ECB 2026: new reserve remuneration rules for eurozone banks

Key data

Eurozone banks must recalibrate their liquidity management following the entry into force of the Decision (EU) 2026/812 of the ECB (ECB/2026/10), which modifies the rules on remuneration of excess reserves and certain special deposits held at the European Central Bank. The regulation applies from 26 March 2026, although its official publication in the EU Official Journal took place on 10 April 2026.

This is a technical monetary policy measure with systemic impact across eurozone banking. Although it does not set a single published amount, the change in remuneration conditions has direct consequences for the profitability of holding idle reserves and for each entity's liquidity placement decisions.

What does this regulation establish?

The Decision ECB/2026/10 modifies the Decision (EU) 2019/1743 (ECB/2019/31), which is the base regulation that has governed since 2019 the remuneration of two types of holdings that banks maintain at the ECB:

• Excess reserves: liquidity that credit institutions deposit at the ECB above the minimum reserve requirements.
• Certain special deposits: specific deposits held at the central bank under regulated conditions.

This type of adjustment regulates whether banks receive or pay for holding that liquidity at the ECB, and in what amount. It is a key monetary policy instrument: when the ECB wants to encourage banks to lend more (rather than park liquidity), it can reduce or eliminate the remuneration of excess reserves, or even apply negative rates.

Economic and operational impact

The impact of this decision occurs on two distinct levels:

Direct impact on credit institutions: The modification alters the opportunity cost of holding idle reserves at the ECB. Depending on the direction of the remuneration adjustment, banks may see the return (or cost) of that parked liquidity increased or reduced. This requires reviewing treasury and reserve management strategies to optimize the liquidity position.

Indirect impact on businesses and individuals: If holding reserves at the ECB becomes less profitable or more costly, banks have incentives to place that liquidity in credit to the private sector. This may translate into more favorable financing conditions for businesses and individuals, although the effect depends on the general context of interest rates and the ECB's monetary policy at any given time.

It is a measure with systemic impact across eurozone banking, which means its effects are not limited to a specific entity but condition the behavior of the entire European banking system.

Who does it affect?

• Credit institutions in the eurozone that hold excess reserves at the ECB (commercial banks, savings banks, credit cooperatives and other supervised entities).
• Treasury and ALM departments (Asset and Liability Management) of banks, which must recalculate the profitability of their liquidity positions.
• CFOs and financial directors of banking entities with exposure to reserves at the ECB.
• Non-financial companies indirectly, to the extent that changes in bank reserve policy may be passed on to available credit conditions.
• Supervisors and compliance teams of eurozone banks, which must verify adaptation to the new regulation.

Practical example

A medium-sized eurozone bank typically maintains a significant volume of liquidity above its mandatory minimum reserves deposited at the ECB. Until the entry into force of the Decision ECB/2026/10 on 26 March 2026, the remuneration of those excess reserves was calculated in accordance with the conditions established in the Decision (EU) 2019/1743.

Following the modification, the bank's treasury team must recalculate whether it is more profitable to maintain that excess liquidity at the ECB under the new remuneration conditions, or whether it is advisable to redirect part of that liquidity towards credit operations, asset investment or liability reduction. This analysis directly affects the bank's income statement and its balance sheet strategy for 2026.

Indirectly, if several eurozone banks simultaneously decide to reduce their excess reserves at the ECB in response to the modification, the aggregate effect may translate into greater credit availability in the market, with potential impact on interest rates applied to businesses and families.

What should entities do now?

1. Review the current position of excess reserves at the ECB to quantify exposure to the new remuneration applicable from 26 March 2026.
2. Update treasury and ALM models incorporating the new conditions established by Decision ECB/2026/10 that modifies Decision (EU) 2019/1743.
3. Evaluate the impact on income statement of the change in remuneration of excess reserves for 2026.
4. Review liquidity placement strategy: analyze whether it is advisable to maintain the current level of excess reserves or redirect part of that liquidity towards credit or other operations.
5. Inform governing bodies (board of directors, risk committee, ALCO committee) about the impact of the modification and the decisions adopted.
6. Consult the full text of Decision (EU) 2026/812 in the EU Official Journal to verify the exact terms of the modification and its specific application.