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EUROPEON CENTRAL
BANK PANKAJ CHAUHAN 81
RIYA GUPTA 82
ANJALI AGARWAL 83
SUSHOVEETA SAHU 84
HITESH BASENE 85
INTRODUCTION
 It is an official EU institution, headquarted in Frankfurt.
 It is an independent member of the state control but it is accountable to the public.
 The main role is to maintain price stability in the Eurozone.
 Issues notes and sets the monetary policy for eurozone
OBJECTIVES
 Maintain Price stability
 Ensures Open market operations
 Supports general Economic policies of the EU states
Other Objectives
 Conducting foreign exchange operations
 Issuing bank notes
 Supervising credit institutions
Structure
 General council
 Governing council
 Executive Board
 Supervising
Independence of ECB
 Personal independence
 Financial independence
 Legal independence
 Political independence
Monetary Policy
Expansionary policy
More money supply in
the market
Results in low interest
rates , growth and
inflation
Restrictive Policy
Less money supply in the
market
Results in high interest
rate and contraction in
the economy
INSTRUMENTS
 Open market operations
 Standard facilities
 Minimum reserves
EURO CRISIS
 Globalisation of finance
 Easy credit conditions(2002-2010)
 Great Recession
 Current Debt-GDP ratio
 Budgetary power
 Members that exceeded the 3 percent deficit-to-GDP ratio would face financial
sanctions. Any plans to issue sovereign debt must be reported in advance.
 Eurozone countries would lend another 200 billion euros to the IMF from their
central banks.
BREXIT
ROLES OF UK -
 UK would continue to participate in the single market through passporting
rightsprovide ancillary services
(e.g. treasury management, corporate finance, advisory and underwriting services)
 Loans by UK-domiciled banks to the euro area
(UK banks’ holdings of euro area non-financial corporate debt )
 Reflected in the cost of external finance rather than in a reduction in available services
 Euro area firms issue securities on UK securities exchanges (Debt-5%,Equity-15%)
 Advisory services related to securities underwriting
THANK YOU

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European Central Bank

  • 1. EUROPEON CENTRAL BANK PANKAJ CHAUHAN 81 RIYA GUPTA 82 ANJALI AGARWAL 83 SUSHOVEETA SAHU 84 HITESH BASENE 85
  • 2. INTRODUCTION  It is an official EU institution, headquarted in Frankfurt.  It is an independent member of the state control but it is accountable to the public.  The main role is to maintain price stability in the Eurozone.  Issues notes and sets the monetary policy for eurozone
  • 3. OBJECTIVES  Maintain Price stability  Ensures Open market operations  Supports general Economic policies of the EU states
  • 4. Other Objectives  Conducting foreign exchange operations  Issuing bank notes  Supervising credit institutions
  • 5. Structure  General council  Governing council  Executive Board  Supervising
  • 6. Independence of ECB  Personal independence  Financial independence  Legal independence  Political independence
  • 7. Monetary Policy Expansionary policy More money supply in the market Results in low interest rates , growth and inflation Restrictive Policy Less money supply in the market Results in high interest rate and contraction in the economy
  • 8. INSTRUMENTS  Open market operations  Standard facilities  Minimum reserves
  • 9. EURO CRISIS  Globalisation of finance  Easy credit conditions(2002-2010)  Great Recession  Current Debt-GDP ratio
  • 10.  Budgetary power  Members that exceeded the 3 percent deficit-to-GDP ratio would face financial sanctions. Any plans to issue sovereign debt must be reported in advance.  Eurozone countries would lend another 200 billion euros to the IMF from their central banks.
  • 11. BREXIT ROLES OF UK -  UK would continue to participate in the single market through passporting rightsprovide ancillary services (e.g. treasury management, corporate finance, advisory and underwriting services)  Loans by UK-domiciled banks to the euro area (UK banks’ holdings of euro area non-financial corporate debt )  Reflected in the cost of external finance rather than in a reduction in available services  Euro area firms issue securities on UK securities exchanges (Debt-5%,Equity-15%)  Advisory services related to securities underwriting