The Deutsche Bundesbank: Germany's central bank working inside the Eurosystem

Background

The Deutsche Bundesbank describes itself as the independent central bank of the Federal Republic of Germany. It has formed part of the Eurosystem since 1999, sharing responsibility with the other national central banks and the European Central Bank for the single currency, the euro. Eurosystem monetary policy is the Bundesbank's core business area and its main task is to secure price stability in the euro area. Alongside that it carries out national supervision of credit institutions, including a role in the European Single Supervisory Mechanism, and works on cash management, payment systems and financial stability. It manages Germany's foreign reserves, acts as the government's fiscal agent, carries out important statistical tasks and advises the Federal Government on issues of importance to monetary policy. The bank is headed by an executive board; of its six members, half are nominated by the Federal Government and half by the Bundesrat, Germany's upper house of parliament, and all are appointed by the German President. The Bundesbank states that it is independent of instructions from third parties, also from the Federal Government.