The Deutsche Bundesbank is 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. Its main task is to secure price stability in the euro area. This requires in-depth analyses, a long-term view and impartiality towards individual interests. The Bundesbank's stability policy also relies on support from economic, fiscal and wage policy.
In addition, the Bundesbank performs other key tasks at both the national and international level. Amongst these are national supervision of credit institutions, including a role in the European Single Supervisory Mechanism, as well as the areas cash management, payment systems andfinancial stability. The Bundesbank is involved in many international institutions and committees that are dedicated to stabilising the financial system.
Moreover, the Bundesbank manages Germany's foreign reserves, acts as the government's fiscal agent and carries out important statistical tasks. It also advises the Federal Government on issues of importance to monetary policy.
The Bundesbank 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 is independent of instructions from third parties, also from the Federal Government.
