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The European Central Bank (ECB) is the central bank of the European Union countries which have adopted the euro. Our main task is to maintain price stability in the euro area and so preserve the purchasing power of the single currency.
The European Central Bank (ECB) is the central component of the Eurosystem and the European System of Central Banks (ESCB) as well as one of seven institutions of the European Union. It is one of the world's most important central banks.
- Overview
- Managing the supply of euros
- Responding to economic crisis
bank, Europe
Also known as: ECB
Written byPeter Bondarenko
Peter Bondarenko
Former Assistant Editor, Economics, Encyclopædia Britannica.
Fact-checked byThe Editors of Encyclopaedia Britannica
The ECB is the only institution that can authorize the printing of euro banknotes. Unlike the Federal Reserve—which, as the central banking authority of the United States, uses the buying and selling of U.S. government bonds to influence the money supply—the ECB influences the supply of euros in the market by directly controlling the amount of euros available to eligible member banks. Every week, the ECB announces a specified amount of cash funds it wishes to supply and sets the lower limit for the acceptable interest rate. Eligible banks—which are euro-zone national central banks and commercial banks that have provided collateral and meet certain balance-sheet criteria—then start to bid for the ECB funds via an auction mechanism. Sometimes, instead of an auction, the ECB specifies the interest rate it is willing to accept and allows member banks to request as much funding as they wish at the allotted rate. Once the banks have received the funds, they use them to make loans to businesses and consumers in the economy. That way the ECB controls the amount of money that enters the system and the short-term interest rate that banks pay to receive the funds.
Euros, the currency of the European Union.
The ECB was instrumental in organizing a response to the euro-zone debt crisis that started in 2009 after the spillover effects of the financial crisis of 2007–08 hit Europe. The ECB lowered interest rates to ensure a steady supply of euros into the Eurosystem. Under its president, Jean-Claude Trichet, the ECB also joined the International Monetary...
The European Central Bank (ECB) is the central bank of the European Union countries which have adopted the euro. Our main task is to maintain price stability in the euro area and so preserve the purchasing power of the single currency.
The European Central Bank (ECB) is the central institution of the Economic and Monetary Union, and has been responsible for monetary policy in the euro area since 1 January 1999. The ECB and all EU national central banks constitute the European System of Central Banks (ESCB).
May 31, 2022 · The European Central Bank (ECB) is headquartered in Frankfurt am Main, Germany. It has been responsible for monetary policy in the Euro area since 1999, when the euro currency was first...
ECB (European Central Bank) [4F] Counterpart area World (all entities, including reference area, including IO) [W0] Reference sector Central bank [S121] Counterpart sector Total economy [S1] Flows and stocks indicator Future Flows, predetermined [FP] Accounting entries Net flows (reserves template) [FN] International accounts item Not ...
