What is the name of the central bank of the Eurozone. European Central Bank. Monetary Policy Instruments and ESCB Operations

Organizational structure and functions of the ESCB units

The European System of Central Banks (ESCB) is an international banking system consisting of the supranational European Central Bank (ECB) and the National Central Banks (NCBs) of the member states of the European Economic Community. The existence of this system is an integral part of the formation of the European Economic and Monetary Union.

The structure of the ESCB is somewhat similar to the Federal Reserve System in the US, consisting of 13 banks led by The Bank of New-York and generally acting as a central bank. At the same time, the national central banks of Great Britain, Denmark, Greece and Sweden are members of the European System of Central Banks with a special status: they are not allowed to take part in decision-making regarding the implementation of a single monetary policy for the "euro area" and implement such decisions.

The European System of Central Banks includes the European Central Bank and the National Central Banks of the member countries of the Eurozone. The charter of the ESCB and the ECB proclaims the independence of these organizations from other bodies of the Union, from the governments of the member countries of the EEMU and from any other institutions. This is quite consistent with the usual status of a central bank within a single country. At the same time, the “general principle” fixed in a special article of the statute, according to which the European System of Central Banks is governed by the leadership (“decision-making bodies”) of the European Central Bank, and, above all, by the Board of Governors, is of significant importance.

The Board of Governors, the supreme governing body, includes all members of the Executive Directorate and the governors of the NCBs of the member countries of the European Economic and Monetary Union only.

The main functions of the Board of Governors include:

• adapting instructions and making decisions that ensure the achievement of the objectives of the creation of the European System of Central Banks;
• determination of the key elements of the EEMU monetary policy, such as interest rates, the size of the minimum reserves of the National Central Banks, and the development of specific instructions for its implementation.

In addition, the Governing Council approves the rules for the internal organization of the European Central Bank and its governing bodies, acts as an adviser to the ECB and determines how the European System of Central Banks is represented in the field of international cooperation.

The Executive Directorate includes the President, Vice President and four members selected from among candidates with extensive professional experience in the financial or banking sector. They are appointed from among the citizens of the EEMU member countries at a meeting of the heads of government of these countries, at the proposal of the Council of Europe, after consultations with the European Parliament and the Governing Council of the ECB (for subsequent elections). The Executive Directorate shall conduct monetary policy in accordance with the instructions and rules adopted by the Board of Governors of the European Central Bank and thus direct the actions of the NCB, adopting departmental instructions where necessary.

The General Council, the third governing body of the European System of Central Banks, includes the President and Vice-President of the European Central Bank and the Governors of the National Central Banks of all countries of the European Economic Community, regardless of their participation in the EEMU. The General Council carries out functions that were previously carried out by the European Monetary Institute and which need to be continued in the third phase of the EEMU plan. The main tasks of the General Council include the following:

• exercising advisory functions of the ESCB;
• collection and processing of statistical information;
• preparation of quarterly and annual reports on the activities of the ECB, as well as weekly consolidated financial statements;
• development and adoption of the necessary rules for the standardization of accounting and reporting on operations conducted by the NCB;
• the adoption of measures relating to the payment of the Authorized Capital of the European Central Bank to the extent not regulated by the General Agreement of the EEC;
• development of job descriptions and rules for employment in the ECB;
• organizational preparation for the procedure for establishing the final fixed exchange rate of national currencies against the euro.

The President of the European Central Bank is simultaneously the chairman of all three of its governing bodies: the Board of Governors, the Executive Directorate and the General Council; moreover, in the first two cases, he has a casting vote in the event of an equal distribution of votes. In addition, the President represents the ECB in external organizations or appoints a proxy for this role. In relation to third parties, he, by law, represents the ECB.

The national central banks of the member countries are an integral part of the European System of Central Banks and act in accordance with the directions and instructions of the ECB.

In the organization of the activities of the European Central Bank, the institution of curators is widely and successfully used, in which each of the six members of the Executive Directorate supervises a certain area of ​​activity of the European Central Bank.

The Board of Governors of the ECB is authorized to develop monetary policy, and the Executive Directorate - to implement it. To the extent possible and appropriate, the European Central Bank resorts to the use of the facilities of the National Central Banks.

During the development and establishment of the ESCB, the preparatory work was carried out, in particular, by three committees and six specialized working groups, bringing together representatives of the National Central Banks and the European Monetary Institute. This experience of close cooperation continues within the ESCB with the necessary modifications.

There are thirteen Committees under the direction of the Board of Governors:

• Committee of Internal Auditors;
• Banknote Committee;
• Budget Committee;
• External Communications Committee;
• Accounting and Cash Income Committee;
• Legal Committee;
• Market Operations Committee;
• Monetary Policy Committee;
• International Relations Committee;
• Statistical Committee;
• Banking Supervision Committee;
• Information Systems Committee;
• Committee for Payment and Settlement Systems.

The intermediaries that allow the European Central Bank to implement the common monetary policy of the EEMU member countries are its authorized counterparties. Credit institutions selected for this purpose must meet a number of criteria:

• under the conditions of mandatory reservation, the circle of authorized counterparties is limited only to those credit institutions that have created minimum reserves;
• otherwise, the range of possible authorized counterparties extends to all credit institutions located in the "euro area". The ECB has the right, on a non-discriminatory basis, to deny access to credit institutions which, by the nature of their activities, cannot be useful in the conduct of monetary policy;
• the financial position of authorized counterparties must be verified by the national authorities and found to be satisfactory (this provision does not apply to branches of organizations whose headquarters are located outside the European Economic Area);
• counterparties must meet any specific operational criteria set by the National Central Banks or the ECB.

Authorized counterparties gain access to the facilities of the European System of Central Banks only through the National Central Bank of the EEMU Member State in which they are located. NCBs collect applications for participation in the operations of the European Central Bank and transmit these data to the central computer of the ECB in Frankfurt. Based on the collected applications, the ECB determines the market price of resources and issues appropriate instructions to the National Central Banks, which distribute operations among counterparties. Given the possibilities of modern information technology, even relatively small organizations can participate in the operations of the ESCB. If necessary, tenders can be held within an hour on the basis of electronic information exchange.

The European System of Central Banks has the right to refuse access to monetary policy instruments for reasons of reliability or in the event of a gross or repeated breach by a counterparty of its obligations. When selecting participants in specialized operations, some additional criteria are applied.

Objectives and principles of organizing the activities of the ESCB

The main objective of the establishment of the European System of Central Banks, in accordance with Article 2 of the Statute of the ESCB and the ECB, is to maintain price stability.

In October 1998, the Governing Council of the ECB clarified the main goal of the EEMU monetary policy, indicating that the concept of "price stability" provides for the possibility of an increase in the harmonized consumer price index up to 2% per year, at the same time determining its structure in relation to consumer goods and services. .

It has been established that price stability should be maintained in the medium term, and price increases in excess of the established value and deflation, i.e., a long-term decrease in their level, reflected by the harmonized consumer goods price index, are unacceptable. Establishing price stability within the framework of the EEMU is in line with the principles that guided the National Central Banks of most countries before they joined the Union, which ensures continuity in the conduct of monetary policy. In order to achieve its main objective, the ESCB undertakes the following specific tasks, as defined in Article 3 of its Statute:

1. Definition and implementation of a single monetary policy.

The Governing Council of the ECB determines the single monetary policy, which the National Central Banks implement in a decentralized and harmonious manner. The operational framework of the single monetary policy should satisfy the following principles: compliance with market principles, equal treatment for all, simplicity, search for the best ratio of efficiency and cost, decentralization, continuity, harmonization and alignment with the management decisions of the ESCB. Basically, the procedures and tools used by most central banks before the formation of the European Economic and Monetary Union are used to conduct monetary policy.

2. Storage and management of the official foreign exchange reserves of the participating countries, as well as the implementation of foreign exchange transactions.

The European System of Central Banks stores and manages the official gold and foreign exchange reserves of the EEMU member countries. The contribution of each National Central Bank is determined in accordance with its share in the capital of the European Central Bank.

According to the ECB statute, central banks must transfer to it (on a credit basis) foreign exchange reserves for a total amount equivalent to 50 billion euros (in the future, this amount may be increased by decision of the Board of Governors). The volume of reserves transferred by eleven central banks of the EEMU member countries on January 1, 1999. to the European Central Bank amounted to 39.46 billion euros. Of these, 85% of the amount is in foreign currency, the remaining 15% is in gold.

Foreign exchange reserves remaining at the disposal of national banks are used by them to fulfill their obligations in relation to international organizations. The conduct of other transactions with these reserves, in excess of the limit set by the Board of Governors, must be agreed with the ECB. This is considered necessary to ensure a coherent monetary and monetary policy within the EEMU.

Foreign exchange reserves can be used by the European Central Bank for foreign exchange interventions, and it is given the right to independently decide on such interventions. This, however, does not mean that the ECB intends to seek any exchange rate benchmarks for any foreign currency, as such an approach could conflict with the priority of price stability. However, the European System of Central Banks is equipped with technical capabilities to intervene in the foreign exchange markets in order to counter excessive or erratic fluctuations in the euro against the currencies of major countries outside the European Economic Community.

3. Ensuring the correct functioning of payment and settlement systems.

To ensure the success of the new currency at the third stage of the formation of the EEMU, it is extremely important to have an effective technical base for payments and settlements. In particular, such a base is useful in helping to shape common short-term interbank interest rates throughout the euro area. This, in turn, implies the creation of a system whereby the main large-scale cross-border transactions could be serviced within the same day. To make payments within Europe from the very first day of 1999, two pan-European banking settlement systems have been involved: TARGET (Trans-European Automated Real-time Gross settlement Express Transfer system) with domestic clearing settlement systems - RTGS (Real Time Gross Settlements) and EBA ( system of the European Banking Association).

In addition to solving the above tasks, the European System of Central Banks in the course of its activities also performs the following functions:

1. issue of banknotes and coins. The ECB is the only body entitled to authorize the issuance of banknotes denominated in euros. The ESCB will issue these banknotes, which will become the only legal tender in the EEMU countries.
2. cooperation in the field of banking supervision. The role of the ESCB in banking supervision is rather limited. The system should only contribute to the organized conduct of relevant activities, and may offer its recommendations on the scope of the legislation applicable here and the procedure for its application. The ESCB's statute includes provisions giving it the right to participate more directly in banking supervision, but such a transfer of powers would require a unanimous decision of the Council of the EEC.
3. advisory functions. The ECB advises the Council of Europe or the governments of the member states of the EEC on all projects within its competence: on issues of money circulation, means of payment and settlement, national central banks, statistics, payment and settlement systems, the stability of credit institutions, financial markets and etc.
4. collection of statistical data. For proper use of monetary policy instruments, they must be based on reliable and comparable statistics. This applies in particular to financial and banking data necessary, for example, to calculate the base of reserve requirements, as well as price statistics, as long as they are related to the fulfillment of the mentioned ultimate goal of the ESCB's monetary policy. In particular, partially harmonized consumer price indices have already appeared in the system.

   To the extent that it does not prejudice the main goal of its existence - maintaining price stability, the European System of Central Banks is called upon to support the common economic policy within the European Economic and Monetary Union.

   The ESCB is an independent banking system. In carrying out their activities, members of its management bodies are not entitled to use the instructions or rules of governments and public authorities of the countries of the European Economic Community or external countries. In turn, the institutions of the European Economic Community and the governments of the EEMU member states do not have the right to interfere in the activities of the European System of Central Banks.

   The Statute of the ESCB contains the following measures that determine the security of the policy pursued and the independence of the governors of the National Central Banks from external influence:

   • the minimum term of office of the NCB manager is five years;
   • the minimum (non-renewable) term of office for members of the Executive Directorate of the ECB is eight years. At the same time, the procedure for approving the President and Vice-President for the first Executive Directorate is different from the procedure for approving its other members;
   • termination of the term of office is possible only due to physical incapacity or serious errors in the performance of activities by officials;
   • all disputes and disagreements on the implementation of activities are within the competence of the European Court.

   The responsibility of the European System of Central Banks and the rules for dialogue between the ESCB and European international institutions also meet the requirements of independence.

   Members of the Executive Directorate are appointed by mutual agreement by the heads of state or government of the EEMU member countries, taking into account the recommendations of the Council of the European Union. The approval of the European Parliament is a prerequisite for the appointment of members of the Executive Directorate.

   The President of ECOFIN and members of the Commission of the European Council may take part in meetings of the Executive Directorate without the right of a decisive head, while the President of ECOFIN may submit his proposals to the Board of Governors.

   The ECB must send its annual report to the bodies of the European Community, to the European Parliament, and the members of its Executive Directorate must appear on call before the competent Committees of the European Parliament. The quarterly reports on the activities of the ESCB serve as the basis for quarterly negotiations with the European Parliament in the presence of the President of the ECB or, if necessary, members of the Executive Directorate.

   Two representatives of the ECB and representatives of the NCB are members of the Economic and Financial Committee, which brings together representatives of the ministers of economy and finance and central banks of the EEC member countries and prepares the ECOFIN meeting.

   The President of the ECB or other members of the Executive Directorate may be heard by the European Parliament on its own initiative or at the request of Parliament. In addition, national laws generally provide that NCB leaders will also be heard by national parliaments. The Court of Justice of the European Community has the power to review acts or omissions of the ECB.

   The activities of the ECB include:

   1. provision of loans, including pawn loans, to financial institutions;
   2. open market operations with various financial instruments;
   3. establishment of minimum reserve requirements for credit institutions of the EEMU member countries.

   A characteristic feature of the activities of the ECB is that all fundamental decisions taken by a simple or qualified (2/3 votes) majority provide for a "weighted" vote of central bankers, in which the "weight" (i.e., the number of votes of each of them) is determined in accordance with the share of the respective country (its central bank) in the total capital of the ECB. This does not apply to members of the Executive Directorate, each of which has only one vote.

   The ECB can engage in the usual operations for central banks: the provision of loans, including pawn loans (secured by securities), to financial institutions and open market operations with various financial instruments denominated in any currency, including in the currencies of countries that are not members of the EEMU, as well as with precious metals. The same operations can be carried out by National Central Banks, guided by the general principles developed by the ECB.

   The ECB Statute provides for a significant decentralization of the activities of the European System of Central Banks, so that operations such as repos and foreign exchange interventions are carried out independently by the National Central Banks. Each of them can also independently determine which assets of commercial banks are acceptable as collateral.

   The European Central Bank and the National Central Banks are not entitled to lending (in any form) to interstate (in the EEC system), state, regional and local authorities and organizations operating on the basis of state law. This, however, does not apply to public lending institutions, which in this case are treated in the same way as private lending institutions.

   The ECB and NCBs can establish links with central banks and financial institutions of other countries and international organizations and carry out all types of banking activities with them, using any financial assets and currencies.

   The equity capital of the ECB at the beginning of its activities was determined in the amount of 5 billion ECU (ie 5 billion euros from 1 January 1999). in the future, by decision of the Board of Governors, it may be increased. Only National Central Banks can be shareholders of the ECB. The capital of the ECB is formed in proportion to the comparative demographic and economic weight of the NCB. The key indicator is the weighted average share of each country in the population and GDP of the "euro area", which is determined by the following formula:

   • 50% of this share - in accordance with the share of each country in the total population of the European Economic Community;
   • 50% - in accordance with its share in the total gross domestic product of the EEC.

   These data will be updated every 5 years.

   According to the founding documents, the net profit of the ECB should be distributed in the following order:

   • part of it, which is determined by the Board of Governors (but not more than 20% of all net profit), is transferred to the general reserve fund (the volume of which should not exceed 100% of the authorized capital);
   • the remaining part is distributed among the holders of the bank's shares in the appropriate proportion.

   Monetary policy instruments and operations of the ESCB

   The Statute of the ESCB (Articles 17 to 24) defines the instruments of monetary policy and operations, the implementation of which will enable the system to achieve its objectives. The main instruments of the ESCB's monetary policy are: conducting operations on the open market, regulating the discount rate through deposit and loan transactions and setting minimum reserve requirements for credit institutions.

   The main object of regulation in carrying out these operations is the liquidity of credit institutions, which directly affects the demand and supply of money in the economy, thereby significantly affecting inflation rates.

   The conditions for carrying out these operations, which are the same for all countries participating in the Eurozone, provide money market participants with information about the main directions of the monetary policy of the European Economic and Monetary Union and ensure its unity.

   Credit institutions that meet the following qualification requirements are allowed to operate the UEMU: stability, effective management, broad operational capabilities. The list of credit institutions that must meet minimum reserve requirements includes more than 8,000 credit institutions in the Eurozone, more than 4,000 of which have access to deposit and loan operations, and about 3,000 participate in refinancing operations.

   Open market operations play an important role in the monetary policy of the ESCB in order to influence the interest rate, manage the overall liquidity of the money market and anticipate possible difficulties in the conduct of monetary policy. The ESCB has four financial instruments available for open market operations. The most important of these are refinancing operations, which are applied on the basis of appropriate resale agreements for loans or pledged loans. The ESCB may also issue debt certificates, exchange foreign exchange and take deposits for a limited period. It is also possible to carry out transactions on the basis of standard tenders, urgent tenders or bilateral procedures.

   Depending on the purpose, frequency and steps taken, the open market operations carried out by the ESCB can be divided into four main categories:

   1. The main refinancing operations play a central role in setting interest rates, managing market liquidity and explaining the meaning of the ECB's monetary policy. It is these operations that provide the bulk of private sector refinancing.

   Distinctive features of the main refinancing operations are as follows:

   • "work" in only one direction, towards the transfer of additional liquidity to the private sector;
   • held regularly, every week;
   • usually have a maturity of two weeks;
   • transactions are carried out in a decentralized manner, through the National Central Banks;
   • access to them is provided on the basis of standard tenders;
   • all contractors that meet the general criteria for participation in tenders can submit applications for participation in them;
   • assets of both the first and second categories are accepted as collateral.

   2. Long-term refinancing operations are designed to ensure the required level of refinancing of long-term operations. They do not serve as a means of adjusting interest rates and are provided on the basis of current market rates, so tenders are usually held on the basis of variable interest rates. Only under exceptional circumstances may the ESCB conduct tenders on the basis of fixed interest rates. Using these operations, the ESCB does not intend to exert any pressure on the money market, and will act as a normal recipient of loan interest. The volume of these operations is limited and relatively small.

   Distinctive features of long-term refinancing operations:

   • serve as a means of providing liquidity;
   • held regularly, every month;
   • usually have a maturity of three months;
   • carried out in a decentralized manner, through the National Central Banks;
   • all counterparties that meet the general criteria for participation in tenders can apply for participation in them;
   • in principle, assets of both the first and second categories can be accepted as collateral. However, with the consent of the Governing Council of the ECB, the National Central Banks have the right to impose certain restrictions regarding both the amount and the composition of the collateral.

   3. Reverse fine-tuning operations are carried out using the reverse transaction tool (through additional reverse transactions, sales and purchases of assets on the terms of simple forward transactions), in addition, the ESCB can accept deposits and conduct currency swaps. The purpose of these transactions is to influence the liquidity situation in the market and interest rates, in particular, to mitigate the impact of unexpected changes in the volume of liquidity in the market on interest rates. The potential importance of fast action makes the ESCB strive to maintain a high degree of flexibility in the choice of procedures and specific forms of this type of transaction.

   The inverse "fine tuning" operations have the following features:

   • can be used for both providing and withdrawing liquid funds;
   • can be both regular and irregular;
   • have a repayment period a priori, which is not regulated;
   • operations aimed at providing liquidity are usually carried out on the basis of fast tenders, although the possibility of using bilateral procedures is not excluded;
   • operations aimed at absorption of liquidity, as a rule, are carried out through bilateral procedures;
   • usually carried out in a decentralized manner, through the National Central Banks (in exceptional circumstances, the Board of Governors of the ECB may decide to conduct bilateral exchange transactions directly with the ECB);
   • The ESCB may select a limited number of counterparties for this type of transaction;

   4. Structural reverse transactions are within the prerogative of the ESCB and are carried out by issuing debt certificates, reverse transactions, buying and selling assets on a simple forward basis. These operations are carried out on the open market in order to correct the structural position of the ESCB in relation to the private sector.

   They are characterized by the following points:

   • carried out for the purpose of providing liquidity;
   • carried out regularly or not regularly;
   • have a repayment period that is not regulated a priori;
   • conducted on the basis of standard tenders;
   • carried out in a decentralized manner, through the National Central Banks;
   • all counterparties that meet the general criteria can apply to participate in this type of transactions;
   • assets of both the first and second categories are accepted as collateral.

   Class I assets include marketable debt instruments that meet the general safety criteria set by the ECB for the entire euro area. Class II assets are marketable and non-marketable debt instruments, securities and non-marketable financial instruments, the reliability criteria of which are established by the National Central Banks in accordance with the requirements of the ECB.

   From the point of view of the reliability of monetary policy, there are no differences between the instruments of both classes (with the exception of the fact that the assets of the second class are not used by the UEMU in simple forward transactions). The main part of the assets (75%) used in the operations of the EMU is represented by government securities; securities issued by credit institutions account for 18%, corporate sector - 4%; the remaining 3% are issued by national central banks.

   The rate for the first main refinancing operation was set at 3%. At present (since October 11, 2000) this value is 4.75%.

   The deposit and loan operations of the ESCB also have specific features, which play an important role in regulating the liquidity of banking institutions. The ESCB offers two permanent types of transactions:

   • “additional lending operations”, which allow credit institutions to attract the NCB's marginal overnight credit in order to achieve the required level of daily liquidity against the pledge of own assets at a predetermined interest rate (the interest rate in this case will be the maximum possible for this overnight market);
   • “deposit operations”, enabling banking institutions to place overnight deposits on NCB accounts with interest accruing at a predetermined interest rate (it should be noted that it will be possible to earn a little on this - the interest rate will drop to the minimum possible for this market).

   These operations should be viewed in conjunction, as a single system through which credit institutions can replenish their liquidity or, on the contrary, reduce it in the short term on an overnight basis.

   Deposit and loan operations of the ECB are carried out on the initiative of banking institutions.

   When pursuing an anti-inflationary policy, the ESCB also relies on such an instrument as the minimum reserve requirements for credit institutions. These requirements perform two interrelated functions: stabilizing money market interest rates and influencing the liquidity structure of the banking system. The mechanism of minimum reserve requirements leaves significant opportunities for regulating the liquid position of banks by market methods on a daily basis, allows for short-term arbitrage operations and maintain the required level of profitability. This is achieved by the fact that the reserve requirements of the ESCB on credit institutions must be met on the basis of a monthly average, and not a daily position. In this case, the corresponding month begins on the 24th calendar day of each month and ends on the 23rd day of the next month.

   The system of minimum reserve requirements, functioning in the countries of the "euro area", is based on the following principles:

   First, reserve requirements apply to all lending institutions.

   Secondly, the reserve requirement for each specific credit institution is set by applying the reserve rate (currently 2%) to liabilities in the form of: 1) overnight deposits; 2) deposits with agreed maturities or redeemable upon notice for up to two years; 3) debt securities similar in terms of maturity; 4) money market securities.

   Thirdly, when establishing the amount of reserve requirements, the following calculation procedure is provided. If a credit institution is unable to provide confirmation of the amount of liabilities in the form of debt securities with a maturity of up to two years and money market securities, it is allowed to apply the standard calculation based on 10% of the amount of the above liabilities. When calculating the final reserve requirement, each credit institution can make a deduction from the statutory result in the amount of 100 thousand euros. The required reserves held in the accounts of the ESCB bear interest at the level of the average rate for the main refinancing operations, i.e. in accordance with market conditions.

   Fourthly, a credit institution has the right to apply to the National Central Bank of the ESCB member country for which it is a resident for permission to fulfill reserve requirements through an intermediary.

   The implementation of a comprehensive anti-inflationary policy by the ESCB made it possible to ensure price stability during the transition to a single currency. January to May 1999 in the states of the "euro area" the growth rate of prices for consumer goods was 1% on an annualized basis, while in the United States - 2.1%, in Canada - 1.5%, and on average for a group of industrial countries - 1.2%. The significant increase in the role of securities transactions within the system, especially their active use as collateral, indicates that safety is a top priority in transactions. This creates a psychological climate of confidence in the money and financial markets, which objectively reduces inflationary expectations in the economy.

The processes of integration and the introduction of a single currency in Europe required the creation of a pan-European institutional structure capable of determining and directing changes in the economic and political life of individual states.

The European System of Central Banks (ESCB) is an international banking system consisting of the supranational European Central Bank (ECB) and the National Central Banks (NCBs) of the member states of the European Economic Community.

Fifteen national central banks, including: Bank of France, Bank of Italy, Bank of Spain, Netherlands Bank, National Bank of Belgium, Austrian National Bank, Bank of Greece, Bank of Portugal, Bank of Finland, Central Bank of Ireland, Central Bank of Luxembourg, Bundesbank of Germany, Central Bank Slovenia, the Central Bank of Malta, the Central Bank of Cyprus, as well as the European Central Bank ( ECB), located in Frankfurt am Main, together form the Eurosystem and, according to paragraph 14.3 of the ESCB Statute, are an integrated part of the ESCB.

The national central banks of the states that are not members of the EEMU - Great Britain, Denmark, Greece and Sweden, are members of the ESCB with a special status: they are not allowed to take part in decision-making regarding the implementation of a single monetary policy for the "eurozone" and implement such decisions.

In addition to common goals and objectives, the elements of the ESCB are also united by a rigid hierarchical structure of legal relations that develops between the national Central Bank and the ECB.

The role of national CBs within the ESCB is reflected in Articles 9.2, 12.1, 14.3 and 34 of the Statute (Regulations) on the ESCB and the ECB, according to which they are obliged to act within the framework of regulations adopted by the ECB.

Of great importance are the regulations of the ECB such as:

Key milestones (to be adopted by the Board of Governors),

Instructions (taken exclusively executive committee),

Domestic decisions (taken by both of these bodies) The ESCB is headed by the European Central Bank, headquartered in Frankfurt am Main.

The aims, tasks and general features of the organization of the ESCB are set out in the Treaty on the European Union and in its annex, the Protocol on the Statute of the ESCB and the ECB.

Main objective of the ESCB- Maintaining price stability, which is a prerequisite for sustained economic growth.

While unconditionally maintaining price stability, the ESCB must pursue a common economic policy consistent with the goals of the European Community, contributing to the solution of its tasks. The ESCB's statute also states that "in pursuing its objectives, the ESCB shall act in accordance with the principle of an open economy in conditions of free competition".

Main tasks of the ESCB listed in Article 105 of the Treaty on European Union:

1. Definition and implementation of a single monetary policy.

The Governing Council of the ECB determines the unified monetary policy, which the NCBs conduct in a decentralized manner. In general, the adopted procedures and instruments for conducting monetary policy are those that were used by the majority of NCBs before the establishment of the Monetary Union.

2. Implementation of foreign exchange transactions, and storage and management of the official foreign exchange reserves of the participating countries.

NCBs transfer part of their reserves to the ECB. The Council of the European Union and the ECB are tackling the problem of setting the exchange rate between the euro currency and the currencies of non-Community countries.

3. Ensuring the effective functioning of payment and settlement systems.

In this area, it should be noted, in particular, the introduction by the ESCB of the TARGET payment and settlement system, which allows the implementation of a single monetary policy. This system is mandatory for all settlements in which the NCB or the ECB is the counterparty. The system ensures the irrevocability of transfers of large amounts of payments. It is based on national real-time gross settlement systems. The central banks of the European Union countries outside the euro area are allowed limited access to intraday liquidity of the System.

Among other tasks of the ESCB:

1. Issue of banknotes and coins.

The ECB is the only body that can authorize the issuance of euro-denominated banknotes. The ESCB issues these banknotes. Euro coins are issued by the participating countries after the approval of the issue volume by the ECB.

2. Cooperation in the field of banking supervision.

The ESCB should contribute to the correct execution of operations by the competent authorities in the field of prudential supervision of credit institutions and the stability of the financial system.

3. Advisory functions.

The ECB advises the Council of the European Union or the authorities of the Member States, national central banks on matters of currency, payment and settlement systems, Community legislation relating to banking supervision and the stability of the financial system. The Central Bank may also make recommendations to Community institutions and national authorities in areas within its competence.

4. Collection and accumulation of statistical data.

The European Central Bank carries out the tasks entrusted to it by the ESCB. To do this, the ECB:

· defines general binding regulations for all member countries. For example, establishing the procedure for calculating required reserves and determining their total amount is the subject of one of the instructions of the ECB;

makes decisions within the scope of its competence. For example, in July 1998, the ECB defined the conditions under which NCBs and credit institutions outside the eurozone would be able to participate in the Target payment and settlement system;

· imposes, if necessary, fines (up to 500,000 euros) or penalties (up to 10,000 euros per day) in case of non-compliance with regulations and decisions. This, for example, occurs in the event of non-fulfillment by economic agents of obligations under statistical declarations to the ECB or non-compliance by credit institutions with reserve requirements;

· determines the order of relations between the ECB and NCBs within the ESCB.

One of the basic principles of the functioning of the ESCB is independence, defined in the Agreement. In the exercise of their powers and tasks, neither the ECB nor any of the NCBs or members of their governing bodies may receive instructions from Community authorities, from the governments of member states or from any other body.

The treaty also includes other provisions seeking to ensure the independence of the ESCB and the ECB:

· a sufficiently long term of office for members of the governing bodies (for example, for members of the Board of Directors, this term is eight years, and the minimum term for holding the position of NCB manager is five years);

· the term of office is terminated only in the event of incapacity for work or serious error;

· all disputes and disagreements on the implementation of activities are within the competence of the European Court.

Independence is an important principle of the ECB's activities. However, the huge powers that this organization has, cause concern for many experts. Its strategy does not take into account the real needs of the countries of the Union. In particular, no attention is paid to the goal of combating unemployment, which is the core of the economic policy of the European Union. For this reason, there is controversy in the EU about the need to control the activities of the ECB so that it is held accountable for its actions.

Structure of the ESCB can be represented as the following diagram:

The ESCB is governed by the authorized bodies of the ECB - the Governing Council, the Executive Board and the General Council.

board of governors, the supreme governing body, brings together members of the Board of Directors of the ECB and chairmen of the NCBs of the member countries of the Monetary Union. This Council takes the decisions necessary for the performance of the tasks entrusted to the ESCB by the Treaty and its statutes. First, it determines the monetary policy of the Union and sets out the directions necessary for its implementation. Thus, the Board of Governors fixes the basic interest rates accepted within the Monetary Union.

In addition, the Governing Council approves a set of rules for the internal organization of the ECB and its governing bodies, acts as an advisory body to the ECB and determines the modalities for international cooperation.

To resolve issues related to the definition and implementation of a single monetary policy, the Board of Governors votes on the principle of "one member - one vote". For property decisions (for example, an increase in the capital of the ECB), votes are weighted depending on the share of each NCB in the authorized capital of the ECB. If it is necessary to make a decision by a qualified majority on property issues, it is approved if at least two-thirds of the votes are cast.

Executive Committee (Board of Directors) includes the president, his deputy and four members selected from among candidates with extensive professional experience in the financial or banking fields. Members of the Board of Directors of the ECB are appointed by mutual agreement by the Heads of State or Government of the Member States of the Monetary Union, taking into account the recommendations of the Council of the European Union. Approval by the European Parliament is a prerequisite for the appointment of members of the Board of Directors proposed by the Board.

The Chairman of the Board of Directors is the Chairman of the Board of Governors and the General Council. He has a casting vote in the event of an equal distribution of votes. In addition, the chairman represents the ECB in external organisations. In the absence of the Chairman, the Deputy Chairman shall chair the meetings of the Board of Governors, the Board of Directors of the ECB and the General Council.

Members of the Board of Directors must be citizens of member countries of the Monetary Union.

The Board of Directors is daily responsible for the conduct of monetary policy in accordance with the decisions of the Board of Governors. It is within this framework that the Board of Directors transmits the necessary instructions to the NCB.

The departments of the ECB and the Board of Governors are assisted by 13 committees:

· Committee of Internal Auditors;

· Committee on banknotes;

· Budget Committee;

· External Communications Committee;

· Accounting and Cash Income Committee;

· Legal Committee;

· Market Operations Committee;

· Monetary Policy Committee;

· International Relations Committee;

· Statistical Committee;

· Banking Supervision Committee;

· Information Systems Committee;

· Committee of payment and settlement systems.

General Council (General Council), the third governing body of the ESCB, includes the chairman and vice-chairman of the Board of Directors of the ECB and all the heads of the national central banks of the European Union (including those that are not part of the Monetary Union).

The General Council assists the ECB in its advisory functions. Its main tasks include:

collection and processing of statistical information;

· preparation of quarterly and annual reports on the activities of the ECB, as well as weekly consolidated financial reports;

· development and adoption of the necessary rules for the standardization of accounting and reporting on operations conducted by the NCB;

· adoption of measures related to the payment of the authorized capital of the ECB to the extent not regulated by the EU General Treaty;

· development of job descriptions and rules for employment in the ECB.

preparation of countries for the transition to a single currency.

The agreement provides for regular relations with all organizations of the European Union.

Conditions for dialogue between the ESCB and Council of the European Union provided for in Article 109 of the Treaty. The President of the Council of the European Union may attend, without a casting vote, meetings of the Governing Council of the ECB. Symmetrically, the President of the ECB may be invited to meetings of the Council of the European Union when questions about the ESCB are being considered. In addition, the ECB sends its annual report to the Council of the European Union (and also to the European Union, which includes heads of state and government).

Members European Commission may participate without a casting vote at meetings of the Governing Council of the ECB. In addition, the annual report of the ECB is sent to the European Commission.

The agreement also provides that the annual report of the ECB on its activities and monetary policy of the previous and current year will be sent to European Parliament . Provision is made for the hearing of the President of the ECB or other members of the Board of Directors at the request of Parliament or on their own initiative. Through regular and in-depth dialogue, the ECB provides the European Parliament with its assessment of the economic situation and the prospects for price movements and explains its policies.

Information on the relationship between the ESCB and other European institutions can be presented in the form of a diagram:

In the ESCB, the Governing Council of the ECB is responsible for setting the common monetary policy. The decisions of the ECB apply in all countries of the Monetary Union. All member countries of the Monetary Union conduct monetary policy in the same manner.

The departments of the NCB, together with the departments of the ECB and under the control of the Board of Directors, participate in the preparation of monetary policy decisions. It is the NCBs that are responsible for implementing the monetary policy decisions made by the Board of Governors of the European Central Bank. NCBs are responsible for conducting refinancing operations and provide the euro currency for national lending institutions. Credit institutions use their accounts opened with the NCB.

The NCBs explain monetary policy decisions and examine the implications of the single monetary policy impact on the national economy.

It should be noted that the NCBs of the member countries of the European Union that are not members of the Monetary Union have received a special status within the ESCB and pursue an independent monetary policy.

The European System of Central Banks stores and manages the official gold and foreign exchange reserves of the EEMU member countries. The contribution of each National Central Bank is determined in accordance with its share in the capital of the European Central Bank.

According to the ECB statute, central banks must transfer to it (on a credit basis) foreign exchange reserves for a total amount equivalent to 50 billion euros (in the future, this amount may be increased by decision of the Board of Governors). The volume of reserves transferred by eleven central banks of the EEMU member countries during its creation to the European Central Bank amounted to 39.46 billion euros. Of these, 85% of the amount is in foreign currency, the remaining 15% is in gold.

Foreign exchange reserves remaining at the disposal of national banks are used by them to fulfill their obligations in relation to international organizations. The conduct of other transactions with these reserves, in excess of the limit set by the Board of Governors, must be agreed with the ECB. This is considered necessary to ensure a coherent monetary and monetary policy within the EEMU.

Foreign exchange reserves can be used by the European Central Bank for foreign exchange interventions, and it is given the right to independently decide on such interventions. The European System of Central Banks is equipped with the technical capability to intervene in the foreign exchange markets to counter excessive or erratic fluctuations in the euro against the currencies of major non-EEC countries.

The equity capital of the ECB by the beginning of its activity is set at 5 billion ECU. In the future, by decision of the Board of Governors, it may increase. Only National Central Banks can be shareholders of the ECB. The capital of the ECB is formed in proportion to the comparative demographic and economic weight of the NCB. The key indicator is the weighted average share of each country in the population and GDP of the "euro area", which is determined by the following formula:

50% of this share - in accordance with the share of each country in the total population of the European Economic Community;

50% - in accordance with its share in the total gross domestic product of the EEC.

These data are updated every 5 years.

There are currently 15 countries in the euro area. In 2007, Slovenia introduced the euro currency, and on January 1, 2008, Malta and Cyprus joined the economic and monetary union. In September 2008, at a conference of heads of statistical departments of EU member states in Vilnius, EU Commissioner for Monetary Policy Joaquín Almunia announced the political consequences of the financial crisis in Europe. He does not expect further expansion of the euro area, at least not within the next two years. According to the European Commissioner, the collapse of financial markets and the global financial crisis will have a significant impact on all EU member states and will not allow for several years to discuss either the possibility of expanding the EU or the eurozone.

With the introduction of the euro on January 1, 1999 and the transfer of fundamental powers from the National Central Banks to the European Central Bank, the leadership of the European Union and the ECB established official relations and began to actively develop cooperation with the IMF, BIS, OECD, the leading industrialized countries in the Group of 7, "Group of 10" and others. The focus was on two main issues of interaction:

· formation and consolidation of the modern architecture of the world monetary and financial system;

· promoting the expansion of the international role of the euro.

During 2000, two developments took place in relations between the European Central Bank and the IMF regarding the increasing role of the ECB in operations with special drawing rights - SDRs (Special Drawing Rights, SDRs). First, on November 15, 2000, the IMF approved the allocation of a reserve position by the ECB, which gives the bank the right to independently conduct transactions with the SDRs issued by the Fund. The reserve position allows the ECB to exchange SDRs at its disposal for convertible currencies that have the status of freely usable currencies (US dollar, euro, British pound sterling and Japanese yen) in transactions with IMF member countries and other SDR holders. Second, on January 1, 2001, as part of regular (every five years) revisions of SDR value and interest rate baskets, the IMF decided to replace the country-based approach in estimating the value of these baskets with a method based on the currency component ( currency-based approach). Since January 1, 2001, the share of the euro component in both baskets - the value and interest rates of the SDR - is determined on the basis of economic indicators for the entire euro area.

The Financial Stability Forum (FSF) was established at the February 1999 Bonn meeting of G-7 finance ministers and central bankers. Its main tasks are:

· Assessment of the degree of vulnerability of the global financial system;

· development of specific measures in the field of supervision in order to eliminate the vulnerabilities of the global financial system;

· Improving coordination in the field of information exchange between national authorities responsible for ensuring financial stability.

The FSF initially included representatives of the ministries of finance, central banks, supervisory authorities of the Group of 7 countries, as well as international organizations and working groups involved in the development of financial and banking standards, supervision and monitoring of financial systems in order to ensure financial stability (BIS, IMF , World Bank, OECD).

Currently, the IMF, in cooperation with other international organizations, in order to reduce the vulnerability of individual countries to crises, is actively working to review and strengthen supervisory practices, focusing on monitoring monetary, tax and exchange rate policies. At the same time, in its supervisory practice, the IMF is increasingly consulting with the ESCB in order to take into account the regional specifics of the development of monetary and financial markets as much as possible.

European Central Bank (ECB) — the first supranational central bank in history, which began its vigorous activity in 1999 with the transition of most of the EU countries to the single currency euro. The predecessors of the ECB were first the European Monetary Cooperation Fund, and since 1993 the European Monetary Institute.

European Central Bank(Eng. European Central Bank) - the central bank of the European Union and the euro area. Formed on June 1, 1998. The headquarters is located in the German city of Frankfurt am Main.

Its staff includes representatives of all EU member states. The bank is completely independent from other EU bodies.

The main functions of the bank:

• development and implementation of the monetary policy of the euro area;
• maintenance and management of the official exchange reserves of the euro area countries;
• issue of euro banknotes;
• setting basic interest rates.
• maintaining price stability in the euro area, that is, ensuring the inflation rate does not exceed 2%.

The European Central Bank is the successor to the European Monetary Institute (EMI), which played a leading role in preparing for the introduction of the euro in 1999.

All key issues related to the activities of the European Central Bank, such as the discount rate, accounting for bills and others, are decided by the management and the board of governors of the Bank.

The Board of Governors is composed of members of the Directorate of the ECB and governors of the national central banks. Traditionally, four out of six seats are occupied by representatives of the four major central banks: France, Germany, Italy and Spain. Only members of the Board of Governors present in person or participating in the teleconference have the right to vote. A member of the Board of Governors may appoint a replacement if he is unable to attend meetings for an extended period of time.

The presence of 2/3 of the members of the Council is required for voting, however, an emergency meeting of the ECB may be convened for which there is no minimum number of attendees. Decisions are taken by the majority, in case of equality of votes, the vote of the Chairman has more weight. The solution of issues related to capital, distribution of profits is determined by voting, the weight of votes is proportional to the shares of national banks in the authorized capital of the ECB.

The ECB is at the head of the European System of Central Banks (ESCB), which includes the ECB and all 27 EU central banks. The central banks of states outside the euro area are members of the ESCB with a special status: they do not have the right to influence decisions that are valid only for the euro area.

The ESCB is governed by three bodies— The Governing Council, the Executive Board and the General Council.

Board of Governors includes members of the ECB Executive Board (Executive Board of the ECB) and governors of the central banks of the euro area countries.

ECB board is elected for an eight-year term without the right to re-election, and its members are independent of the countries and governments that recommended and elected them. The Board of the ESCB consists of the President, the Vice-President and four other members.

general advice, unlike the Board of Governors, along with the president and vice president, it includes the governors of all the central banks of the EU countries.

Thus, the governance structure of the ESCB is two-tiered, taking into account the presence of two groups of countries. The General Council, like the Board of the ESCB, acts as a link between the countries of the euro area (ins) and countries that are not included in it (pre-ins).

The European Central Bank owns a key role in the implementation of monetary policy within the European Monetary System (EMS).

At the same time, its main task is to unification of requirements imposed on financial instruments and institutions in the euro area, as well as in the methods of conducting monetary policy by central banks. In particular, before the creation of the EMU, the central banks of individual states used various mechanisms of monetary regulation of the economy. Thus, not all EU countries used reserve requirements for commercial banks, and some of those who used them did not charge interest. Mechanisms for refinancing credit institutions by central banks differed.

The European Central Bank uses the following the main tools of monetary policy.

Firstly, the establishment of current target values ​​for the main monetary aggregates is envisaged to control the level of inflation.

Secondly, ranges of fluctuations of the main interest rates are determined, including for their convergence throughout the euro area.

Thirdly, establishes minimum reserve requirements for commercial banks, as well as in relation to interest remuneration. Now all the countries of the EMU must apply the established single standard of reserve and percentage remuneration.

A unified list of obligations for which the standard is applied, as well as penalties for violating the terms of reserve funds, has been determined. The establishment of minimum reserve requirements as one of the goals pursues the alignment of interest rates in the EMU countries.

Fourth, a set of short-term operations to regulate liquidity in the euro money market, called permanent mechanisms, is determined. They are classified broadly into ECB lending and deposit facilities. Thus, the deposit mechanism includes the placement of temporarily free funds of credit institutions in the ECB deposits for a period of one day (overnight deposits).

The rate set on these deposits forms the lower limit of one-day interbank loans of the euro market and is the minimum base rate in the ECB interest rate system. Similarly, credit facilities include the provision of one-day credits by any central bank of the Eurosystem. The corresponding interest rate determines the upper limit of the rates of the overnight interbank euro market. However, one-day loans are provided by central banks free of charge.

The ECB granted the right to the central banks of the EMU to independently choose the form of providing overnight loans, the main of which are secured (lombard) loans and direct overnight repo transactions.

As collateral for one-day loans can be used assets determined by the ECB and subdivided into two categories. The criteria that the assets of both categories must meet are also determined by the ECB. When receiving refinancing loans from its national central bank, a credit institution places assets of one of the categories in any depository on the territory of the EMU.

The ECB has set the amount of loans provided depending on the market value of the pledged assets and the degree of its volatility, as well as the standards for additional contributions or payments in the event of a change in the specified market value.

Fifth, operations are carried out on the open market, which in the EMU means any transactions in which central banks themselves act as equal counterparties in the market, and not just transactions in the securities market, as is usually the case. Among these operations, the most important are the main and long-term refinancing instrument, as well as the so-called fine-tuning operations and structural operations.

The main instrument of re-financing involves holding weekly auctions for a period of 14 days among credit institutions at a fixed interest rate.

Long-term refinancing instrument similar to the main one, but provides for a monthly auction of three-month loans. It replaced the form of long-term refinancing through the rediscount of bills that was in effect in a number of EMU countries before the transition to the euro.

Auctions for both refinancing instruments are conducted in a decentralized manner, ie by the central banks of the Euro-system, but the total amount of credit funds offered for sale is determined by the ECB.

Fine-tuning and structured operations are carried out irregularly and often over a short period of time when urgent intervention is needed to manage liquidity and interest rates in the EMU markets.

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Introduction

Monetary integration as an economic phenomenon appeared in the middle of the 19th century, when several currency unions were formed at once. At the same time, this phenomenon has acquired the greatest importance in the modern world, in the era of growing globalization and increased competition in world markets. Many countries of the world are currently striving for monetary integration, seeking to realize themselves as significant players in world markets and strengthen national currencies.

In world practice, there are several forms of monetary integration, each of which has its positive and negative sides. In the process of monetary integration, the countries participating in the agreement go through several stages in the development of a monetary union, which in many works appears as the highest form of monetary integration, however, according to a number of authors, it is not a “panacea for all ills”.

The formation and development of the European Union (EU) is the integration of Western European countries in political, economic, cultural aspects. This process continues today: the European Union is constantly expanding. And although not all EU members have adopted the euro at the moment, many of these countries are going to join the currency union in the next decade. The main purpose of the formation of the European Union (EMI) was to create a single market for more than 370 million Europeans, ensuring the freedom of movement of people, goods, services and capital. Among the goals of the creation of the European Monetary Union, one can distinguish such as facilitating mutual settlements between member countries, stabilizing exchange rates, as well as the emergence of a single strong and stable European currency that could compete on equal terms with the dollar in world markets.

In accordance with the Maastricht Treaty and the special Protocols attached to it, the creation of a monetary union with its institutions began. In the course of integration processes (EMI) ceased to exist and gave way to new structural institutions. These are the European System of Central Banks (ESCB) and the European Central Bank (ECB). At the same time, the Protocol on the Statute of the ESCB and the ECB, annexed to the Maastricht Treaty, entered into force. This Protocol determined the goals and objectives of the ESCB, the internal structure and organization, the functioning and control, the system of organs of the ESCB, the status of the ECB and their jurisdiction.

The main objective of the ESCB is to maintain price stability and support the overall economic policy.

1. Background and history of the creation of the European Central Bank

The completion of the Economic and Monetary Union (EMU) and the introduction of a single currency in Western Europe is one of the most significant events in the world economy at the turn of the century, which undoubtedly had a serious impact on both the European and the international economy as a whole.

With the advent of the single European currency in the world economy, another major currency area is actually taking shape, which has extended its influence to many countries outside the EU. The definition of the goals and ways of creating an economic and monetary union in Western Europe was enshrined in the text of the Maastricht Treaty establishing the European Union. This historic agreement was approved by the heads of state and government of the EU at the session of the European Council on December 10-11, 1991 and signed on February 7, 1992 in Maastricht (Netherlands). The Maastricht Treaty, which entered into force on November 1, 1993, provided for not only the creation of an economic and monetary union, but also the formation of a political union. In fact, only after the signing of this agreement, the EU countries moved to a common economic and financial policy, the ultimate goal of which was the introduction of a single currency. The agreement provided for a phased schedule for its introduction and established general rules in the field of the state budget, inflation, interest rates for all members of the future monetary union. In the process of building the EMU, “an independent unified monetary policy aimed at maintaining price stability and creating a single internal market, involving the complete removal of restrictions on the movement of capital” were named as the main strategic goals.

In accordance with the agreements reached between the EU countries, the process of moving towards the EU monetary union fell into three phases:

Preparatory - until January 1, 1996, during which the participating countries lifted mutual restrictions on the movement of payments and capital and began to stabilize their public finances according to the criteria established by the EU as “passing points” for membership in the monetary union.

Organizational - until December 31, 1998, aimed at completing the final stabilization of public finances and at forming the legal and institutional framework of the monetary union.

Implementation - until January 1, 2003, the implementation of the plan to introduce the euro into non-cash, and then into cash circulation of the countries participating in the agreement with the complete replacement of national currencies by a single currency.

2 . Legal aspects of the functioning of E European Monetary Institute and European Central Bank

european bank legal currency

The European Monetary Institute (EMI) was engaged in the development of legal, organizational, logistical measures for the creation of the European Central Bank (ECB) on its basis. The EMI also coordinated the monetary policy of the members of the Union. The task of the EMI was to present this structure at the time of the creation of the ESCB. Therefore, one of the main tasks of the EMI was to prepare the base of the ESCB so that it could function from the very beginning of the third (implementation) stage.

Acting in accordance with the tasks defined in the Agreement, the EMI was engaged, in particular:

preparation of a number of tools and procedures for conducting a single monetary policy in the future area of ​​the euro and an analysis of possible monetary policies;

further streamlining the collection, preparation and dissemination in the European space of statistical information relating to finance, banking, balance of payments and other financial information;

the development of a structure that ensures the conduct of exchange operations with the foreign exchange reserves of the participating countries participating in the European space;

improving the efficiency of international payments and securities transactions in order to support the integration of the European market, especially in terms of the development of technical infrastructure (TARGET system). Organization of such processes so that international payments go as smoothly as payments within the country;

development of euro cash, including design and technical description.

Also, with a view to further preparations for the organization of the European System of Central Banks (ESCB), which is fixed in the Agreement on the European System of Central Banks and the European Central Bank (ESCB Agreement), which is annexed to the Statute, the tasks of the EMI included:

development of harmonized rules and standards in accounting to ensure the preparation of a consolidated balance sheet in the ESCB for receiving internal and external reports;

identifying the necessary information and maintaining communication systems to support the activities to be carried out by the ESCB;

identification of possible ways for the ESCB to support the policies pursued by the authorities in order to ensure the stability of credit institutions and the financial system.

The EMI also assisted in the preparation of Community and national legislation for the transition to the third stage. In particular, with regard to currency and financial legislation, including the charters of national central banks.

In addition, the EMI has collaborated with other European bodies in preparation for the transition to the third stage. In particular, either in accordance with the rules of the Agreement or at the request of the European Council, it has provided reports on:

scenarios for the transition to a single currency;

coordinating foreign exchange and exchange rate policies between the eurospace and other member states;

the progress made by Member States towards the final fulfillment of their obligations to participate in the Economic and Monetary Union (bringing the economic and legal frameworks in line).

In accordance with the requirements established by law, the EMI regularly reported on the work carried out. This was usually done in the annual reports that were published in 94-97. Moreover, in January 1997, the EMI published a report setting out the specifications and structure of the ESCB for the conduct of a single monetary policy, as required by the Statute. In the Charter, the latest date by which such a report must be published was 31 December 1996. Reports have been published three more times highlighting current advances in economic convergence. A number of other publications touch upon issues of monetary policy, exchange rate policy, payments and the securities market, statistics, banknotes and the transition to the euro.

In the end, with the support of the national central banks, the results of the work on the development of concepts and their detailing were presented to the ECB, along with all internal documents approved by the EMI Council.

The solid foundations laid by the EMI helped the governing bodies of the ECB to develop it into a strong institution in the remaining time to ensure price stability in the European space, which provided the necessary conditions for sustaining economic growth.

At the same time, simply revolutionary laws were adopted. For example, national central banks were forbidden to finance the public sector, to directly acquire state debts, and the privileged access of the public sector to the resources of financial institutions was cancelled.

A "disclaimer clause" was introduced. That is, one EU member could no longer assume and assign obligations of the public sector in another EU country. Control over the execution of budgets in the states of the Union was tightened. National laws were initiated that guaranteed the statutory independence of the Central Bank from local governments. In May 1998, the heads of state and councils of ministers decided on the issuance of the euro (so far in a non-cash form) and on the countries where its circulation will begin. In June 1998, the European Central Bank began its work in Frankfurt am Main.

3. Organizational structure European System of Central Banks and European c central bank

As noted earlier, within the framework of the EU, a supranational European Central Bank (ECB) was created and the European System of Central Banks (ESCB) operating under its leadership, which includes the national central banks of the member countries of the European Union (EU). The national central banks are the sole holders of the capital of the ECB. The equity capital of the ECB at the beginning of its activity was determined in the amount of 5 billion ECU. In the future, by decision of the Board of Governors, it may increase. The country distribution of shares in the capital of the ECB is based on the share of each member country in the GDP and population of the EU.

Shares of the central banks of the EU countries in the capital of the ECB

The Governing Council, which meets on Thursdays in Frankfurt, is made up of members of the ECB's Board of Directors and the heads of national central banks of member countries of the European Economic and Monetary Union (EEMU).

The Governing Council is not subordinate to either the national authorities or the EU authorities. The Governing Council decides on the general monetary policy of the Eurozone by a simple majority vote, with each member of the Council having one vote. In the event of a tie, the President of the ESCB has the casting vote.

In December 2008, the ECB will postpone the implementation of the vote-sharing system for the central bank's policy-making Governing Council, planned for January 2009, until more than 18 countries adopt the euro as their national currency.

The ECB said in a statement that: "The Governing Council decided to continue using the current voting model and introduce a rotation system only from the moment when the number of governors and presidents of the national banks of the eurozone exceeds 18 people," -.

This announcement means that the ECB will retain its current one country, one vote system. The ECB will probably switch to a rotational system no earlier than 2012-2013.

The main motivation behind the introduction of the rotational system is to keep the Governing Council's decision-making process running smoothly and to prevent it from becoming unwieldy as the eurozone expands.

According to the ECB's regulatory framework, the new system was supposed to come into force on January 1, 2009, when Slovakia became the 16th member of the eurozone, but a "loophole" in the charter allowed the central bank to seize the opportunity to delay the innovation until the number of eurozone members increased to 19.

When the new system becomes operational, the current one-country-one-vote system will change to a tiered voting system, with eurozone countries first divided into two groups and subsequently into three groups, with countries in each group taking turns not participating. in the vote.

At the moment, all countries can participate in the discussions, and decisions are usually made by consensus rather than formal voting.

When the number of participants reaches 22, the countries will be divided into 3 groups: the five largest countries will receive 4 votes, 11-14 countries of the second group - 8 votes, 6-8 countries of the third group - 3 votes.

This system is borrowed from the US Federal Reserve, whose Open Market Committee includes 7 members of the Fed's Governing Council, the president of the New York Fed, and 4 of the 11 heads of the FRB, which are replaced every year on a rotational basis.

To make special decisions, that is, decisions regarding the participation of individual member countries in capital and reserves, the procedure for distributing profits, determining the weight of votes in the ECB Council depending on the size of the capital shares of national central banks, either a qualified majority (that is, at least two-thirds for capital shares in the ECB, whereby at least half of the capital holders must be present), or by unanimous decision.

Governing body

The main responsibilities of the Board are to conduct monetary policy in accordance with the decisions taken by the Board of Governors, to develop directives for national central banks in accordance with the powers that were assigned to the Board by the Board of Governors. The Board consists of a chairman, a vice-chairman and four members who are chosen by the EU heads of state and government on the advice of the respective ministers of economy and finance.

Management Board: Jean-Claude Trichet, Gertrude Tumpel-Gugerel, Vitor Constantio, Lorenzo Bini Smaghi, José Manuel González-Paramo, Jurgen Schark.

All members of the Board are appointed for an 8_year non-renewable term. In order to ensure continuity and continuity of functioning, members of the Board of the first composition received appointments for various terms of tenure - from 4 to 8 years. From January 1, the national central banks of the EEMU member countries lost their independence in conducting monetary policy, and, having become part of the ESCB, became accountable to the ECB. They are intended primarily to ensure the functioning of the ESCB as a whole. The heads of national central banks, being members of the Board of Governors, participate in the development and decision-making on monetary policy issues.

General Council

The national central banks of the EU countries that are not members of the EEMU are members of the ESCB with a limited status and do not take part in the decision-making process on the general monetary policy of the Eurozone and on the implementation of these decisions.

All the national central banks of the EU countries (today there are 27 of them) are represented in the General Council of the ESCB, it also includes the chairman and vice-chairman of the ECB.

The composition of the General Council of the ECB:

1. Jean-Claude Trichet ECB President

2. Vitor Constance Vice-chairman ECB

3. Guy Cadein Belbgiand(Nationale Bank van Belgíl / Banque Nationale de Belgique)

4. Ivan Iskovmanagementbarking BolgarskyfolkWowjar

5. Miroslav Singer Governor of the Central BankCzechsand(Ieskb nbrodnn banka)

6. Nils Bernstein Governor of the Central Banktributeand(Danmarks National Bank)

7. Axel A. WeberPresident, CentralbnWowBank of Germanyand(Deutsche Bundesbank)

8. Andres Lipstock Governor of the Central BankEmoanand(Eesti Pank)

9. Patrick Honahan Manager Central jar Irelandand (WITHentral Bank and Financial Services Authority of Ireland

10. Georgios Provopoulos Governor of the Central BankGrétions(Bank of Greece)

11. Miguel Fernandez-Ordonez Governor of the Central Bank Spainand(Banco de Espaça)

12. Christian Noaye Governor of the Central BankFranceand(Banque de France)

13. Mario Draghi Governor of the Central BankItalyand (Bancad"Italia)

14. Athanasios Orphanidis Governor of the Central BankKipra(Central Bank of Cyprus)

15. Ilmar Rimshevich Governor of the Central BankLatviaand(Latvijas Banka)

16. Reynoldius SarkinasChairmanb Central BankLithuanias(Lietuvos bankas)

17. Yves Mersh Governor of the Central BankLuxembourga(Banque centrale du Luxembourg))

18. Andras Szymor The presidentCentralbnWowjarWengrii(Magyar Nemzeti Bank)

19. Michael C. Bonelo Governor of the Central BankMalbTs. (Central Bank of Malta)

20. Note Welink The presidentCentralbnWowBank Netherlandsdove(De Nederlandsche Bank)

21. Ewald Novotny Governor of the Central BankAustriaand(Oesterreichische Nationalbank)

22. Marek Belka President, CentralbnWowcan Paulbwand(Narodowy Bank Poland)

23. Carlos Koscha Governor of the Central BankPortugaland(Banco de Portugal)

24. Mugur Izarescu Governor of the Central BankRoomsneitherand(Banca Nationalg a Romvniei)

25. Marko Kranec Governor of the Central BankSloveniaand(Banka Slovenia)

26. Josef Makuch Governor of the Central BankSlovaksand(Nbrodná banka Slovenska)

27. Yerki Liikanen Governor of the Central BankFinland(Suomen Pankki- Finns Bank)

28. Stefan Ingves Governor of the Central BankSwedenand(Sveriges Riksbank).

The General Council has been given powers that were previously within the competence of the European Monetary Institute, including the provision of statistical reporting and the establishment of exchange rates for non-Eurozone EU countries against the euro. This body will exist until all EU countries join the EEMU.

The President of the European Central Bank is simultaneously the chairman of all three of its governing bodies: the Board of Governors, the Executive Directorate and the General Council; moreover, in the first two cases, he has a casting vote in the event of an equal distribution of votes. In addition, the President represents the ECB in external organizations or appoints a proxy for this role. In relation to third parties, he, by law, represents the ECB.

The national central banks of the member countries are an integral part of the European System of Central Banks and act in accordance with the directions and instructions of the ECB.

In the organization of the activities of the European Central Bank, the institution of curators is widely and successfully used, in which each of the six members of the Executive Directorate supervises a certain area of ​​activity of the European Central Bank.

The Board of Governors of the ECB is authorized to develop monetary policy, and the Executive Directorate - to implement it. To the extent possible and appropriate, the European Central Bank resorts to the use of the facilities of the National Central Banks.

During the development and establishment of the ESCB, the preparatory work was carried out, in particular, by three committees and six specialized working groups, bringing together representatives of the National Central Banks and the European Monetary Institute. This experience of close cooperation continues within the ESCB with the necessary modifications.

There are thirteen Committees under the direction of the Board of Governors:

· Committee of Internal Auditors;

· Committee on banknotes;

· Budget Committee;

· External Communications Committee;

· Accounting and Cash Income Committee;

· Legal Committee;

· Market Operations Committee;

· Monetary Policy Committee;

· International Relations Committee;

· Statistical Committee;

· Banking Supervision Committee;

· Information Systems Committee;

· Committee of payment and settlement systems.

The intermediaries that allow the European Central Bank to implement the common monetary policy of the EEMU member countries are its authorized counterparties. Credit institutions selected for this purpose must meet a number of criteria:

· under the conditions of mandatory reservation, the circle of authorized counterparties is limited only to those credit institutions that have created minimum reserves;

· Otherwise, the range of possible authorized counterparties extends to all credit institutions located in the "euro area". The ECB has the right, on a non-discriminatory basis, to deny access to credit institutions which, by the nature of their activities, cannot be useful in the conduct of monetary policy;

· the financial position of authorized counterparties must be checked by the national authorities and found satisfactory (this provision does not apply to branches of organizations whose headquarters are located outside the European Economic Area);

· counterparties must meet any specific operational criteria set by the National Central Banks or the ECB.

Authorized counterparties gain access to the facilities of the European System of Central Banks only through the National Central Bank of the EEMU Member State in which they are located. NCBs collect applications for participation in the operations of the European Central Bank and transmit these data to the central computer of the ECB in Frankfurt. Based on the collected applications, the ECB determines the market price of resources and issues appropriate instructions to the National Central Banks, which distribute operations among counterparties. Given the possibilities of modern information technology, even relatively small organizations can participate in the operations of the ESCB. If necessary, tenders can be held within an hour on the basis of electronic information exchange.

The European System of Central Banks has the right to refuse access to monetary policy instruments for reasons of reliability or in the event of a gross or repeated breach by a counterparty of its obligations. When selecting participants in specialized operations, some additional criteria are applied.

4 . Targets and goalseuropean central banka

The main objective of the ESCB, as defined in Article 2 of the Statute of the ESCB, is to maintain price stability. The ESCB will, within the framework of the main task - ensuring price stability - support the economic policies of the Eurozone countries in order to achieve the common goals facing the European Union. The main tasks assigned to the ESCB are fixed in Article 3 of the Statute of the ESCB. These include:

development and implementation of the EEMU monetary policy;

carrying out exchange operations with foreign currencies;

managing the official foreign exchange reserves of the EEMU countries;

ensuring the smooth functioning of settlement systems;

assistance to the competent authorities in conducting prudential control over credit institutions and ensuring the stability of the entire financial system.

The main documents relatively clearly define the foreign exchange functions and operations carried out by the ECB, provisions relating to financial reporting, auditing, capital formation, capital subscription criteria, the bank's overseas operations and the distribution of foreign exchange earnings of national central banks.

The ECB can engage in the usual operations of central banks: the provision of loans, including secured by securities, to financial institutions and operations on the open market with various financial instruments denominated in any currency, including in the currency of non-EMU countries, and also with precious metals. The same operations can be carried out by national central banks, guided by the general principles developed by the ECB.

The terms of reference of the ECB include setting minimum reserve requirements for credit institutions of EMU member countries. We are talking about the funds that these institutions are required to keep in the ECB and national central banks. In cases of violation of these requirements, the ECB has the right to resort to fines and other sanctions.

The ECB's net profit is distributed as follows: an amount determined by the Board of Governors and not exceeding 20% ​​of net profit is transferred to the general reserve fund. At the same time, the rule is observed, according to which this amount cannot exceed 100% of the authorized capital. The remaining net profit is distributed among the shareholders of the ECB in proportion to the share of capital they pay. It should be borne in mind that the sole shareholders of the ECB are only national central banks. In case of losses, they are replenished either at the expense of the general reserve fund, into which the resulting profit is transferred, and, if necessary, from the currency profit of the corresponding financial year in proportion and within the limits of the amounts distributed among the national central banks.

The ECB is vested with significant legal powers. It has been given the right to adopt the regulations necessary to solve the problems facing the ESCB and the ECB. He can also make decisions and give recommendations and opinions. Regulations are normative legal acts of a general nature, which are binding in all their parts for Member States and, like any other regulatory acts, have direct effect. Decisions are legal acts of an individual nature, binding on those subjects of law to whom they are addressed. Recommendations and opinions are not binding. The empowerment of the ECB with the rights and powers in the area of ​​issuing normative legal acts inevitably gives rise, as a consequence, to the possibility that these actions of the ECB will be subject to control by the EU Court of Justice. The functions performed in this case by the EU Court of Justice may affect, firstly, the interpretation of acts relating to the functioning of the ECB, and secondly, the consideration of claims that may be brought by the ECB in connection with its financial and economic activities and the implementation of administrative functions. As a general rule, disputes between the ECB, on the one hand, and its creditors and debtors, or with other persons, on the other, are considered by the competent national courts.

National banks are liable in accordance with national legislation. The decision of the ECB to initiate proceedings before the Court is taken by the Board of Governors or, on its authority, by the Directorate. The Court may also hear cases of contractual and non-contractual liability based on an arbitration clause contained in a contract entered into by or on behalf of the ECB, whether or not that contract is governed by public law. The jurisdiction of the EU Court of Justice includes the consideration of disputes relating to the fulfillment by national central banks of obligations arising from the constituent agreements and the Charter. In the event that the ECB considers that the national central banks have not fulfilled their obligations, it draws up a reasoned opinion, which is provided to the national central bank concerned. The latter may state its comments on the opinion. However, if the ECB insists on its opinion, the national bank does not comply with its recommendations within the established time frame, then the relevant dispute may be referred to the EU Court of Justice.

The ECB Statute provides for a significant decentralization of the activities of the European System of Central Banks, so that operations such as repos and foreign exchange interventions are carried out independently by the National Central Banks. Each of them can also independently determine which assets of commercial banks are acceptable as collateral.

The European Central Bank and the National Central Banks are not entitled to lending (in any form) to interstate (in the EEC system), state, regional and local authorities and organizations operating on the basis of state law. This, however, does not apply to public lending institutions, which in this case are treated in the same way as private lending institutions.

The role of the ESCB in banking supervision is rather limited. The system should only contribute to the organized conduct of relevant activities, and may offer its recommendations on the scope of the legislation applicable here and the procedure for its application. The ESCB's statute includes provisions giving it the right to participate more directly in banking supervision, but such a transfer of powers would require a unanimous decision of the Council of the EEC.

The ECB advises the Council of Europe or the governments of the member states of the EEC on all projects within its competence: on issues of money circulation, means of payment and settlement, national central banks, statistics, payment and settlement systems, the stability of credit institutions, financial markets and etc.

For proper use of monetary policy instruments, they must be based on reliable and comparable statistics. This leads to the task of collecting statistical data. This applies in particular to financial and banking data necessary, for example, to calculate the base of reserve requirements, as well as price statistics, as long as they are related to the fulfillment of the mentioned ultimate goal of the ESCB's monetary policy. In particular, partially harmonized consumer price indices have already appeared in the system.

To the extent that it does not harm the main goal of its existence - maintaining price stability, the European System of Central Banks is designed to support the common economic policy within the European Economic and Monetary Union.

5 . DaminationEuropeanWowcentralWowbankaand legal relations that develop within the framework ofEuropeanOhsystemsscentral banks

As is widely known, the main structure within which all the "monetary" components of the Economic and Monetary Union function and which determines and implements the common monetary policy of the European Community, in accordance with the Treaty establishing the European Community is the European System of Central Banks (ESCB), which appeared in accordance with Art. 8 of the Agreement.

In accordance with Art. 107 of the Treaty, the ESCB consists of the European Central Bank (ECB) and the national central banks of the Member States. This article is supplemented by the provisions of art. 14(3) of the Statute of the European System of Central Banks and the European Central Bank, which states that national central banks are an integral part of the ESCB. Art. 8 of the Statute states that the basic principle of the organization of the ESCB is that its functioning is ensured by the bodies of the ECB, endowed with the right to make decisions. In general, as noted by some scholars, "the European Central Bank is the basis of the European System of Central Banks." The most important features of the ESCB are that the administration of the ESCB is carried out by the governing bodies of the ECB, the powers of the ESCB are also exercised by the ECB, and that, unlike the ECB and the national central banks of the member states, the ESCB is not a legal entity.

The lack of legal status of the ESCB, its own independent governing bodies and the possibility of independently exercising powers made it possible to put forward several points of view on the legal nature of the ESCB and the prevailing role of the ECB.

One view is that the ESCB is a system of legal entities (central banks) governed by common goals, objectives and rules. The word "System" in the concept of the European System of Central Banks should be understood "not as a designation of a legal entity, but as an expression designating the ECB and national central banks as constituent parts of an entity that is governed by a collection of goals, objectives and rules." This interpretation avoids the obvious contradiction between the principles of centralization and decentralization. In such a system, on the one hand, the centralization of the decision-making process necessary for the implementation of a single monetary policy is guaranteed, and, on the other hand, the decentralization of operations that are carried out in pursuance of a single monetary policy, either by the ECB or by national central banks, is allowed.

The authoritative commentary on the Treaty on the European Community, edited by Campbell, says that: “The European System of Central Banks is a combination of the ECB and the national central banks. But only the ECB is a legal entity. The ESCB is administered by the organs of the ECB. In other words, the ESCB is nothing more than a cloak thrown over the ECB and has no meaning other than the semantic disguise of the hierarchy established between the ECB and the national central banks.”

Most scholars do not recognize the ESCB as having any independent entity or function inherent in it alone. We can talk about the ESCB as the name of a system of certain relations that develop between the ECB and national central banks in the framework of their achievement of the goals and objectives set for the ESCB. At the same time, the dominant role in these relations belongs to the ECB, and the national central banks of the member states play a rather subordinate role in it. This allows us to say that "The existing national central banks become branches of the ECB with a status similar to individual Federal Reserve Banks within the Federal Reserve System." At the same time, the subordinate role of national authorities in relation to EU authorities is generally characteristic of legal relations between EU member states and EU institutions. So Maklakov V.V. noted that "it is impossible not to see that the bodies of the Member States are in a subordinate position in relation to the bodies of the EU". This understanding of the ESCB gives us the opportunity not to separate it from the ECB and national central banks, because without them the ESCB is nothing, and to emphasize what the name ESCB was created for - a single and orderly system of relations between the ECB and the national central banks of states -members.

Art. 105 (1) of the Treaty and repeating it verbatim Art. 2 of the Statute clearly defines the purpose of the creation of the ESCB. The main one is to maintain price stability. In fulfilling all its other purposes and performing its functions, the ESCB must first of all take care of the fulfillment of this task. Only without conflicting with its main purpose, the ESCB must pursue its second purpose, which is to support the Common Economic Policy of the Community in order to achieve the Community objectives set out in Art. 2 Agreements. The ESCB shall pursue these objectives on the basis of the principles of an open market economy with free competition, the principles set out in Art. 4 of the Treaty, as well as by encouraging the efficient allocation of resources.

To achieve these goals, the ESCB is tasked with the following tasks: defining and implementing the Community's monetary policy; conducting international exchange transactions in accordance with the provisions of Art. 111 of the Agreement; possession and disposal of the official foreign exchange reserves of the Member States; promoting the proper functioning of the payment system; assistance in the implementation by the competent authorities of a policy of prudent supervision of credit institutions and the stability of the financial system.

As already emphasized above, in addition to common goals and objectives, the elements of the ESCB are also united by a rigid hierarchical structure of legal relations that develops between the national central banks of the member states and the ECB. The role of national central banks within the ESCB is well illustrated in Articles 9.2, 12.1, 14.3. and 34 of the Statutes under which, they are required to act within the framework of the regulations adopted by the ECB. At the same time, the most important are the ECB regulations adopted within the system itself. Such normative acts include the main guidelines adopted by the Governing Board, directives adopted exclusively by the Executive Committee, as well as internal decisions taken by both of these bodies. Since these legal acts are binding only on the ECB and the national central banks that have moved to the third stage of the EMU, they do not confer any rights or impose any obligations on other third parties. In turn, the failure of the national central banks of the Member States that have moved to the third stage of the EMU to comply with the main guidelines and instructions may lead to the consideration of such failure in the EU Court of Justice. The differences between the main guidelines and guidelines lie not only in the bodies that adopt them, but also in the issues to which they are devoted. The guidelines are legal acts intended to define and consolidate the policies of the ESCB. They contain the main framework provisions and the main rules to be followed by both the ECB and the national central banks. As an example of the main guidelines adopted by the Governing Council, the European Central Bank's Key Guidelines of 1 December 1998 on the requirements for statistical reporting of the European Central Bank in the field of balance of payments and statistics of international investment positions (ERU/1998/17) can be cited.

Unlike the main guidelines, the guidelines issued by the Executive Committee are designed to ensure the implementation of the main guidelines and decisions of the Governing Council and contain specific detailed instructions to the national central banks.

Internal decisions are taken by both the Governing Council and the Executive Committee in their areas of competence. They have legal force within the ESCB and deal with matters of an administrative and organizational nature. An example of such an internal decision would be the European Central Bank Decisions of 3 November 1998 on public access to European Central Bank records and archives (ECB/1998/12).

In addition, in accordance with Art. 31. of the Statute, when carrying out their activities, national central banks must comply with the limit of reserve assets in foreign currency established by the ECB or seek the consent of the ECB to change this criterion.

It should be noted that the dominance of the ECB and the legal relations developing within the framework of the ESCB also affects the fact that in order to enter the euro area, the member states had to change the legal status of their central banks in such a way as to guarantee their central banks a sufficient degree of independence provided for in the Statute of the ESCB and to enable them to carry out their duties within the ESCB. This made it possible for some scholars to speak of "direct harmonization" of the legal status of central banks. As a result, almost all member states adopted either new laws on central banks (Belgium in March 1999, Finland in March 1998, the Netherlands in 1998) or changed their existing ones (Germany in 1997, Ireland in 1998, France in May 1998, Greece in 1998, Portugal in 1998, Spain in 1994, Sweden in 1998). In order to implement such a change in the legal status of national central banks and ensure the legality of fulfilling their obligations under the EMU, a number of member states had to make appropriate changes to their constitutional documents (France, Germany, the United Kingdom (the Act on the European Communities with the relevant amendments and the Bank of England Act), Finland, Portugal, Sweden). In addition, even member states, still undecided about joining the third stage of the Economic and Monetary Union, have adopted regulations aimed at greater independence of their central banks (Bank of England Act 1997). Finally, for the successful transition to the third stage of the EMU in Luxembourg, by law of December 23, 1998, for the first time in the history of this country, a central bank was established.

The Statute of the ECB provides for dominance of the ECB over national central banks and in international relations. So, in accordance with Art. 6.1 of the Statute, it is the ECB that decides how the ESCB will be represented in the international arena, while Art. 6.2. The statute says that national central banks can participate in international monetary authorities only with the consent of the ECB. The ECB itself does not require such consent from anyone. National banks cannot independently go beyond the powers granted to them by the Statute. In order for them to perform other functions, the Governing Council of the ECB must decide by two-thirds of its votes that they do not diverge from the aims and objectives of the ESCB (Article 14.4 of the Statute). But even such functions are carried out by them under their own responsibility and are not considered as part of the functions of the ESCB.

To complete the picture, we note that the ECB has the ability to force national central banks to fulfill their obligations. This possibility stems from the provisions of Art. 35.6 of the Statute giving the ECB the right to bring such claims to the Court of Justice. At the same time, some scholars note the similarity of this ECB right to the rights of the EU Commission in relation to EU member states in accordance with Art. 226 of the Treaty.

I would like to reiterate that by itself, without the ECB and the national central banks of the Member States, the European System of Central Banks does not and cannot exist. Accordingly, the aims and objectives of the ESCB are nothing more than the aims and objectives of the relationship between the ECB and the national central banks of the Member States. The same fact that, in accordance with Art. 8 of the Statute and Art. 107 (3) of the Treaty, it is the governing bodies of the ECB - the Governing Council and the Executive Committee that manage the entire European System of Central Banks means that the goals and objectives of the ESCB are implemented by the ECB and the national central banks under the leadership of the bodies of the ECB and it is the ECB through its governing bodies plays a central role in these relationships. At the same time, the governors of the national central banks, who are members of the Governing Council, represent themselves, at least de jure, in it, and not their national central banks.

Conclusion

The main institutional structure created by the European Community, which determines and implements the common monetary policy of the European Community and is responsible for issuing the euro, is the European System of Central Banks (ESCB). It is made up of the European Central Bank (ECB) and the central banks of the EU member states. All central banks of the EU Member States are an integral part of the ESCB.

The European Central Bank is the governing body of the ESCB. Its functions are the development and implementation of a single monetary policy of the EU Member States that have adopted the euro, the development of decisions and the adoption of regulations necessary for the implementation of the tasks of the ESCB, advising the institutions of the European Community and the authorities of the EU Member States on issues of its competence, maintaining statistical reporting representation of the ESCB in international organizations, the issuance of euro banknotes, the implementation of foreign exchange operations of the ESCB together with the central banks of the Member States, the preparation and publication of the annual report on the activities of the ESCB and the financial report of the ESCB, the implementation of tasks in the field of reasonable control over credit institutions, as well as ensuring the functioning exchange rate mechanism. The ECB is an independent institution and is not subordinate to other EU bodies.

The supreme body of the ECB is the Governing Council, consisting of members of the Executive Committee of the ECB and governors of the central banks of the member states that have adopted the euro, which makes the most important decisions, including the definition of a common monetary policy of the EU. The permanent management of the activities of the ECB is carried out by the Executive Committee, which consists of the President of the ECB, the Vice-President of the ECB and four other members. As long as not all EU member states have adopted the euro, to interact with the central banks of such states, the ECB has a General Council, which includes members of the ECB Executive Committee, as well as governors of all central banks of the EU member states.

The ECB is part of the European System of Central Banks, which also includes the largest and most stable central banks in Europe - the National Bank of Belgium, the Bundesbank, the Bank of Greece, the Bank of Spain, the Bank of France, the Monetary Institute of Luxembourg.

Above, we examined the composition and functions of the ECB, and also showed the role played by the ECB. The two-year experience of the ESCB shows that, despite the sufficient complexity of such a system, the ESCB has proved to be quite efficient. However, this period is rather short. To what extent the institutional features of the ESCB will allow the European Community to adapt to the changing economic situation, effectively implement the common monetary policy of the Community and at least partially harmonize the economic cycles of the member states, only the future will show.

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In the diversity of the banking system, there are leaders and major players in the market. The European Central Bank is the largest among the banking giants of the European Union.

History on a European scale

The date of birth of the European Central Bank (ECB) is 06/01/1998. The basis for the formation of the bank was the Amsterdam Agreement, signed in 1997. The headquarters is located in Frankfurt am Main (Germany). The Bank is independent of the rest of the European Union (EU) and regulates the monetary policy of the Eurozone countries.

The idea of ​​creating the ECB arose long before its real foundation. Generalization of the market of European countries began immediately after the end of World War II. The European Economic Community brought together the largest countries in Europe in 1957. Somewhat later, for mutual settlements, a conventional monetary unit was approved - the ECU (currency unit). The ECU was pegged directly to the European currency basket. The ECU was originally introduced into non-cash payments, however, in some countries it was issued in the form of cash banknotes, government loans and bonds. Since the beginning of 1999, the ECU has been replaced by the euro at a 1:1 rate. This step helped to firmly fix the exchange rates of the national currencies of the EU countries against the euro. The euro has become a full-fledged self-sufficient monetary unit. At the beginning of 2002, the euro was introduced into cash circulation, and from that moment the European currency began to grow smoothly.

In the late 1980s, a memorandum “On the Creation of the European Monetary Area and the European Central Bank” was created, approved and signed. After the conclusion of an international treaty establishing the EU, the first European Monetary Institute (EMI) was formed. The main function laid down in the foundation of the EMI was the transition to a single currency for all - the euro. Thus, the time has gradually come for the transformation of the EMI into the European Central Bank.

FunctionsECB

The main tasks of the ECB include the following functions:

• regulation and distribution of the money supply between financial institutions, the state and financial companies;

• responsibility for the monetary policy of the Eurozone;

• creation and control of the execution of the monetary policy of the Eurozone;

• availability of exchange reserves of the Eurozone countries and competent management;

• money issue of euro banknotes;

• an order to fix the interest rate;

• control over the level of inflation (no more than 2%) and a stable pricing policy in the Eurozone countries.

For the full implementation of the functions of the ECB provides for loans-for-shares auctions for other large banks, offers stabilization loans, conducts transactions on open markets and takes part in foreign exchange transactions.

Despite the fact that the ECB is an independent bank and upholds this right, it has to submit an official report to the European Parliament (Council of Europe) every year.

ECB leadership and capital stock

Currently, the European Central Bank is a legal entity based on international agreements. The authorized capital at the time of the bank's formation amounted to more than 5 billion euros. The main shareholders were the central banks of European countries (German federal bank Deutsche Bundesbank, banks of France, Italy and Spain).

The highest governing bodies of the ECB are the Board of Governors, which consists of the heads of the central banks of European countries, as well as members of the executive board and the board.

History of ECB Presidents

The President is the head of the executive board, the governing board and the general board of the ECB. In addition, the chairman is entrusted with the functional responsibility of representing the bank abroad. The appointment of the President of the European Central Bank is carried out by a majority vote in the European Council for 8 years without the right to re-election.

The presidents of the ECB who have led their post have been:

Wim Duisenberg(years of government: 1998 - 2003). First president not to serve a full 8-year term. Caught the transitional period of the EMI in the ECB. Pegged the guilder to the German mark. He had a great influence in the formation of the euro and the withdrawal of the guilder from circulation. Until the beginning of 2002, coins and banknotes of the guilder remained the legal means of payment, then their place was taken by the common European currency, and the guilders forever remained in the "piggy bank" of numismatists.

Jean-Claude Trichet(years of government: 2003 - 2011). During the reign of the ECB was repeatedly criticized by the political authorities. Thus, the President of France (Nicolas Sarkozy) saw the orientation towards economic growth as the main function of the bank. Trichet, with the support of Germany, demanded the independence of the bank from the "internal" conditions of the EU countries. During the financial crisis and the overall rise in oil prices, Trichet bought bonds from member states of the Eurozone, in connection with which some members of the board resigned in protest. However, it is worth noting the merits of Trichet: he retained control over the interest rate and did not violate the fundamentals of the price stabilization policy.

Mario Draghi(years of government: 2011 - present). Draghi's rule came at a most difficult time, with the beginnings of doubt in European political circles about the future of the EU. In 2016, the UK left the union. Draghi's policy at the ECB is marked by restraint on rising inflation and a constant avoidance of solving Greece's credit problems.

European Bank Operations

Due to the global economic crisis, the ECB switched to the following types of operations:

• Main refinancing operations (reverse liquidity arrangements) conducted every week with a maturity of 2 weeks. The main goal is the volume of refinancing for the financial sector.

• Long-term refinancing operations (reverse transactions for organizing liquidity) conducted once a month with a maturity of 3 months. The main goal is to provide counterparties with additional and long-term collateral.

• Fine-tuning operations are necessary to mitigate the impact of unexpected fluctuations in liquidity.

• Structural transactions are a special issue of debt certificates, reverse and forward transactions. The main goal is to change the structural position of the EU in the financial sector through adjustments.

ECB rate

At the moment, the most exciting issue for the European bank remains the growth and level. In June 2014, the deposit rate went negative and is currently -0.4%, while the ECB interest rate is zero:

Current rates and their history can be seen on the ECB website: http://www.ecb.europa.eu/stats/policy_and_exchange_rates/key_ecb_interest_rates/html/index.en.html. The Bank's Board of Governors opined in July 2017 that wage growth assumptions were too high and risky in a dead labor market. A slight increase in wages and the strengthening of the euro give a forecast for 2019 of a decrease in inflation.

The ECB has been firm about buying 60 billion euros of bonds every month until the end of this year and the ability to increase the pace or duration of purchases if necessary.

In addition, the zero key rate will remain at the current level for some time after the end of the purchase. The ECB, despite the actions of the US Federal Reserve System, which started the game of raising rates, continues its own monetary policy.

It is worth noting that the Bank of England, despite the UK's exit from the EU, supports a similar policy to the ECB.

ECB exchange rate

ECB rates can also be viewed on the official website of the European Bank http://www.ecb.europa.eu/stats/policy_and_exchange_rates/euro_reference_exchange_rates/html/index.en.html.

By clicking on the chart icon on the right, you can get the exchange rate of the required currency against the euro from the beginning of its appearance, i.e. since 1999. For example, this is how the full dollar/euro exchange rate looks like:

As you can see, in the early 2000s there was a period when the dollar was worth more than the euro (which, by the way, not everyone knows about), and the range of quotes was from 0.85 to 1.6. The rate of the European Central Bank for the European currency is approved based on the results of trading sessions on world exchanges, i.e. in fact, according to the results of trading of the world's largest banks. In the calculation of quotes, the main role is played by the opening price (the initial exchange transaction) and the closing price (the final exchange transaction).

The basis for the approval of their own exchange rates among commercial banks is the ECB rate published on the official portal - the link is given above. With the help of archive data on quotes (published on the official portal of the bank), you can view the dynamics of daily changes in currency quotes over a certain long-term period (month, quarter, etc.).