The following ESCB
central banks are issuing Statements of Commitment today: Nationale Bank van Belgi/Banque Nationale de Belgique, Danmarks Nationalbank, Deutsche Bundesbank, Eesti Pank, Central Bank of Ireland, Banca dItalia, Latvijas Banka, Lietuvos bankas, Banque centrale du Luxembourg, Magyar Nemzeti Bank, De Nederlandsche Bank, Banco de Portugal, Suomen Pankki Finlands Bank, Sveriges Riksbank and the European Central Bank.
The members of the ESCB
will encourage market participants in their respective jurisdictions "to evolve their practices in such a way that they are consistent with the principles of the Code and to demonstrate their commitment by endorsing the Statement of Commitment annexed to the Code," the statement said.
The organisational structure of the European System of Central Banks, the public, and their procedural legitimacy supported by the ESCB
and the ECB, in addition to the ordinary legal regulation of the EU, has also influenced the development of its performance in the years since the crisis, changing the effectiveness of its efforts.
Maintaining the stability of the banking system is essentially a matter for the member states even if the ESCB
is charged under Article 127(5) of the TFEU with 'contribut[ing] to the smooth conduct of policies pursued by the competent [national] authorities relating to the prudential supervision of credit institutions and the stability of the financial system' of the euro/one.
is assessed not to be compatible with the Treaty and the ESCB
Statue" (14) and in the Opinion of the European Central Bank expressed on proposed government amendments to the Suomen Pankki Act (Finland's central bank).
requires low deficits and debt levels to keep inflation and interest rates low and stabilize exchange rates.
There is no EU directive governing liquidity assistance or crisis management: instead Article 105 (2) of Treaty establishing the European Community gives the ESCB
responsibility for the integrity of the payment system, while Article 105 (5) grants the Euro-system only a supporting role in the preservation of financial stability:
Access to liquidity has turned out not to be an issue and the ESCB
is protected by the required collateral.
It is estimated on the basis of the ESCB
method for the calculation of cyclically adjusted budget balances.
Table 1 Tasks of the Federal Reserve System and European System of Central Banks FRS ESCB
Define and implement monetary policy Yes Yes Issue banknotes Yes Yes Conduct foreign exchange operations Yes Yes Hold and manage official reserves Yes Yes Act as the fiscal agent for the government Yes NCBS Promote stability of financial system Yes Yes Supervise and regulate banks Yes Some NCBS Implement consumer protection laws Yes Some NCBS Promote the smooth operation of the payments system Yes Yes Collect statistical information Yes Yes Participate in international monetary institutions Yes Yes NOTE: NCBS refers to national central banks of the Eurosystem.
As the Ecofin Council noted in its Opinion on the Swedish convergence programme of 22 January, I nevertheless expect Sweden to join ERM2 and bring its central bank legislation in line with the Treaty and the ESCB
Statute in due course.
41) It replaced the ambiguous reference in the Bundesbank Law of 1957 to "safeguarding the currency" with the explicit language, "the primary objective of the ESCB
shall be to maintain price stability.