EESTI PANK ANNUAL REPORT 2015
2016 © Eesti Pank, 2016
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ISSN 2382-8811 Editor: Kaja Kell Layout: Urmas Raidma APPENDIXES 2015 31 ENDED DECEMBER YEAR FINANCIAL THE FOR PANK EESTI OF ACCOUNTS ANNUAL PANK EESTI OF BOARD SUPERVISORY THE ACTIVITIES OF EESTI PANK EESTI OF 2015 IN ACTIVITIES PANK EESTI OF GOVERNOR BY THE FOREWORD CONTENTS APPENDIX 4.PUBLICATIONS OFEESTI PANK IN2015 APPENDIX 3.DECREESOFTHEGOVERNOREESTIPANK IN2015 APPENDIX 2.DECISIONSOFTHESUPERVISORY BOARDOFEESTIPANK IN2015 APPENDIX 1.THERESPONSIBILITIESOFSUPERVISORY BOARDOFEESTIPANK ACCOUNTABILITY, GOVERNANCEANDORGANISATION, ANDHUMANRESOURCESPOLICY FINANCIAL ASSETMANAGEMENT INTERNATIONAL COOPERATION ANDPUBLICCOMMUNICATIONS ECONOMIC ANALYSIS ANDCONSULTATION COMPILING STATISTICS FORTHEESTONIANFINANCIALANDEXTERNAL SECTORS MANAGING CURRENCYCIRCULATION SAFEGUARDING FINANCIALSTABILITY THE EUROSYSTEMANDIMPLEMENTATION OFDECISIONS PARTICIPATION INMONETARY POLICYDECISION-MAKINGIN Governance andorganisation Governance Central bankaccountability Reserve management Public relations cooperation International Advisory functions Economic research Economic forecasts Monitoring andeconomicanalysisatEestiPank Payment systems Cash circulation inEstonia Financial sectorpolicy Macroprudential policy Eesti Pank’s monetarypolicyoperations Implementing monetarypolicydecisionsintheeuro area andEstonia Monetary policydecisionsoftheEurosystem ...... 26 23 23 21 18 18 16 15 13 13 78 76 75 74 38 37 37 35 35 32 32 32 31 30 30 30 30 28 42 13 74 8 4 3
Eesti Pank Annual Report 2015 4
Eesti Pank Annual Report 2015 FOREWORD PANK BY THE OF EESTI GOVERNOR Sources of growth in the European economy European in the of growth Sources followed. been have that policies economic the about to asked be questions for natural quite is it time, along for expectations public below been has growth When growth. faster to returned be could 2015 in economy the how about of discussion alot saw both Europe and Estonia is no alternative to them in the long run. long the in to them alternative no is there to, but time, take lead can they results the and restructuring, and Reforms consequences. serious to suffer acountry lead can so doing and term, long the over means their beyond live cannot states that shows Europe in experience recent very our growth, lift can policy fiscal aloose Although Union. European of the rules agreed the within policies fiscal their to bring able been not have that countries many still are there but growth, to boost needed reforms of the some made have governments area Euro reforms that are to needed boost competitiveness. and adjustments the by making business encourages that aclimate to to create work and policies economic predictable and reliable to follow governments requires This to reality. ideas innovative those bringing in investing and products, new inventing of products, competitiveness the ways to improve finding people from results growth economic Long-term term. long the to over grow economy the cause not will it but term, short the over economy an to revive policy monetary use only can banks Central risk. that reduce to reserves our increasing to continue we need so and faces, Pank Eesti that risks the increase also purchases to appear. Asset start could bubbles that markets some in far so rise may prices asset as risks several with come they but economy, the support so and low rates interest to keep help purchases asset 2016. in euros Large-scale 2billion of around purchases further make we will and of bonds euros 1.2 bought year, billion Pank of last Eesti months ten first the In years. two in spent been has euros 1.7 and large, be will trillion banks central area euro of the purchases asset the that expected is It economy. into the money more to inject of assets arange purchased have and levels low to very of credit cost the reduced have They economies. their to stimulate governments alongside worked have area euro of the banks central the time, along for low remain may inflation that adanger is there As term. to, medium 2% the close over to below, but be inflation for is area euro the of banks central of the target main the though to even zero close remained area euro the in Inflation made. were it to encourage needed reforms economy in Europe grew despite this, though growth was sluggish because not primarily enough of the The woes. economic Greek the and terrorism, Ukraine, in tensions the crisis, to refugee up the faced it as crises, complex of several confluence by the 2015 Europe year for The marked was increased. have risks and world the around slowed has growth as economy global the for of times best the not are These There are contradictions in the picture of Estonia’s economic performance. The economy is growing economy Estonian the for A crossroads difficulties. the with to cope able be we will flexibility enough have and thing right the we do if slowly, and so doing we are if even direction, right the in We moving are ahead. growth slower than rather faster expect can world the and Europe and hopeless means by no is Europe’s position difficulties, the Despite be reduced in the next budget period. will Europe from available funds the that probable very is it average, Union 75% now is European of the European Union Structural Funds. As the Estonian economy per capita adjusted for purchasing power the from support with investment state more a lot make now we can that in reasonable been also has conduct government’s The a whole. as economy the than faster substantially growing already was tion consump when atime at economy the in mismatches increased have could deficit Abudget balance. in expenditure and revenues its of keeping job acommendable done has government Estonian The have. Finland or Germany than employee, per euros in measured companies, our in equipment and machinery 40% less nearly we have and average 65% is European of the Estonia in Productivity to develop. room has still Estonia that clear it makes partners trading of our those with economy of our A comparison the Estonian economic climate, and on expectations of increased demand in foreign markets. in are businesses confident how on depend Investments business. in people from investment and tion reality. Increased competitiveness require and productivity an improved climate, business and innova to ideas to bring easy it make market labour aflexible and population educated and enterprising An a good state, which all means that conditions financing for companies and households are favourable. in is sector banking the and small is debt order, national the good in are finances national our as Europe, in countries other the over this in advantages some has Estonia improve. economy the and increase productivity see actually will Estonia that we forecast and though, Pank Eesti at optimistic We remain unemployment. rising and to cuts pay even or future the in rises pay to smaller lead inevitably will road this Choosing stuck. ourselves to grow, find we will economy the help will that reforms the make not does state the and growth future to support investments make not do companies our if and harder ever to blow starting are population ageing and of a shrinking headwinds The crossroads. economic an at is Estonia that indicates economy of the state current The year. last experienced exports our that share of market loss by the indicated also is which competitiveness, to Estonian adanger now is there so and productivity raising in gains easy of the many made already have now. time Companies along for fast stuck been has economy an in of growth motor internal the is that productivity the contrast, In ahalf. and ayear for falling been average on have prices and fast rising are wages level, low to avery fallen has unemployment as year last increased confidence Consumer consumption. on largely based is growth this and slowly only - - 5
Eesti Pank Annual Report 2015 6
Eesti Pank Annual Report 2015 central banks of the euro area and implementing it in Estonia. in it implementing and area euro of the banks central other the with together policy monetary ajoint setting stable, and low inflation to is keep Pank Eesti of duty first The of Estonia. people of the confidence the to we maintain are if important is Efficiency efficiently. and well work to our do we aim and area euro the in bank central smallest the is Pank Eesti Pank supervision Eesti at macroprudential is The priority credit to commercial banks and large-scale asset purchases has increased the size of Eesti Pank’s of Eesti size the increased has purchases asset large-scale and banks to commercial credit low-cost through activity economic to stimulate area euro of the banks central of the work joint The surprises. unwelcome to face to prepared be need not we do mean not does this though years, year, previous in last as work its in well managed bank central the Overall investing the state’s foreign reserves, and advising the government. statistics, quality good and timely by providing bank of a central tasks other of the many we did year rolean important in keeping the discussions going about faster interbank payments. Throughout last played also Pank Eesti system. payment of the reliability operational the to how improve on advice give can bank central of money. overseer, the As circulation smooth the for important is that and Estonia in of payments share alarge processes that system 2015 in payment oversight card of the started Pank Eesti features. security new and design anew with note into circulation 20-euro anew introduced successfully bank central the 2015 November in in and Estonia in good were of cash circulation the and quality The banks. commercial the through cash with country the to supply bank central of the job the is It banks running into difficulties. by such threatened seriously be would system financial and economy Estonian the because capital, required their to increase 2016 in and system, starting we are financial Estonian the for institutions important as SEB and 2015 Swedbank in we designated supervision macroprudential of our part As 0%. at year, buffer of the last we set end the at growth GDP with line in was growth credit As growth. credit fast of excessively banks to the risks the reduce will which banks, the for requirements buffer capital countercyclical additional introduced We also risk. excessive against banks and borrowers both protect which loans, housing for requirements three introduced bank central 2015 in and economy, open the and to asmall specific are that 2014 in risks the introduced to manage first was banks commercial for buffer risk Asystemic resilient. more sector banking the to make and future the in inflating boom of acredit chances the to reduce of steps aseries taken has Pank Eesti last year, as the creation of a macroprudential framework supervision is now being completed. Pank’s work Eesti among mention particular worth is focus This well. to run economy an for important vitally are banks functioning and strong as stable, here system financial the keep we must Secondly the Supervisory Board of the bank will decide what to do with that in 2016. in that to with do what decide will bank of the Board Supervisory the 2015, in profit in euros and million 30 earned Pank Eesti this. in my opinion shares Board Supervisory the that pleased very Iam and reserves, our to build we continue that important extremely is it makes This Eurosystem. the in banks central other of most those than smaller are risks these against has Pank Eesti that buffers the However we face. risks financial the it with and sheet, balance Governor work. our doing and consistently building to keep need we only place; Ardo in are foundations The success. future of our sake the for reforms necessary but challenging to make ready we stay if policy, and economic our in to credible be we continue if of finance, questions on tive conserva we are if secure Hansson economically to feel of Estonia state and businesses people, the help will It Portugal. in those as same the and Greece in those than to higher be power purchasing for adjusted incomes our show Eurostat from Data Europe. of Western those with well up caught have incomes our and fast grown has economy Estonian the 20-25 years, past the on back Looking tion. popula of the well-being the in and economy the in growth long-term for blocks building the in years the over change no been has there that certain Iam work? model economic current our does Estonia: in and Europe in loudly more and more asked being is that aquestion to like highlight Iwould Finally Conclusion - - 7
Eesti Pank Annual Report 2015 8
Eesti Pank Annual Report 2015 THE SUPERVISORY BOARD OF EESTI PANK BOARD OFTHE EESTI SUPERVISORY for managing national systems, monetary main liabilities strict them given and powers extensive banks central given have Union European the and Estonia both in Legislators Banks. of Central System European of the amember is and Estonia of Republic of the bank central the is Pank Eesti covered in detail in Appendix 1. Appendix in detail in covered are Board Supervisory Pank Eesti of the tence questionsSpecific that come under the compe sector.financial Estonian economy and policy monetary and the the about and budget and Pank’s activities Eesti about basis aregular on members Board visory Super the inform Governors Deputy and Governor bank central the of activities the all over Board of Eesti Pank exercises supervision Act, Pank Eesti §8of the Under zens and their elected representatives. citi to Estonian to report duty its out carry it that and effective, and efficient managed, well be Pank Eesti that important very it makes this All systems. fault, and the helping preserve of stability financial without systems payment operating reserves, guarding and managing national the official foreign safe Eurosystem, of the policy monetary single the taining price stability, helping design and execute important rolesimportant that Board plays the Supervisory for Estonian society. most of the one is bank central of the operations the over supervision General Pank. of Eesti sion supervi the for responsible is Pank of Eesti Board Supervisory Act, the Pank Eesti §6of the Under Pank Board Eesti of Supervisory the Box 1: work of The framework supervision the for the Supervisory the Supervisory . The The . - - - - - concerning the Supervisory Board’s theconcerning Supervisory activities. responds to interpellations from the Riigikogu and Board, the represents enacted, are sions deci its that ensures meetings, its chairs Board, The Chair organises the work of the Supervisory the Republic. of President of the proposal the at Riigikogu by the years of five aterm for to office appointed is Board Supervisory of the Chair The members. seven and of a Chairman consists Board Supervisory The Pank Eesti of Board The members of Supervisory the Mart Laar’s mandate as Chair runs until 12 until 2018. runs June Chair as mandate Laar’s Mart 2019. February until years five for runs Pank Eesti of Board Supervisory current of the authority The 13 2013. from June Board Supervisory of the Chair as Laar Mart appointed Riigikogu The Varblane. Urmas and Tõnisson Tamkivi, Liina Jaanus Minka, Rein Listra, Enn Kerem, Kaie Kallo, ended. The members appointed were Kalev Board previous 2014 of the mandate the when 25 on February Riigikogu by the appointed were Board Supervisory of the members current The - - the bank closer to where it wants to be in future, and whether the strategic goals can be achieved achieved be can goals strategic the whether and future, to in be wants it to where closer bank the taking are strategy that under actions the and strategy development chosen the whether parties, interested public international and by domestic expected is what with line in is bank’s vision the whether at looks Board the level general most At the subjects. and levels of areas, arange in bank of the activities the to assess supervision of its results the uses Board Supervisory The The aims of supervision made and of how those recommendations have been followed. been have recommendations those of how and made have they recommendations of the Board Supervisory the inform also auditors the and results their and intervals regular at out carried of audits reviews contain audit internal the from reports The Board. Supervisory to the activities its on regularly reports also department audit internal The Board. Executive of the of members contributions personal the and of risks, realisation the training, including management, and staff of development cover also reports The procurements. running and budget the executing of work, plans implementing in work of its Board Supervisory the advises regularly Board Executive The and giving opinions. consulting to advising, limited is documents these handling in Board of the role The achange. is there time ayear, every not once so bank of the mission and strategy, the vision reviews Board The bank. the outside parties from also and itself, bank the from firstly work supervision its for information analyses and collects Board Supervisory The The resources for supervision internal audit. of the independence the supports it so doing in and audits, external and internal of the results the on based takes Board Executive the that decisions to the attention close particularly pays Board Supervisory The decisions. those behind choices of the necessary where explanations requests and Board Executive by the taken decisions individual at looks Board the level operational At an and economy.efficiency of effectiveness, principles the follows Board Executive the how and whether and management, of good principles to the adheres Board Executive of the work the well how at looks also Board The to executed. be plans the for sufficient are otherwise, or staff financial, resources, planned the whether and are, bank by the approved plans work the appropriate how assesses Board the level, detailed At amore planned. is way work the with 9
Eesti Pank Annual Report 2015 10
Eesti Pank Annual Report 2015 profit to the state budget each year. each budget state to the profit 25% of the of transferring strategy same the with strategy the reviewed also Board The Riigikogu the to report approved 2014. the annual proposed report by the Governor for Pank’s of Eesti areview heard Board Supervisory The audit internal the and Pank Eesti of Board Executive the of Supervision work. its for forum additional an as seminars 2015in held also it and Board had nine regularThe Supervisory meetings 2015 in Pank Eesti of Board Supervisory the of work The visory Board can also order audits or surveys from outside the bank if the internal audit does not does audit internal the if bank the outside from surveys or audits order also can Board visory Super The of interest. are that matters on audit internal the from reports detailed to order audit internal of the plan work annual the use can Board the suspected, or discovered are failings any If satisfaction. and quality of management surveys regular from bank of the practices management the on information further gets Board The giving its own recommendations to the Executive Board of the bank. of the Board Executive to the recommendations own its giving atext add may Board the identified, are development for opportunities If analysed. it that mation infor the on report of the chapter its in observations make also can Board the assessments, these Alongside scale. abroad on bank’s activities of the assessments contains Board by the report The presents the to report the Riigikogu. Board of the Chair the Board, Supervisory by the approved been has bank of the report annual the After bank. of the report annual the in supervision of its results the collates Board Supervisory The The of results supervision Board. Executive by the and Banks Central of System European by the ordered audits to include has also audit internal of the plan work annual the as Board, to the of interest is that everything to investigate resources sufficient have The Chair of the Board presented the the presented Board the of Chair The financial results for 2014 of Eesti Pank and decided to continue to continue decided and Pank of Eesti profit distribution and approved . Board, and the Board declared itself with it. satisfied Board, itself and the Board declared 2016 for budget to the draft the presented bank of the year, of the Governor the meeting last At the adherence to the work plan, and procurements. onreports operations, the execution of the budget, of 2015, half included first the which on Board tive 2014 for Board’s Executive the heard Board The Board. utive Exec of the 2015 in leadership the prepared under was document strategy extended and updated An precise and strategic documents more systematic. more measurements making and Pank of Eesti ties activi core the from to expected be results the on Pank the considered Board The on three occasions. The main emphasis was emphasis main The occasions. three on and reports from members of the Execu of the members from reports and strategy of Eesti Eesti of strategy reports reports - - - - - department. audit internal of the head the with meetings regular 2015. in two had Board The department audit internal of the work the on reports heard and 2016 for department audit internal of the schedule Board approvedThe Supervisory the work discuss the European Union’s single banking ment of the Financial Authority to Supervision A cial stability heard Board Supervisory The real time interbank payment system. of the issues concerning pan-European TARGET2 review athorough heard Board Supervisory of the members the which during Pank, Eesti from ments experts of participation the with held A Eurosystem. of the banks central other produced with the European Central Bank and the economic projection exercise, BMPE, forecast macro broad joint of the part as prepared were that forecasts Pank Eesti the presented Board Executive The Board. Risk Systemic European andsingle the banking supervision, work of the single policy monetary is set, the operation of Banks Central of System pean spective retro regular received Board the meetings its In work administrative and information of Exchange bank. of the departments the and Board Executive Governor, the by the this in done and acknowledged the good and successful work meeting its at audit internal the thanked Board year. of the end The by the out carried been all had audit of the part as made Recommendations joint seminar was held with the manage the with held was seminar joint special seminar on cash circulation was reviews of the work of the Euro the of work the of reviews at its meetings. reviews of finan , covering how on settle on ------Supervisory Board of its of its Board Supervisory to the areview presented Board Executive The Council Fiscal Estonian the of activities the Two seminars was also discussed. Sweden in risks of potential Estonia in banks cant signifi the on impact possible the and mediaries, inter credit and institutions of credit supervision isational issues, crisis resolution mechanisms, and Central Bank, procedures, making decision organ European of the supervision direct the under banks important of the supervision included that Financial Authority Supervision the gives this duties new the and supervision euros. The coins were dedicated to Eduard Vilde, Vilde, to Eduard dedicated were coins The euros. collector coins for designs the approved Board The 2016 7 January from Pank Eesti of auditor internal Board appointedThe Supervisory 2016. in activities for was regained Pank Board members since independence the all for Padise in held was seminar A joint security. national in Pank’s role Eesti considered it and readiness, of risk-management analysis Pank Eesti at faction of management and quality employee satis of the results the heard Board The Pank Eesti of the approved Board Supervisory The banks. central Lithuanian and Latvian Nordic, the with work its the Bank for International Settlements . . , and a planning seminar was held were held in 2015 in held were , each with a nominal value of ten value anominal with , each and the results of the self- of the results the and work at the IMF and and IMF the at work Anu Alber as Alber Anu , with topics topics , with 2015 survey survey 2015 three silver new statue to discuss discuss to , and of, and Eesti Eesti - - - - . 11
Eesti Pank Annual Report 2015 12
Eesti Pank Annual Report 2015 design of the national side of the two-euro coin coin two-euro of the side national of the design the and Union, European of the flag of the versary anni 30th to the dedicated coin commemorative two-euro issued jointly of the side national the for design the approved also Board The Janeiro. de Rio in Olympiad XXXI of the Games the at athletes Jaan Poska, and the Estonian delegation and done with procurement plans and the budget. was same the and necessary, if them updated and executed were plans the how over supervision constant exercised Board Executive fully. The 2015 for success executed planned were tasks main the All well. 2015in managed were they and had bank The direction. right the in progress making way are under changes the that clear is 2016. until bank of the It functions core the for targets the meeting in success precise of the ment Board will postponeThe Supervisory an assess bank. of the management the in akey role take to continued documents strategy and Strategy work. strategic its in for aiming was it goals the achieve to managed bank The attention. and recognition public earned has that Banks of Central System European the in process constructive on influence the decision-making a had has Pank Eesti that media international in reports the from and received has it explanations the from notes Board Supervisory Pank Eesti The 2015 in Pank Eesti ofAssessment management the of to Keres. Paul dedicated work plans at the tactical level tactical the at plans work - - -
the budget, and so it can be said that the bank bank the that said be can it so and budget, the of demanded criteria of the all met bank of the Board Executive the while of savings, asign is budget of the all spending not that means This because of savings arises it and culture working the of and up drawn is bank the for budget the of how a consequence rather is budget of the execution incomplete The anew. starting year each costs fixed than other items cost and budget the assesses bank of the management The re-established. was bank central of the independence the since bank’s operations the in theme arunning been The possible. of management where development further is areas some still were there though high, tively rela were satisfaction and Dedication area. euro to the accession followed that bank of the role to the changes to the and style management new to the well adjusted have bank of the employees the previous survey of those than better were 2015 in Pank Eesti at satisfaction employee and quality management of survey the of results The planning of procurements. excessive deliberately was there or undone left simply were tasks because than rather vourable, procurements when market conditions were unfa cancelling or delaying in bank’s managers of the behaviour responsible of the because was this but full, in executed not was plan procurement the 2015. awhole, in as used it budget the Like resources of the terms in economically operated incomplete execution of the budget that have been made. been have that , and confirmed that the that confirmed , and to a large extent extent alarge to has has - - ACTIVITIES OF EESTI PANK 2015 IN EESTI OF ACTIVITIES of the Eurosystem of the policy decisions Monetary IMPLEMENTATIONAND DECISIONS OF DECISION-MAKING IN THE EUROSYSTEM PARTICIPATION MONETARY IN POLICY without the effect of energy, food, alcohol and tobacco. basket consumer the of price in change the shows inflation 3 Core (HICP). prices consumer of index harmonised the with measured is area euro the in 2 Inflation tioning of the European Union, which covers monetary policy. Func the on Treaty the 1of 127 section article in out set is 1 This main refinancing operations of the Eurosystem union monetary and economic the under levels lowest-ever their at Eurosystem the of rates interest policy monetary the held Bank Governing Council of the European Central that. through stability price support could 2015, in it that activity so economic in growth favoured area euro of the policy monetary the that Low inflation and expectations for inflation meant remained around 1.8–1.9%. inflation area euro long-term for markets the in forecast The before. than lower somewhat were for inflation derived from instruments financial expectations short-term year. the and for Long 0.8% averaged it and subdued, was activity inflation year. by 6% the over fell Core basket consumer the in prices energy while prices, commodity low by 1). restrained was Figure (see year Inflation the to of 0.2% end toward the increased it though 2015throughout term. area euro the in inflation as Bank Central European the isstability defined by the Governing Council of area euro the in stability price tois maintain The objective of the Eurosystem’s policy monetary 2 of below, but close to, 2% over the medium to, medium 2% the close of over below, but . Throughout 2015 the rate on interest the . Throughout Inflation in the euro area stayed low stayed area euro the in Inflation 3 also remained sluggish as economic , averaging 0% for the year, the 0% for , averaging 1 . Price Price . The The - Figure 1. Inflation and core inflation in the euro area euro the in inflation core and 1. Inflation Figure Source: Eurostat yearly increase (%) standard measures non- new with Eurosystem the of policy tary mone the expand to decided Bank Central European the of Council Governing The to -0.30%. December in 10 points basis the facility deposit lending facility marginal the rate on 0.05%was interest the and elsewhere in the markets. the in elsewhere funds available their for rates interest better find cannot depositors the if only Eurosystem the in opened are deposits overnight so and rates interest market than lower are deposits overnight such on rates interest The rates. interest fixed at banks central at deposits overnight to open banks allows facility deposit standing 5 The rates. interest market money on bound upper the sets usually it on rate interest the up, put collateral of amount the by limited only is facility lending to the access As funds. accessing for resort alast as only facility standing the use institutions credit so and market the in rates lent equiva the than higher are loans overnight such on rates interest The collateral. for exchange in rates interest fixed at bank central the from funds overnight to access area euro the in institutions credit allows facility astanding as facility lending marginal 4 The - - 0.5 1.0 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5
01.2000
01.2001 core inflation inflation
01.2002 4
01.2003 rate on interest 0.30%. was The
01.2004 5 was lowered by a further by afurther lowered was
01.2005 Table (see 1) the to meet
01.2006
01.2007
01.2008
01.2009
01.2010
01.2011
01.2012 - - 01.2013
01.2014
13 01.2015
Eesti Pank Annual Report 2015 14
Eesti Pank Annual Report 2015 backed purchase programme(ABSPP) securities asset- the with together APP expanded the Under years. to thirty of two maturities with agencies and institutions European and governments area euro by issued bonds to buy used was money minted purchase programme (APP), under which freshly asset expanded of the to part be declared was public sector purchase programme (PSPP) policytary transmission channels. the In January ronment the and support functioning of the mone rate envi interest low the in stability of price goal programme (PSPP) Public sectorassetpurchase securities purchase programme (ABSPP) gramme 3(CBPP3)andasset-backed Third covered bondpurchase pro operations (TLTRO) Targeted longer-term refinancing grammes (CBPPandCBPP2) the covered bondpurchase pro The securitiesmarketsprogramme and Three-year refinancing operations non-euro area centralbanks Currency swapagreements withleading allotment (FRFA) Fixed ratetenderprocedures withfull Excess reserves Minimum reserve requirement (MRR) Reserve requirement Marginal lendingfacility(MLF) Deposit facility(DF) Standing facilities Structural operations Fine-tuning operations(FTO) (LTRO) Longer-term refinancing operations Main refinancing operations(MRO) Open marketoperations 2015 in framework policy monetary Eurosystem’s 1.Table The The standard monetarypolicy Non-standard measures framework
-
- 18 months At least2years 2-4 years being heldtomaturity Purchases ended,covered securitiesare Three years term aspecified Without From October2008 As necessary Daily Overnight Overnight As necessary As necessary Three months Oneweek Deadline Deadline As necessary Permanent As necessary Daily Daily Daily As necessary As necessary Quarterly Weekly Permanent Daily Quarterly Once - - Frequency Frequency lending to non-financial companies in the private sector. private the in companies to non-financial lending onward for intended primarily are institutions to credit loans and 2014 2016 to June September from runs programme 6 The plus ten basis points. rate that been earlier having operations, nancing refi main rate for the at set was repayments on rate interest the as January in further eased were nancing operations (TLTRO) refi longer-term targeted the for Conditions month. every purchased were of assets euros 2014, autumn in billion 60 started that (CBPP3) programme purchase bond covered third the and period for2017oraslongnecessary were extendedtoatleastthe endofthesettlement On 03Decemberthecurrent tenderprocedures December from -0.20%to-0.30% Interest ratelowered by10basispointson09 governments locatedintheeurogovernments area. able debtinstrumentsissuedbyregional andlocal expanded tocovereuro-denominated market (c) thelistofsecuritieseligibleforpurchase was principal from securitiespurchased withinthePSPP; (b) itwasdecidedtoreinvest therepayments of programme wasextended byatleastsixmonths; In December(a)thematurityofassetpurchase Bank doesnotholdablockingminority. 33% fortransactionswhere theEuropean Central issue limitwasraisedinSeptemberfrom 25%to A newmeasure announcedon22January. The purchase programme (APP) programmes were mergedwiththeextendedasset Purchases startedin2014 continuedandthe previously beenMRO+10 basis points TLTROs waslowered tothat onMROs,having On 22Januarytheinterest rateforthenextsix Operations begunin2014continued; Operationsended Developments in2015 Change in2015 6 of the Eurosystem Eurosystem of the - - - were extended for a further six months, so months, six afurther for extended were programmes purchase asset the December In Central Bank does not hold a minority. blocking European the where to 33% transactions for 25% from September in raised was programme by apurchase covered be can securities sector of public issue of an much how on limit The 9 ECB Bank Lending Survey, October 2015. October Survey, Lending Bank 9 ECB 7/2015. Bulletin Economic ECB the of 32–51 pp on described is Bank Central European the by taken measures policy 8 The transmission mechanism of the non-standard monetary 1. Table in FRFA measures, Non-standard also 7 See 2016 in particular in companies for market credit the in further improve should situation the that noted have Banks tries. coun between varies situation the though ease, to conditions and to increase started has credit for demand as improving slowly is sector cial non-finan to2014. the of credit supply The autumn in than of 2015, 40% larger was which end the at euros 2.8 trillion worth was system Euro of the sheet balance consolidated the that meant taken were that of measures package The term medium the in area euro of the economy the in felt be will measures various the from expected impact the that means The lag in the transmission of policy monetary 2017, necessary. is as long as for certainly and of end the until least at allotment full with dures (MROs) also extended its main refinancing operations foreligible regular purchases. Eurosystem The are that of assets list to the area euro the in located governments local and by regional issued bonds added it and programmes, purchase asset the repaid principle of securities purchased under meeting announced a policy of reinvesting the same The Eurosystem. of the goal price-stability the with line in is inflation area euro until certainly 2017, March least at until continue will they and 7 to the banks as fixed rate tender proce rate tender fixed as banks to the 9 . 8 . - - - - market interest rates (%) rates interest market money and rates policy monetary Eurosystem 2. Figure - Source: European Central Bank 0.5 0.0 0.5 1.0 1.5 2.0 2.5 rates in the money market (see Figure 2). Figure EONIA, (see market money the in rates interest the affected Bank Central European the of rates interest policy monetary the in Changes Table(see 1). some deposit facility did not change in 2015, though standing the rate on interest the than other work frame standard of the parts the and Eurosystem through the policy monetary operations of the policyMonetary decisions are implemented Estonia and area euro the in policy decisions monetary Implementing in the climate of negative interest rates, but these these but rates, interest of negative climate the in fallen has area euro the in of credit cost average 2015. in negative both were The EURIBORs six-month and three-month the history, in time first the For amount. same by the EONIA moved December in facility deposit the rate on interest -0.15%. the in of 10 points basis reduction The -0.05% and between year of the most spent rate, interest Average Index OverNight Euro the 1.01.2011 1.04.2011 3-month EURIBOR Average Index OverNight Euro or EONIA lending facility rate rate facility deposit rate interest key Bank's Central European non-standard measures 1.07.2011
1.10.2011
1.01.2012
1.04.2012
1.07.2012
1.10.2012
1.01.2013 1.04.2013
1.07.2013
1.10.2013 were extended
1.01.2014 1.04.2014
1.07.2014
1.10.2014
1.01.2015 - 1.04.2015
1.07.2015
15 1.10.2015
Eesti Pank Annual Report 2015 16 - 1 000 1 000 1 200 1 400 1 600 operations, 2013-2015 (billion euros) policy monetary Eurosystem of volume the in Changes 3. Figure Source: European Central Bank - - - - 800 600 400 200 Eesti Pank Annual Report 2015 200 400 600 800 0 01.2013
04.2013 accounts current deposit facility (-) operations fine-tuning main refinancing operations long-term refinancing operations expanded asset purchase programme+SMP+CBPP the holidays. 22.12.2015 from to 04.01.2016 suspended were for 10 Purchases the for counterparties are that institutions cial finan to the far so operations the in out lent been of 418 Atotal them. has in euros lent was billion euros billion of 205 atotal and December, and 2015, in September June, March, operations in There were four targeted longer-term refinancing during the year. euro area increased by around 400 billion euros euros billion 493 PSPP the and 17 euros, ABSPP the euros, 143 billion billion held CBPP3 the of which of assets, euros lion bil- of 653 atotal purchased had programmes 2015 31 at three As the December 9March. on programme, under which purchases started purchase asset 2015in expanded the was The most new important policy monetary measure programmes were introduced. purchase the since sharply dropped have volumes and activity trading and markets, money on effect purchase programmes have had quite a restrictive asset expanded the with together rates interest
07.2013
10.2013
01.2014
04.2014
07.2014 10
. Excess liquidity in the in liquidity . Excess 10.2014
01.2015
04.2015
07.2015
10.2015 -
for the securities markets programme (SMP). 0.274% shared also are risks The exposure. of the Pank Eesti key, gives which capital the with ance accord in Eurosystem of the members other the with solidarity in risks the shares Pank Eesti but covered bond purchase programme (CBPP3), third the or (ABSPP) programme purchase rities of the new programmes, the asset-backed secu either in participate not did Pank Eesti Pank. Eesti by to maturity held are (SMP) programme market securities the (CBPP2) and programme purchase Bonds purchased under the second covered bond stood at 75 million euros. loans policy of monetary Pank’s portfolio Eesti of 2015, end At the permitted. amount of the most longer-term refinancing operations, borrowing targeted the in part took counterparties Estonian Some bank. central by the supplied liquidity the on dependent very not are they that meaning buffers, liquidity sufficient had banks local the and ment the bank groups use manage centralised liquidity did not use the lending facilities of the standard standard of the facilities lending the use not did The Estonian policy monetary counterparties policy operations Pank’sEesti monetary Eurosystem’s policy monetary operations. of the volume the in changes the 3shows Figure operations. such two last the in interest less was there so became less attractive and less important and purchase programmes meant the TLTROs asset of the expansion The Eurosystem. the in policymonetary operations of the central banks The main reason for the low take-up was that was take-up low the for reason main The including the marginal lending facility, in 2015. policymonetary framework of the Eurosystem, - - - Pank was also able by agreement with the Euro the with by agreement able also was Pank Eesti June, From purchases. substitute as bought are that institutions of European bonds the mainly is it bonds, sovereign any issued not has Estonia key. As capital of the proportion the in assets purchase programme (PSPP), buying various sector public the in participated Pank Eesti - the other 4% were bonds issued by Elering. issued 4% other the bonds were and institutions, by European issued bonds were PSPP, the under 96% of which purchased were of bonds of euros 1.2 atotal year the billion During owned transmission system operator Elering. state- of the bonds the to buy Bank, Central pean 17
Eesti Pank Annual Report 2015 18 Figure 4. The macroprudential policy framework Source: ESRB Eesti Pank Annual Report 2015 Intermediate targets SAFEGUARDING FINANCIAL STABILITY The most important achievement in the develop the in achievement important most The framework policy The macroprudential policy Macroprudential such as reducing and avoiding excessive credit areas, vulnerable various in risks the to mitigate set are that objectives intermediate of various systemicassessing risks from the point starting Macroprudential policy means and identifying and Authority. the Financial Supervision of Finance Ministry the consults always Pank Eesti taking decisions that affect macroprudential tools, both domestic and international cooperation. Before and use their behind principles the Pank, to Eesti able the goals of macroprudential policy, the tools avail in macroprudential decision-making and describes transparency and clarity aids 4). process Figure The the prudential policy in 2015 was the compilation of of macro instruments and principles of the ment Indicators macroprudential policy framework Decision Tools (end goal) Financial stability stability (see (see - - -
Capital Requirements Regulation and Directive follows the requirements of the European Union’s selecting and implementing measures, Eesti Pank prudential measures or change current ones. In macro new introduce can Pank Eesti intervene, to to necessary it be shows indicators of different analysis If banks. important of systemically taking risk- excessive the sector, limiting or financial the growth, reducing and avoiding risk liquidity in loan is 30 years. 30 is loan 3. permitted maturity of The maximum a housing ratio) (DSTI income net borrower’s 50% of the than to more no amount may together taken borrower of the payments lease and loan monthly 2. the All collateral. of the value to of the 90% up for be can ratio the then by KredEx guaranteed being purchased.housing property If the loan is the is LTV (the ratio), which collateral of the value to up 85% be of the can of aloan 1. amount The specific features of the Estonian financial system, financial Estonian of the features specific of the account full take necessarily not do level Union European the at agreed principles general the As ESRB. of the recommendations the and issuing housingissuing loans to subject are banks, operating in Estonia, including branches of foreign Table(see 2). 2015 1March From banks the all 2015 in continued earlier a year started had that The deployment of macroprudential measures policy tools Applying macroprudential ciency, and proportionality transparency. effi effectiveness, their at looks Pank Eesti ures, meas choosing In framework. legal and ment sectorfinancial structure, environ economic local the to suit measures the adapts Pank Eesti three requirements when . These are: . These - - - - buffer rate at 0%. Eesti Pank carries out a regular aregular out carries Pank rate 0%. at Eesti buffer Pank decided to set the countercyclical capital Eesti growth, rate of credit the and cycle credit the in position the Given prices. asset in rises restrain and credit in growth the to slow help also can growth of rapid times during set requirements capital higher The downturn. cyclical alater during losses possible to it cover use then can they that so fast growing is credit when times at capital additional up to build banks for is of this aim The requirement a introduced Pank Eesti theAlongside measures lending, concerning met. are requirements the how to assess easier it to make and before than housing loan market to be followed more precisely the in conditions lending the in changes to allow Pank also extended the of reporting housing loans Eesti volumes. on or loans housing for conditions and terms on impact amajor had not have they so and standards, lending of bank levels actual to the The limits on issuing housing loans were set close future. the in emerging boom of acredit risk the of reducing so and too loose becoming conditions lending of preventing intention the with duced The requirements on housing loans were intro in decisions about making loans. inissued a quarter, which will allow them flexibility loans to up 15% for of housing limits amount of the the from exemption an permitted are banks The Requirements forissuinghousingloans* Countercyclical buffer Systemic riskbuffer 31.12.2015) at (as Pank Eesti by introduced measures Macroprudential 2. Table ** Thelimitisupto90%forloansguaranteedbyKredEx * Thelimitsmaybebreached by15%ofthevolumemortgagesissuedeachquarter maximum maturity debt service-to-income(DSTI) loan-to-value (LTV) that applied from 1 January 2016. 1January from applied that Measure countercyclical buffer - published in October 2015. ratebuffer requirement, using a methodology to maintain or change the countercyclical capital quarterly analysis and assessment of the need of the year, when countries started to introduce to introduce started countries year,of the when half second the in states of member measures the of analysis in increase an was There developed. were risks to reduce taken measures the and risks systemic assessing in help can that models further several and improved was SSM the in pating partici countries of the assessments risk specific country- of the 2015 In states. compilation the member by the set those than banks for ments Bank dential with the supervision member states share responsibility for macropru the (SSM) Mechanism Supervisory Single the In supervision macroprudential in cooperation International system. financial domestic to the tant impor are that institutions of credit list its updates and year each institutions of credit importance systemic the assesses bank The system. financial considered the features specific of the Estonian ofguidelines the European BankingAuthority and assessment of systemic followed importance the tutions for the Estonian financial system 2015in as Pank SEB AS and AS Swedbank named Pank Eesti , which can, if needed, set stricter require stricter set needed, if can, , which 30 years 50% 85%** 0% 2% Rate systemically credit important insti European CentralEuropean 1 March 2015 1 January2016 1 August2014 From . The The . - - - - - 19
Eesti Pank Annual Report 2015 20
Eesti Pank Annual Report 2015 and warnings are issued by the by the issued are warnings and European Union level, and recommendations the at assessed are stability to financial Risks tant credit institutions as well. additional capital for buffers systemically impor countercyclical and in capital buffers most cases measures and their reciprocity. and proceduralbuffers issuesfor communicating theassessing rates for countercyclical capital for methods 2015 In discussed also measures. it of experience of implementing macroprudential country-specific risk assessments and the sharing of exchange the is NBMF of the work of the part important An authorities. supervisory and banks of central heads together brings which (NBMF), high-level Nordic-Baltic Macroprudential Forum and Baltic regions Macroprudential cooperation in the reduced. be could risks those how and what this effect would have stability on financial depth in to ECB analyse the with together ESRB the prompted time along for low remaining rates minimised through macroprudential tools. Interest be could risks waysthose covered also which market, estate real the and sector insurance the in risks of the ESRB by the analysis the were Estonia by other member states. The topics important for of measures recognition voluntary the and states, by member introduced of measures impact border The second assessment concerned of the cross- Union. European the outside exposures for rates should and assess consider countercyclical buffer states member how concerned first The dations. recommen two 2015 In priate. issued ESRB the Systemic Risk Board (ESRB) takes place in the informal informal the in place takes where appro European Nordic Nordic - - - • identified. were risks main Three and the of good finances households in Estonia. sector banking of the level capitalisation high the by down held being are year. risks The previous the in like to small, be stability to financial risks possible the 2015 In system. considered Pank Eesti financial of the stability to the risks of the ments is producing and publishing reviews and assess One responsibility of macroprudential supervision supervision macroprudential in assessment and Analysis • of Estonian companies A continuing decline in the profitability in Estonia are subsidiaries or branches of the branches or subsidiaries are Estonia in operating banks of the 90% over Secondly, the outlook for economic growth in Estonia. ineconomies trading could damage partners of the aworsening because firstly economy Estonian the affect could This shock. tial to poten any vulnerable economy the makes which level, to ahigh climbed has especially The indebtedness of households in Sweden years, with backing from borrowed money. tries have been rising rapidly coun Nordic the in prices estate Real loans. their to repay nies could worsenprofitability the of ability compa in reduction acontinued but loans, overdue in profitability has not led to a significant increase crisis. For this reason the decline in corporate financial last the before was it than better now years however and its position financial is recent in finances its strengthened has sector loans their repay to consequent deterioration in their ability growth, wage to rapid and ronment envi external weak by the caused income . The Estonian business due to the fall in fall to the due for several several for and a and - - - - - • an appendix to the Financial Stability Review 2/2015. Review Stability Financial to the appendix an as published was Report Structural Sector Financial 11 first The previous of the out left been had that banks the banks and issuing warnings to them. During 2015 included covering of the the capital shortfalls follow up to comprehensive assessment, which the on was of it focus the and completed was The first half year of single banking supervision Union European the in Supervision Banking Single policy sector Financial 2015 in Sector Structural Report better, sector financial of the ment develop To structural the banks. of the illustrate and risks of companies and households as clients banks and on the assessing positions financial the on concentrates review the banks, through of financial intermediation in Estonia operates the in ayear twice of risks assessment and stability Eesti Pank publishes its analysis of financial Financial Review Stability nian real estate prices Esto in rise the in acceleration A possible Estonia. in banks largest of the liquidity the on impact an have conditionsfinancing of the parent banks could the in achange so groups, banking Nordic Estonia slowed in the second half of 2015. half second the in slowed Estonia in prices estate of real rate of growth the and housing loans has so far increased moderately of However, volume growth. the credit fast remaining low, this could lead to excessively rates interest With estate. real for demand boost could and future the for expectations optimistic to overly lead could it continues this in household incomes has rapid, been and if Growth system. financial of the vulnerability 11 . started to be included to included be started could increase the . As the majority a Financial - - Changes in the legal legal the in Changes Greek crisis. financial of the heart the at banks important the about sions deci were Bank Central European of the Board Supervisory the for agenda the on it.Also on built and the bank-based supervision assessments together methodology supervision the necessary putting on continued to Day work day procedures. and processes risk their concerning to banks issued were instructions 1300 written some ally to 129. rise should Addition Bank Central pean groups under the of direct the supervision Euro of bank number the that result the with principles, wereassessment using similar also assessed removing barriers to the cross-border movement peer-to-peer lending and crowdfunding markets, able. This includes developing venture capital, avail of funding of sources range the to expand for the development of the business environment important is it so and standards, by European nies compa small by very dominated is Estonia in ness responsible for the Estonian position on it. Busi parties of the one as paper green the on comments preliminary gave also Pank Eesti February. in the comments on the green paper published on drew that September in together put was the is term longer the at aimed initiative A second better. to work union banking the for place in be should pillars necessary the all that opinion the of is Pank Eesti banks. the from by contributions funded be 2024 in would full and in to operate start would that Union European the for scheme ance union in November. This is a single deposit insur (EDIS) Scheme proposals for the first its unveiled Commission European The sector financial environment of the Capital Markets Union (CMU) as the third pillar of banking of banking pillar third the as European Deposit Insurance . An agenda agenda . An ------21
Eesti Pank Annual Report 2015 22
Eesti Pank Annual Report 2015 Domestically Eesti Pank was involved in creating creating in involved was Pank Eesti Domestically tools for financing. and methods of new development the in risks and requirements between kept is balance that ensure to important it finds also Pank Eesti areas. those of capital, and harmonising the laws governing lating the upper limit. A new law for preventing preventing for law Anew limit. upper the lating and should leases in future be considered in calcu extending this condition on which costs of loans in Riigikogu the advised Pank Eesti charges. annual percentage rate of the sets Act of Obligations advising the Riigikogu commission. The Law legislation by commenting on bills draft and upper limit for the the for limit upper consumer loan consumer - the reduction in the deadlines for compensation. from arise could that scheme of aguarantee tion highlighted the possible problems for the opera regulating deposit insurance schemes, Eesti Pank response to the new European Union Directive Act Fund Guarantee the to changes has fallen into difficulties. In commenting on the that bank any for measures resolution crisis the on deciding before Pank of Eesti opinion the ask Authority also has toThe Financial Supervision recovery and resolution plans of credit institutions. Authority if in needed the assessing Supervision Financial the to advise Pank 2015, Eesti requiring and managing crises was financial introduced in made in in made - in society as a means of payment and store of store and of payment ameans as society in and economy an in roles important two has Cash Estonia in Cash circulation been issued, which is a reflection of the way that of the areflection is which issued, been had than Pank by Eesti back received were notes 41.1 100-euro 20 and More coins. in euros million and banknotes in was euros 1.06of which billion to increased has Pank by Eesti issued cash of euro total net the introduced, was euro the Since returned. amount the than larger is banknotes in issued amount the and years, the over fallen has returned and issued of banknotes Table (see Pank 3). to number Eesti The returned credit institutions and 2015In issued Pank Eesti by companies and individuals. their customers, and the cash brought to Estonia and institutions of credit demand cash the meet to Pank by Eesti issued cash the both includes Estonia in circulation in cash euro The lation. circu for needed resources cash of the security in Estonia and for managing and maintaining the coins and banknotes euro for demand the fying satis for responsible is Pank Eesti country, area of aeuro bank central the As society. in nologies tech of new spread the and habits consumption people’s daily reflect demand of that structure the in changes and cash for demand The value. 2015 2014 2013 2012 2011 institutions credit and Pank Eesti between flows Cash 3. Table Year Eesti Pank Issued by Total amount (EURbillion) 1.05 billion euros 1.19 1.30 1.47 1.44 1.67 1.19 billion euros 1.1 billion euros Received by Eesti Pank MANAGING CURRENCY CIRCULATION 1.05 1.21 1.33 1.32 1.05 were were to to banknotes - - - , Issued byEestiPank Figure 5. Banknotes issued and returned in 2014 and 2015 and 2014 in returned and issued Banknotes 5. Figure 10 000 12 000 14 000 16 000 2 000 4 000 6 000 8 000 2015 still were there of year. end the at last As Pank Eesti at euros for kroons their 3216 exchanged and people of time, limit any without euros for coins and notes kroon Eesti exchanges Pank Eesti Figure 6). (see circulation entered have they after coins value low- as up pile often people which coins, two-cent and one were by volume issued coins common most 5). The Figure (see countries area euro other from here come and move people and banknotes 35.2 38.1 42.0 43.8 45.5 0 € 500 net issuance 2015 (thousand banknotes, right scale) net issuance 2014 (thousand banknotes, right scale) banknotes returned in 2014 (thousand banknotes, left scale) banknotes returned in 2015 (thousand banknotes, left scale) banknotes issued in 2014 (thousand banknotes, left scale) left banknotes, 2014 in (thousand issued banknotes banknotes issued in 2015 (thousand banknotes, left scale) coins € 200 Number (million) 124.5 26.8 30.0 34.2 35.9 € 100 banknotes 726.7 million kroons, Received byEestiPank € 50 31.8 37.3 41.1 43.3 35.3 € 20 coins € 10 22.3 4.4 5.6 5.9 5.0 €
5 1000 2000 3000 4000 - - - - 0 4000 3000 2000 1000 23
Eesti Pank Annual Report 2015 24 Figure 6. Coins issued and returned in 2014 and 2015 and 2014 in returned and issued Coins 6. Figure 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Eesti Pank Annual Report 2015 0 € 2.00 net issuance 2015 (thousand coins, right scale) net issuance 2014 (thousand coins, right scale) coins returned in 2014 (thousand coins, left scale) coins returned in 2015 (thousand coins, left scale) coins issued in 2014 (thousand coins, left scale) left coins, 2014 in (thousand issued coins scale) left coins, 2015 in (thousand issued coins second half of 2015 of counter half number total the second the in but years, half two previous the to in that similar was discovered of counterfeits number the 2014. year in of the 481the found half first the In 17% is which than Estonia, fewer in discovered banknotes euro counterfeit 400 were There 755and coins. Eesti Pank analysed 2014. in than less 2015, In slightly is 31.3 million banknotes of Atotal into circulation. back returned and aged pack are circulation for suitable are that notes Bank circulation. from removed are banknotes stained or torn dirty, worn, and knows, bank central the only that parameters using checked is notes the of all authenticity the machines, sorting automated by fully sorted are tutions insti by credit Pank to Eesti returned Banknotes occasions. 602 on done was this and year, of the months two first the for euros for litas Lithuanian exchanged Pank Eesti area euro the returned from circulation. When Lithuania joined millionworth 46.45 euros € 1.00 € 0.50 € 0.20 € 0.10 9293 damaged banknotes banknotes damaged 9293 were processed, which € 0.05 , that had not been been not had , that € 0.02 experts from € 0.01 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 0 - - - - commemorative coin. The Eesti Pank procurement a as design aspecial with coin atwo-euro for year of the half second the in held was ment of 2015 half aprocure first and the in increased were coins two-cent and of one supplies The coins Circulation Eurosystem. of the reserves joint to the added printing house in France. The new banknotes were Technologies of 2016 half Oberthur first by the the in to printed be are notes fifty-euro the and lands, Nether the in printer Enschede Joh by the tender joint the for printed were notes ten-euro The Bank. the Governing Council of the European Central by set notes fifty-euro and of ten quota the print Tender to European aJoint in banks central area euro other seven with by joining Eurosystem the to commitment its 2015 in and fulfilled Pank Eesti year, every banknotes of euro production the in involved are area euro of the banks central the All Banknotes handling devices. of cash tests organised and purposes, testing for continued in 2015. in continued The of banknotes series second to the transition The coins and New banknotes number of counterfeits found remains small. very the circulation, in of currency amount the given 24% is 128 the which than fewer of 2014, and counterfeit euro coins discovered in Estonia, 97 were There third. by one fell found notes feit The bankThe also allowed of suppliers handling cash Narva. Tallinn, in and Tartu, held Pärnu were and retailers and handlers cash for notes new the November. Training courses were organised for 25 on into circulation went features, security series second the of notes to borrow samples of the new twenty-euro notes twenty-euro new of the samples to borrow devices and companies adopting such devices twenty-euro bank twenty-euro , with improved improved , with - - -
On 10 December, Eesti Pank released a circulating acirculating released Pank 10On Eesti December, 2015. 21 on July into circulation 2015 date the with minted entered coins two-cent 17.1 the and coins 14 one-cent The million million Mint. Lithuanian by the won was coin two-euro the and coins two-cent and one the minting for versary of the birth of Paul Keres Paul of birth the of versary to the dedicated coins two-euro the 2016. of of 500,000 Atotal January in coin orative commem of Estonia’s first into circulation release the for made also were Preparations collectors. for intended were and finish ahigh-quality had 3500 of which Estonia, in issued were coins of the 350,000 all, In area. euro of the countries the all in commemorative coin, which means it was issued ajoint is flag European to the dedicated coin euro Union European the of flag the of to the dedicated it on design a special had that into circulation coin two-euro 30 th anniversary were minted, minted, were 100 . The two- . The th anni - - The Lithuanian Mint minted 4000 of the coins and coins of the 4000 minted Mint Lithuanian The Poska Jaan to dedicated coin collector silver ten-euro the for made also were Preparations Mint. Romanian the by minted were coins 5000 and Luidalepp by Mait designed was coin silver The birth. of his versary 150th the anni to mark 4March on issued was Vilde Eduard of work the to dedicated The euros. of ten value anominal with coin collector silver one 2015In issued Pank Eesti products numismatic and coins Collector intended for collectors. were and finish ahigh-quality had 5000 of which Mall Nukke. by created was white and black blue, in design the that was issued on 22 January 2016. 22 January on issued was that coin was and and - 25
Eesti Pank Annual Report 2015 26 Figure 7. Payments in the TARGET2-Eesti system (daily averages) (daily system TARGET2-Eesti the in 7. Payments Figure 3,000 2,000 3,500 2,500 1,000 1,500
Eesti Pank Annual Report 2015 500 0
05.2008 10.2008 number of interbank payments (left scale) (left payments interbank of number scale) (left payments client of number scale) right million, (EUR payments of turnover Payment systems managed market. payment the to develop helps and systems the for overseer as acts systems, payment Eesti Pank promotes the smooth operation of Payment systems accounts with two separate legal acts for credit credit for acts legal separate two with accounts holding for conditions 2015 the In fixed Pank Eesti of clients. characteristics the and banks, decisions, in changes the management liquidity of policy by monetary affected been have and able vari quite of TARGET2-Eesti been have payments of 37% number was and lower.value value The 2014 in than total the 2.6 higher but than times more was of payments number the meaning euros, of 616 value atotal it, with in million settled were of 1658 average payments adaily year the during TARGET2-Eesti 03.2009 ties settlement platform TARGET2-Securities. system and participates in developing the securi TARGET2-Eesti payment the manages Pank Eesti by Pank Eesti 08.2009 01.2010 06.2010 11.2010 04.2011
had 15 members in 2015 in 15 had and members 09.2011 02.2012 07.2012 12.2012 05.2013 10.2013 03.2014 08.2014 01.2015 06.2015 11.2015 1,000 1,500 2,000 2,500 500 0 - - regulate participation in TARGET2-Eesti were in participation regulate that conditions TARGET2-Eesti harmonised The use of accounts by non-credit institutions. and opening the regulates Pank" Eesti in accounts "Terms holding for regulation Governor’s Pank Eesti the and institutions, by credit of accounts use and opening the regulates Pank" Eesti in tutions the opening and using of accounts of credit insti for "Terms conditions and decree Governor’s Pank institutions and non-credit institutions. The Eesti the smooth functioning of currency circulation. affected system the and Estonia in made payments of the share important an are payments card 2015 in oversight as under Estonia by Nets ated the took Pank Eesti private sector. by the operated infrastructure market financial tant impor of the oversight the and standards tional interna with operates it systems payment of the compliance full the to safeguard aims Pank Eesti Oversight the depositories joining in the first wave started wave started first the in joining depositories the TARGET2-Securities pan-European securities settlement platform of the launch the with connection in changed of instant payments. of instant management system and supporting provision collateral Eurosystem a common creating ties, structure of TARGET2 and TARGET2-Securi 2020Vision consolidating concerns the infra title the under discussion offer. on The services about the development further of the settlement 2015 in Eurosystem the in started Discussions ready to join the platform. to be has also money,Pank Eesti bank central 2017. September inin securities T2S As settles wave fifth T2S the in join will Depository rities Secu Central Estonian The platform. the to use card payment system system payment card (T2S) in June 2015 June in (T2S) when oper ------
requirements. Following the assessment, Eesti (PIRPS) System Payment Retail Important nently Promi the with system of the compliance the assessed Pank Eesti changes. and incidents on information and system of the functioning the on Estonia Nets from data statistical receive Pank Eesti sees system payments card of the Oversight system members. of insolvency possible of the risks the and risks legal minimising for operator to system the tions recommenda made and system payment to one Act Institutions E-money and Institutions Payment the under assessment a risk issued Pank Eesti followed. are they how observe will Pank Eesti and created being system the in adopted be will dations recommen other The used. currently is it as system the in enacted been have recommendations of the third one Only planned. was than slower enacted ment mean that the recommendations are being technical platform X-stream for securities settle ajoint create and together states Baltic of the ries deposito the to join moves current The manages. 2014in of the recommendations resulting from the assessment the enacted Depository Securities Central Estonian the how 2015 monitored Pank Eesti Throughout sort. of any problems with to cope able for reducing those risks were strong enough to be measures the that and operation to its risks the minimised system of the procedures and rules the that to ensure operator system the advised Pank securities settlement system settlement securities it it - - - - - make their systems compatible with the new the with compatible systems their make to had companies time, this During change. the 2016 to make to 1February running period tion transi atwo-year allowed were companies but to changed their information technology systems Estonia in 2014 operating banks the all February In regulation. and policies sector financial menting mediation and participating in designing and imple inter payment in parties between cooperation tating development of the Estonian payment market, facili the and functioning to the contributes Pank Eesti payment market Development of the payments, and pan-European mobile payments. payments, cross-border e-invoices, contactless instant pan-European on focused currently is tion atten where (ERPB) Board Payments Retail pean Euro the at discussions in involved is Pank Eesti solutions. payment in innovations to analyse tion with the banks and the Estonian Banking Associa jointly up set also was payments instant on group A working quickly. more accounts client reach to day of the beginning the at made payments allow will change 2016. November planned in The happen will this that planned is it and operator the made possible be could payments sending for windows time additional that operator STEP2 the to 2015 together banks the and Pank Eesti system. STEP2 pan-European the in payments retail The banks settle both domestic and cross-border assion a service separate additional service. conver the to use need now they systems, their thatcompanies send bulk payments did not update had to provide appropriate conversion If services. banks the and format messaging 20022XML ISO comply with the SEPA requirements SEPA the with comply . This proposal was approved by approved was proposal . This proposed in ------,
27
Eesti Pank Annual Report 2015 28
million indicators tostatistics international organisations sector financial and sector external of 8.Dissemination Figure
Eesti Pank Annual Report 2015 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 FINANCIAL AND EXTERNAL SECTORSFINANCIAL AND EXTERNAL COMPILING STATISTICS ESTONIAN THE FOR 2008 Other (OECD, IMF and World Bank) World and IMF (OECD, Other Eurostat European Central Bank are used in analysis of the Estonian economy and economy Estonian of the analysis in used are sector and the accounts. financial Statistical data sector, external the financial Estonian the for tics timely and independent information on the statis analysts and the public with high-quality, reliable, Eesti Pank is responsible for supplying economic at the central bank came from the the from came bank central the at of statistics development the on impact biggest The required the under national statistical programme. work statistical the all completed Pank Eesti and nated to international organisations on time too, 2015, in time on dissemi were and published and compiled were Statistics Banks. of Central System European of the databases and registers union andand in monetary maintaining the joint statistical methods for the European economic developing in involved is Pank Eesti organisations. national Fund Monetary and other international Inter the Eurostat, Bank, Central European by the used is It work. statistical international other and pean Union, the economic and union monetary Euro the for input an as serves dataset whole the sector, financial and in forecasting, and the 2009 2010 2011 2012 2013 international 2014 2015 - - - - evidence basis for making. decision empirical an as used be can that statistics detailed more and varied more for need the increased ably Bank Central European the at and the creation of single financial supervision measures taken to counter new financialrisks, been made by the ECB and by member states. by member and ECB by the made been A major contribution to the preparatory work has similar. and deadlines definitions, collected, be to of data list the covers which requirements, data the setting directive ECB the drafting on focused has far so work The states. member the in it for tion data loan-by-loan granular for database AnaCredit the to sion acces probable the be will ahead years the and working procedures. management quality stores, data of the content butions were made to development work for the contri and records data to these regularly supplied was Information expanded. and developed rapidly being are Bank Central European of the Institutions ised Securities Database and Register of Financial Central the so and risks, of those scale the and tion interconnec financial domestic and cross-border ment funds, other financial institutions, securi institutions, financial other funds, ment invest institutions, financial monetary of rates interest and sheets balance the for to statistics lines guide and regulations statistics ECB the by most affected were sector cial finan the for statistics the years, previous in As before is needed for identifying the risks from from risks the identifying for needed is before than data detailed of more amount Alarger tion. collec data for Regulation ECB of the drafting the and funds pension for method statistical the of development to the contributed Pank Eesti introduced in 2016 for insurance statistics, and to is be that requirement the for continued tions prepara time, same At the data. banking dated consoli and accounts, financial issuance, ties as revised requirements started to apply to apply started requirements revised as and the start of data collec of data start the and The biggest project in in project biggest The . This has notice has . This changes in in changes ------methodology, though the in part data continued to new the under compiled statistics the from come has volumes data in growth main The years. recent increased the volumes of statistics disseminated in for data from international organisations have already and described the increasing demand changes methodological the how 8shows Figure organised. positioning, for which a public procurement was odology for assessing the indicators from mobile meth the to upgrade LBS Positium OÜ partner external our with we worked data, of the coverage 2016. in and precise Tomore quality the improve made be will section statistics sector external the in published statistics cross-border for series time The 2016. in users to available made be will indicators statistical and processing. It is planned that updated metadata of stage final the in are which of 2014,results the hold Finance and Consumption Survey (HFCS) of House the for to published be start will statistics of now, set anew and published being is which for the expansion of the accountsection, financial made easier to find. Preparations were also made to be and to provided be indicators statistical on the year, allowing much more detailed background of end by the completed was database statistical of the Development statistics. of payments balance monthly the on statement ashort did as released, to be started position investment international the and of payments balance quarterly the on releases press statistical statistics, sector July. external In 1 from into force came that Act of Obligations Law to the by changes required as individuals, private to granted loans consumption rate for percentage added to the public database, including the annual Eesti Pank website the on published statistics the of accessibility 2015 in made were moves to Several form. earlier the in sent be . Several new indicators were were indicators new . Several improve the - -
number of clicks website public the on statistics of Use 9. Figure 300,000 400,000 200,000 450,000 350,000 250,000 100,000 150,000 interest in financial sector statistics, with the number number the with of views of the English language pages doubling. statistics, sector financial in interest 2015 in increase in aparticular was 9). There Figure data official of source a as website Pank Eesti the of section statistics the using tors the by confirmed is statistics for need increasing The tics and GDP statistics. external sector statistics, account financial statis 2016 from out for rolled be will it and usable, more statistics published the to make Estonia Statistics meets the European rules was designed jointly with timeA revision harmonised series policy that by the start of 2018. start by the operational be will system new the hoped is it and applications, collection data current the update collection gateway in response to the need to of adata creation the for procurement a public of launch the for needed most were Resources IT solutions for processing and exchanging data. of its capacity the improving on to work continues Pank Eesti deadlines, release shorter the and the additional transmission of international data demands, statistical new the with To cope it help 50,000 year on year increase in the number of visi of number the in increase year on year 0 key economic indicators economic key statistics sector external account financial the and statistics sector financial 2012 2013 2014 (see (see - - 2015 29
Eesti Pank Annual Report 2015 30
Eesti Pank Annual Report 2015 ECONOMIC ANALYSIS CONSULTATION AND mentation of decisions that set the monetary policy policy monetary the set that of decisions mentation imple the to support monitoring conducts Pank Eesti Pank Eesti at analysis Monitoring and economic 12 For more on monitoring of the financial sector see see p18. sector financial the of monitoring on 12 more For Europe, and euro area policy. monetary points of the Estonian economy, political events in gave detailed background information on particular and years two next the and year current to the ahead looked They December. in 2015, one and June in one published Pank Eesti Economic forecasts Pank blog launched in March. Eesti the in and presentations, and articles in public made also were analysis and of monitoring results The analysis. economic of its results the presenting lectures public with continued and economy Estonian the on releases press and commentaries regular its published Pank Eesti reports, these Alongside • • • reviews were published: 2015, In government. to the following the advisor an as bank’s role of the part as and Eurosystem of the financial sector to provide financing financial sector for financing andthe ability ofthe non- of the need the considered and published annual the ison; corporate productivity in international compar and Estonia in sector exporting the in growth for potential the on primarily focused and March in the minimum wage; and demand for labour and issues around the supply the covered and October and April in the Competitiveness Report Labour MarketLabour Review Financing of the Economy two economic forecasts was published was published 12 . was was in in - - ECB’s policy monetary committee contains working committee policy monetary the by ECB coordinated is countries member its and area The production of economic forecasts for the euro states. member individual the of all reports the from compiled is awhole as area euro the for forecast a and BMPE, the for economy own of its outlook the on areport produces country of each bank central The Eurosystem. of the banks central other the and forecast produced with the European Central Bank broad macroeconomic projection exercise (BMPE) joint of the part as forecasts its prepared Pank Eesti projects plan, research strategic the with line In Economic research accurate. is forecast the to up and date are tions connec their that sure to make regularly updated are forecasting in used models The environment. external the from impacts for channels transfer main the and figures economic Estonian the all for connections important most the contain which models, metric econo uses Pank Eesti at forecasting Economic forecasts at both these organisations. outlook of the Estonian economy in the preparation of and state the on opinion own their to give able were experts Pank (OECD). Eesti Development and tion sion and of the Organisation for Economic Coopera forecasting working groups of the European Commis the in participate also Pank Eesti from experts casts, fore to Eurosystem the contributions top of their On stability. to price risks and economy of the state the assessing for ECB of the Council Governing by the used is and inputimportant for policy monetary decision making an is forecast area euro The groups. working of these part are Pank Eesti from experts and financing, state groups responsible for forecasting, modelling and were completed in 2015 on monetary 2015 in monetary completed on were ten research research ten at the the at . The . The - - - - - national journals, European Central Bank working inter in appeared Pank by Eesti of research results theirAlongside publication in working papers, the modelling system. development of the macroeconomic and banking economy, and andthe real sector policy, the financial economics. about more to know wants simply who anyone and business, professional economists, political decision-makers, people in including economics, in interested to everyone interest of be may and subjects topical of range awide cover papers The work. research and analysis its of reviews publishes bank the where papers of series anew is Papers Occasional Pank Eesti 13 The and development the of stability the Estonian financial economic balanced primarily are of expertise areas Pank’s policy. Eesti of economic areas important several in government to the advisor an is Pank Eesti functions Advisory for young Estonian economic researchers. prize annual its again awarded also bank central The researchers. guest as bank of the division research and hosted Pank Eesti ership of the Estonian Economic Association. lead over took Pank Eesti principle, rotation agreed the of Technology. Under of Tallinn University ership 2015 lead Europe the under Enlarged in Challenges organise the international conference Economic helped and of Technology Tallinn University and sity of Tartu Univer Innovation and Economics in School summer school organised jointly by the Doctoral 18th the doctoral supported also They area. euro the of banks central by the run Network Consumption Dynamics Network ESCB’sthe and foreign partners Researchers continued work. research and analysis its of reviews 2015, in publishes bank the started where the papers, of series Anew conferences. international and papers four external experts Eesti Pank Occasional Papers Competitiveness Network and Wage and Network Competitiveness , and the Household Finance and 12 academic seminars in 2015, participating in working with Estonian worked in the economic economic the in worked in 2015 in 13 , was , was - - - - balance the economic cycle. counter to necessary if used be can policy fiscal so that to adhered be should policy fiscal conservative the that However, emphasised Pank Eesti conditions. borrowing sector, favourable private and the in levels debt reduced debt, sovereign low the and finances nian economy is supported by stable government Esto the in growth for capacity The gained. been has that share market of the to aloss lead and itiveness compet Estonian harm future in might which market, repeatedly noted the arising imbalances in the labour year, the Pank Eesti during issued opinions its In the European economic and union. monetary of functioning better to that, the relation sector, in and the Fiscal Council itself interprets. equipment, and some background information that technical of rooms, form the in Pank Eesti from support technical gets policy fiscal Estonian assess The Fiscal independent Council set up in 2014 to minister. nian economic development convened by the prime Esto on group working the to join experts invited President the when as such of expertise, areas various in of advisor role the in forums domestic in participate and institution the to represent sions occa several on invited also were experts Pank Eesti represented. also were President the and minister prime the of offices the where Communications, and Affairs of Economic meetings with the of Ministry Finance and the Ministry regular at and Riigikogu of the Committee Affairs Union European and Committee Affairs Economic Committee, Finance the with meetings at widely more discussed were questions policy Economic sector. financial the of environment legal the in changes on legal rulebook for the financial sector, see the section For more on consultations on the development of the - - - - - 31
Eesti Pank Annual Report 2015 32
Eesti Pank Annual Report 2015 COMMUNICATIONS INTERNATIONAL COOPERATION AND PUBLIC responsibilities in close international coopera its executes and targets its meets Pank Eesti cooperation International ration 14 to SDRs. 243.6SDRs million Estonia’s 2016 in quota increase by 149.7 million of 2010, reform will which governance and quota IMF’s the ratified USA the year of the end At the basket of currencies used for calculating SDRs. to the renminbi Chinese the to add IMF by the sion deci to the significance symbolic also was There 2016. in continue will this and Pank, Eesti for tant of the review the made crisis Ukrainian the and crisis debt area sector banking Greek the of iour behav the of monitoring and area, euro the in stability financial for support area, euro the in inflation and growth economic stimulate to taken steps policy monetary the were 2015 in ment involve Pank’s international of Eesti Key features more detail. in bodies international in Pank’s participation Eesti website Pank Eesti the on found be can partners international Pank’s main Eesti on information More countries. Baltic and Nordic of the banks central (OECD), the and Development the Organisation for Economic Cooperation and (BIS), Settlements International for Bank the with works also bank the and it under bodies the and Economic and Council Financial (ECOFIN) Affairs the in work also Pank Eesti from Staff (IMF). Fund Mechanism (SSM), and the International Monetary Supervisory Single the Bank, Central European the communications work was communication with Pank’s international of Eesti part largest The tion. http://www.eestipank.ee/en/eesti-pank/international-coope . monetary and economic policymonetary in IMF’s lending framework 14 . Table 4shows . The euro . The impor ------the central bank in its primary role of maintaining of maintaining role primary its in bank central the supports Pank of Eesti work relations public The Public relations including an active labour market policy. for growth, and should implement other measures capacity its to maintain order in productivity boost that Estonia should investments prioritise that will noted and good as indicators institutional and October. The IMF rated the key Estonian economic annual assessment of Estonian economic policy in its gave IMF the work monitoring of its part As series of the 20-euro banknote was in the public public the in was banknote 20-euro of the series cially the asset purchase programme. The second espe attention, received also area euro by the for economic growth. policy Monetary decisions outlook the and market to labour the paid tion atten with Pank, of Eesti commentaries economic 2015 the throughout in interest media was There faster. concerned those to reach bank of the messages the for outlet another gives Twitter, on media which social to use started also for explaining topical issues publicly. Eesti Pank tool another bank central the from experts gave The issues. topical on written are commentaries and articles and ences, confer and meetings in presentations make bank publishes information, spokespeople from the regularly Pank Eesti reason this For stability. cial finan achieving in and area euro the and Estonia taining stable and sustainable growth economic in main in help agreat is policy bank’s monetary work. its do can Pank Eesti successfully more the bank, central the of actions the understand pants goals. strategic its achieving in and area euro the in stability price The better the market partici market the better The Public for support the central blog launched in 2015 in launched blog ------
Financial StabilityCommittee Budget Committee Public RelationsCommittee Supervisory Board oftheEuropean CentralBank General CounciloftheEuropean CentralBank CounciloftheEuropeanGoverning CentralBank European SystemofCentralBanks institutions* and organisations international of work the in participation Pank’s Eesti 4. Table * Onlythosecommitteesandforumsthat hadmeetingsanddiscussionsin2015are listedinthetable. Irving FisherCommitteeonCentralBank Statistics Board ofGovernors Settlements Bank forInternational Board ofSupervisors European BankingAuthority(EBA) Advisory Technical Committee General Board The European SystemicRiskBoard (ESRB) Nordic-Baltic MonetaryandFinancialCommittee(NBMFC) Board ofGovernors MonetaryFund(IMF) International Financial MarketsCommittee Economic PolicyCommittee Organisation forEconomicCooperationandDevelopment Committee onMonetary, FinancialandBalanceofPaymentsStatistics European Commissionand theEuropean CentralBankstatisticsforum European Commission Euro CoinSub-Committee (ECSC) Economic andFinancialCommittee(EFC) Informal CouncilofEconomicsandFinanceMinisters Council oftheEuropean Union TARGET2-Securities Board SWIFT andCLSoversighthighlevelgroup Market infrastructure highlevelgroup Legal Committee Market OperationsCommittee Statistics Committee AuditorsCommittee Internal Risk ManagementCommittee RelationsCommittee International Monetary PolicyCommittee Accounting andMonetaryIncomeCommittee Human Resources Conference Banknote Committee Organisational DevelopmentCommittee Payment andSettlementSystemsCommittee Committee onControlling Information Technology Committee Raoul Lättemäe,AnuRandveer Martti Randveer, PeeterLuikmel Liivi Teder, KairiRätsepp Kadi Kapral,RiinaPadar-Leppiman Rait Roosve,MargotLuukas Kairi Rätsepp,HelgaKäärik Mihkel Nõmmela,Kaire Torsus Helga Käärik,KairiRätsepp Ahti Roosa,JarmoInkinen Jaak Tõrs Kairi Rätsepp,HelgaKäärik Rääsk Katrin Kask,Viljar Madis Müller Ardo Hansson Ardo Hansson Jaanus Kroon Ardo Hansson Jaak Tõrs, Indrek Saapar Jana Kask Ardo Hansson Madis Müller, RaoulLättemäe Ardo Hansson Jana Kask Martti Randveer, IlmarLepik Jaanus Kroon Jaanus Kroon Inga Sokk,MeelisMettus Madis Müller, RaoulLättemäe Ardo Hansson Mihkel Nõmmela Kaire Torsus, AiriUiboaid Madis Müller Kadi Kapral,Marek Feldman Janno Luurmees,Toivo Kuus Jaanus Kroon, AinPaas Henn Oit,JannoKase Kaari Kumari,RainNõmmik 33
Eesti Pank Annual Report 2015 34
Eesti Pank Annual Report 2015 orative coins, and the exchange of Estonian kroons kroons of Estonian exchange the and coins, orative commem and of collector issue the area, euro the exchanging Lithuanian litas after Lithuania joined of question the as such topics, by cash nated domi also are bank to the submitted requests Information payments. card and to cash relating focus throughout the year, as were various topics and cherish the history of Eesti Pank and Estonian Estonian and Pank of Eesti history the cherish and to is maintain museum Pank Eesti of the role The bank. central the at References toEestiPankin themedia Museum visitors Website hits Oral andwrittenresponses toenquiries Articles andblogposts Comments byspokespeople Press releases Table 5. Public relations in figures in relations Public 5. Table 2015 c 850000 19 800 3583 2393 236 158 27 - - libraries and museums across Estonia in 2015. in Estonia across museums and libraries Euro exhibitions travelling Pank Eesti The groups. various for sions through public lectures, and it organised excur depth more in topics these covered also museum the provided, it that overview general the Besides society. in functions and bank’s role central the to introduction adetailed provides also it and heritage, cultural Estonian of the apart as money and and The Eurosystem Eurosystem The Estonian Money from the Mark to the Mark the from Money Estonian were put up in schools, schools, in up put were - the bank freedom of action and ensure that it has it that ensure and of action freedom bank the guarantee area, euro of the system monetary the in confidence underpin reserves Pank Eesti The management Reserve and British sovereign bonds. Canadian Australian, in invested were reserves the of apart risks, year. of the end To the at diversify 2015 euros during 73 at million to stand increased portfolio equity The bonds. and Notes Treasury US in held euros 140 the was million reserve currency foreign of the 2015. part in euros largest The million 352 at stood area euro the outside investments of reserve currency year. of foreign the end The the at 112 there with of investment euros million countries, area of euro bonds sovereign in were of 2015 end At the reserves Pank’s invested Eesti investment assets of The structure aquarter. once least at level risk agreed to the match adjusted and reviewed is portfolio tion in global financial markets. The benchmark the benchmark portfolio, basing it on the situa of level risk the sets Pank of Eesti Board tive Execu The of investments. risks and mance portfolio, which is used for measuring the perfor benchmark by the reflected are return expected the and Pank by Eesti accepted level risk The tries. coun of developed markets capital and money liquid the in made mainly are investments The term. long the over preserved are assets the that ensuring while income of stable level a moderate to is earn reserves of the of investment goal The capitalsufficient to cover any possible losses. FINANCIAL ASSET MANAGEMENT - - - - Figure 10. Structure of Eesti Pank investments (EUR million) million) (EUR investments Pank Eesti of Structure 10. Figure than the return from money markets (see Figure 10). Figure (see markets money from return the than assets was 1.99%, which was significantly higher invested on return the meaning investments, from earned was euros of 9.9 atotal million year the euros million 462 at stood assets ment of invest of 2015, end At the Pank’s portfolio Eesti on investmentsReturn 256.6 kg, of gold. or 8250 to troy ounces, hold continues Pank Eesti 15 Not including gold and income from gold. a started Reserve Federal The into difficulties. likeomies China joined Russia and in Brazil falling econ emerging other and China, in slowed growth 2015. from Economic changed have years six previous the in prices share supported that factors year. of the Several 2015 start the at were they as of end the at level same the around at were prices Despite the wide fluctuations in between, share positive contribution to the results. a made bonds and equity of both portfolios The 6 currency, foreign in deposits 113 (eurobonds), currency in domestic reserves 8 gold, 5 other, 15 73 shares, . During 265 currency, foreign in bonds - -
35
Eesti Pank Annual Report 2015 36 0 1 2 3 4 5 6 7 8 return on the money market market money the on return and assets investment on 11. Return Figure Eesti Pank Annual Report 2015 % % % % % % % % % 2 0 0 4 money market assets investment 2 0 0 earnings ratio indicate that shares are no longer longer no are shares that indicate ratio earnings price the as such markets, stock in of value tors policymonetary stance. The traditional indica banks are maintaining their accommodative very cycle of raising interest rates, though other central since 2006; and Informed Portfolio Management, Management, Portfolio Informed and 2006; since used been has which 2005; BlackRock, since used has Pank Eesti PIMCO, which were These managers. external three using was Pank Eesti year of the end the at and investment active in involved again were managers investment 2015. External in portfolio benchmark the over 1.5 euros million of return excess generated investment Active arole. played commodities for prices low very which in expectations, inflation by global partly and Japan, and area euro the in policy monetary tive prices were supported by partly the accommoda bond in Rises hedged. not is portfolio that in risk currency the dollar, US as of the strengthening to the thanks return its earned mostly portfolio equity The ago. years six were they as cheap as 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 - -
through derivative instruments. the managers express the of majority strategies and mandates overlay on based is programme management 2007. asset since used external The of 2015. of end to the at 218 euros amounted folio million port investment whose Fund, Guarantee to the provided were services management asset Full management services Provision of asset - pensable part of a monetary system that aims aims that system of amonetary part pensable indis an is bank central of the independence The accountability bank Central POLICY RESOURCES HUMAN AND ACCOUNTABILITY, ORGANISATION, AND GOVERNANCE • • • 2015: in held were Riigikogu The following meetings with members of the by Riigikogu members. explanations and comments to questions posed provides and parliament of the members with ings meet regular has bank central the Riigikogu, the to presentation annual Governor’s top of the On Riigikogu the to Reporting balancing principles. areaccountability and independence two counter institution to on report its activities. Central bank public every requires society democratic modern a time, same At the stability. price to maintain Committee ofCommittee the Riigikogu; Finance of the representatives met Pank of Eesti Board 2015 April Executive 30 – The Eurosystem; of the purchases bond the and programme purchase asset expanded the on meeting of the Riigikogu Finance Committee a at a discussion in participated Hansson Ardo 201517 Governor Pank –Eesti February banks; central area euro the experts on the bond purchase programmes of Chair of the Riigikogu Finance Committee, of Vassiljev, by Rannar convened meeting the to apresentation made Kaasik Ülo Pank of Eesti 2015 Governor 12 –Deputy February - - - • • • affairs in press releases and comments and more and comments and releases press in affairs current on data economic latest its publishes Union". Pank Eesti European the and of Estonia economy the and activities its concerning mation infor publish periodically shall Pank "Eesti that Act Pank Eesti 5of the §21 in section stated is It policy economic on positions its presenting in bank The central work of the • • lations by members of the Riigikogu on the to interpel ten responded Hansson Ardo 2015 21 Governor Pank September –Eesti to the Riigikogu; Authority annual reports Financial Supervision and Pank Eesti the presented Kessler Kilvar Board of Authority the Financial Supervision of andHansson Chairman the Management Ardo 26 2015 May Governor Pank –Eesti to the of Finance Committee the Riigikogu; report annual Pank Eesti the presented Hansson Ardo 25 2015 May Governor Pank –Eesti Finance Committee ofFinance Committee the Riigikogu. the with bank central of the capital reserve Department Randveer Martti discussed the Research and Economics of the Head and Kaasik Ülo Governor Deputy and Hansson 17 Ardo 2015 Governor November Pank – Eesti the Riigikogu; of Committee Finance of the members met Kaasik Ülo Governor Deputy and Hansson Ardo 201526 Governor October Pank –Eesti area; euro of the banks central of the programmes purchase asset - - 37
Eesti Pank Annual Report 2015 38
Eesti Pank Annual Report 2015 to compile monetary, and financial balance of Act Statistics Official the and Act Pank Eesti the under duty the and right the has bank central The website. Pank tions thorough analysis is provided in regular publica 17 See also the chapter “Eesti Pank’s Supervisory Board”. Supervisory Pank’s “Eesti chapter the 17 also See 2015”. in publications Pank’s 3“Eesti Appendix also 16 See Madis and Kaasik Ülo were Governors Deputy the and Hansson 2015 Ardo was Governor the in and Governors, Deputy and Governor of the consists which Board, Executive by the managed and led are bank central of the activities The Pank Eesti The Executive Board of organisation Governance and sector economy and policy monetary and the financial Estonian the about and budget and activities Pank’s Eesti about basis aregular on members Board Supervisory the inform Governors Deputy and Governor The bank. central of the activities all over supervision exercises Pank of Eesti Board Supervisory Act, the Pank Eesti § 8 of the Under Pank Board of Eesti Supervisory the to Reporting 15.1. article in ECB the and ESCB of the tion the European Union, which concerns the constitu of Functioning Treaty the the on and Union’s treaty publish comes from protocol no. 4 to the European to duty This economy. area euro of the review terly quar awide-ranging publishes Pank Eesti tries, coun area euro other of the banks central the Like section. statistics the in website Pank Eesti the on responsibility. statistics These are then published of areas its within fall that statistics payments 16 , all of which are accessible from the Eesti the from accessible are of which , all 17 . - - - - introduced in 2015. Fewer components are now are 2015. in components introduced Fewer New principles for paying employees clearer parameters for measuring performance. its reviewed Pank Eesti Pank Eesti system and work of organisation Development of management the other things. among Pank’s activities, of Eesti management general and Banks, of Central System European organisation of the bank’s responsibilities to the who has exclusive over authority banking policy, Board, Executive of the Chairman the of office, by virtue is, Pank of Eesti Governor Müller. The taining their salary duringtaining the their training. salary by main reserves the with training in employees bank of central participation the to support decided Board May, in Executive forces the tary major training exercises held by the Estonian mili to the response In agreements. study signing for ending of study loans, principles were introduced employees its to loans granting bank central The manager. risk to the submitted data the in discovered was rules the of breach No clarified. also were employees Pank Eesti for conduct professional for guidelines the this, with connection In interests. requested a detailed declaration of their economic manager risk the whom from of employees list ance framework was approved together with the A compliance working plan and the development goals for risk management. bank the for directions and targets management management strategy the approved Board Executive the March In individual employee. connected than before to the of performance the directly more is pay and pay setting in considered ceased the practice of practice the ceased strategy , which sets out the risk risk the out sets , which based on the compli the on based in 2015 in added and . With the . With were were risk risk - - - courses and the the and courses 2015,In training attended 97% bank’s staff of the approved. also were Central Bank or other international institutions employees working temporarily at the European The principles for stopping the contracts of an average of 11.8 of average an years. for Pank Eesti for worked had they 44.2 and was 2015 in employees Pank of Eesti age average The 231.1were 2014. in 2015; in Pank Eesti at there employees equivalent of 2014. 232.1 were there average, On full-time end the at 238 from down Pank, Eesti at working of 2015, end At the employees 234 were there remunerate them competitively. and staff to the motivate and goals, its to achieve bank the for needed employees the develop and to is recruit policy resources Pank’s human Eesti Pank Eesti at resources Human positive. were satisfaction of level the and trend general the and Pank Eesti at ever highest the was survey the rate in participation and satisfaction survey two-yearly regular The between managers. management culture and develop cooperation edge and skills for management, harmonise the knowl to improve intended was programme The to end. an came participated, of divisions heads and of department heads members, Board tive Execu where cycle, training management The development. resources spending in 2015 was invested in staff 2.9% and of human euros 892 was employee training of days . The average cost of training per per of training cost average . The average per employee was 5.2 5.2 was employee per average employee engagement was run in 2015. in run was The - - Figure 12. Employment flows at Eesti Pank 2010-2015 Pank Eesti at flows Employment 12. Figure 10% 0 1% 2% 3% 4% 5% 6% 7% 8% 9% were paid salary of 287,980 salary 2015. in paid were euros Pank of Eesti Board Executive of the members the of 7400 total In amonth. euros salaries received Kaasik Ülo and Müller Madis Governors Deputy of 9100 and amonth, euros asalary received Hansson 2015 Ardo 1July From Board. Governor Supervisory by the set are Governors Deputy the and Pank of Eesti Governor of the salaries The 2015 2014. in were they than 2.7% were Pank in of Eesti costs higher staff The 1324.70 received Board amonth. of the members other and 1854.58 salary in amonth received Board Supervisory of the Chair The servants. civil senior governing law by the set is Pank of Eesti Board Supervisory of the members of the salary The employees are professional specialists. bank’s of the group largest the but staff, service the from the coversfigureThis everyone to topmanagers 2187was 2015, in euros 2125 from up 2014. in euros at night, during holidays and during national holidays, overtime, working for pay additional and pay holiday including Pank, Eesti at salary monthly average The 2.2 2010 2 total turnover (%) turnover total (%) retired and at own initiative left (%) initiative own at left 4.7 3.7 2011 2.5 5 2012 3.4 9.3 4.2 2013 2.1 7.3 3.4 3.5 2014 8.2 6.1 2015 3 4.7 4.3 39
Eesti Pank Annual Report 2015 40
Eesti Pank Annual Report 2015 Figure 13. Eesti Pank Organisation Chart as at 31.12.2015 at as Chart Organisation Pank Eesti 13. Figure Deputy Governor Economics and Department Department Department Department Information Technology Ülo Kaasik Research Statistics Financial Supervisory Board Supervisory Chair Mart Laar Ardo Hansson Governor International and Public Relations Administration Department Settlement Systems Settlement Financial Stability Deputy Governor Infrastructure Internal Audit Payment and Department Department Madis Müller Department Department Department Cash and Cash Financial Markets 41
Eesti Pank Annual Report 2015 42
Eesti Pank Annual Report 2015 for the financial the for year ended December31 2015 PANK ACCOUNTSANNUAL OF EESTI BY THE BOARD EXECUTIVE OF EESTI PANK ENDEDFINANCIAL 31 YEAR DECEMBER 2015 APPROVAL OF THE ANNUAL ACCOUNTS FOR THE on the legal framework for accounting and financial reporting in the European System of Central Banks. Central of System European the in reporting financial and accounting for framework legal the on ECB/2010/20 Guideline 2015 (ECB/2015/24), 2July of amending 2014 Guideline ECB (ECB/2014/54) and 15 of December Guideline ECB 2012 (ECB/2012/29), 2011 10 of December (ECB/2011/27)); 21 of December Guideline ECB Guideline ECB (ECB/2010/20); (recast) Banks 1 Madis Müller Ülo Kaasik Ardo Hansson Accounts. Annual the signed day that on Pank of Eesti Board Executive 14 of the On 2016, March members the all Board. Executive of the estimates the from differ may Accounts Annual the in reflected transactions economic of the outcome final The Accounts. Annual of the ration of date prepa the at as risks and intentions its Pank, Eesti about available information the on based at the accounting date and income and expenses during the accounting period. estimates These are as Pank of Eesti liabilities and assets the affecting determinants of the estimates to provide Board tive Execu the requires requirements above the with conformity in Accounts Annual of the preparation The Pank. of Eesti performance financial and equity liabilities, and assets of the view fair and atrue give Accounts Annual The Estonia. in accepted generally principles accounting the with dance accor in up drawn been have guidelines by ECB regulated not are that Accounts Annual of the parts Bank Central European of the and Banks of Central System European of the 26.4 Statute of the Article on based rules the with accordance in up drawn been have Pank of Eesti Accounts Annual The 2015. 31 December ended year financial the for Pank of Eesti Accounts Annual the for responsibility its recognises Board Executive The ECB Guideline of 11 November 2010 on the legal framework for accounting and financial reporting in the European System of Central Central of System European the in reporting financial and accounting for framework legal 2010 the 11 of on November Guideline ECB Member of the Executive Board Executive of the Member Pank of Eesti Governor Deputy Board Executive of the Member Pank of Eesti Governor Deputy Board Executive of the Chairman Pank, of Eesti Governor
1 . The The . - - - BALANCE SHEET AS AT 31 DECEMBER 2015 AND 2014 AND 2015 AT AS 31 DECEMBER SHEET BALANCE The notes on pages 46–73 form an integral part of the Annual Accounts. Annual of the part integral an form 46–73 pages on notes The TOTAL ASSETS Sundry Accrualsandprepaid expenses Off-balance-sheet instruments revaluation differences Otherfinancialassets Tangible fixedassets Other assets OtherclaimswithintheEurosystem (net) Netclaimsrelated totheallocationofeuro banknoteswithintheEurosystem Claimsequivalenttothetransferofforeign reserves Participatinginterest intheEuropean CentralBank Intra-Eurosystem claims Othersecurities Securitiesheldformonetarypolicypurposes Securities ofeuro area residents denominatedineuro Other claimsoneuro area credit institutionsdenominatedineuro denominated ineuro Lending toeuro area credit institutionsrelated tomonetarypolicyoperations Claims onnon-euro area residents denominatedineuro Claims oneuro area residents denominatedinforeign currency assets Balanceswithbanks,securityinvestmentsandotherexternal Receivablesfrom theIMF Claims onnon-euro area residents denominatedinforeign currency Gold andgoldreceivables ASSETS
Item 18 17 16 15 14 13 12 11 10 7 6 5 4 3 2 1 9 8 31/12/2015 6 737658 2 774361 1 671822 4 646766 1 384577 1 495315 274 639 371 690 111 730 110 738 75 000 83 391 97 051 14 613 20 256 18 097 53 813 88 853 2 203 1 451 8 029 613 234 thousand EUR 31/12/2014 6 030364 3 205335 1 654500 5 060418 261 227 352 119 111 730 201 580 243 866 445 446 52 000 64 157 90 892 13 537 10 984 19 309 45 883 88 853 1 888 8 149 1 836 304 217 43
Eesti Pank Annual Report 2015 44
Eesti Pank Annual Report 2015 The notes on pages 46–73 form an integral part of the Annual Accounts. Annual of the part integral an form 46–73 pages on notes The TOTAL LIABILITIES Profit fortheyear Reserves Capital Capital andreserves Revaluation accounts Provisions Sundry Accrualsandincomecollectedinadvance Off-balance-sheet instruments revaluation differences Other liabilities Counterpart ofthespecialdrawingrightsallocatedbyIMF Liabilities tonon-euro area residents denominatedineuro Liabilities toothereuro area residents denominatedineuro Depositfacility Current accounts(includingcoverfortheminimumreserve system) denominated ineuro Liabilities toeuro area credit institutionsrelated tomonetarypolicyoperations Banknotes incirculation LIABILITIES
Item 25 16 24 23 22 21 20 19 29 28 27 26
31/12/2015 3 331414 3 331414 2 730241 6 737658 100 238 214 314 200 000 414 314 78 869 11 954 30 108 10 500 30 000 89 011 3 757 7 470 20 0 thousand EUR 31/12/2014 1 250000 1 549868 2 799868 2 576924 6 030364 103 302 211 100 190 429 401 529 11 604 73 887 17 046 23 157 26 000 88 029 3 669 8 649 2 2015 PROFIT AND LOSS ACCOUNT FOR 2015 AND 2014 AND 2015 FOR ACCOUNT LOSS AND PROFIT 2015 The notes on pages 46–73 form an integral part of the Annual Accounts. Annual of the part integral an form 46–73 pages on notes The Other operatingexpenses Banknote production services Depreciation oftangiblefixedassets Administrative expenses Other incomeandexpenses Other expenses Other income Net result ofpooling monetary income Income from equityshares andparticipatinginterests Net incomefrom feesandcommissions Fees andcommissionsexpenses Fees andcommissionsincome Net result offinancialoperations,write-downsandriskprovisions Provisions forforeign exchangerate,interest rateandcredit risks Write-downs onfinancialassets Realised gainsarisingfrom financialoperations Net interest income Interest expenses Interest income Staff costs
Operating expenses Profit fortheyear Total netincome Item 31 27 30 36 35 34 33 32 40 39 14 38 37
2015 -17 024 -34 978 17 184 24 546 14 866 49 844 30 108 47 132 11 183 -4 000 -3 362 -2 069 -4 886 -8 635 1 055 1 055 2 852 -125 -916 -518 117 -8 0 thousand EUR 2014 -17 059 -20 626 18 598 39 224 17 046 34 105 11 991 -7 700 -1 297 -2 056 -4 862 -8 405 7 365 1 096 3 326 -768 -433 -439 -209 170 887 -99 71 45
Eesti Pank Annual Report 2015 46
Eesti Pank Annual Report 2015 with the rules based on Article 26.4 of the Statute of the European System of Central Banks and of the and Banks of Central System European of the 26.4 Statute of the Article on based rules the with accordance in up drawn been have bank”) “the also (occasionally Pank of Eesti Accounts Annual The General Principles accounts annual the in used policies Accounting NOTES ON THE ANNUAL ACCOUNTS OF EESTI PANK on the legal framework for accounting and financial reporting in the European System of Central Banks. Central of System European the in reporting financial and accounting for framework legal the on ECB/2010/20 Guideline 2015 (ECB/2015/24), 2July of amending 2014 Guideline ECB (ECB/2014/54) and 15 of December Guideline ECB 2012 (ECB/2012/29), 2011 10 of December (ECB/2011/27)); 21 of December Guideline ECB Guideline ECB (ECB/2010/20); (recast) Banks 2 entity under conditions that are potentially unfavourable. another with assets financial to or exchange entity to another assets financial other any or cash deliver to obligation alegal is that liability any is liability Afinancial favourable. potentially are that conditions under entity another with assets financial to exchange right acontractual or entity, another from assets financial other any or cash to receive right a contractual or cash, is that asset any is asset A financial Financial assets and liabilities losses can be measured reliably. or gains resulting the and aliability or asset of an value or cost the and transferred; been have liabilities and to assets related rewards and risks of the all almost Pank; Eesti to from or flow will benefit economic future associated any that probable is it when Sheet Balance the in recognised are liabilities and Assets andAssets liabilities following accounting principles. the in explained cases in except basis, cost historical the on prepared been have Accounts Annual The rows. separate on recorded are policy to monetary related liabilities and assets The currency). (euro, other currency and area) non-euro area, (euro by residency grouped are items Sheet Balance The The Annual Accounts have prepared been in thousands of euro unless indicated otherwise. bank. central the as bank’s role the given Pank, of Eesti Accounts Annual of the readers to the information relevant significant provide not does it as presented is Statement Flow Cash No Accounts. Annual of the of date preparation the at as risks and intentions its and Pank Eesti about available information the on based are estimates date. These sheet balance the at as period accounting the during expenses and income and Pank of Eesti liabilities and assets the affecting minants deter of the estimates to provide Board Executive the requires Accounts Annual of the preparation The Estonia. in accepted generally principles accounting the with accordance in up drawn been have Bank Central European ECB Guideline of 11 November 2010 on the legal framework for accounting and financial reporting in the European System of Central Central of System European the in reporting financial and accounting for framework legal 2010 the 11 of on November Guideline ECB 2 . The parts of the Annual Accounts that are not regulated by ECB guidelines guidelines by ECB regulated not are that Accounts Annual of the parts . The - length transaction. Financial assets recorded at market value are revalued on every balance sheet date. sheet balance every on revalued are value market at recorded assets Financial transaction. length arm’s an in parties willing and disinterested knowledgeable, between settled aliability or exchanged, be could asset an which for amount the is value Market liability. or asset of the type the on depending cost amortised or cost acquisition the value, market the on based is liabilities and assets of financial measurement Subsequent question. in liability financial the for received amount of the value fair the is which cost, acquisition their at recorded initially are liabilities Financial question. in asset financial the for paid amount of the value fair the is which cost, acquisition their at recorded initially are assets Financial The exchange rates applied on 31 December 2015 2014 31 December on and follows: as applied were rates exchange The 2015. 31 at as December into euro converted sterling) pound British the and yen Japanese the euro, dollar, US the (the currencies of four rates exchange of the sum weighted the as calculated was SDR of the value the of SDRs, To Pank’s holdings Eesti revalue of currencies. of abasket terms in defined is (IMF) Fund Monetary International of the (SDR) right drawing special The on a currency-by-currencyperformed basis. is liabilities and assets exchange of foreign and instruments off-balance-sheet and on-balance-sheet of revaluation date. The recording the on prevailing Bank Central European rate of the exchange the at converted are expenses and date. Income sheet balance the on prevailing Bank Central European the rate of exchange the at into euro converted are currencies foreign in denominated liabilities and Assets basis. adaily on position currency foreign the affect also amounts These basis. a daily on recorded and calculated are discounts or premiums the and currency foreign in denominated ments instru financial on accrued interest date. The trade the on calculated also are sales from arising results date; realised trade the on position currency foreign net the affect currency of foreign sale and purchase The Sheet. Balance the on recorded are transactions and reversed are entries date, off-balance-sheet settlement the date. On trade the on accounts off-balance-sheet in recorded are currency foreign in denominated instruments financial in transactions securities, in transactions of spot exception the With Recording in currency of foreign transactions Account. Loss and Profit the in period accounting of the expense an as recorded are assets cial of finan together. Write-downs assets all for measured is to impaired be expected not are that and cant signifi individually not are that assets of financial impairment The separately. object each for measured is assets financial of significant impairment The amount. carrying its than to smaller be likely is asset of an amount recoverable the if down written are cost acquisition adjusted at recorded assets Financial JPY GBP USD SDR
31/12/2015 0.78567 0.73395 131.07 1.0887 31/12/2014 0.8386 145.23 0.7789 1.2141 - - - 47
Eesti Pank Annual Report 2015 48
Eesti Pank Annual Report 2015 Securities 2015. 31 on December dollar US the against euro rate of the exchange the from derived 2015, 31 December was ending year the for which, of gold, ounce fine per euro in price of the basis the on for accounted is valuation gold asingle Instead, gold. for differences revaluation currency and price the between made is distinction No year-end. the at prevailing price market the at valued is Gold Gold a liability. as sum repurchase the and Sheet Balance the on assets as recorded are i.e. value, securities fair their Repurchase transactions (sale/repurchase transactions) are recorded as collateralised loans taken at Reverse transactions securities. of the life remaining the over basis adaily on amortised are and income of interest part as recorded are securities purchased on arising discounts or Premiums price. market rate or exchange year-end to the reduced is item of that cost average the year-end, the at gold on or security or currency any on loss unrealised of an event the In gold. or securities or currencies other on gains unrealised against netted not are gold on or security or currency one any on losses Unrealised account. revaluation corresponding the in registered gains revaluation previous exceed they if, year-end, the at assets” financial on “Write-downs under Account Loss and Profit the in recorded are losses Unrealised under “Revaluation accounts”. Sheet Balance the on recognised are but Account, Loss and Profit to the taken not are gains Unrealised concerned. asset of the cost average to the by reference calculated are losses and gains realised Such Account. Loss and to Profit the taken are securities and gold exchange, of foreign sale the from arising losses and gains Realised paid. or received was cash of when regardless basis accrual an on period accounting the during Account Loss and Profit the in recorded are expenses and Income Income recognition 2015 31 used. on were December 2015, prices mid-market 31 December ending year the For basis. asecurity-by-security date, on sheet balance the on prevailing curve yield relevant of the basis the on or prices mid-market the at either valued are assets similar and purposes) policy monetary for held securities as classed those than (other securities Marketable Other securities intention. holding of the regardless to impairment, subject cost amortised at for accounted are purposes policy monetary for held Securities Securities held for monetary policy purposes market value of shares is not reliable if they are not actively traded and there are no alternative methods methods alternative no are there and traded actively not are they if reliable not is of shares value market of the assessment The reliably. assessed be can it if value market at recorded is shares in Investment shares in Investments Pank. of Eesti Sheet Balance the on recorded not are transactions repurchase reverse for collateral as used Securities granted. Reverse repurchase transactions (purchase/resale transactions) are recorded as collateralised loans decides on the size and use of the provisions, using a reasonable estimate of the bank’s exposure. of the estimate areasonable using provisions, of the use and size the on decides bank of the management The risks. price gold and rate, credit rate, interest exchange foreign for sheet balance the on provisions up set may Pank Eesti bank, of acentral operations of the nature the Given risks price gold and credit rate, interest rate, exchange foreign for Provisions costs. period as recorded are repairs and maintenance Current reliably. measured be can asset of the cost the and asset the from benefits expected future derive will Pank Eesti that probable is it when assets fixed as recognised are assets of fixed items for incurred expenditure Subsequent life. useful varying and cost acquisition high with software tion of applica introduction to the due arose rates depreciation software between to differentiate need The rates following the at assets of the lives useful estimated the over basis straight-line a on depreciated are assets fixed Other assets. depreciable not are culture and of art objects and Land fixed assets. as recorded also are assets fixed for Prepayments Sheet. Balance the on assets fixed as recorded are lives useful long-term with assets other and software, hardware, IT of buildings, systems utility buildings, Land, use. intended their for necessary condition and location to the assets to bringing related directly expenditure other and price purchase the is which cost, acquisition their at recorded are assets Fixed 3200. of EUR excess in cost acquisition an and a year over life a useful with assets are assets Fixed Fixed assets period. the for income as recorded is income Dividend fulfilled. been have of sale conditions all after Account Loss and Profit the in recorded are of shares sale the on losses and Profits impairment. to subject cost acquisition their at recorded are shares case this In reliably. value their assessing for Other fixedassets Software, motorvehicles Hardware Utility systemsofbuildings Land andbuildings
2015 15–50% 7–20% 20% 10% 3% - 49
Eesti Pank Annual Report 2015 50
Eesti Pank Annual Report 2015 Currency instruments, namely foreign exchange forward instruments, forward legs of foreign exchange exchange of foreign legs forward instruments, forward exchange foreign namely instruments, Currency instruments Off-balance-sheet Pank. Eesti with held account current to its relation in Authority vision Super Financial to the aliability and assets, of current acquisition and Pank by Eesti provided services to relation in Authority Supervision Financial the on aclaim contains Pank of Eesti Sheet Balance The Claims and Authority to liabilities Financial the Supervision subscribed capital key to the NCBs’ share of that total. that of share NCBs’ to the key capital subscribed 4 3 circulation”. in “Banknotes item liability sheet balance the under disclosed is banks central Eurosystem to the allocated of banknotes total of the Pank’s share Eesti ECB. key of the capital the in weightings their to according banks central Eurosystem to the allocated been 92% has remaining the and circulation, in banknotes of euro of 8% value total of the ashare allocated been has Bank Central European The key cation allo banknote the with accordance in month of each day working last the on banks central Eurosystem Eurosystem, issue euro banknotes the comprise together which banks, central national area euro the and Bank Central European The Banknotes in circulation Notes. the in disclosed are date sheet balance the on liabilities and of assets condition the affect not do that events post-balance-sheet Important date. sheet balance the on liabilities and of assets condition the affect materially or periods earlier or period accounting the during to transactions related are but Accounts Annual of the of compilation date the and date sheet balance the between occur that events for adjusted are liabilities and Assets Post-balance-sheet events ofbility their non-realisation. proba the than bank of the management by the lower considered is realisation of their probability the though future, the in liabilities become conditions, may, certain which under liabilities other and antees guar commitments, include and Accounts Annual the on Notes the in recorded are liabilities Contingent liabilities Contingent date. valuation to the dates settlement the from factors discount the and rates and prices market able observ using methods, valuation accepted generally on based is rate swaps of interest and transactions of option valuation The Account. Loss and Profit the in recorded are contracts rate futures interest open of margin variation the in changes Daily basis. item-by-item an on revalued are rate instruments Interest losses. and gains exchange foreign of calculating purpose the for position currency foreign net the in included date, are a future at another for currency of one exchange an involving instruments currency other and swaps Decision of the ECB of 13 December 2010 on the issue of euro banknotes (recast) (ECB/2010/29), OJ L 35, 9.2.2011, L35, OJ (ECB/2010/29), (recast) p. 26. banknotes euro of issue 2010 the on 13 of ECB December the of Decision Banknote allocation key – the percentages that result from taking the ECB’s share in the total euro banknote issue and applying the the applying and issue banknote euro total the in ECB’s share the taking from result that percentages –the key allocation Banknote 4 . 3 . The total value of euro banknotes in circulation is allocated to the allocated is circulation in banknotes of euro value total . The - - - - - question. For Eesti Pank the period was from July 2008 to June 2010. to June 2008 July from was period the Pank Eesti For question. 7 6 9.2.2011, L35, OJ (recast)(ECB/2010/23), p. 17. euro the is currency 5 under Income from shares equity and participating interests. Account Loss and Profit the in disclosed is banks central Eurosystem to the distributed amount The in circulation. banknotes euro on earned income against banknotes of euro handling and issue the with connection in Bank Central European by the incurred costs to charge decide also may Council Governing The risks. price gold and rate, credit rate, interest exchange foreign for provision to the transfers to make decides Council Governing the if reduced be may profit distributed The above. noted programmes securities the and circulation in banknotes euro on earned income its than less is year the for profit Bank’s net Central of profit distribution interim of an form the in year following of the January in income this distributes Bank Central European the Council, Governing by the decided otherwise Unless accrues. it year financial same the in banks central Eurosystem to the full in due be asset-backed purchase securities programme and the public sector asset purchase programme shall the programme, purchase bond covered third the Programme, Markets Securities the under purchased securities from arising ECB’s the and ECB, to income the allocated banknotes of euro 8% the share from arises which ECB, of the income seigniorage the that decided has ECB of the Council Governing The ECB the of distribution profit Interim ECB and is disclosed under Net interest income. of the accounts the through cleared are balances these on expenses and income interest The capital. ECB’s the in shares bank’s paid-up central Eurosystem to the proportion in fully allocated is banknotes on income when year changeover cash the after year of sixth day first the until stages annual in reduced are key. ECB’s adjustments the The capital under period that during to them allocated been have would (ECB/2014/57) (OJ L 53, 25.2.2015, L53, (OJ (ECB/2014/57) p24). 8 on accounting policies). notes the in balances” “Intra-Eurosystem (see Eurosystem” the within banknotes of euro allocation the interest bear which liabilities, or claims These balances. intra-Eurosystem to remunerated rise gives also lation into circu puts actually it that banknotes of euro value the key and allocation banknote the with dance accor in bank central Eurosystem to each allocated banknotes of euro value the between difference The of each Eurosystem central bank in the reference period reference the in bank central Eurosystem of each circulation in of banknotes value average the between differences the into account by taking effected are adjustments The banks. central Eurosystem of the positions income relative the in years previous from changes significant to avoid order in adjusted are banknotes of euro allocation the from arising balances year changeover cash the following years five until year changeover cash the From Decision (EU) 2015/98 of the ECB of 15 December 2014 on the interim distribution of the income of the European Central Bank (recast) (recast) Bank Central European the of income the of distribution 2014 interim the on 15 of ECB 2015/98 December the of (EU) Decision in country the of tender legal the become banknotes euro the that day the before months 30 starts and long 24 is months period The State. aMember of tender legal the become banknotes euro when year the is euro to the changeover of year The whose States Member of banks central national the of income monetary of allocation 2010 the on 25 of November ECB the of Decision 5 , are disclosed under the sub-item “Intra-Eurosystem balances: net claims/liabilities related to related claims/liabilities net balances: “Intra-Eurosystem sub-item the under disclosed , are 7 and the average value of the banknotes that banknotes of the value average the and 8 . It is distributed in full unless the European European the unless full in distributed is . It 6 the intra-Eurosystem intra-Eurosystem the - - 51
Eesti Pank Annual Report 2015 52
Eesti Pank Annual Report 2015 reserves”. of foreign transfer to the equivalent “Claims under reported and euro in denominated are Eurosystem the joining by NCBs ECB to the assets reserve of foreign transfer the from arising balances Intra-Eurosystem “Participating interest in the European Central Bank”. under reported are ECB the in interest Pank’s participating Eesti from arising claims Intra-Eurosystem balances Intra-Eurosystem 9 (net)”. Eurosystem the within liabilities (net)” “Other or Eurosystem the within claims “Other under disclosed and position liability or asset net asingle as Sheet Balance the in presented are results income monetary or to NCBs distributions profit interim as such euro in denominated balances intra-Eurosystem TARGET2, other from and arising ECB the towards NCBs area of euro balances Intra-Eurosystem ECB. the towards position bilateral net asingle only with bank central national each leaving basis, adaily on ECB to the assigned then and out netted are balances bilateral TARGET2 in settled are transactions These individuals. and corporations institutions, credit meaning entities, by private initiated part most the for are transactions These euro. in money bank central in settled are which Union European the in payments cross-border from primarily result balances Intra-Eurosystem banknotes within the Eurosystem” (see “Banknotes in circulation” in the notes on accounting policies). of euro allocation to the related claims/liabilities “Net under liability or asset single anet as included are Eurosystem the within banknotes of euro allocation the from arising balances Intra-Eurosystem The Trans-European Automated Real-time Gross Settlement Express Transfer system system Transfer Express Settlement Gross Real-time Automated Trans-European The 9 and give rise to bilateral balances in the TARGET2 accounts of EU central banks. These These banks. of EUcentral TARGET2 accounts the in balances to bilateral rise give and Changes in the value of Eesti Pank’s gold reserves are as follows: as are reserves Pank’s gold of Eesti value the in Changes RECEIVABLES GOLD AND 1–GOLD ITEM SHEET THE ON BALANCE NOTES million SDRs. Estonia has participated in the IMF’s FTP since 2012. since IMF’s the in FTP participated has Estonia SDRs. million of 7 (FTP) Plan Transactions IMF’s the in Financial by Estonia’s participation affected is position reserve of the size rate. The exchange SDR the in 2015 change in of the because increased position reserve No.1 IMF the and The quota of the account. amount net the comprises IMF the in position reserve The 93.9 million. SDR was of Estonia Republic of the quota the of 2015 end At the quota. country’s to the equal is and Sheet Balance the on assets under recorded is IMF the in IMF. the in power voting and Participation (subscription) participation its determining member IMF each for established IMF. the in been of Estonia has Aquota Republic the represents Pank Eesti IMF the in position Reserve IMF”). by the Allocated Rights Drawing Special of the 24 Item (see “Counterpart liquidity global to increase and States Member of IMF reserves foreign the to support distributed SDRs the to record used is account SDR The operations. related other various and transactions loan conducting for State Member IMF each for opened is account SDR An IMF the in account SDR The IMF the in position reserve the and IMF the in account SDR of the consist IMF the from Receivables IMF THE FROM 2 –RECEIVABLES ITEM Total IMFNo.1account ParticipationintheIMF Reserve positionintheIMF SDR accountintheIMF Market value(thousandEUR) Revaluation (thousandEUR) Ounce marketvalue(EUR) Gold (ounces)
31/12/2015 31/12/2015 8 250.171 973.225 8 029 -101 443 119 518 842 97 051 18 075 78 976 31/12/2014 31/12/2014 thousand EUR 8 250.171 987.769 112 039 -95 129 90 892 16 910 73 982 8 149 961 53
Eesti Pank Annual Report 2015 54
Eesti Pank Annual Report 2015 United States, Australia, Canada and the United Kingdom. United the and Canada Australia, States, United of the bonds government in mainly invested were reserves Pank’s foreign Eesti residents. area non-euro of pounds British and dollars Canadian and Australian States, United in denominated investments rity secu and area euro the outside institutions credit with currency foreign in balances bank 3reflects Item ASSETS EXTERNAL OTHER AND INVESTMENTS BANKS, SECURITY WITH 3–BALANCES ITEM deposits, and investments in equities denominated in US dollars of euro area residents. area of euro dollars US in denominated equities in investments and deposits, fixed-term area, euro the in institutions credit with currency foreign in balances bank 4reflects Item CURRENCY FOREIGN IN DENOMINATED RESIDENTS AREA EURO ON 4 –CLAIMS ITEM Total Current accounts Fixed-term deposits Equities Total NOK SEK DKK CHF NZD JPY GBP CAD AUD USD Total Current accounts Fixed-term deposits Securities
31/12/2015 31/12/2015 31/12/2015 274 639 263 137 274 639 151 959 10 655 24 773 47 562 50 304 83 391 73 175 4 530 5 686 847 33 0 1 2 2 3 31/12/2014 31/12/2014 31/12/2014 thousand EUR thousand EUR thousand EUR 261 227 248 990 261 227 161 107 11 284 64 157 56 780 50 834 49 132 7 377 953 23 19 82 18 0 1 2 9 - Item 7 reflects the balances with banks of euro area credit institutions denominated in euro. in denominated institutions credit area of euro banks with balances the 7reflects Item discretion. NATED EURO IN own their at NCBs by DENOMI INSTITUTIONS CREDIT AREA EURO ON CLAIMS 7–OTHER accepted ITEM be can which collateral specific for ECB the of Council the by Governing excluded been has sharing Risk sufficient. not is counterparty the by provided collateral the of lution reso the from received of funds recovery the and fails counterparty the both if materialise only can Losses 2015 0.27390%. is 1January key from capital the in Pank’s share Eesti key shares. capital ECB to prevailing the proportion in banks central Eurosystem by the full in shared are to were materialise, they if operations, policy monetary from risks 32.4 ESCB, any of the Statute of the Article Under to 36 months. 48 of maturities with transactions 2014)refinancing in long-term of million 52 (EUR 75million EUR holds Pank Eesti of which million, to 558,989 EUR amounts assets policy of monetary holding Eurosystem total The TARY POLICY OPERATIONS DENOMINATED IN EUROS MONE TO RELATED INSTITUTIONS CREDIT AREA EURO TO 6 –LENDING ITEM ments denominated in euro of non-euro area residents. invest security and area euro the outside institutions credit with euro in balances bank 5reflects Item ITEM 5 DENOMINATED ON RESIDENTS – NON-EURO CLAIMS AREA IN EURO Total Current accounts Securities Total JPY NOK NZD CHF SEK AUD GBP CAD USD
31/12/2015 31/12/2015 83 391 82 498 220 307 308 -17 1 451 1 315 62 0 4 9 136 31/12/2014 31/12/2014 thousand EUR thousand EUR 64 157 61 414 2 630 -154 -586 698 304 304 30 29 87 9 0 - - - - 55
Eesti Pank Annual Report 2015 56
Eesti Pank Annual Report 2015 13 13 12 11 22.11.2014,335, p22). L (OJ programme purchase bond covered 16.11.2011, third the of 2014 ECB/2014/40 implementation the 15 of on October p70), Decision L297, (OJ programme purchase bond covered second the of ECB/2011/17 201118), implementation the Decision on 3November of 10 years. two least at for last will programme The Bank. Central European by the made being are purchases initial The economy. area toeuro the of credit provision the to support order in markets secondary and primary both in securities of asset-backed tranches mezzanine guaranteed and senior purchase may Under the asset-backed purchase securities programme years. two least at for last will programme The institutions. credit for conditions funding of easing objective the with area euro the in issued bonds covered nominated euro-de to purchase started NCBs the and ECB the which under programme, purchase bond covered third of the details technical the announced ECB of the 2014 Council 2October On Governing the 2014 in items to these redemptions. in due was decrease The 2012. 31 on October ended was programme purchase bond covered second The clients. to their lending expand and to maintain institutions credit objective of easing funding conditions for credit institutions and enterprises, as well as encouraging the with area euro the in issued bonds covered euro-denominated purchased area euro of the NCBs 2011, October in launched the and ECB the programme purchase bond covered second the Under Programme Markets Securities the nate to termi decided ECB of the 2012 Council September In Governing the mechanism. transmission policy monetary of the functioning proper the to restore and markets securities debt area euro of the segments of certain malfunctioning the to address order in securities debt private and public area euro purchase to 2010, May able in were NCBs and ECB the established Programme Markets Securities the Under 6.1.2015, 4). p 14 programme purchase bond covered second of the scope the within Pank by Eesti acquired securities 8reflects Item MONETARY FOR POLICY PURPOSES HELD 8–SECURITIES ITEM Total Second covered bondpurchase programme Securities MarketsProgramme Public sectorassetpurchase programme Decision ECB/2010/5 of 14 May 2010 establishing a securities markets programme (OJ L124, (OJ 20.05.2010, p8). programme markets asecurities ECB/2010/5 14 of 2010 May establishing Decision Decision ECB/2015/10 of 4 March 2015 on a secondary markets public sector asset purchase programme (OJ L121, (OJ 14.5.2015, programme p20). purchase asset sector public markets 2015 ECB/2015/10 asecondary on 4March of Decision Decision ECB/2014/45 of 19 November 2014 on the implementation of the asset-backed securities purchase programme (OJ L1, (OJ programme purchase securities asset-backed the of 2014 implementation ECB/2014/45 the on 19 of November Decision See the ECB press release of 6 September 2012 for the technical details of the monetary policy transactions. policy monetary the of details 2012 technical the for 6September of release press ECB the See Decision ECB/2009/16 of 2 July 2009 on the implementation of the covered bonds purchase programme (OJ L175, (OJ 4.7.2009, programme p purchase bonds covered the of implementation the on 2009 2July of ECB/2009/16 Decision 10 , the Securities Markets Programme Markets Securities , the
13 . 31/12/2015 11 and the public sector asset purchase programme 1 384577 1 228386 142 716 13 475 14 established in October 2014, October in Eurosystem the established 31/12/2014 thousand EUR 243 866 216 261 27 605 0 12 . - - 2015 of 60 billion euros on average. In December 2015 it was planned that monthly purchases will will purchases monthly that planned was it 2015 December In average. on euros billion 60 of 2015 March from purchases asset monthly to start decided Bank Central European of the Council Governing The agencies. and institutions by European and area euro of the by governments issued bonds be will purchased assets The term. to, medium 2% the close over below, but inflation to keeping contribute this ties for and businesses households, stimulate investment and consumption in the euro area, and through opportuni financing the to improve order in programme purchase asset sector public the in purchases asset to start decided Bank Central European of the 2015 Council Governing the 22 January On of the Statute of the European System of Central Banks (ESCB) states that the national central banks of banks central national the that states (ESCB) Banks of Central System European of the Statute of the Article 28 (ECB). Bank Central European the in Pank Eesti of interest participating the 10reflects Item 10 –PARTICIPATING ECB ITEM THE IN INTEREST residents. area by euro euro in denominated securities in investments 9reflects Item 9ITEM – OTHER SECURITIES 2015. in securities these for recorded were losses impairment quently, no Conse securities. to the related flows cash future estimated the affected not had indicator impairment identified the that considered ECB of the Council Governing The triggered. was portfolio, Programme Markets Securities to the indicator, relating impairment one only that was tests year’s impairment this of outcome The end. year the at as amounts recoverable estimated of the basis the on conducted are tests impairment Annual policies). accounting on notes the in “Securities” (see to impairment subject basis cost amortised an on valued are programmes purchase six all under purchased Securities key shares. capital ECB prevailing to the proportion in banks central Eurosystem by the full in shared are to were materialise, they if bonds, government than other programme purchase asset sector public the and programme purchase bond covered third the Programme, Markets rities Secu the under of securities holdings from risks 32.4 ESCB, any of the Statute of the Article Under 1181 EUR holds Pank Eesti to 59,760 EUR of which amounts million. million, programme purchase asset sector public the under purchased institutions of European of bonds holding total The million. to 143,340 EUR amounts programme purchase bond covered third the under of securities holding banks central Eurosystem total 143 The EUR holds million. Pank to 122,952 Eesti EUR of which million, The total Eurosystem central banks holding of the Securities Markets Programme securities amounts the securities held under these programmes. with associated risks financial the basis aregular on assesses ECB of the Council Governing ECB The to amounted EUR 47 080 974. Elering system operator of the transmission of total the securities holding of 2015 end At the market. Pank’s Eesti secondary the from government own by its issued bonds buy to able not is Pank Eesti area, euro of the banks central national other the unlike because exception an made Bank Central European of the Council Governing The programme. purchase asset the under tive alterna an as Elering operator system transmission by the issued bonds to buy June from permission until the continue end of 2017.March On 3 June Bank gave Central the Eesti Pank European exceptional - - - - 57
Eesti Pank Annual Report 2015 58
Eesti Pank Annual Report 2015 NCBs changed of the 2015, key subscriptions capital 1January the on area euro to the of Lithuania entry the Following years. five every adjusted is which and Statute, ESCB of the Article 29 in out set is which weighting, key capital the on depend Subscriptions ECB. of the capital of the subscribers sole the are ESCB the Total* Subtotal –non-euro area nationalcentralbanks Bank ofEngland Sveriges Riksbank Banca NaţionalăaRomâniei Narodowy BankPolski Magyar NemzetiBank Lietuvos bankas Hrvatska narodna banka Danmarks Nationalbank Česká národní banka Българска народнабанка Subtotal –euro area nationalcentralbanks Suomen Pankki–FinlandsBank Národná bankaSlovenska Banka Slovenije Banco dePortugal Oesterreichische Nationalbank De NederlandscheBank Central BankofMalta Banque centraleduLuxembourg Lietuvos bankas Latvijas Banka Central BankofCyprus Banca d’Italia Banque deFrance Banco deEspaña Bank ofGreece Central BankofIreland Eesti Pank Deutsche Bundesbank Nationale BankvanBelgië/BanquedeBelgique * Owingtorounding, thetotalmaynotcorrespond tothesumofallfigures shown inthetable. (Bulgarian NationalBank) Capital keyfrom 1/01/2015 % 100.0000 12.3108 14.1792 17.9973 29.6085 13.6743 70.3915 8.8409 2.0332 1.1607 0.1928 2.4778 2.2729 2.6024 5.1230 1.3798 0.6023 1.4873 1.6075 0.8590 1.2564 0.7725 0.3455 1.7434 1.9631 4.0035 0.0648 0.2030 0.4132 0.2821 0.1513 - Capital keyat 31/12/2014 % 100.0000 12.3108 14.1792 17.9973 30.0217 13.6743 69.9783 8.8409 2.0332 1.1607 0.1928 2.4778 2.2729 2.6024 5.1230 1.3798 0.4132 0.6023 1.4873 1.6075 0.8590 1.2564 0.7725 0.3455 1.7434 1.9631 4.0035 0.0648 0.2030 0.2821 0.1513 - The subscribed and paid up capital contributions of the national central banks are as follows: as are banks central national of the contributions capital up paid and subscribed The paid for the reserves, revaluation accounts and the risk provisions of the ECB of EUR 67,982,624. of EUR ECB of the provisions risk the and accounts revaluation reserves, the for paid amount total the recognises also item This ECB. of the capital subscribed the in share to its proportion in ECB of the provisions risk and accounts revaluation reserves, of the to apart pay bank central the requiring Pank, to Eesti to apply ESCB’s of the 48.2 started Statute Article area, euro the joined Estonia When * Owingtorounding, thetotalmaynotcorrespond tothesumofallfigures showninthetable. Total* Subtotal –non-euro area nationalcentralbanks Bank ofEngland Sveriges Riksbank Banca NaţionalăaRomâniei Narodowy BankPolski Magyar NemzetiBank Lietuvos bankas Hrvatska narodna banka Danmarks Nationalbank Česká národní banka Българска народнабанка Subtotal –euro area nationalcentralbanks Suomen Pankki–FinlandsBank Národná bankaSlovenska Banka Slovenije Banco dePortugal Oesterreichische Nationalbank De NederlandscheBank Central BankofMalta Banque centraleduLuxembourg Lietuvos bankas Latvijas Banka Central BankofCyprus Banca d’Italia Banque deFrance Banco deEspaña Bank ofGreece Central BankofIreland Eesti Pank Deutsche Bundesbank Nationale deBelgique Nationale BankvanBelgië/Banque (BulgarianNationalBank)
capital asof 10 825007070 Subscribed 1/01/2015 3 205122218 1 480243942 7 619884851 1 332644970 1 534899402 1 948208997 246 041586 281 709984 554 565112 149 363448 161 000330 174 011989 136 005389 188 723173 212 505714 433 379158 957 028050 220 094044 125 645857 268 222025 65 199018 92 986811 83 623180 37 400399 21 974764 44 728929 30 537345 16 378236 20 870614 7 014605 € - Paid-in capital 1/01/2015 7 740076935 7 619884851 1 332644970 1 534899402 1 948208997 120 192083 136 005389 188 723173 212 505714 433 379158 957 028050 220 094044 125 645857 268 222025 as of 55 509148 10 564124 20 796192 83 623180 37 400399 21 974764 44 728929 30 537345 16 378236 20 870614 9 226559 5 601129 2 444963 6 037512 6 525450 3 487005 7 014605 € - capital asat 10 825007070 Subscribed 31/12/2014 3 249851147 1 480243942 7 575155922 1 332644970 1 534899402 1 948208997 246 041586 281 709984 554 565112 149 363448 161 000330 174 011989 136 005389 188 723173 212 505714 433 379158 957 028050 220 094044 125 645857 268 222025 44 728929 65 199018 92 986811 83 623180 37 400399 21 974764 30 537345 16 378236 20 870614 7 014605 € - Paid-in capital 31/12/2014 7 697025340 7 575155922 1 332644970 1 534899402 1 948208997 121 869418 136 005389 188 723173 212 505714 433 379158 957 028050 220 094044 125 645857 268 222025 as at 55 509148 10 564124 20 796192 83 623180 37 400399 21 974764 30 537345 16 378236 20 870614 9 226559 5 601129 1 677335 2 444963 6 037512 6 525450 3 487005 7 014605 € - 59
Eesti Pank Annual Report 2015 60
Eesti Pank Annual Report 2015 in its tenders for main refinancing operations, adjusted to reflect a zero return on the gold component gold the on return a zero to reflect adjusted operations, refinancing main for tenders its in Eurosystem by the rate used interest marginal available latest the at daily calculated is claims of these remuneration transfer. The of their time the at fixed a value at euro in denominated are claims The gold. 15% and yen in 85% were Japanese in reserves foreign These Eurosystem. the joined Pank Eesti when ECB to the assets reserves of foreign transfers the from arising Pank of Eesti 11Item claims reflects RESERVES FOREIGN OF TRANSFER THE TO EQUIVALENT 11ITEM –CLAIMS rosystem net claims/liabilities related to the allocation of euro banknotes within the Eurosystem. the within banknotes euro of allocation to the related Intra-Eu claims/liabilities under net rosystem recorded is circulation into issued banknotes euro of amount the and bank central euro of value to anational the allocated between banknotes difference the methods, accounting these with accordance In capital. ECB to the to contributions proportion in paid-up Sheets their Balance their in banknotes euro the of percentages their reflect NCBs the and basis, amonthly on banks national to the central allocated are circulation in banknotes euro the of 92% other The basis. amonthly on ECB to the allocated is circulation in 15 policies). accounting on notes the in ECB” of the distribution profit “Interim (see of profit distribution interim of an form the in banks central area to ECB euro by the payable amounts covers also item This income”). of monetary of pooling result “Net account, Loss and Profit of the 34 item (see NCBs Eurosystem by the allocated and pooled amounts the between Claims on the ECB in connection with the reallocation of income monetary come from the difference system)”). reserve minimum the for cover (including accounts 20 “Current item (see accounts their on amounts larger much deposited had banks the as usual than larger was balance of 2015 end At the TARGET2 the operations. refinancing main for tenders its in Eurosystem by the used rate interest marginal available latest the at daily calculated is TARGET2 of balance the remuneration The distribution. ECB’s to profit the due interim amount the and banks, central Eurosystem to the allocated and from pooled income monetary the from arising difference to the due amount the TARGET2 balance, the from arising claims net 13Item reflects (NET) EUROSYSTEM THE WITHIN 13 CLAIMS ITEM –OTHER operations. refinancing main for tenders its in Eurosystem by the rate used interest marginal on accounting policies) notes the in balances” “Intra-Eurosystem and circulation” in “Banknotes (see Eurosystem the within banknotes of euro allocation to the relating Eurosystem the towards Pank’s claims Eesti 12Item reflects WITHIN THE EUROSYSTEM ALLOCATION BANKNOTES THE TO RELATED EURO OF 12 CLAIMS ITEM –NET Total Interim profit distributionoftheECB Redistribution ofmonetaryincome TARGET2 In accordance with the accounting methods chosen by the Eurosystem for euro banknotes, 8% of the total value of euro banknotes banknotes euro of value total 8% the of banknotes, euro for Eurosystem the by chosen methods accounting the with accordance In
15 . The remuneration of these claims is calculated daily at the latest available available latest the at daily calculated is claims of these remuneration . The 31/12/2015 2 774361 2 760954 11 183 2 224 31/12/2014 thousand EUR 3 205335 3 191028 11 991 2 316 -
ITEM 14ITEM ASSETS –TANGIBLE FIXED interests”). participating and shares equity from “Income account Loss and Profit of the 33 item (see area euro of the banks central 2015 national the between of 812,134,495 income its distributed ECB the ECB, of the Council in Governing of the decision At the ment for acquisition of fixed assets was the instalments for the development work for the ESCB’s software software ESCB’s the for work development the for instalments the was assets systems. The main inventory procurement was for cash-processing fixed equipment and equipment. security of acquisition for ment prepay of the part largest The system. management document of the development and bank’s software, the between exchange data for middleware bank, the for modules account for were procurements ware soft largest The modules. security and SWIFT and equipment, network servers, acquiring for held were procurements Hardware bank. the for vehicles of acquisition the reflect vehicles motor of Procurements of buildings. The renovation the on spent was buildings for procurements 1.04 million. on EUR spending of the share was largest it 2014 in million; 0.94 EUR was 2015 in acquired assets fixed of cost The Balance attheendof2015 Balance attheendof2014 Total fixedassets Balance attheendof2015 Balance attheendof2014 Balance attheendof2015 Balance attheendof2014 Balance attheendof2015 Disposals Depreciation charge Balance attheendof2014 Balance attheendof2015 Disposals Acquisitions Balance attheendof2014 Prepayments forfixed assets Carrying amount Accumulated depreciation Acquisition cost Buildings 15 144 15 856 15 144 15 856 12 614 11 610 27 758 27 466 1 004 292 0 0 0 0 Hardware 3 583 3 533 2 928 2 750 -109 -109 159 655 801 655 783 287 18
0 Software 3 613 3 588 1 508 1 453 3 015 3 108 -382 -382 407 910 973 598 480 289
Inventory 5 698 5 723 1 183 1 183 4 928 4 540 770 770 482 -94 -94 69
0 0 Motor vehicles 31 10 21 20 16 20 16 11 0 0 0 0 6 5 thousand EUR Total 40 683 40 331 18 097 19 309 17 187 18 318 23 496 22 013 2 068 -585 -585 937 910 991
- - 61
Eesti Pank Annual Report 2015 62
Eesti Pank Annual Report 2015 Under Article 10 of the By-laws of SWIFT, there is a re-allocation of the shares in SWIFT every three years years three every SWIFT in shares of the 10 of SWIFT, are-allocation is By-laws of the there Article Under 217,118. of EUR cost tion acquisi an at Settlements International for Bank the in 214 shares shares) (200 voting holds Pank Eesti SWIFT. and Settlements International for Bank the in shares the 15Item reflects ASSETS FINANCIAL 15ITEM –OTHER ITEM 17 – ACCRUALS AND PREPAID 17 EXPENSES AND ITEM –ACCRUALS item. this in included also are transactions rate swap interest outstanding on gains Valuation date. that on currency foreign respective of the cost average the at transactions of the conversion the from resulting values euro the with date, compared sheet balance the on prevailing rates exchange the at equivalents euro into their transactions of such conversion of the result the are changes valuation These year-end. at outstanding currency foreign in transactions forward and swap in changes valuation 16Item reflects ITEM 16 – OFF-BALANCE-SHEET INSTRUMENTS REVALUATION DIFFERENCES 8 May 2015. on made was 17,150. of EUR acost at SWIFT in shares five to purchase obliged was so transaction holder, and The ashare as qualified Pank Eesti services. network of SWIFT use the for paid fees service the reflect SWIFT re-allocated its shares proportionally between shareholding and non-shareholding members to 2014 In members. non-shareholding are that those and shareholders are that organisations affects that Total Other claims Prepaid expenses Claims ontheFinancialSupervisionAuthority Loans Fixed-termdepositsandcurrent accounts Intra-Eurosystem balances Derivativeinstruments Monetarypolicyoperations Securities Interest income
31/12/2015 20 256 17 346 18 349 259 809 839 260 295 438 2 8 31/12/2014 thousand EUR 10 984 8 092 9 422 167 739 656 291 950 80 1 8 - - ITEM 18 – SUNDRY ASSETS 18 –SUNDRY ITEM reflected in item 12. item in reflected is difference this from arising claim The Pank. to Eesti banknotes of such allocation the than smaller is Pank by Eesti issued actually banknotes of euro value The policies). accounting on notes the in lation” circu in “Banknotes (see circulation in banknotes euro total of the Pank’s share Eesti 19Item reflects CIRCULATION IN 19 –BANKNOTES ITEM transactions were initially recorded. the which at values euro the with date, compared sheet balance the on cost average currency’s tive respec the at equivalents euro into their transactions of such conversion the from arise balances These year-end. at outstanding currency foreign in to transactions swap related balances reflects item The 2015. 1July from employees Pank to Eesti loans to providing stop decided rate of 5%. interest was It an with years of ten a maximum for granted been have loans study addition, The interest rate on housing loans granted since June 2014 is the six-month EURIBOR plus 1.25%. In rate. interest the on limit upper the than 0.5% more 2012 no plus but EURIBOR since six-month the is on the European Central Bank’s main refinancing operations. The interest rate on housing loans granted rate interest the twice rate is interest the on 2015; limit upper 0%. The 2014 -0.2% and in between was it -0.2% in -0.3% and between was rate, which interest deposit ECB the rate equals facility deposit The rate. interest of the limit upper the than more not together but margin risk the plus institutions to credit payable interest facility 2012 before granted deposit the is loans housing rate on interest The years. 30 of amaximum for Pank of Eesti to employees granted been have estate by real secured loans Housing Total ECB banknotes(8%) Adjustments ofeuro banknotes Euro banknotes Total Other Derivative instruments Numismatic banknotesandcoinsoftheEstoniankroon Loans toemployeesofEestiPank Foreign exchangetransactions
31/12/2015 31/12/2015 2 730241 1 909220 1 058419 -237 398 14 613 6 350 6 698 567 932 66 31/12/2014 31/12/2014 thousand EUR thousand EUR 2 576924 1 878557 -224 056 922 423 13 537 1 750 6 122 4 616 114 935 - - 63
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Eesti Pank Annual Report 2015 lower rate of either 0% or the deposit facility rate The deposit facility rate equals the ECB deposit interest interest deposit ECB the rate equals facility deposit rate The facility deposit the 0% or rate of either lower the at remunerated are requirements reserve minimum of the excess in held balances The operations. refinancing main for tenders its in Eurosystem by the rate used interest marginal available latest the at calculated is reserve, minimum the to cover held institutions, of credit accounts current the on balance the on paid remuneration The Pank. Eesti with institutions of credit accounts current the 20 reflects Item RESERVE SYSTEM) MINIMUM THE FOR COVER (INCLUDING ACCOUNTS 20 –CURRENT ITEM 2 “Receivables from the IMF”). the from 2 “Receivables 61,965,241 SDR received Estonia aresult, As Item states. (see member of the reserves foreign the from support using liquidity global to increase order in done was This states. member of its all for issues SDR the to increase 2009 of 7August IMF’s the decision from arising IMF to the liability the 24Item reflects BY THE IMF ALLOCATED RIGHTS DRAWING SPECIAL THE OF 24 –COUNTERPART ITEM residents. of non-euro-area deposits euro the 23 reflects Item EURO IN DENOMINATED RESIDENTS AREA NON-EURO TO 23 –LIABILITIES ITEM rate. interest average) index overnight (euro EONIA the with accordance in account current of the balance average of the basis the on monthly calculated is interest which on Pank, Eesti with held Authority Supervision Financial of the account current the mainly 22 reflects Item IN EURO DENOMINATED RESIDENTS AREA EURO OTHER TO 22 –LIABILITIES ITEM 0%. and -0.2% 2015; -0.2% in -0.3% and between was 2014 in rate, which interest between was it deposit ECB the rate equals facility deposit The advance. in rate fixed interest an at bank central the with depositing night over for institutions credit Estonian for available Eurosystem of the facility deposit the 21Item reflects 21ITEM FACILITY – DEPOSIT 2015in 249 181 383 (EUR 2014). in 1 374 732 397 EUR was institutions credit of accounts the on balance average The accounts. their on amounts larger much deposited had banks the as usual than of 2015 larger was TARGET2 balance the 2015; -0.2% in -0.3% and between 0%. was end 2014 At -0.2% and the in rate, which between was it - ITEM 25 – ACCRUALS AND DEFERRED INCOME DEFERRED 25 AND –ACCRUALS ITEM transactions were initially recorded. the which at values euro the with date, compared sheet balance the on cost average currency’s tive respec the at equivalents euro into their transactions of such conversion the from arise balances These year-end. at outstanding currency foreign in transactions to forward related balances reflects item The Authority Supervision Financial to the paid fees supervision the reflected mainly 2014,In liabilities other =15.6466 rate of 1EUR EEK. central the at duration or of amount limit no with Museum Pank Eesti the at euros for exchanged be can coins and banknotes kroon Estonian LIABILITIES 26 –SUNDRY ITEM Total Other liabilities Credits related tomargincalls Derivative instruments Loans toemployeesofEestiPank Forward transactionsinforeign currency Estonian kroon coins Estonian kroon banknotes Euro coins Total Other liabilities Recreation reserve SDRallocation Depositsofcredit institutions Derivativeinstruments Interest expenses Employee salariespayable Tax liabilities Accounts payable
31/12/2015 31/12/2015 89 011 39 695 41 445 3 757 1 072 7 466 178 457 487 505 643 902 355 11 35 15 7 0 0 thousand EUR thousand EUR 31/12/2014 31/12/2014 88 029 40 409 37 776 3 669 1 054 1 071 1 315 7 473 106 461 584 792 655 546 440 11 61 6 9 - 65
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Eesti Pank Annual Report 2015 reserve is increased from profit in accordance with paragraph 30 of the Eesti Pank Act and from other other from and Act Pank Eesti of the 30 paragraph with accordance in profit from increased is reserve special The budget. state to the transferred is profit remaining The Pank. of Eesti Board Supervisory lishing and supplementing foundation capital and funds for purposes, specific at the of decision the estab for allocated be can profit of the part allocations, these After capital. reserve and statutory both to increasing allocated be must profit 25% annual Act, least at of the Pank Eesti of the 30 Section Under Act allows the special reserve to be used first of all for covering the losses of the bank. of the losses the covering for of all first to used be reserve special the allows Act Pank Eesti of the 46 Paragraph bank. of the statutes the or law by the proscribed no are that sources December 2014), meaning the total provision rose to EUR 30 million. to 30 EUR rose 2014), provision total the December meaning 2015 31 7.7 on (EUR December made was 4.0 of EUR 31 on million provision million additional an result a As method. this under assets investment and operations policy monetary from million 30 of EUR risks to 2015 exposed was Pank 31 at As Eesti December method. Risk at Value the using found probability policymonetary operations and investment assets with provisions, using the risk assessment with 95% of risks financial the to is cover provisions risk of general aim The provisions. risk general 27Item reflects 27 –PROVISIONS ITEM Changes in capital and reserves in 2015: in reserves and capital in Changes 29 –CAPITALITEM RESERVES AND under “Write-downs on assets”. financial expenses as Account Loss and Profit the in recognised are year of the end the at losses unrealised The liabilities. and assets on gains unrealised from arise that reserves revaluation represent accounts Revaluation 28ITEM – REVALUATION ACCOUNTS Total Special reserve Reserve capital Fixed capital Total Derivative instruments Equities Gold Securities Foreign currency
31/12/2015 414 314 214 314 100 000 100 000 31/12/2015 Distribution ofprofit for2014 10 500 3 016 6 642 842 0 0 31/12/2014 thousand EUR 23 157 8 668 7 533 5 639 12 785 962 355 3 214 9 571 0 31/12/2014 thousand EUR 401 529 211 100 100 000 90 429 - ITEM 30 – NET INTEREST INCOME INTEREST 30 –NET ITEM NOTES ON THE PROFIT AND LOSS ACCOUNT Interest income Net interest income Minimum reserve requirements Monetary policyoperations Intra-Eurosystem interest expenses Monetary income Transfer offoreign currency reserves Allocation ofbanknoteswithintheEurosystem TARGET2 Monetary policyoperations Intra-Eurosystem interest income Current accounts Repurchase transactions Securities Intra-Eurosystem balances Derivative instruments Interest expenses Deposits Reverse repurchase transactions Loans toemployeesofEestiPank Fixed-term deposits Current accounts Securities Derivative instruments Intra-Eurosystem balances
2015 2015 -34 978 -20 971 11 393 18 076 20 273 49 844 14 866 18 921 20 273 -6 689 -7 185 -7 185 -7 108 571 733 -54 -79 -77 17 22 43 12 48 8 0 thousand EUR thousand EUR 2014 2014 -20 626 -12 067 18 598 12 870 11 038 15 134 39 224 -7 419 11 763 15 134 1 295 1 916 -124 -947 -947 -237 -710 -69 157 24 67 84 4 3 3 67
Eesti Pank Annual Report 2015 68
Eesti Pank Annual Report 2015 AND RISK PROVISIONS WRITE-DOWNS OPERATIONS, RESULT 31 –NET ITEM FINANCIAL OF ITEM 32 – NET INCOME FROM FEES AND COMMISSIONS AND FEES FROM INCOME 32 –NET ITEM Otherfeesandcommissions TARGET2 fees Commissionfees Fees andcommissionsexpenses Fines,arrears andother Current accountsservicefees Fees andcommissionsincome Net incomefrom feesandcommissions Provisions forforeign exchangerate,interest rateandcredit risks Net changeofloanportfoliowrite-downs Derivative instruments Exchange ratewrite-downs Securities Equities Write-downs onfinancial assets Financial assetmanagementcosts Derivative instruments Securities Exchange rateincome Equities Realised gainarisingfrom financialoperations Net result offinancialoperations,write-downsandriskprovisions
2015 2015 11 246 24 546 17 184 -3 362 -4 000 -2 745 6 205 7 681 -125 -118 -400 -186 -147 -445 100 117 -22 17 -8 -2 -5 -3
thousand EUR thousand EUR 2014 2014 -7 700 5 256 3 209 7 365 -433 -768 -489 -611 -373 166 170 -99 -15 -82 -44 -18 71 -2 0 4 2 0 ITEM 33 – INCOME FROM EQUITY SHARES AND PARTICIPATING AND SHARES INTERESTS EQUITY FROM 33 –INCOME ITEM bank’s capital key share. bank’s capital central national to each proportion in holdings bank’s gold central national of each amount alimited and year; one of over amaturity with assets policy monetary on quarter of the end the at recorded interest accrued Eurosystem; the within banknotes of euro allocation to the related claims intra-Eurosystem net TARGET2 transactions; from resulting claims intra-Eurosystem ECB; to net the assets reserve foreign of transfer to the equivalent claims purposes; policy monetary for held euro; securities in denominated operations policy to monetary related institutions credit area to euro are: lending assets Earmarkable base. liability its against held assets earmarkable the from derives that income annual actual the by measuring determined is income bank’s monetary central national of each amount The 24,597,676 of EUR Pank to Eesti 11,214,027 EUR result net the is income. monetary in 13,383,650 of EUR reallocated Pank that by Eesti and pooled income monetary the between difference key. ECB’s The capital subscribed to the according banks central Eurosystem the among allocated is Eurosystem by the pooled income monetary The Pank. of Eesti share 8,980,639,752, the includes which 2015 in EUR banks totalled central Eurosystem the from income of monetary of pooling result net The MONETARY RESULT OF INCOME 34 –NET POOLING OF ITEM policies). accounting on notes the in ECB” of the distribution profit “Interim (see programme purchase purchase programme, the asset-backed purchase securities programme and the public sector asset bond covered third the Programme, Markets Securities the under purchased securities and banknotes euro on earned Bank Central European by the Pank to Eesti distributed profit the shows mainly item This Adjustment forthemonetaryincomeofprevious years MonetaryincomeallocatedtoEestiPank MonetaryincomepooledbyEestiPank Monetary incomereallocation Net result ofpooling monetary income Dividends from participationintheIMF Dividends from Settlements theBankforInternational Dividends from investments Partial allocationofECBprofit Interim profit distributionoftheECB Income from equityshares andparticipatinginterests 2015 2015 -13 384 24 598 11 214 11 183 2 224 2 852 152 408 -31 61 7 2014 thousand EUR thousand EUR 2014 -15 573 27 405 11 832 11 991 2 316 3 326 793 155 159 10 52 69
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Eesti Pank Annual Report 2015 Gold is considered to generate no income. Securities held for policy purposes under monetary Decision deducted from the income monetary to be pooled. to is be base liability the within included liabilities on paid year. one interest of over Any a maturity with liabilities policy monetary on quarter of the end the at recorded interest accrued and Eurosystem; the within banknotes of euro allocation to the related liabilities intra-Eurosystem net TARGET2 transactions; from resulting liabilities intra-Eurosystem euro; net in denominated operations policy to monetary related institutions credit area to euro liabilities circulation; in of: banknotes mainly consists base liability The close of the financial year of 2013. year financial of the close the after apparent became which periods, previous from 2014 in used expenses was 36 Item to reflect ITEM 36 – OTHER EXPENSES income”. “Rental under recorded is Pank of Eesti centre training of the rent the from Income assets. their investing for Pank to Fund Eesti Guarantee by the paid fee service the includes management asset from Income used. assets fixed of the costs depreciation the covers Authority Supervision Financial The services. administration and estate real Pank. Eesti Pank provides Authority with the information Financial Supervision technology, accounting, by Eesti provided services support of the 100% cost of the monthly reimburses Authority Supervision cial Under the cooperation protocol between the Authority Financial and Supervision Eesti Pank, the Finan INCOME 35 –OTHER ITEM income. tary of mone allocation the in considered is year the for expense or income total the and operations nancing Eurosystem’s refi the rate for main marginal available latest the difference of the value to the applying by offset is difference the base, liability of its value of the short falls or exceeds assets earmarkable NCB’s of an value the Where operations. refinancing main for tenders its in Eurosystem by the used rate interest marginal available latest the at income to generate considered are programme purchase asset sector ECB/2015/10 public markets Decision and 2015 of 4 March programme, a secondary on ECB/2011/17 sion purchase bond covered second of the 2011 of 3November implementation the on Deci programme, purchase bonds covered of the implementation the on ECB/2009/16 2009 of 2July Other income Rental income Income onfinancialassetmanagement Income from thesaleofcollectorcoinsandnumismaticproducts Expenses compensatedbytheFinancialSupervisionAuthority Other income
2015 1 055 148 187 679 16 25 thousand EUR 2014 1 096 140 293 623 14 26 - - - - ITEM 38 – ADMINISTRATIVE EXPENSES 38 –ADMINISTRATIVE ITEM 2015 in Pank Eesti at (231.3 in 2014). employees 232.1 were there average, On equivalent full-time centre. training of the rent the for price tial Compensation and benefits include pension benefits and fringe benefits calculated tax on the preferen ITEM 37 –STAFFITEM COSTS national organisations and financial institutions. There were a total of a total were in 2015 There trips (764 in 2014).747 institutions. business financial and organisations national travel Business expenses reflectthe costs ofstaff businesstravel on behalf of Eesti Pankand for workwith inter Pank. of Eesti Museum the and campaigns, information polls, research relations public databases, online and website public the agencies, tion informa publications, events, of public costs the cover publications and relations of public costs The reserves. of foreign costs management and payments, cross-border for costs and fees information, of market cost the comprise management asset of financial costs The Other administrativeexpenses Legal expertiseandarbitration Communications andtransport representationExternal Economic research Office Training Public relations andpublications Business travel Financial assetmanagement Real estaterenovation andadministration Information technologymaintenance Administrative expenses Unemployment insurance Compensations andbenefits Social tax Wages Staff costs
2015 2015 -8 635 -2 124 -6 345 -4 886 -1 631 -116 -203 -100 -109 -145 -208 -299 -416 -812 -902 -50 -53 -8 2014 2014 thousand EUR thousand EUR -8 405 -4 862 -2 066 -6 181 -1 575 -100 -186 -140 -170 -257 -446 -872 -931 -58 -47 -64 -94 -80 - - - 71
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Eesti Pank Annual Report 2015 ITEM 40 – OTHER OPERATING EXPENSES Eurosystem. of the assets joint into the went that produced were tender, banknotes the 10-euro Under banks. central area euro other seven with tender ajoint through banknotes euro its procured Pank Eesti countries. area euro the for year each produced be must that cash of euro amount the sets ECB of the Council Governing The area. euro of the banks central other with together banknotes of euro production the in participates Pank Eesti SERVICES PRODUCTION 39 –BANKNOTE ITEM amounted to EUR 1272 thousand. 2016 in banknotes of euro production for Pank of Eesti of 2015, liabilities end At the contractual the The of production banknotes and coins 42ITEM LIABILITIES – CONTINGENT 41ITEM – DERIVATIVE INSTRUMENTS Unpaid share Settlements capital(75%)oftheBankforInternational Contractual obligationstoproduce banknotesand coins Contingent liabilities Sale Purchase Value ofinterest rateoptioncontracts Value ofinterest rateswapcontracts Sale Purchase Value ofinterest ratefuture contracts Liabilities Assets Currency swapsandforward transactions Other expenses Cash circulation management Production ofcollectorcoins andnumismaticproducts Production ofcoins Other operatingexpenses
31/12/2015 31/12/2015 2015 -304 606 -359 000 357 966 37 592 1 272 1 941 4 353 -916 -176 -218 -426 669 -96 0 0 thousand EUR thousand EUR 31/12/2014 31/12/2014 thousand EUR 2014 -1 698953 1 685034 -305 888 -392 075 385 260 25 772 95 740 1 548 -439 -193 -154 600 948 -92 0 on the balance sheet date (see Item 15 “Other financial assets”). 15 financial Item (see date “Other sheet balance the on 668,741 EUR totalled which francs, gold Swiss in (75%) denominated capital BIS of the share of the part unpaid the for Settlements International for Bank to the liability acontingent has 1930 Pank Eesti Since Bank Settlements for International 73
Eesti Pank Annual Report 2015 74
Eesti Pank Annual Report 2015 APPENDIXES Board has responsibility for: responsibility has Board Supervisory The activities. its all in Pank of Eesti work the oversees Board Supervisory Pank Eesti The VISORY BOARD OF EESTI PANK APPENDIX 1. SUPER THE OF RESPONSIBILITIES THE Estonia, the Fiscal Council supervises fiscal balance. fiscal In Pact. supervises Growth and Council Fiscal Stability the the in Estonia, balance fiscal for requirements the with compliance of started was supervision thorough more that 1 • • • • • • • • • • • • • • • • • • See the obligation added to §4² of the Eesti Pank Act in 2014; agreements between the member states of the European Union meant meant Union European the of states member the between 2014; in Act Pank agreements Eesti the of to §4² added obligation the See approving the statutes of the Fiscal Council and for nominating and recalling of members it Pank; of Eesti representations and divisions independent of the statutes the approving Governor; of the proposal the at Pank deciding the establishment, reorganisation and liquidation of the divisions independent of Eesti Pank’s insignia; of Eesti design the approving rules; Union European with accordance in coins of collector design and denomination the on and coins of euro side national of the design the on decisions taking Pank; of Eesti name reviewing and approving written proposals and other documents submitted to the Riigikogu in the Board; Supervisory by the approved strategy distribution profit the and by law required as Pank of Eesti profit the distributing Act; Pank Eesti the with accordance in Pank of Eesti auditors independent the nominating Pank; of Eesti department audit internal of the head the for salary the setting schedule; work audit internal the approving and Pank of Eesti auditors internal the nominating Pank; of Eesti Department Audit Internal of the Statute the approving Board; Executive of the payment for principles the approving vision Authority at the proposal of the Governor; Super Financial of the Board Supervisory of the members the office from removing and nominating Internal Audit; of the Head the and Pank of Eesti Governors Deputy the office from removing and appointing Republic; of the President to the Pank of Eesti Governor for acandidate nominating Riigikogu; to it the submitting and report annual Pank Eesti the approving to; adhered is budget Pank Eesti the how supervising Pank; of Eesti Statute the approving 1 . - - Approval of the work schedule for 2016 of the Internal Audit Department of Eesti Pank of Eesti Department 2016 for Audit Internal of the schedule work of the Approval 2015 9-1,No 8December Janeiro de Rio in Olympiad XXXI of the Games the at athletes and delegation Estonian the for coin of acollector value nominal and design of the Approval 7-1,No 2015 13 October Appointment of a member Board of of the Supervisory the Authority Financial Supervision 2015 9September 6–3, No coin commemorative two-euro of the side national the for design of the Approval 2015 9September 6–2, No Poska to Jaan dedicated coin of acollector value nominal and design of the Approval 2015 May 26 4-2, No Pank of Eesti Governor of the Salary No 9-2, 8 December 2015 8December 9-2, No Profit distribution strategy of Eesti Pank of Eesti strategy distribution Profit 2015 2-1,No March 24 Vilde to Eduard dedicated coin of acollector value nominal and design of the Approval 2015 1-1,No 10 February BOARD OF EESTI PANK IN 2015 APPENDIX 2. DECISIONS OF THE SUPERVISORY Appointment of an internal auditor 2015 9September 6–1, No Department Audit Internal of the Head of the Salary 2015 May 26 4-3, No Pank of Eesti Governors Deputy of the Salary 2015 4-1, May No 26 2014 for distribution profit Pank Eesti 2015 April 28 3-3, No 2014 for Pank of Eesti Report Annual of the Approval 2015 April 28 3-2, No Pank of Eesti Statute of the Approval 2015 3-1, April No 28 75
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Eesti Pank Annual Report 2015 (officially published: RT I, RT 03.02.2015, published: 8) (officially institutions” of credit groups and consolidation institutions of credit risk operational on reports of “Establishment 2014 2January 2of No Decree Governor’s Pank toEesti Amendments 2015 January 1,No 28 PANK 2015 IN APPENDIX 3. DECREES OF THE GOVERNOR OF EESTI borrower for use. to the transferred is loan the when moment the as met be must decree of the requirements the that time the defines and loans housing issuing for limits the calculating for procedure the specifies decree The I, RT 03.07.2015, published: (officially 1) loans” of maturity maximum and loans housing issuing on “Limits 2014 17 No 12 of December Decree Governor's Pank toEesti Amendments 2015 June 22 5, No I, 27.04.2012, (RT Pank” Eesti in accounts. accounts such regulated holding 2) earlier that for 2012 3of 24 No Pank April of Eesti conditions “Terms and Governor of the decree the repealed also It Pank. Eesti at institutions by credit opened of accounts use the for basis the established decree The I, RT 16.06.2015, published: 8) (officially Pank Eesti in institutions credit of accounts of using and opening the for Terms conditions and 2015 4,12No June loans. housing issuing on limits the calculating on rules the with extended was and Act tutions Insti Credit the in change to the match changed was standards basic to the decree the in reference The I, RT 08.04.2015, published: 3) (officially loans” of maturity maximum and loans housing issuing on “Limits 2014 17 No 12 of December Decree Governor's Pank toEesti Amendments 2015 2April 3, No 2015. 3March on of Estonia Republic of 2015 the in of issue ayear issued was and euros ten of value anominal with Vilde of Eduard works to the dedicated coin collector asilver decree the Under I, RT 20.02.2015, published: 13)(officially Vilde toEduard dedicated coin acollector of Issue 2015 17 2, February No loss events and incidents”. The amendment to this decree established a new wording for the on appendix operational “Report risk - established an appendix “Report on housing loans” to the decree. to the loans” housing on “Report appendix an established wording new The specified. and extended were it in used terms the and decree of the wording The I, RT 03.07.2015, published: (officially 2) institution's on credit reports balance sheet” mentary supple of “Establishment 2014 May 29 7of No Decree Governor's Pank Eesti of Amendment 2015 June 22 6, No section §86 section of meaning the in Estonia in operating institutions important systemically other designates decree The I, RT 02.12.2015, published: (officially 16) institutions credit important systemically Other 2015 December 10, 01 No countries. other or partners of treaty authority designated by the set buffers recognising for procedure the and institutions credit for buffer countercyclical the calculating for procedure the defines decree The I, RT 02.12.2015, published: (officially 15) countries other from rates buffer Calculating the institution-specific countercyclical buffer and recognising countercyclical 2015 1December 9, No 0%. at Estonia in based institutions of credit positions risk credit the rate for buffer capital countercyclical the set decree This I, RT 02.12.2015, published: (officially 14) rate buffer capital countercyclical The 2015 1December 8, No system. settlement securities TARGET2-Securities the with together to operate to able be system settlement TARGET2-Eesti gross the for needed were TARGET2-Eesti that for rules to the made were Amendments I, RT 12.08.2015, published: (officially 1) TARGET2-Eesti rules of Approval 2008 9May of Pank Eesti of Governor the 4of No Decree of Amendment 2015 7,No August 06 48 of the Credit Institutions Act as Swedbank AS and AS SEB Bank. SEB AS and AS Swedbank as Act Institutions Credit of the - 77
Eesti Pank Annual Report 2015 78
Eesti Pank Annual Report 2015 Board, and a list of the publications of the year. of the publications of the alist and Board, Supervisory of the of decisions and Pank of Eesti Governor of the of decrees a list Eurosystem, by the adopted decisions environment, financial and economic the reviews also It statement. financial the and year reporting the during results and bank’s activities central of the areview gives Report Annual The Annual Report APPENDIX 4. PUBLICATIONS OF EESTI PANK IN 2015 issues. supply and demand, labour costs, institutional developments in the labour market, and other related labour market, labour Estonian the in trends important most the discusses Review Market Labour The Labour Market Review • Issues published in 2015: of data. correction and release the for principles the and protection, data basis, legal the systems, compilation statistics, sector external for explanations and concepts methodology: on chapters includes also It figures. and tables multiple with year the for data statistical sector external of the analysis alonger is yearbook of payments balance The of PaymentsBalance Yearbook • • Issues published in 2015: forecast. economic an and review The Estonian Economy and Policy Monetary is a biannual publication presenting a thorough economic forecast and state current Policy: Economy Monetary and Estonian • • Issues published in 2015: similar. and systems, payment markets, financial risks, related households, and companies of Estonian behaviour financial the examines it and ayear twice released is Review Stability Financial Pank Eesti The Financial Review Stability • Issues published in 2015: Estonia’s Balance of Payments Yearbook 2014 Estonian Economy and Policy Monetary 2/2015 Estonian Economy and Policy Monetary 1/2015 Review Stability Financial 2/2015 Review Stability Financial 1/2015 2014 for Pank of Eesti Report Annual The
financial accountsfinancial analysis and credit supply and demand. The review is published once a year. The review of and financing lending in the non-financial sector covers banking and leasing statistics, Economy (formerly of the Financing Lending Review) • • Issues published in 2015: • • • • • • Issues published in 2015: published in English only. often are papers the and experts, economic and economists all, above is, Papers Working of the group target The Pank. Eesti at conducted studies economic of the summaries are Papers Working The Working Papers • Issues published in 2015: costs. and prices relative for indicators ness of competitive similar, and and indicators export in changes growth, productivity relative using capacity indicators for competitiveness. Competitiveness is considered through assessment of Estonian export of groups widely-used several considers issue each waysand different several in analysed be can ness 2013. from Competitive starting ayear once Report Competitiveness Estonian the publishes Pank Eesti CompetitivenessEstonian Report • Issues published in 2015: Labour Market Review 2/2015 Review Market Labour 1/2015 Review Market Labour The CompNet Trade Module. Distributions: Productivity and Exports Firms European Assessing Soares. Cristina Ana Oropallo, Cazacu,Maria Calin-Vlad Demian, Peter Harasztosi, Lalinsky, Tibor Meriküll, Jaanika Filippo Ana- Bugamelli, Matteo Dhyne, Emmanuel 6/2015: Papers Berthou, Working Pank Antione Eesti rate and Household Saving. Evidence from Central and Eastern Europe. Corpo in Factors 5/2015: Staehr. Macroeconomic Papers Karsten Kukk, Working Pank Merike Eesti Breaks. Structural and Expectations Europe: Eastern and Central in Parity Interest ered Staehr. Uncov Karsten Filipozzi, Fabio 4/2015: Cuestas, Papers Carlos Working Pank Juan Eesti Cycle. Business the over R&D on Constraints Eesti Pank Working Papers 3/2015: Kadri Männasoo, Meriküll. Jaanika Impact The of Firm Financing Europe. Eastern and Central in Recovery and Bust Boom, during Growth Productivity Labour and Change Sectoral Varblane. Uku and Staehr 2/2015: Karsten Papers Kuusk, Working Andres Pank Eesti Dynamics 1/2015: Turnover Inflation Papers and Firm Working Pank Uusküla. Eesti Lenno Estonian Competitiveness Report Financing of the Economy - - - - 79
Eesti Pank Annual Report 2015 80
Eesti Pank Annual Report 2015 The Eesti Pank Occasional Papers is a new series of papers where the bank publishes reviews of its reviews publishes bank the where of papers series anew is Papers Occasional Pank Eesti The Papers Occasional • • • • • • • • • • • • • • • • • • • • Blog posts • • Issues published in 2015: in business, and anyone who simply wants to know more about economics. everyone interested in economics, including professional economists, political decision-makers, people to of interest be may and subjects of topical range awide cover papers The work. research and analysis tural VAR Models via Heteroskedasticity: a Bayesian Approach. Struc in Shocks Identifying 8/2015: Netšunajev. Kulikov, Papers Aleksei Working Pank Dmitry Eesti During Financial Downturns? Evidence from Caps on Banks Leverage. Policy Macroprudential 7/2015: is Papers Effective How Working Pank Eesti Buchholz. Manuel institutions. of financial profitability the affecting and prices assets raising Tamm. are rates Mari Low interest rollercoaster. of the exuberance The Kattai. Rasmus pieces. smallest the by researching picture big the at Staehr. Looking Karsten work? not occasionally payments card do Why Uiboaid. Airi labour. of qualified shortage the is of employees to recruitment the obstacle biggest The Malk. Liina ahead. year the in Fund Monetary International the for key issues The Kask. Katrin Europe. in highest the is currency single the for support Estonian Vaikla. Nils drama. Greek the in bank central of the role The Hansson. Ardo Estonia. in stability financial on influence asmall only has Tamm. banking Mari Shadow Tiina Soosalu. The single European platform will make trading in securities easier. account? current abalanced require necessarily development balanced Does Saarniit. Andres Kaspar Oja. The real reasons behind redundancies. Reserve? Federal the and Bank Central pean Euro of the policies monetary the in of adivergence be consequences the will What Randveer. Anu payments. mobile or express with made be can transfers Teet Express Puusepp. Randveer.Martti Construction projects with borrowed money: seeing the wood for the trees. average. the than by less fallen has by sanctions affected are that production of food of branches turnover The Oja. Kaspar ceiling. glass the breaking is economy Estonian The Viilmann. Natalja EUaverage. the than to funding access better have companies Estonian Taavi Small Raudsaar. Medium-Term and Growth. Ageing Population Debt, Ricardo Mourinho Félix, Niki Papadopoulou, Lisa Rodano, Dimitris Sideris, Edgar Vogel. Public Kulikov, Marchiori, Luca Dmitry Kilponen, Juha Irac, Delphine Grech, Owen Gordo, Esther Pandiella, González Alberto Albani, Maria Guarda, Paolo 2/2015: Dieppe, Papers Alistair Occasional Pank Eesti After the Crisis. and During Estonia in Adjustment 1/2015: Cost Papers Labour Malk. Occasional Liina Pank Eesti - - • • • • • publications Other lou, LisaRodano,DimitrisSiderisandEdgarVogel Marchiori, Ricardo MourinhoFélix,NikiPapadopou Delphine Irac,JuhaKilponen, González Pandiella,EstherGordo, OwenGrech, Alistair Dieppe,PaoloGuarda, MariaAlbani,Alberto Gregory deWalque DimitrisSideris,CarlosThomasand Jakub Rysanek, Jose R.Maria,BrianMicallef,DimitrisPapageorgiou, Matthieu Lemoine,MatijaLozej,HenrikLundvall, Samuel Hurtado,PauloJulio, Schmidt, Vesna Hledik,Josef Hollmayr, Corbo,Tibor Juha Kilponen,MassimilianoPisani,Sebastian Filippo Oropallo andAnaCristina Soares Lalinsky,Peter Harasztosi,Tibor Bugamelli, Ana-MariaCazacu,Calin-VladDemian, Antoine Berthou,EmmanuelDhyne,Matteo Lalinskyand Tibor Urška Čede,BogdanChiriacescu,PéterHarasztosi, Rõõm Silvia Fabiani,AnaLamo,JulianMessinaand Bank Central European the of series papers occasional and papers working the in 2015 in published Papers growth. of GDP dynamics the also but of GDP level the only not affect funds European Pärnamäe. Mari prices. and wages raise did it but little, unemployment affected wage minimum the in rise the that reveals survey Tairi Corporate Rõõm. economy. Estonian the on price oil the in fall of the impact The Oja. Kaspar suit Estonia?sarily neces not Commission European by the used costs of labour measure the does Why Oja. Kaspar version. Updated 2015. Russian. Pank. and Eesti euro. to the Estonian mark In the from currency Estonian Jaanika Meriküll Author Dmitry Kulikov Dmitry Kulikov Jaanika Meriküll Tairi , , Luca , - Medium-Term Growth Public Debt,PopulationAgeingand and countriesinEurope Comparing fiscalmultipliersacross models trade module productivity distribution:the CompNet Assessing European firms’exportsand countries comparative firm-levelevidenceforCEE Export characteristicsandoutputvolatility: of economiccrisis European firmadjustment duringtimes Title
ECB OccasionalPaper, 2015,No165 ECB Working Paper, 2015, No 1760 ECB Working Paper, 2015,No. 1788 published in2016 ECB Working PaperSeries, tobe ECB Working Paper, 2015,No. 1778
Published in - 81
Eesti Pank Annual Report 2015 82
Eesti Pank Annual Report 2015 Andanika Meriküll and Martina Lawless,JuliánMessina Philip DuCaju,TheodoraKosma, Messina and Silvia Fabiani,AnaLamo,Julian publication for accepted in or internationally recognised academic journals in 2015 published and staff Pank Eesti by co-authored or authored Articles Liina Kulu Veebel,Vilandr IllimarPloomand Kaspar Oand Merike Kukk and Merike Kukk Staehr Merike Kukk Staehr Merike Kukk Karsten Staehr Karsten Staehr Karsten Staehr Guido Baldiand Karsten Staehr and Andres Kuusk,Karsten Staehr Filipozzi and Juan CarlosCuestas,Fabio Staehr Hubert Gabrischand Karsten Staehr Esteves, AntónioRuaand Elena Bobeica,PauloSoares Karsten Staehr Andanika Meriküll Karin Sakowski,MaaandVadi and Andanika Meriküll Andanika Meriküll Tairi Rõõm Tairi Rõõm Karsten Staehr Uku Varblane Karsten Staehr Tairi Rõõm Author , and and Dmitry Kulikov
Karsten Karsten and Karsten
Fiscal Compact intheEuropeanEnhanced fiscalgovernance Union:the economies Currency reforms inemerging-marketsandtransition and transitioneconomies The choiceofexchangerateregime inemerging-market 2000-2014 The European debtcrisisand fiscal reactions inEurope inflation toeuro membership Exchange ratepolicyintheBalticstates:from extreme bust andrecovery Europe inCentralandEastern Sectoral changeandproductivity growth duringboom, Interest Parity? Do foreign exchangeforecasters believeinUncovered flows intheEUCountries The Euro capital PlusPact.Competitiveness andexternal data modelfortheeuro area countries Exports anddomesticdemandpressure: adynamicpanel caught inamiddleincometrap? Economic growth andconvergence intheBalticstates: Europe path dependency:anexamplefrom CentralandEastern Formalisation oforganisationalstructure asasubjectof Estonia Labor MarketTransitions DuringtheGreat Recessionin Household borrowing duringacreditless recovery in Estonia One currency, oneprice?Euro changeover-related inflation European firms Why firmsavoidcuttingwages:Surveyevidencefrom European firmadjustmentduringtimesofeconomiccrisis perspective: thecaseofEstonianAir Shortcomings oftheEUstateaidmodelfrom peripheral Russia's counter-sanctions No milkforthebear:impactonBalticstatesof during therecession? Evidencefrom micro data. How didhouseholdindebtednesshamperconsumption Different PersistenceUsingSelf-ReportedIncomeMeasure Estimating ConsumptionResponsestoIncomeShocksof income? underreporting: employmentstatusorreported business Identification ofhouseholdsprone toincome Title Intereconomics, 2015,Vol. 50,No.5 Vol. 27,No.1 Post-Communist Economies,2015, be publishedin2016 Kahanec andKlausFZimmermann),to the Great Recession(editorsMartin Migration, EUEnlargement,and Chapter inthecollectionLabor 2015, Vol. 51,No.5 Emerging MarketsFinanceandTrade, 2015, Vol. 53,No.4 ofCommonMarketStudies, Journal 2015, Vol. 68,No.4 Industrial andLaborRelationsReview, 4, No.1 ofLaborPolicy,IZA Journal 2015,Vol. Vol. 15,No1. ofEconomics, 2015, Baltic Journal Vol. 15,No1. ofEconomics, 2015, Baltic Journal be publishedin2016 ofComparativeEconomics,to Journal Review ofIncomeandWealth, 2015 Public FinanceReview, 2015 2015, Vol. 5,No.1 ofEuropeanBaltic Journal Studies, Horst Tomann), 2015 Economic (editorsJensHölscherand of EmergingMarketsandTransition Chapter inthePalgraveDictionary Horst Tomann), 2015 Economic (editorsJensHölscherand of EmergingMarketsandTransition Chapter inthePalgraveDictionary Policy, 2015 EconomicsandEconomic International CESifo Forum,2015,Vol. 16,No.4 to bepublishedin2016 Economic ChangeandRestructuring, Economics Letters,2015,Vol. 133 2015, Vol. 53,No.3 ofCommonMarketStudies. Journal Review ofWorld Economics, 2016 Published in