Overview
- Role: To manage the euro, keep prices stable and conduct EU economic & monetary policy
- President: Christine Lagarde
- Members: ECB President and Vice-President and governors of national central banks from all EU countries
- Established in: 1998
- Location: Frankfurt (Germany)
- Website:European Central Bank
The European Central Bank (ECB) manages theeuroand frames and implementsEU economic & monetary policy. Its main aim is tokeep prices stable, thereby supporting economic growth and job creation.
What does the ECB do?
- sets theinterest ratesat which itlends to commercial banksin theeurozone(also known as the euro area), thus controlling money supply and inflation
- manages the eurozone'sforeign currency reservesand the buying or selling of currencies to balance exchange rates
- ensures thatfinancial markets & institutionsare well supervised by national authorities, and that payment systems work well
- ensures the safety and soundness of the European banking system
- authorisesproduction of euro banknotesby eurozone countries
- monitorsprice trendsand assesses risks toprice stability.
Composition
The ECB Presidentrepresents the Bank at high-level EU and international meetings. The ECB has the 3 followingdecision-making bodies:
- Governing Council– themain decision-making body.
Consists of the Executive Board (see below) plus the governors of the national central banks from eurozone countries. - Executive Board– handles theday-to-day runningof the ECB.
Consists of the ECB President and Vice-President and 4 other members appointed for 8-year terms by the leaders of the eurozone countries. - General Council– has more of anadvisory & coordination role.
Consists of the ECB President and Vice-President and the governors of the central banks from all EU countries.
How does the ECB work?
The ECB works with the national central banks of all EU countries. Together they form theEuropean System of Central Banks.
It leads cooperation between central banks in the eurozone. This is referred to as theEurosystem.
The work of the governing bodies
- Governing Council– assesses economic and monetary developments, defines eurozone monetary policy and fixes the interest rates at which commercial banks can borrow from the ECB.
- Executive Board– implements monetary policy, manages day-to-day operations, prepares Governing Council meetings and exercises powers delegated to it by the Governing Council.
- General Council– contributes to advisory and coordination work and helps to prepare for new countries joining the euro.
The ECB and you
You cancontact the ECBby email for technical or promotional information.
Access to documents
ECB weekly schedule of public speaking engagements and other activities
Schedules for the meetings of the Governing Council and General Council of the ECB
