Balance sheet items – short explanations

The balance sheet of Eesti Pank and its disclosure time have been changed due to the adoption of the euro. The greatest changes are related to recording intra-ESCB balances/intra-Eurosystem balances as well as banknotes in circulation.

Intra-ESCB transactions are cross-border transactions that occur between two EU central banks. Intra-ESCB transactions in euro are primarily processed via TARGET2 - the Trans-European Automated Real-time Gross settlement Express Transfer system. Such transactions give rise to bilateral balances in accounts held between those EU central banks that are connected to TARGET2. These bilateral balances are then assigned to the ECB on a daily basis, leaving each NCB with a single net bilateral position vis-a-vis the ECB only. This position in the books of the ECB represents the net claim or liability of Eesti Pank against the rest of the ESCB.

Intra-Eurosystem balances of euro area NCBs vis-a-vis the ECB arising from TARGET2, as well as other intra-Eurosystem balances denominated in euro (e.g. interim profit distributions to NCBs), are presented on the Balance Sheet of the ECB as a single net asset or liability position and disclosed under "Claims within the Eurosystem" or "Liabilities within the Eurosystem".

Intra-Eurosystem balances arising from the allocation of euro banknotes within the Eurosystem are included as a single net asset under "Claims within the Eurosystem".

Intra-Eurosystem balances arising from the transfer of foreign reserve assets to the ECB by NCBs joining the Eurosystem are denominated in euro and reported under "Claims within the Eurosystem".

The balance sheet of Eesti Pank with short explanations on all items is available at the central bank's web site.

The balance sheet of Eesti Pank is published quarterly on the fifth banking day after the end of quarter at 14.00.

The ECB publishes the Eurosystem's balance sheet (consolidated financial statement) on its web site.

ASSETS

Balance-sheet item Contents of the item
1 Gold and gold receivables Physical gold, gold deposits, claims to receive gold arising from the transactions, etc.
2 Claims on non-euro area residents denominated in foreign currency Receivables from the International Monetary Fund (IMF); balances with banks outside the euro area; current accounts, external loans and deposits outside the euro area; reverse repos; investment in non-euro-area residents’ securities denominated in foreign currency
3 Claims on euro area residents denominated in foreign currency Investment in euro-area residents’ securities denominated in foreign currency, other claims on euro-area residents

 

4 Claims on non-euro area residents denominated in euro Balances with banks outside the euro area, current accounts, external loans and deposits outside the euro area; reverse repo transactions in connection with the management of securities denominated in euro , investment in non-euro area residents’ securities denominated in euro
5 Lending to euro area credit institutions related to monetary policy operations denominated in euro Transactions according to the respective monetary policy instruments described in Annex I to Guideline ECB/2000/7 of 31 August 2000 on monetary policy instruments and procedures of the Eurosystem
6 Other claims on euro area credit institutions denominated in euro Current accounts, fixed-term deposits, day-to-day money, reverse repo transactions in connection with the management of security portfolios; correspondent accounts with euro area credit institutions; other similar claims

 

7 Securities of euro area residents denominated in euro Securities held for monetary policy purposes; other euro-area residents’ securities denominated in euro
8 General government debt denominated in euro Eesti Pank has no claims recorded under this item
9 Intra-Eurosystem claims  Participating interest in ECB; claims equivalent to the transfer of foreign reserves; net claims related to the allocation of euro banknotes; other claims within the Eurosystem; net claims arising from balances of TARGET2 accounts and (see also the liabilities item 10 "Intra-Eurosystem liabilities”); other intra-Eurosystem claims denominated in euro
10 Other assets Fixed assets; other financial assets; off-balance-sheet instruments revaluation differences; accruals and prepaid expenditure 
sundry assets – advances, loans, revaluation suspense accounts; loss for the current year
    Income not due in, but assignable to the reported period
Prepaid expenditure and accrued interest paid (i.e., accrued interest purchased with a security)
    Other similar minor items

LIABILITIES

Balance-sheet item Contents of the item
1 Banknotes in circulation a) euro banknotes, plus/minus adjustments relating to the application of the banknote allocation key in accordance with Decision ECB/2010/23 and Decision ECB/2010/29. The total value of banknotes in circulation is allocated on a monthly basis between the NCBs of the Eurosystem on the last business day of the month according to the allocation key 
b) EEK banknotes in the year of cash changeover (2011)
2 Liabilities to euro area credit institutions related to monetary policy operations denominated in euro Current accounts (covering the minimum reserve); transactions according to the respective monetary policy instruments described in Annex I to Guideline ECB/2000/7 of 31 August 2000 on monetary policy instruments and procedures of the Eurosystem
3 Other liabilities to euro area credit institutions denominated in euro Repo transactions in connection with simultaneous reverse repo transactions for the management of securities portfolios under asset item 7 "Securities of euro area residents denominated in euro"; other operations unrelated to Eurosystem monetary policy operations
4 Issued debt securities ECB’s item only
5 Liabilities to other euro area residents denominated in euro Current accounts of staff, companies and clients including financial institutions listed as exempt from the obligation to hold minimum reserves; fixed-term deposits, deposits repayable on demand
6 Liabilities to non-euro area residents denominated in euro Current accounts, deposits, including accounts held for payment purposes and accounts held for reserve management purposes: of other banks, central banks, international/supranational institutions; repo transactions in connection with simultaneous reverse repo transactions for the management of securities denominated in euro
7 Liabilities to euro area residents denominated in foreign currency Euro-area residents' deposits, account balances and other liabilities (repo transactions) in foreign currency
8 Liabilities to non-euro area residents denominated in foreign currency Non-euro area residents' deposits, account balances and other liabilities (repo transactions) in foreign currency
9 Counterpart of special drawing rights allocated by the IMF SDR-denominated item which shows the amount of SDRs that were originally allocated to Eesti Pank
10 Intra-Eurosystem liabilities Net liabilities related to allocation of euro banknotes within the Eurosystem and other liabilities within the Eurosystem (net liabilities arising from balances of TARGET2 accounts, see also the asset item 9 “Intra-Eurosystem claims”); other intra-Eurosystem liabilities
11 Other liabilities Off-balance-sheet instruments revaluation differences; 
accruals and income collected in advance; sundry liabilities – taxation suspense accounts; foreign currency credit or guarantee cover accounts; repo transactions with credit institutions in connection with simultaneous reverse repo transactions for the management of securities portfolios; compulsory deposits other than reserve deposits; 
Other minor items – current income, profit of the current year, profit of the previous year before distribution; coins in circulation issued by Eesti Pank; EEK banknotes in circulation after the year of the cash changeover, unless these are recorded under the liability item “Provisions”
12 Provisions a)For pensions, for foreign exchange rate, interest rate, and gold price risks, and for other purposes, e.g. expected future expenses, provisions for ensuring the exchange of Estonian kroons into euro after the year of the cash changeover

b)For counterparty or credit risks arising from monetary policy operations 

13 Revaluation accounts Revaluation accounts related to price movements for gold, for every type of euro-denominated securities, for every type of foreign currency-denominated securities, for options; market valuation differences related to interest rate risk derivatives; revaluation accounts related to foreign exchange rate movements for every currency net position held, including foreign exchange swaps/forwards and SDRs
14 Capital and reserves Fixed capital, reserve capital, special reserve and other reserves; retained earnings