2018年-ECB欧洲央行_Annual_Accounts_2017_66页_1mb

Summary of the ECB's Annual Accounts for 2017

Core Content

The European Central Bank (ECB) Annual Accounts for 2017 provide a comprehensive overview of the ECB's financial position, performance, and risk management practices. The report includes the Management Report, Financial Statements, and an Independent Auditor's Report, with detailed notes on various balance sheet and profit and loss items.

Main Activities and Operations

• Monetary Policy Implementation: The ECB supports the Eurosystem's goal of maintaining price stability through monetary policy operations. These include:

  • Standard monetary policy operations: Conducted by national central banks (NCBs) in a decentralised manner, these are not reflected in the ECB's financial statements.
  • Liquidity-providing operations in foreign currency: The ECB acts as an intermediary in swap transactions, offering short-term foreign currency funding to Eurosystem counterparties. These are recorded in specific balance sheet items and have no impact on the Profit and Loss Account.
  • Securities held for monetary policy purposes: These are held under the balance sheet item "Securities held for monetary policy purposes" and include assets from various purchase programs such as SMP, CBPP1, CBPP2, CBPP3, ABSPP, and PSPP. Coupon accruals and amortised premiums/discounts are included in the Profit and Loss Account as "Other interest income" or "Other interest expense".
  • Securities lending: Conducted via a specialised institution, these operations are recorded in balance sheet items depending on the form of collateral.

• Foreign Exchange Operations and Foreign Reserves:

  • The ECB manages foreign reserves, which are held in gold, special drawing rights, US dollars, Japanese yen, and, from 2017, Chinese renminbi.
  • The ECB's foreign currency reserves are managed with a focus on liquidity, safety, and return, mainly invested in short-term securities and money market deposits.
  • The ECB's foreign currency holdings decreased by €5.4 billion in 2017 due to the appreciation of the euro against the US dollar and Japanese yen.

• Promotion of Payment Systems: The ECB supports the smooth operation of payment systems, particularly TARGET2, which is reflected in the Balance Sheet as a net asset or liability position. The remuneration of these balances is included in the Profit and Loss Account.

• Banking Supervision: The ECB oversees the Single Supervisory Mechanism (SSM) to ensure the safety and soundness of the banking system. Annual supervisory fees are recorded in the Profit and Loss Account under "Net income from fees and commissions".

• Banknote Production and Circulation: The ECB holds 8% of the total euro banknotes in circulation, which are backed by claims on NCBs. Interest income from this allocation is recorded in the Profit and Loss Account. Expenses related to banknote production are also centralised and included in the Profit and Loss Account.

• Own Funds Portfolio: This portfolio, mainly composed of euro-denominated securities, is used to generate income for the ECB's operating expenses not related to supervisory tasks. It is more diversified in maturity than the foreign currency reserves portfolio.

Financial Developments

Balance Sheet

• The ECB's total assets increased by €65.2 billion to €414.2 billion in 2017, mainly due to purchases under the Public Sector Purchase Programme (PSPP).
• Securities held for monetary policy purposes accounted for 55% of total assets, reaching €228.4 billion.
• The ECB's financial resources totalled €38.7 billion as of 31 December 2017, a decrease of €6.7 billion compared to 2016, due to the appreciation of the euro.

Profit and Loss Account

• The ECB's profit for 2017 was €1,275 million, an increase of €82 million from 2016.
• The increase in profit was mainly driven by higher net interest income, particularly from foreign reserve assets and monetary policy securities.
• Net interest income increased by €163 million to €1,812 million, with the largest contribution from US dollar securities.
• The net result of financial operations and write-downs was €56 million, a decrease of €20 million from 2016, mainly due to lower net realised price gains and exchange rate write-downs.

Risk Management

• The ECB manages both financial and operational risks through a structured cycle involving identification, assessment, strategy review, mitigation, and monitoring.
• Financial risks are measured using the Expected Shortfall (ES) at the 99% confidence level over a one-year horizon. Total financial risks increased to €10.6 billion in 2017, up by €1.4 billion from 2016, mainly due to continued securities purchases under the APP.
• The ECB uses both accounting and financial approaches to assess risks, with the accounting approach incorporating revaluation accounts as a buffer.

Key Figures

• Total assets: €414.2 billion
• Securities held for monetary policy purposes: €228.4 billion (55% of total assets)
• Profit: €1,275 million
• Net interest income: €1,812 million
• Total financial resources: €38.7 billion
• Total financial risks (ES 99%): €10.6 billion
• Own funds portfolio: €20.5 billion
• Foreign currency reserves: €65.7 billion
• Gold holdings: €17.6 billion
• Net income from fees and commissions: €437 million

Notes on Accounting Policies and Risk Frameworks

• Securities are accounted for at amortised cost, subject to impairment.
• Unrealised gains and losses on foreign currency and gold holdings are recorded in revaluation accounts.
• The ECB's own funds portfolio and foreign currency reserves are managed with different risk limits and objectives.
• The ECB uses in-house risk estimation techniques based on market and credit risk simulations.
• The ECB's capital remains at €7.7 billion, unchanged from 2016, with the general risk provision at its maximum permitted level of €7.6 billion.