European Central Bank

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European Central Bank (ECB)

Bank created to monitor the monetary policy of the countries that have converted to the Euro from their local currencies. The original 11 countries are: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain.

European Central Bank

The central bank for the eurozone. It was established in 1998 prior to the introduction of the euro in 1999. It issues the euro and sets monetary policy, especially by setting key interest rates. Raising interest rates is how the ECB reduces the amount of money in the economy, which slows unsustainable growth and curbs inflation. Lowering interest rates increases the amount of money in the economy and is used to spur growth.

The ECB is independent of all other government bodies of the European Union and its member states. It is governed by an Executive Board and Governing Council. The Governing Council is the highest body; it consists of members of the Executive Board and heads of the central banks of the states participating in the eurozone.

European Central Bank (ECB).

The European Central Bank is the central bank of the European Monetary Union (EMU), whose member countries use the euro as their currency.

The ECB, which is based in Frankfurt, Germany, issues currency, sets interest rates, and oversees other aspects of monetary policy for the EMU.

The EMU's National Central Banks (such as the Banque de France and the Deutsche Bundesbank), together with the ECB, form the European System of Central Banks. They play an important role in implementing monetary policy, conducting foreign exchange operations, and maintaining the foreign reserves of member states.

European Central Bank (ECB)

the CENTRAL BANK set up in July 1998 by the EUROPEAN UNION (EU) in the run-up to the establishment of ECONOMIC AND MONETARY UNION (EMU) in January 1999. Under EMU, the European Central Bank was given centralized powers to set INTEREST RATES and responsibility for determining monetary policy in the EMU-zone (currently comprising 12 of 15 member countries of the EU). The ECB oversees the operation of the EURO, EMU's single currency, and is the sole issuing authority of Euro banknotes and coins. The ECB's primary objective is to maintain a low INFLATION rate in the EMU-zone (a target inflation rate of 2% is the current goal). Interest rates are set and managed with the inflation target in mind. Inflation has remained low in recent years (see INFLATION entry) and with an economic downturn affecting many of the EU countries the ECB has been under pressure to reduce interest rates. Between 2001 and 2004 interest rates were reduced – from 4.75% to (as at March 2005) 2%.

The ECB, which is based in Frankfurt, Germany, is managed by an executive board of six members drawn from EMU countries, including the Bank's President. Overall policy is set by a Supervisory Board that consists of these six plus the 12 central bankers of the 12 EMU members.

European Central Bank (ECB)

the CENTRAL BANK set up in July 1998 by the EUROPEAN UNION (EU) in the run-up to the establishment of ECONOMIC AND MONETARY UNION (EMU) in January 1999. Under EMU, the European Central Bank was given centralized powers to set INTEREST RATES and responsibility for determining monetary policy in the EMU-zone (currently comprising 12 of the 25 member countries of the EU). The ECB oversees the operation of the EURO, EMU's designated single currency, and became the sole issuing authority of Euro bank notes and coins when these were introduced in 2002 to replace the individual domestic currencies of member countries of EMU.

The ECB's primary objective is to maintain a low INFLATION rate in the EMU-zone (a target inflation rate of 2% is the current goal). Interest rates are set and managed with the inflation target in mind. Currently (as at April 2005) the EMU-zone interest rate is 2%.

The ECB, which is based in Frankfurt, Germany, is managed by an executive board of six members drawn from EMU countries, including the Bank's President. Overall policy is set by a Supervisory Board that consists of these six plus the 12 central bankers of the 12 EMU members. See TAYLOR RULE.

References in periodicals archive ?
On 12 August 2019 the ECB concluded an on-site inspection, which identified a substantial provisioning shortfall and found objective elements indicating that the assets of the bank were less than its liabilities,'' the ECB emphasized, adding that the bank failed to provide evidence that it would be able to replenish its capital in line with the timeline under the early intervention decision.
"You need an ECB president who follows in the footsteps of Draghi, and I think it should be someone who is very skilled in thinking of new ways to implement and craft monetary policy," said John Normand, JPMorgan's head of cross-asset fundamental strategy.
ECB Chief Executive Officer Tom Harrison said: "Today's announcement means millions of cricket fans across the Indian subcontinent can follow their favourite team in action the next time they tour England -- as well as enjoying access to iconic cricketing contests like next year's Ashes."
The ECB has also also kept Greek banks on a drip for most of this year by providing them with emergency funding via the Bank of Greece, while the Greek government introduced capital controls in late June.
The revised lower projections could also soften the views of those who currently oppose further ECB stimulus from being introduced, meaning further action from the ECB could be on its way in early Spring.
Draghi said the intention was to pump money into the economy by expanding the ECB's balance sheet back to the sort of level it was in early 2012, which would mean adding hundreds of billions of euros -- a big task.
The main refinancing rate was reduced by the ECB to 0.05% from 0.15% with ECB president Mario Draghi commenting that after the ECB's last rate cut in June that "for all the practical purposes, we have reached the lower bound".
The ECB is hoping that, by charging banks for depositing their excess reserves at the ECB, they would have a strong incentive to lend more money to the real economy.
According to the Mirror, slamming the ECB bosses as 'amateur comedians' and 'buffoons', Botham said that ECB cannot leave everyone to speculate why England have ditched one of their finest players, adding that ECB also owes Pietersen an explanation to outline why he has been sent into exile.
The ECB Supervisory Board is the main organ within the new Single Supervisory Mechanism (SSM)(1).
"This was received in response to PCB's query on a statement attributed to an ECB official which appeared in a British newspaper regarding allegations of fixing in the recently concluded Pakistan Vs West Indies series," said a spokesman of PCB here on Tuesday.
Yesterday ECB meeting may indicate a fundamental turnaround in the current monetary policy.