Eurosystem

Monetary authority of the eurozone

Not to be confused with the European System of Central Banks.

European Central Bank in Frankfurt

The Eurosystem is the monetary authority of the eurozone, the collective of European Union member states that have adopted the euro as their sole official currency. The European Central Bank (ECB) has, under Article 16 of its Statute,[1] the exclusive right to authorise the issuance of euro banknotes. Member states can issue euro coins, but the amount must be authorised by the ECB beforehand.

The Eurosystem consists of the ECB and the national central banks (NCB) of the 20 member states that are part of the eurozone. The national central banks apply the monetary policy of the ECB.[2] The primary objective of the Eurosystem is price stability.[3] Secondary objectives are financial stability and financial integration.[4] The mission statement of the Eurosystem says that the ECB and the national central banks jointly contribute to achieving the objectives.[5]

The Eurosystem is independent. When performing Eurosystem-related tasks, neither the ECB, nor an NCB, nor any member of their decision-making bodies may seek or take instructions from any external body. The Community institutions and bodies and the governments of the member states may not seek to influence the members of the decision-making bodies of the ECB or of the NCBs in the performance of their tasks.

The Eurosystem is distinct from the European System of Central Banks (ESCB), which comprises the ECB and the central banks of all 27 European Union member states, including those that are not part of the eurozone.

## Functions[edit]

In accordance with the treaty establishing the European Community and the Statute of the European System of Central Banks and of the European Central Bank, the primary objective of the Eurosystem is to maintain price stability. Without prejudice to this objective, the Eurosystem supports the general economic policies in the Community and acts in accordance with the principles of an open market economy.

The basic tasks carried out by the Eurosystem are (art. 127 TFEU):

* to define and implement the common monetary policy of the eurozone
* to conduct foreign exchange operations
* to hold and manage the official foreign reserves of the euro zone Member States, and
* to promote the smooth operation of payment systems.

In addition, the Eurosystem contributes to the smooth conduct of policies pursued by the competent authorities relating to the prudential supervision of credit institutions and the stability of the financial system.

The ECB has an advisory role vis-à-vis the Community and national authorities on matters within its field of competence, particularly where Community or national legislation is concerned. The ECB, assisted by the NCBs, has the task of collecting the necessary statistical information either from the competent national authorities or directly from economic agents to enable the ESCB to perform its tasks.

## Members[edit]

This section needs to be updated. Please help update this article to reflect recent events or newly available information. (September 2023)

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Logo of the Deutsche Bundesbank with a reference to the Eurosystem Eurozone members (Eurosystem)  State  | Central Bank  | Governor[a] | Website

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Eurozone | European Central Bank | Christine Lagarde | https://ecb.europa.eu
Austria  | Oesterreichische Nationalbank | Robert Holzmann | https://www.oenb.at
Belgium  | National Bank of Belgium | Pierre Wunsch [nl] | http://www.nbb.be
Croatia  | Croatian National Bank | Boris Vujčić | http://www.hnb.hr
Cyprus  | Central Bank of Cyprus | Crystalla Giorkatzi | http://www.centralbank.cy
Estonia  | Bank of Estonia | Madis Müller | http://www.eestipank.ee
Finland  | Bank of Finland | Erkki Liikanen | http://www.bof.fi
France  | Bank of France | François Villeroy de Galhau | http://www.banque-france.fr
Germany  | Deutsche Bundesbank | Joachim Nagel | http://www.bundesbank.de
Greece  | Bank of Greece | Yannis Stournaras | http://www.bankofgreece.gr
Ireland  | Central Bank of Ireland | Gabriel Makhlouf | http://www.centralbank.ie
Italy  | Bank of Italy | Ignazio Visco | http://www.bancaditalia.it
Latvia  | Bank of Latvia | Mārtiņš Kazāks | http://www.bank.lv
Lithuania  | Bank of Lithuania | Gediminas Šimkus  | http://www.lb.lt
Luxembourg  | Central Bank of Luxembourg | Gaston Reinesch | http://www.bcl.lu
Malta  | Central Bank of Malta | Edward Scicluna | http://centralbankmalta.org
Netherlands  | De Nederlandsche Bank | Klaas Knot | http://www.dnb.nl
Portugal  | Banco de Portugal | Mário Centeno | http://www.bportugal.pt
Slovakia  | National Bank of Slovakia | Peter Kažimír | http://www.nbs.sk
Slovenia  | Bank of Slovenia | Boštjan Jazbec | http://www.bsi.si
Spain  | Bank of Spain | Pablo Hernández de Cos | http://www.bde.es

## Consolidated balance sheet of the Eurosystem[edit]

Consolidated balance sheet of the Eurosystem[6] Assets  | Liabilities

|

(EUR millions) | 31 December

2023

| 31 December

2022

| (EUR millions) | 31 December

2023

| 31 December

2022

1 Gold and gold receivables[b] | 649,110  | 592,898  | 1 Banknotes in circulation  | 1,567,711  | 1,572,033
2 Claims on non-euro area residents denominated in foreign currency[c]

| 499,583  | 523,240  | 2 Liabilities to euro area credit institutions related to monetary policy operations denominated in euro  | 3,508,865  | 3,998,940
3 Claims on euro area residents denominated in foreign currency[d] | 13,876  | 20,417  | 3 Other liabilities to euro area credit institutions denominated in euro  | 58,873  | 78,335
4 Claims on non-euro area residents denominated in euro[e] | 20,097  | 14,224  | 4 Debt certificates issued  | 0  | 0
5 Lending to euro area credit institutions related to monetary policy operations denominated in euro  | 410,290  | 1,324,347  | 5 Liabilities to other euro area residents denominated in euro  | 303,864  | 564,582
6 Other claims on euro area credit institutions denominated in euro  | 28,707  | 31,035  | 6 Liabilities to non-euro area residents denominated in euro  | 281,940  | 540,725
7 Securities of euro area residents denominated in euro  | 4,898,966  | 5,102,068  | 7 Liabilities to euro area residents denominated in foreign currency  | 16,382  | 11,683
8 General government debt denominated in euro  | 20,917  | 21,589  | 8 Liabilities to non-euro area residents denominated in foreign currency  | 4,474  | 4,753
9 Other assets | 393,943  | 321,222  | 9 Counterpart of special drawing rights allocated by the IMF | 177,116  | 181,121
|  |  | 10 Other liabilities  | 260,877  | 290,578
|  |  | 11 Revaluation accounts | 635,144  | 588,053
|  |  | 12 Capital and reserves | 120,242  | 120,237
Total assets  | 6,935,489  | 7,951,039  |  | 6,935,489  | 7,951,039

## See also[edit]

* TARGET2, the real-time gross settlement system (RTGS) owned and operated by the Eurosystem.

## Notes[edit]

1. ^ Most common name for post; also used: President, Chairman or General Secretary.
2. ^ Physical gold, i.e. bars, coins, plates, nuggets, in storage or ‘under way’. Non-physical gold, such as balances in gold sight accounts (unallocated accounts), term deposits and claims to receive gold arising from the following transactions: (a) upgrading or downgrading transactions; and (b) gold location or purity swaps where there is a difference of more than one business day between release and receipt.[7]
3. ^ Claims on counterparties resident outside the euro area including international and supranational institutions and central banks outside the euro area denominated in foreign currency[7]
4. ^ (a) Security investments inside the euro area other than those under asset item 11.3 ‘Other financial assets’ Notes and bonds, bills, zero bonds, money market paper, equity instruments held as part of the foreign reserves, all issued by euro area residents (b) Other claims on euro area residents other than those under asset item 11.3 ‘Other financial assets’ Loans, deposits, reverse repo transactions, sundry lending[7]
5. ^ (a) Balances with banks outside the euro area other than those under asset item 11.3 ‘Other financial assets’ Current accounts, fixed-term deposits, day-to-day money, reverse repo transactions in connection with the management of securities denominated in euro (b) Security investments outside the euro area other than those under asset item 11.3 ‘Other financial assets’ Equity instruments, notes and bonds, bills, zero bonds, money market paper, all issued by non-euro-area residents (c) Loans to non-euro-area residents other than those under asset item 11.3 ‘Other financial assets’ (d) Securities issued by entities outside the euro area other than those under asset item 11.3 ‘Other financial assets’ and asset item 7.1 ‘Securities held for monetary policy purposes’ Securities issued by supranational or international organisations, e.g. the European Investment Bank, irrespective of their geographical location, and not purchased for monetary policy purposes[7]

## References[edit]

1. ^ Statute of the ECB (PDF) Archived 15 April 2010 at the Wayback Machine
2. ^ "European Central Bank/Eurosystem, Organisation". Archived from the original on 14 September 2008. Retrieved 30 July 2008.
3. ^ "Price stability: Year-on-year increase in the Harmonized Index of Consumer Prices for the euro area of below 2%." Source: FACTS presentation: Monetary policy Archived 20 May 2017 at the Wayback Machine
4. ^ "The mission of the Eurosystem". Archived from the original on 16 July 2013. Retrieved 30 July 2008.
5. ^ "FACTS presentation: Organisation". Archived from the original on 20 May 2017. Retrieved 30 July 2008.
6. ^ Statistics service. "Consolidated balance sheet of the Eurosystem as at 31 December 2023". ecb.europa. Retrieved 29 February 2024.
7. ^ a b c d "Decision - 2016/2247 - EN - EUR-Lex". eur-lex.europa.eu. Retrieved 1 March 2024. This article incorporates text from this source, which is available under the CC BY 4.0 license.

## External links[edit]

* ECB – Eurosystem – Governing Council
* ECB – Eurosystem – Executive Board
* List of Eurosystem central banks' websites
* The Payment System (PDF) (archived 7 January 2012)

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