9,929,865,976 (down from €10,064,527,857)
  • Banknotes in circulation: €50,259,459,435
  • Other assets: €9,525,059,744
• Total Liabilities: €105,766,455,243
  • Banknotes in circulation: €50,259,459,435
  • Liabilities to other euro area residents: €1,065,000,000
  • Liabilities to non-euro area residents: €105,121,522 (down from €649,304,896)
  • Provisions: €2,393,938,510 (up from €1,027,507,143)
  • Revaluation accounts: €5,578,445,671 (down from €8,108,628,098)
  • Capital: €4,089,277,550

Profit and Loss Account (Year Ending 31 December 2006)

• Net interest income: €1,971,835,449 (up from €1,269,628,945)
• Realised gains/losses from financial operations: €475,380,708 (up from €149,369,135)
• Write-downs on financial assets: €718,467,508 (up from €97,494,081)
• Transfer to/from provisions: €(1,379,351,719) (up from €(992,043,443))
• Net result of financial operations, write-downs and risk provisions: €(1,622,438,519)
• Total net income: €361,169,899
• Staff costs: €(160,847,043) (up from €(153,048,314))
• Administrative expenses: €(166,426,595) (up from €(158,457,219))
• Depreciation: €(29,162,141) (down from €(31,888,637))
• Profit for the year: €0 (due to the increase in the risk provision)

5. Financial Accounts and Accounting Policies

Basis of Accounting

• The ECB uses a historical cost basis, adjusted for market valuation of securities, gold, and foreign currency assets and liabilities.
• From 1 January 2007, the basis for recording foreign exchange transactions and related accruals changed, with early application allowed.

Gold and Foreign Currency Assets and Liabilities

• Gold is valued at the market price on 31 December 2006, based on the euro/USD exchange rate on that date.
• Assets and liabilities denominated in foreign currency are converted to euro using the exchange rate on the Balance Sheet date.
• Revaluation differences are recorded separately from exchange rate revaluation.

Securities

• Marketable securities are valued at mid-market prices on the Balance Sheet date.
• Non-marketable securities are valued at cost.

Income Recognition

• Income and expenses are recognised in the period they are incurred.
• Realised gains and losses from foreign exchange, gold, and securities are recorded in the Profit and Loss Account.
• Unrealised gains are transferred to revaluation accounts; unrealised losses are recorded in the Profit and Loss Account if they exceed previous revaluation gains.

Reverse Transactions

• Reverse transactions include repurchase agreements and credit operations against collateral.
• These are recorded as collateralised inward deposits or loans, and interest is recorded accordingly.

Off-Balance-Sheet Instruments

• Foreign exchange forward transactions and interest rate instruments are included in the net foreign currency position.
• Daily changes in interest rate futures are recorded in the Profit and Loss Account.

Post-Balance-Sheet Events

• Events occurring after the Balance Sheet date but before approval are adjusted if they materially affect the financial position.

Intra-Eurosystem Balances

• Intra-ESCB transactions are processed through TARGET, resulting in net bilateral positions between NCBs and the ECB.
• These are presented as a single net asset or liability in the Balance Sheet.

Fixed Assets

• Fixed assets are valued at cost less depreciation, except for land, which is valued at cost.
• Depreciation periods vary by asset type, with a reduction in the depreciation period for building and refurbishment costs to align with the ECB's new premises.

Retirement Plan and Post-Employment Benefits

• The ECB operates a defined benefit pension scheme.
• The liability is calculated as the present value of the defined benefit obligation, adjusted for actuarial gains or losses.
• The "10% corridor" method is used to amortise actuarial gains and losses.

Banknotes in Circulation

• The ECB holds 8% of the total euro banknote issue, which is allocated monthly based on the banknote allocation key.
• Interest income from these claims is included in net interest income.
• Income is distributed to NCBs in the following year unless the ECB's net profit is insufficient.

6. Other Issues

• The ECB does not publish a cash flow statement as it does not provide additional relevant information.
• KPMG was appointed as the external auditors for a five-year period ending 2007.