Organisation

Tasks of the ECB (1/2)

In contrast to the national central banks (NCBs), the ECB carries out only a few operations. Instead, it focuses on formulating the policies and on ensuring that the decisions are implemented consistently by the NCBs.

In particular, the ECB is responsible for

• Defining Eurosystem policies: the Governing Council of the ECB is in charge of monetary policy for the single currency. This includes the definition of price stability, how inflationary risks are analysed, etc. 
• Deciding, coordinating and monitoring the monetary policy operations: the ECB instructs the NCBs on the details of the required operations (value, time, date, etc.) and checks their successful execution.
• Adopting legal acts: within closely defined limits, the decision-making bodies have the power to issue intra-Eurosystem binding legal acts, such as Guidelines and Instructions, to ensure that decentralised operations are carried out consistently by the NCBs. Moreover, within defined limits, they can adopt Regulations and Decisions, which are binding outside the Eurosystem. 
• Authorising the issuance of banknotes: this encompasses the strategic planning and coordination of the production and issuance of euro banknotes. Furthermore, the ECB coordinates the Eurosystem's research and development activities and the security and quality of the euro banknote production. In addition, the ECB hosts the Counterfeit Analysis Centre for the analysis and classification of euro counterfeits, the central database for euro banknote counterfeits, and the International Counterfeit Deterrence Centre, which contributes to global central bank cooperation on counterfeit deterrence under the auspices of the G10 Governors.
• Interventions on the foreign exchange markets: if needed, also jointly with individual NCBs. This involves the buying and/or selling of currencies on foreign exchange markets.
• The operation of payment systems and the oversight of payment and other financial market infrastructures: payment systems are a means of transferring money within the banking system. The ECB acts as operator of T2-ECB, a component system of TARGET2, the payment system for the euro. Furthermore, the ECB, together with the Eurosystem NCBs, performs certain oversight tasks, with oversight being the central bank function through which the safety and efficiency of financial market infrastructures and payment instruments are promoted by monitoring assessments and, where necessary, inducing change. The ECB, in cooperation with the NCBs, also induces market change in order to foster the integration of financial market infrastructures and harmonise payment services in euro. The Single Euro Payments Area (SEPA) for retail payments is a prominent example of the ECB’s work as a catalyst for financial market harmonisation.