European Central Bank (ECB)
European Central Bank was founded on the 1st of January 1999. Its headquarters is located in Frankfurt, Germany. The mission of ECB is to keep the prices of Euro-area stable, in other words, to keep the inflation below 2%.
European system of central banks consists of ECB and national central banks:
- Banque Nationale de Belgique;
- Deutsche Bundesbank;
- Bank of Greece;
- Banco de España;
- Banque de France;
- Institut Monetaire Luxembourgeois
All the key issues concerning ECB activity like rate regulation, bills discount and so on are managed by the board of governors.
The board consists of six members. It is composed of the President and Vice President together with the governors of all of the EU’s national central banks. Candidates are proposed by the board of governors and are accepted by the European Parliament and European Union heads of the states. The President is appointed for 8 years.
The board of governors
The board of governors is composed of the President and Vice President together with the governors of all of the EU’s national central banks. Traditionally four out of six members are representatives of big central banks of France, Germany, Italy and Spain.
Only members of the board of governors have the voting authority whose personal or teleconference presence are essential. A member can appoint a substitute in case he is not able to attend meetings for a long time.
In order to carry out a voting it is needed for the 2/3 part of all members to be presented, but there can be appointed an emergency session that has no threshold of attendances. Decisions are made by the simple majority and in case of equally divided votes the vote of the President carries weight. Questions about ECB assets, distribution of profit and so on are solved by voting too, the weight of votes is in proportion to the national banks’ parts in ECB authorized capital stock.