EUROPEAN CENTRAL BANK

The central bank for the euro and eurozone countries. The ECB.

The bank´s main functions are to maintain the purchasing power of the euro which is affected by prices within the eurozone, control the money supply and exert correct monetary policies. The ECB can now buy government bonds of countries that are having financial difficulties. The ECB also has the following functions:

  • Defining and carrying out monetary policy in the eurozone.
  • Carrying out currency exchanges.
  • Possessing and managing the official reserves of the currency for the eurozone countries.
  • Promoting a correct payment system.
  • Exclusively issuing bills (notes) and coins for eurozone countries.
  • Collecting statistics. In collaboration with the central banks, national authorities, etc. in each eurozone country, the ECB collects and analyses the statistics it needs to carry out its functions.
  • Prudential supervision and financial stability. Correct policy making and “policing” of the financial and banking industries.
  • International and European cooperation with institutions, organisations, forums, commissions, etc.