Eurosystem

The euro system is an organizational unit formed within the context of the European Monetary Union. It consists of the national central banks ( NCBs ) of those EU countries that have adopted the euro as currency, and the European Central Bank ( ECB). The Euro system will exist as long until all Member States have adopted the euro.

Demarcation

The euro system differs from the European System of Central Banks ( ESCB). In contrast to the ESCB, the euro system is a functionally and organisationally integrated structure, which is governed by the decision making bodies of the ECB and under which the ECB and the NCBs of the euro area member states, the central bank functions central bank in the euro area ( colloquially sometimes referred to as euro zone, euro zone and the euro area referred comply) and in particular to implement the single monetary policy. It is functionally equivalent to the Federal Reserve System in the United States. In contrast, the ESCB are carried as such no true functions and is therefore merely an abstract concept. For ESCB includes the ECB and the NCBs of all EU Member States, some of which does not belong to the euro area. Their NCBs are entitled and obliged to contribute to the fulfillment of the tasks of the Eurosystem only to a limited extent. The membership in the ESCB therefore contains fewer rights and obligations for these NCBs.

Basic tasks of the Eurosystem

  • Define and execute the monetary policy of the euro area
  • Carry out foreign exchange transactions
  • Hold and manage the official foreign reserves of the Member States of the euro area
  • Promote the smooth operation of payment systems

Other tasks of the Eurosystem

  • Issue euro banknotes
  • Collect statistical data
  • Contribute to the smooth conduct of banking supervision and financial stability

Eurosystem monetary policy

Main article European Central Bank

The primary objective of the Eurosystem is to maintain price stability, the secondary goal is to support the general economic policies in the European Union.

List of national central banks in the euro system

  • Belgium - Belgian National Bank
  • Germany Germany - German Bundesbank
  • Estonia Estonia - Eesti Pank
  • Finland Finland - Suomen Pankki
  • France France - Banque de France
  • Greece Greece - Bank of Greece
  • Ireland Ireland - Central Bank and Financial Services Authority of Ireland
  • Italy Italy - Banca d' Italia
  • Latvia Latvia - Latvijas Banka
  • Luxembourg Luxembourg - Central Bank of Luxembourg
  • Malta Malta - Bank Centrali ta ' Malta
  • Netherlands The Netherlands - De Nederlandsche Bank
  • Austria Austria - Oesterreichische Nationalbank
  • Portugal - Banco de Portugal
  • Spain - Bank of Spain
  • Slovakia Slovakia - National Bank of Slovakia
  • Slovenia Slovenia - Banka Slovenije
  • Cyprus Cyprus - Central Bank of Cyprus
  • Euro system
  • Central bank
Bank of Estonia Central Bank of Ireland Bank of Latvia Bank of Slovenia
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