The Eurosystem is the monetary authority of the Eurozone The eurozone ( pronunciation ), officially the euro area, is an economic and monetary union (EMU) of 16 European Union (EU) member states which have adopted the euro currency as their sole legal tender. It currently consists of Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal,, the collective of European Union The European Union is an economic and political union of 27 member states, located primarily in Europe. Committed to regional integration, the EU was established by the Treaty of Maastricht on 1 November 1993 upon the foundations of the European Communities. With over 500 million citizens, the EU combined generates an estimated 30% share (US$ 18.4 member states that have adopted the euro The euro is the official currency of the European Union (EU), and is currently in use in 16 of the 27 Member States. The states, known collectively as the Eurozone, are Austria, Belgium, Cyprus, Finland, France, Germany, Greece, the Republic of Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain. The currency as their sole official currency. The Eurosystem consists of the European Central Bank The European Central Bank is the institution of the European Union (EU) tasked with administrating the monetary policy of the 16 EU member states taking part in the Eurozone. It is thus one of the world's most important central banks. The bank was established by the Treaty of Amsterdam in 1998, and is headquartered in Frankfurt, Germany. The (it decides the monetary policy) and the central banks of the member states that belong to the Eurozone (their function is to apply the monetary policy decided by the ECB).[1] The primary objective of the Eurosystem is price stability.[2] Secondary objectives are financial stability and financial integration.[3] The mission statement of the Eurosystem says that the ECB and the national central banks jointly contribute to achieving the objectives.[4]
With a number of the member states outside the Eurozone, the European System of Central Banks The European System of Central Banks is composed of the European Central Bank (ECB) and the national central banks (NCBs) of all 27 European Union (EU) Member States is the system of central banks consisting of the ECB and the central banks of all member states, inside and outside the Eurozone. The ESCB's objective is price stability throughout the European Union. Secondarily, the ESCB's goal is to improve monetary and financial cooperation between the Eurosystem and the member states outside the Eurozone.[1]
Current members
- European Central Bank The European Central Bank is the institution of the European Union (EU) tasked with administrating the monetary policy of the 16 EU member states taking part in the Eurozone. It is thus one of the world's most important central banks. The bank was established by the Treaty of Amsterdam in 1998, and is headquartered in Frankfurt, Germany. The [1]
- Austria Austria /ˈɔːstriə/ (German: Österreich (help·info)), officially the Republic of Austria (German: Republik Österreich; Austro-Bavarian: Repubblik Östareich), is a landlocked country of roughly 8.3 million people in Central Europe. It borders Germany and the Czech Republic to the north, Slovakia and Hungary to the east, Slovenia and Italy to: Österreichische Nationalbank The Oesterreichische Nationalbank is the central bank of the Republic of Austria and, as such, an integral part of both the European System of Central Banks (ESCB) and the Eurozone. In the public interest, the OeNB contributes to monetary and economic policy decision-making in Austria and in the Euro area. In line with the Federal Act on the [2]
- Belgium The Kingdom of Belgium (pronounced /ˈbɛldʒəm/ , BEL-jəm) is a country in northwest Europe. It is a founding member of the European Union and hosts its headquarters, as well as those of other major international organizations, including NATO. Belgium covers an area of 30,528 square kilometres (11,787 sq mi) and has a population of about 10.7: Nationale Bank van België/Banque nationale de Belgique The National Bank of Belgium has been the central bank of Belgium since 1850. The National Bank of Belgium was established by a law of 5 May 1850 as a Société Anonyme [3]
- Cyprus Cyprus , officially the Republic of Cyprus (Greek: Κυπριακή Δημοκρατία, Kypriakī́ Dīmokratía, [kʲipɾiaˈkʲi ðimo̞kɾaˈtia]; Turkish: Kıbrıs Cumhuriyeti), is a Eurasian island country in the Eastern Mediterranean, south of Turkey and west of Syria and Lebanon. It is the third largest island in the Mediterranean Sea and: Kεντρικη Τραπεζα της Κυπρου (Kentrike Trapeza tis Kyprou) The Central Bank of Cyprus is the central bank of the Republic of Cyprus, located in Nicosia. It was established in 1963. Its current governor is Mr. Athanasios Orphanides [4]
- Finland Finland (pronounced /ˈfɪnlənd/ ), officially the Republic of Finland Finnish: Suomi; Swedish: Finland (help·info), is a Nordic country situated in the Fennoscandian region of Northern Europe. It is bordered by Sweden on the west, Norway on the north and Russia on the east, while Estonia lies to its south across the Gulf of Finland. The capital: Suomen Pankki/Finlands Bank The Bank of Finland is the central bank of Finland. It is the fourth oldest central bank in the world [5]
- France France (pronounced /ˈfræns/ franss or /ˈfrɑːns/ frahns; French pronunciation (help·info): [fʁɑ̃s]), officially the French Republic (French: République française, pronounced: [ʁepyblik fʁɑ̃sɛz]), is a member state of the European Union located in its western region, with several overseas territories and islands located on other: Banque de France The Banque de France is the central bank of France; it is linked to the European Central Bank . Its main charge is to implement the interest rate policy of the European System of Central Banks (ESCB). It is headquartered in Paris [6]
- Germany Germany (pronounced /ˈdʒɜrməni/ ), officially the Federal Republic of Germany (German: Bundesrepublik Deutschland, pronounced [ˈbʊndəsʁepuˌbliːk ˈdɔʏtʃlant] ( listen)), is a country in Central Europe. It is bordered to the north by the North Sea, Denmark, and the Baltic Sea; to the east by Poland and the Czech Republic; to the south: Deutsche Bundesbank The Deutsche Bundesbank is the central bank of the Federal Republic of Germany and as such part of the European System of Central Banks (ESCB). Due to its strength and former size, the Bundesbank is the most influential member of the ESCB. Both the Deutsche Bundesbank and the European Central Bank (ECB) are located in Frankfurt am Main. It is [7]
- Greece Greece /ˈɡriːs/ (Greek: Ελλάδα, transliterated: Elláda [e̞ˈlaða] , historically Ἑλλάς, Hellás, IPA: [(h)e̞ˈl(ː)as]), also known as Hellas and officially the Hellenic Republic (Ελληνική Δημοκρατία, Ellīnikī́ Dīmokratía, [e̞liniˈkʲi ðimokraˈtia]), is a country in southeastern Europe, situated on the: Τράπεζα της Ελλάδος (Trapeza tis Ellados) The Bank of Greece is the national central bank of Greece, located in Athens (Venizelos Avenue) and founded in 1927. Its operations started officially in 1928 [8]
- Ireland Ireland (pronounced /ˈaɪrlənd/ , locally [ˈaɾlənd], Irish: Éire, pronounced [ˈeːɾʲə] ( listen)), described as the Republic of Ireland (Irish: Poblacht na hÉireann), is a country in northwestern Europe. The modern sovereign state occupies about five-sixths of the island of Ireland, which was partitioned into two jurisdictions on 3 May 1: Banc Ceannais na hÉireann / Central Bank of Ireland The Central Bank and Financial Services Authority of Ireland is the financial services regulator of Ireland and historically the central bank. The bank was the issuer of Irish pound banknotes and coinage until the introduction of the euro currency, and now provides this service for the European Central Bank [9]
- Italy Italy /ˈɪtəli/ (Italian: Italia, [iˈta:lja]), officially the Italian Republic (Italian: Repubblica Italiana), is a country located partly on the European Continent and partly on the Italian Peninsula in Southern Europe and on the two largest islands in the Mediterranean Sea, Sicily and Sardinia. Italy shares its northern, Alpine boundary with: Banca d'Italia Banca d'Italia is the central bank of Italy and part of the European System of Central Banks. It is located in Palazzo Koch, Roma, via Nazionale. The bank's current governor is Mario Draghi, who took the office on January 16, 2006 [10]
- Luxembourg Luxembourg (pronounced /ˈlʌksəmbɜrɡ/ LUKS-əm-berg), officially the Grand Duchy of Luxembourg (Luxembourgish: Groussherzogtum Lëtzebuerg, French: Grand-Duché de Luxembourg, German: Großherzogtum Luxemburg), is a small, landlocked country in western Europe, bordered by Belgium, France, and Germany. Luxembourg has a population of under half: Banque Centrale du Luxembourg The Central Bank of Luxembourg is the central bank of Luxembourg. It was founded in 1998, at the same time the European Central Bank was created, by laws dated April 22 and December 23. It is part of the European System of Central Banks (ESCB) [11]
- Malta Malta /ˈmɔːltə/ , officially the Republic of Malta (Maltese: Repubblika ta' Malta), is a developed southern European country and consists of an archipelago situated centrally in the Mediterranean, 93 km south of Sicily and 288 km north-east of Tunisia, with Gibraltar 1,826 km to the west and Alexandria 1,510 km to the east: Bank Ċentrali ta’ Malta The Central Bank of Malta was established on 17 April 1968. In May 2004, when Malta joined the European Union, it became an integral part of the European System of Central Banks. It was responsible for, amongst other things, issuing Maltese lira banknotes and coins, before Malta adopted the euro in 2008 and the Bank became part of the Eurosystem [12]
- Netherlands The Netherlands (pronounced /ˈnɛðərləndz/ ; Dutch: Nederland, pronounced [ˈneːdərlɑnt] ( listen)) is a constituent country of the Kingdom of the Netherlands, located in North-West Europe. It is a parliamentary democratic constitutional monarchy. The Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany: De Nederlandsche Bank De Nederlandsche Bank is the central bank of the Netherlands. It is part of the European System of Central Banks (ESCB) [13]
- Portugal Portugal /ˈpɔrtjəɡəl/ , officially the Portuguese Republic (Portuguese: República Portuguesa), is a country located in southwestern Europe on the Iberian Peninsula. Portugal is the westernmost country of mainland Europe and is bordered by the Atlantic Ocean to the west and south and by Spain to the north and east. The Atlantic archipelagos: Banco de Portugal The Banco de Portugal is the central bank of the Republic of Portugal. Established by a royal charter of 19 November 1846 to act as a commercial bank and issuing bank, it came about as the result of a merger of the Banco de Lisboa and the Companhia de Confiança Nacional, an investment company specialised in the financing of the public debt. The [14]
- Slovakia The Slovak Republic (short form: Slovakia /sloʊˈvɑːkiə/ ; Slovak: Slovensko (help·info), long form Slovenská republika (help·info)) is a landlocked country in Central Europe with a population of over five million and an area of about 49000 square kilometres (19,000 sq mi). Slovakia borders the Czech Republic and Austria to the west, Poland: Národná banka Slovenska National Bank of Slovakia , is the central bank of Slovakia, which is a member of the European Union and the European System of Central Banks. Since 1 January 2009, it has also been a member of Eurosystem [15]
- Slovenia Slovenia /sloʊˈviːniə/ sloh-VEE-nee-ə, officially the Republic of Slovenia (Slovene: Republika Slovenija, [reˈpublika sloˈveːnija] (help·info)), is a country in Central Europe touching the Alps and bordering the Mediterranean. Slovenia borders Italy on the west, the Adriatic Sea on the southwest, Croatia on the south and east, Hungary on: Banka Slovenije The Bank of Slovenia is the bank of issue and the central bank of the Republic of Slovenia. Based in Ljubljana, it was established on 25 June 1991. Its primary task is to take care of the stability of the domestic currency and to ensure the liquidity of payments within the country and with foreign countries. It also acts as the supervisor of the [16]
- Spain Spain (pronounced /ˈspeɪn/ spayn; Spanish: España, pronounced [esˈpaɲa] ( listen)), officially the Kingdom of Spain (Spanish: Reino de España), is a member state of the European Union located in southwestern Europe on the Iberian Peninsula.[note 6] Its mainland is bordered to the south and east by the Mediterranean Sea except for a small: Banco de España The Bank of Spain , is the national central bank of Spain. Established in Madrid in 1782 by Carlos III, today the bank is a member of the European System of Central Banks [17]
References
- ^ a b European Central Bank/Eurosystem, Organisation
- ^ "Price stability: Year-on-year increase in the Harmonized Index of Consumer Prices The Harmonised Index of Consumer Prices is an indicator of inflation and price stability for the European Central Bank (ECB). It is a consumer price index which is compiled according to a methodology that has been harmonised across EU countries. The euro area HICP is a weighted average of price indices of member states who have adopted the euro for the euro area of below 2%." Source: FACTS presentation: Monetary policy
- ^ The mission of the Eurosystem
- ^ FACTS presentation: Organisation
Categories: European System of Central Banks | Eurozone fiscal matters
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FT Alphaville
My guess (I don't have hard information) is that this was not the case, and that instead the borrowing banks stuffed the Eurosystem with the worst quality ...
unknown
Fri, 22 Jan 2010 07:08:54 GM
In the assessment of the credit standards of eligible assets, the . Eurosystem. takes into account credit assessment information from credit assessment systems belonging to one of four sources including rating bureaus. ...
