The Deutsche Bundesbank : Germany

The Federal Republic of Germany’s central bank is the Deutsche Bundesbank (German Federal Bank) in Frankfurt am Main (since 1957). It is headed by the Central Bank Council, which draws up the guidelines for the country’s monetary policy. The Central Bank Council consists of the members of the Directorate of the Bundesbank and the presidents of the state central banks. According to the Federal Bank Act, the Deutsche Bundesbank is “independent of the Federal Government in exercising its powers”.

The Act spells out four key powers of the Deutsche Bundesbank:

£>Only the Bundesbank is empowered to issue banknotes in Germany.
£>As the “banks’ bank” it regulates the supply of central bank funds to credit institutions, determines the course of monetary policy with the aid of its financial instruments, and ensures that banks handle payment transactions in an orderly manner.

2>lt functions as the country’s “house bank”.
2>lt manages Germany’s currency reserves.