European Central Bank (ECB)
The European Central Bank (ECB) is the central bank of the European Union (EU). It is responsible for the monetary policy of the 19 EU countries that have adopted the euro as their common currency. The ECB is headquartered in Frankfurt, Germany, and is composed of the heads of the national central banks of the EU member states. The ECB is responsible for setting and implementing monetary policy, including setting interest rates, managing the euro exchange rate, and managing the euro currency reserves. The ECB also has the power to issue euro banknotes and coins.
History of the European Central Bank
The European Central Bank was established in 1998 as part of the European Monetary Union (EMU). The EMU was created to facilitate the adoption of the euro as the common currency of the EU. The ECB was created to manage the euro and to ensure the stability of the euro. The ECB is independent from the governments of the EU member states and is accountable to the European Parliament. The ECB is governed by the Governing Council, which is composed of the heads of the national central banks of the EU member states.
Comparison Table
| Country | Central Bank |
|---|---|
| Germany | Deutsche Bundesbank |
| France | Banque de France |
| Italy | Banca d’Italia |
| Spain | Banco de España |
| Greece | Bank of Greece |
Summary
The European Central Bank (ECB) is the central bank of the European Union (EU). It is responsible for the monetary policy of the 19 EU countries that have adopted the euro as their common currency. The ECB is independent from the governments of the EU member states and is accountable to the European Parliament. The ECB is responsible for setting and implementing monetary policy, including setting interest rates, managing the euro exchange rate, and managing the euro currency reserves. For more information about the ECB, visit the official website of the ECB at https://www.ecb.europa.eu/.
See Also
- European Monetary Union (EMU)
- Euro
- European System of Central Banks (ESCB)
- European Investment Bank (EIB)
- European Stability Mechanism (ESM)
- European Financial Stability Facility (EFSF)
- European Systemic Risk Board (ESRB)
- European Banking Authority (EBA)
- European Insurance and Occupational Pensions Authority (EIOPA)
- European Securities and Markets Authority (ESMA)
