Deutsche Bundesbank

To safeguard the currency

By Tian,He

Overview of Bundesbank

• Part of the European System of Central Banks (ESCB)

• Founded in 1957• Frankfurt am Main• 9743 Employees

9 Regional Offices47 Branches nation-wide

• Executive Board• Axel.A.Weber (Member of the Governing

Council of the ECB)

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The Forms of the Bundesbank • 1948-1957• 1957-1990• 1990-1993• 1993-2001• 2001-PRESENT

1948-1957

• Reichsmark was replaced by D-Mark (21 June 1948)

• Two-Tier central bank system• Central Banks of the States• Bank deutscher Lander in Frankfurt am Main

• Central Bank Council

1957-1990• Bundesbank Act (26-July-1957)• Two-Tier Structure Abolished

1990-1993• A treaty on May 18, 1990• The SOLE legal tender in both German states

—D-Mark

1993-2001

• The Maastricht Treaty • National responsibility for monetary policy

was transferred to ESCB

2001- present• ECB took over full control of currency in 2001

Today’s duty• As a note-issuing bank• As the banks' banker• Refinancing Source and Clearing House for the Commercial Banks• Bank Supervision

• As the state's banker• As the manager of currency reserves

Bequeath from Bundesbank• First Priority: Price Stability • Independence of Monetary Policy Making• A Relatively Decentralized Structure

Independence in Bundesbank• The Most Independent Central Bank• Leading the “Bundesbank Model” • Opposite to the “new Zealand model”

• Lessons from the Past

50 Years of the Bundesbank• Legacy of Stability passed on to the

Eurosystem

Resources from• http://www.bundesbank.de• http://en.wikipedia.org

Thanks.