MBA (General)IV – Semester, International Business Unit 1
Definition of Strong Central Bank
A strong central bank, called the European Central Bank (ECB), was established in Frankfurt, Germany, in accordance with the Treaty. The bank is modeled after the U.S. Federal Reserve System.
Strong Central Bank
A strong
central bank, called
the European Central
Bank (ECB), was established in Frankfurt, Germany, in accordance with
the Treaty. The bank is modeled after the U.S.
Federal Reserve System.
This independent central bank dominates
the countries’ central
banks, which continue to regulate banks resident within
their borders; all financial market intervention and the issuance of euros will remain the sole responsibility of
the ECB. The single most important mandate
of the ECB is to promote price stability within the European
Union.
As part of its
development of cross-boarder monetary policy, the ECB has formed TARGET is the mechanism by which the ECB
will settle all cross-border payments in the
conduct of EU banking business and regulation. It will the ECB to
quickly and costlessly conduct
monetary policy and other
intra-banking system capital movements.
