Frankfurt am Main, June 20, 1997
- With the
transition to the third stage of monetary union, the capital structure
of the Deutsche Bundesbank will be put on a new legal basis. Its capital will be
increased substantially and the statutory reserves will be set at the same
higher amount.
- The
existing legal framework for the Deutsche Bundesbank's accounting rules
will likewise be amended with the transition to the third stage of monetary
union. The new legal basis will make it possible for the Deutsche Bundesbank to
adapt its accounting procedure to the accounting principles which will apply to
the European Central Bank. The Deutsche Bundesbank intends to make use
of this possibility.
In line with the decision of principle of the European Monetary Institute, this adaptation will enable the monetary reserves to be valued in conformity with market conditions and the hidden reserves to be disclosed and allocated to a revaluation reserves account for the compensation of currency risks and valuation fluctuations. - In view of the planned transition to the third stage of monetary union, the Deutsche Bundesbank intends to utilise the valuation leeway available in the applicable accounting rules when drawing up its balance sheet for the 1997 financial year. This accounting leeway permits a valuation of the foreign exchange reserves which is more consistent with market conditions while retaining the principle of the lower of cost or market.
Corresponding proposals for the requisite legal measures will be prepared with the Deutsche Bundesbank and submitted to the Federal Parliament as a supplement to the already drafted bill to amend the Deutsche Bundesbank Act.
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