Sunday , June 16 2019
Home / European Central Bank
European Central Bank

European Central Bank

Since 1 January 1999 the European Central Bank (ECB) has been responsible for conducting monetary policy for the euro area - the world’s largest economy after the United States.

Articles by European Central Bank

Luis de Guindos: Interview with Corriere della Sera

2 days ago

Interview with Luis de Guindos, Vice-President of the ECB, conducted by Federico Fubini on 13 June 2019The 5y5y forward inflation rate is at an all-time low and clearly below where it was when Mario Draghi first hinted at quantitative easing (QE) in 2014. The ECB has already done some more easing and President Draghi himself mentioned that there was an interesting discussion at the latest Governing Council meeting on different tools to do some more easing – the asset purchase programme (APP) and others. What do you need to see in order to decide to do more?What we need to see is a de-anchoring of inflation expectations. This has not yet happened, despite the fact that there has been a drop in market-based inflation expectations. If you look at the survey of professional forecasters, the

Read More »

Sabine Lautenschläger: Transformation of the retail and wholesale payments landscape in Europe

3 days ago

Speech by Sabine Lautenschläger, Member of the Executive Board of the ECB, at the European Association of Co-operative Banks, Berlin, 14 June 2019The European payments market has come a long way since 1992 when the Maastricht Treaty laid the foundation for the euro as a single currency. The road may have occasionally been long and winding but the facts speak for themselves: today, the euro is the second most used currency in the world and the Single Euro Payments Area (SEPA) which extends beyond the EU affects the lives and businesses of over 500 million people, 20 million companies and 4,000 payment service providers. The European payments market generates more than 130 billion non-cash payments per year, representing approximately one-quarter of the global payments business.For more than

Read More »

International use of the euro increases

4 days ago

PRESS RELEASE13 June 2019Euro’s share in global foreign exchange reserves rose by 1.2 percentage points in 2018Role of euro also strengthened in debt issuance and remained stable as invoicing currencyPolicies for deeper economic and monetary union are key to supporting a further rise in international role of the euroThe euro’s international role strengthened in 2018 and early 2019 reversing a declining trend in recent years. This was one of the principal findings in the latest annual report on The international role of the euro, published today by the European Central Bank (ECB).Adjusting for exchange rate valuation effects, the share of the euro as a global exchange reserve currency was 1.2 percentage points higher at the end of 2018 than at the end of 2017 (20.7% compared with 19.5%).

Read More »

Benoît Cœuré: The effects of APP reinvestments on euro area bond markets

5 days ago

Closing remarks by Benoît Cœuré, Member of the Executive Board of the ECB, at the ECB’s Bond Market Contact Group meeting, 12 June 2019In December 2018 the Governing Council decided to halt net purchases under its asset purchase programme (APP) and to continue reinvesting, in full, the principal payments from maturing securities for an extended period of time past the date when we start raising the key ECB interest rates, and in any case for as long as necessary to maintain favourable liquidity conditions and an ample degree of monetary accommodation.In my short remarks this evening I will take stock of euro area bond market developments since the start of the year without elaborating on the future course of monetary policy, which the Governing Council discussed at its meeting last week in

Read More »

Mario Draghi: Welcome remarks

5 days ago

Speech by Mario Draghi, President of the ECB, at the 8th ECB conference on central, eastern and south-eastern European countries, Frankfurt, 12 June 2019Dear guests and colleagues,It is a great pleasure to welcome you to the eighth ECB conference on central, eastern and south-eastern European (CESEE) countries. There are many differences between the 18 economies in the CESEE region[1], but one thing they have in common is that they have all experienced real economic convergence towards the EU average since the 1990s. Over the last two decades, in particular, real GDP per capita growth has averaged 3.8% in the region, compared with 1.4% in the European Union (EU) as a whole. But there has been a clear difference in the pace of convergence.[2] Countries that have joined the EU, and which are

Read More »

ECB appoints Ulrich Bindseil as Director General Market Infrastructure and Payments

6 days ago

PRESS RELEASE11 June 2019The Executive Board of the European Central Bank (ECB) has appointed Ulrich Bindseil as Director General of Market Infrastructure and Payments (DG-MIP). Mr Bindseil will replace Marc Bayle, who is leaving the ECB to take up a position in the private sector.Mr Bindseil, 49, is currently Director General of the Directorate General Market Operations (DG-M), a post he has held since May 2012. He served as Deputy Director General of the same Directorate General from September 2009 and prior to that headed the ECB’s Risk Management Division. Mr Bindseil started working in the field of central banking in 1994 in the Economics Department of the Deutsche Bundesbank. He joined the European Monetary Institute in 1997 to work on the preparation of the ECB’s liquidity

Read More »

Luis de Guindos: The euro area economy and our monetary policy stance

7 days ago

Remarks by Luis de Guindos, Vice-President of the ECB, during the Instituto de Empresa (IE) Business Leadership Forum at the IE Business School, Madrid, 10 June 2019Recent economic developmentsDespite the somewhat better than expected data for the first quarter, in part due to temporary factors, the most recent information indicates that global headwinds continue to weigh on the euro area outlook. In particular, world trade remains subdued due to rising trade tensions and the global growth momentum has slowed somewhat, mainly on account of the weakness in manufacturing. Moreover, downside risks have increased on account of the re-escalated trade dispute between the US and China. Also, uncertainty surrounding Brexit is prolonged and fragilities in emerging market economies remain. While

Read More »

Mario Draghi, Luis de Guindos: Introductory statement to the press conference (with Q&A)

11 days ago

Mario Draghi, President of the ECB,Luis de Guindos, Vice-President of the ECB,Vilnius, 6 June 2019INTRODUCTORY STATEMENTJump to the transcript of the questions and answersLadies and gentlemen, the Vice-President and I are very pleased to welcome you to our press conference. I would like to thank Chairman of the Board Vasiliauskas for his kind hospitality and express our special gratitude to his staff for the excellent organisation of today’s meeting of the Governing Council. We will now report on the outcome of our meeting.Based on our regular economic and monetary analyses, we have conducted a thorough assessment of the economic and inflation outlook, also taking into account the latest staff macroeconomic projections for the euro area. As a result, the Governing Council took the

Read More »

Monetary policy decisions

11 days ago

PRESS RELEASE6 June 2019At today’s meeting, which was held in Vilnius, the Governing Council of the European Central Bank (ECB) took the following monetary policy decisions:(1) The interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.40% respectively. The Governing Council now expects the key ECB interest rates to remain at their present levels at least through the first half of 2020, and in any case for as long as necessary to ensure the continued sustained convergence of inflation to levels that are below, but close to, 2% over the medium term. (2) The Governing Council intends to continue reinvesting, in full, the principal payments from maturing securities purchased

Read More »

ECB announces details of new targeted longer-term refinancing operations (TLTRO III)

11 days ago

PRESS RELEASE6 June 2019Operations aim to preserve favourable bank lending conditions and to support the accommodative stance of monetary policyTLTRO III interest rate will be set at 10 basis points above the average MRO rate over the life of each operationFor counterparties exceeding their lending benchmark a lower interest rate will apply, which can be as low as the average deposit facility rate plus 10 basis pointsThe Governing Council of the European Central Bank (ECB) today decided on key parameters of the new series of targeted longer-term refinancing operations (TLTRO III), including the interest rates that will be charged. The quarterly operations, first announced in March, will help preserve favourable bank lending conditions and support the accommodative stance of monetary

Read More »

EU structural financial indicators: End of 2018 (preliminary results)

13 days ago

PRESS RELEASE4 June 2019The decline in the number of bank branches continued in most EU countries, on average by 7.5%.Also the number of bank employees decreased, on average by 2.3%.The degree of concentration of the banking sector differs across national markets very widely, with the share of assets of the five largest banks at national level varying from 26% to 97%.The European Central Bank (ECB) has updated its dataset of structural financial indicators for the banking sector in the European Union (EU) with preliminary results for the end of 2018. This annual dataset comprises statistics on the number of branches and employees of EU credit institutions, data on the degree of concentration of the banking sector in each EU Member State, and data on foreign-controlled institutions in EU

Read More »

Peter Praet: Entretien avec L‘Echo

17 days ago

Entretien avec Peter Praet, membre du directoire de la BCE, accordé à Marc Lambrechts le 22 mai et publié le 1 juin 2019Vous avez reçu de nombreuses félicitations au terme de votre mandat à la BCE. Est-ce difficile pour vous de quitter Francfort ? Je n’ai pas vraiment d’état d’âme, ce sera peut-être pour plus tard (rires). Mon départ ici était anticipé, c’est donc quelque chose de normal. Dans ma vie, j’ai souvent changé de job. C’est vrai que c’était un travail très prenant ici, avec un rythme de vie très intense. C’était beaucoup de travail et de responsabilités. Pendant huit ans, on a quand même vécu des moments très difficiles. Ce sur quoi j’insiste toujours, c’est la collégialité des décisions et l’esprit d’équipe. Lorsque j’étais en Belgique, j’ai aussi connu des moments compliqués.

Read More »

ECB provides a one-off spread between €STR and EONIA

17 days ago

PRESS RELEASE31 May 2019Spread between €STR and EONIA is calculated at 0.085% (8.5 basis points)Spread is based on methodology recommended by Working Group on euro risk-free ratesSpread is to be used by EMMI in new EONIA methodology as of 2 October 2019 ISIN assigned to €STR is EU000A2X2A25 (FISN: ECB/EUR EURO SHORT-TERM RATE IR)The European Central Bank has calculated the spread between €STR and EONIA based on the methodology as recommended by the Working Group on euro risk-free rates and adopted by the European Money Market Institute (EMMI) for the recalibration of the EONIA methodology as of 2 October 2019 and until its discontinuation by EMMI. The ECB has calculated this spread at 0.085% (8.5 basis points) on the basis of daily EONIA and pre-€STR data from 17 April 2018 to 16 April

Read More »

Peter Praet: Interview met De Tijd

17 days ago

Interview Peter Praet, Lid van de directie van de ECB, afgenomen door Peter de Groote en Wouter Vervenne op 22 mei en gepubliceerd op 1 juni 2019Het is opvallend hoe populair u hier bent, en hoeveel kritiek u soms buiten Frankfurt krijgt. Hoe tevreden bent u zelf over wat u bij de ECB bereikt hebt? Peter Praet: ‘Het mandaat van de ECB is er één van prijsstabiliteit (een inflatiedoelstelling van minder dan maar dicht bij 2 procent). Een pijnpunt blijft dat de inflatie nog altijd vrij laag is en dat we het bereiken van onze inflatiedoelstelling met de jaren almaar verder voor ons uit moeten hebben schuiven. Toch denk ik dat ons beleid een succes geweest is.’ U hanteert een aparte definitie van succes. Praet: ‘Die inschatting is controversieel, ik weet dat. Maar kijk, ook al is de inflatie

Read More »

Challenges to financial stability increase amid downside risks to the economic outlook

19 days ago

PRESS RELEASE29 May 2019Materialisation of downside risks to economic growth could spark greater financial market volatilityPersistent downside risks to growth reinforce the need to strengthen balance sheets of highly indebted firms and governmentsBank profitability prospects subdued given slow progress in addressing structural issues“If downside risks to the growth outlook were to materialise, risks to financial stability may arise,” said Luis de Guindos, Vice-President of the ECB. “The growth outlook is central to all the main risks to financial stability.” Uncertainty about global economic growth prospects has contributed to bouts of high volatility in financial markets. Weaker than expected growth and a possible escalation of trade tensions could trigger further falls in asset prices,

Read More »

Report on the results of the Survey on the Access to Finance of Enterprises in the euro area – October 2018 to March 2019

19 days ago

PRESS RELEASE29 May 2019Survey results consistent with moderation in growth momentum Availability of skilled labour and difficulty finding customers dominant concerns for SMEsSMEs’ financing conditions and access to finance still favourable despite somewhat higher financing costs and increased macroeconomic uncertaintyFor the period from October 2018 to March 2019 the net percentage of euro area SMEs reporting higher turnover declined (21%, down from 25% for the previous period). At the same time, euro area SMEs reported unchanged profits in net terms (0%, down from 3%), while more SMEs reported growing labour costs (52%, up from 51%), increases in other costs (i.e. material and energy) (57%, unchanged), and rising interest expenses (5%, up from 4%).Availability of skilled labour continued

Read More »

Yves Mersch: Back to stable

19 days ago

Speech by Yves Mersch, Member of the Executive Board of the ECB, at Zahlungsverkehrssymposium, Deutsche Bundesbank, Frankfurt am Main, 29 May 2019The primary objective of the ECB is to ensure price stability. This is also the best contribution we can make to achieving sustainable growth.[1] Since the launch of the euro, the ECB has delivered on this commitment and rendered price stability a reality, maintaining an average inflation rate of below, but close to, 2%. And that is why the majority of euro area citizens trust the euro.[2]Their trust is contingent on the independence of the central bank. Independence is granted to central banks to prevent politicians from seeking electoral gain through measures which boost economic activity in the short term but damage the long-term health of the

Read More »

ECB launches scholarship for women in economics

19 days ago

PRESS RELEASE29 May 2019ECB offering economics master’s degree scholarship to up to five female students Each scholarship student to receive €10,000 per year for tuition and other related costsScholarship one of ECB’s initiatives to promote diversity and gender balance in central bankingThe European Central Bank (ECB) has launched a scholarship programme to support women pursuing a master’s degree in economics in Europe. The scholarship is part of the ECB’s initiatives to promote diversity and gender balance in central banking. “We aspire to be an organisation in which diversity is welcomed and appreciated for the richness that it offers. Enabling diversity is vital to our institution to deliver the best possible outcome for our staff and for Europe,” said Mario Draghi, President of the

Read More »

New €100 and €200 banknotes start circulating today

20 days ago

PRESS RELEASE28 May 2019Banknotes with new and upgraded security features enter into circulation todayA satellite hologram and an enhanced emerald number make the banknotes more resistant to counterfeiting €100 and €200 banknotes complete the Europa seriesThe new €100 and €200 banknotes, the last notes in the Europa series, start circulating today. The banknotes use new and innovative security features and are easy to check using the “feel, look and tilt” method.At the top of the silvery stripe a satellite hologram shows small € symbols that move around the number when the banknote is tilted and become clearer under direct light. The silvery stripe also shows a portrait of Europa, the architectural motif and a large € symbol. The new €100 and €200 banknotes also feature an enhanced

Read More »

Benoît Cœuré: Payments for the people

21 days ago

Introductory remarks by Benoît Cœuré, Member of the Executive Board of the ECB and Chair of the CPMI, at the ‘High-level meeting on financial inclusion’, Basel, 27 May 2019IntroductionThank you Agustín for the kind words of welcome and for hosting this fifth high-level meeting on financial inclusion. Thanks also for your continuing support of the Committee on Payments and Market Infrastructures (CPMI). I am honoured to be co-hosting this meeting with Queen Máxima of the Netherlands. Her Majesty is here today in her capacity as the United Nations Secretary-General’s Special Advocate for Inclusive Finance for Development (UNSGSA). You will also know Queen Máxima as an honorary patron of the G20’s Global Partnership for Financial Inclusion. By lending her voice to raise global awareness of

Read More »

Decisions taken by the Governing Council of the ECB (in addition to decisions setting interest rates)

24 days ago

May 2019Market operationsUpdate of the General DocumentationOn 10 May 2019 the Governing Council adopted Guideline ECB/2019/11 amending Guideline (EU) 2015/510 on the implementation of the Eurosystem monetary policy framework, Guideline ECB/2019/12 amending Guideline (EU) 2016/65 on the valuation haircuts applied in the implementation of the Eurosystem monetary policy framework, and Guideline ECB/2019/13 amending Guideline ECB/2014/31 on additional temporary measures relating to Eurosystem refinancing operations and eligibility of collateral. These Guidelines, which constitute a major part of the legal framework for the implementation of the euro area monetary policy, will be applicable as of 5 August 2019. The amending legal acts and a related press release explaining the changes

Read More »

Luis de Guindos: Building the EU’s capital markets: what remains to be done

25 days ago

Speech by Luis de Guindos, Vice-President of the ECB, Association for Financial Markets in Europe Conference, Supervision and Integration Opportunities for European Banking and Capital Markets, Frankfurt am Main, 23 May 2019It is a pleasure to be here today to share my thoughts on the future of capital markets union (CMU). CMU is undoubtedly a key project for the Association for Financial Markets in Europe (AFME), but it is also important for the European Central Bank (ECB). The primary objective of CMU is to foster deep and diversified capital markets that provide a wide source of financing options to European companies and citizens and act as an engine for investment, innovation and growth. Vibrant EU equity markets and truly diversified cross-border debt markets would complement

Read More »

Account of the monetary policy meeting

25 days ago

Of the Governing Council of the European Central Bank, held in Frankfurt am Main on Wednesday and Thursday, 9-10 April 20191. Review of financial, economic and monetary developments and policy optionsFinancial market developmentsThe Vice-President, standing in for Mr Cœuré, reviewed the latest financial market developments. Since the Governing Council’s previous monetary policy meeting on 6-7 March 2019, global risk sentiment had improved across various market segments. Equity market indices had continued to rise, recording one of the strongest first quarter performances since the global financial crisis, while government bond prices had also increased. At the same time, foreign exchange rates had mostly remained broadly stable. Expectations that monetary policy would remain supportive

Read More »

Luis de Guindos: Global financial regulation: where next? Pending tasks for regulators and macroprudential policy makers

27 days ago

Speech by Luis de Guindos, Vice-President of the ECB, London City Week, London, 21 May 2019Introduction More than ten years have passed since the global financial crisis triggered a comprehensive regulatory reform process. Many important measures have been put in place since then. The title of the next panel discussion therefore raises a very pertinent question for global regulators: where next? Should regulators take a long break, as some stakeholders might quietly hope? Or is there still work to be done? As you might imagine, I tend towards the view that it is not the time for regulators to rest. In my remarks today, I will touch upon three areas that require further efforts. First, for the banking sector, we need to ensure the full and timely implementation of Basel III standards and a

Read More »

Luis de Guindos: Deepening EMU and the implications for the international role of the euro

May 16, 2019

Speech by Luis de Guindos, Vice-President of the ECB, at the occasion of the joint conference of the European Commission and the European Central Bank on European financial integration and stability, Brussels, 16 May 2019It is a great pleasure to be speaking today at the joint European Commission and ECB conference on financial integration in Europe. The choice of the international role of the euro as the guiding theme represents a change in focus in the discussions on Economic and Monetary Union (EMU) reforms, from a post-crisis response to a broader agenda. At the same time, Europe is facing new challenges, not least a return to fragmentation at the global level and the United Kingdom’s departure from the EU, amid heightened political uncertainty. In this context, I would like to give an

Read More »

Benoît Cœuré: The rise of services and the transmission of monetary policy

May 16, 2019

Speech by Benoît Cœuré, Member of the Executive Board of the ECB, at the 21st Geneva Conference on the World Economy, 16 May 2019One of the biggest mysteries currently facing central banks around the world is why inflation has failed to pick up more forcefully after years of extraordinary monetary stimulus.[1] This is one of the most fiercely debated topics in macroeconomics, with few definitive answers.Many explanations have been put forward, including discussions on the appropriate measure of economic slack, the role of inflation expectations and the effects of globalisation and digitalisation.[2]One aspect that has received much less attention in the public discussion, however, relates to the impact of the structural transformation of our economies on inflation dynamics and monetary

Read More »

Peter Praet: On the importance of institutions as provider of stability and protection in an uncertain world

May 15, 2019

Speech by Peter Praet, Member of the Executive Board of the ECB, Steptoe Brussels Open Conference Series, Brussels, 15 May 2019Uncertainty and economic developments[1]The economic literature – both theoretical and empirical – finds a link between heightened uncertainty and lower economic activity in the short run. There are usually fixed costs involved with investment, from creating new capital such as building a factory to hiring new staff, which cannot be recovered if the investment decision is reversed. So faced with an increase in uncertainty, businesses pare back investment plans. Similarly, if households fear unemployment or lower income from employment in the future they may reduce consumption today.[2]Chart 1: Measures of euro-area uncertaintySources: Baker, Bloom and Davis, and

Read More »

Benoît Cœuré: Exchange of views with members of the French Parliament

May 15, 2019

Introductory remarks by Benoît Cœuré, Member of the Executive Board of the ECB, prior to an informal exchange of views with the Finance Committee of the National Assembly, Paris, 15 May 2019Mr Chairman,Ladies and gentlemen of the National Assembly,Thank you for inviting me here today. It is a pleasure to engage in an informal exchange of views with you today on the ECB’s monetary policy, and on policies to raise the economic potential of the euro area.Allow me to start by briefly discussing the economic situation of the euro area.The euro area economic outlookIn 2018 the euro area economy grew by 1.9%, compared with 2.4% in the previous year. This moderation in economic growth was mainly due to weaker global trade, as well as some temporary factors at both the domestic and global

Read More »

Working group on euro risk-free rates seeks feedback on EONIA to €STR legal action plan

May 15, 2019

PRESS RELEASE15 May 2019Feedback sought on recommendations for new and legacy contracts referencing EONIAConsultation addresses methodology change for EONIA in October 2019 and its discontinuation at the end of 2021Working Group recommends that all market participants switch to €STR as soon as possibleToday the working group on euro risk-free rates has launched a public consultation on its draft recommendations to address the legal implications for new and legacy contracts referencing the euro overnight index average (EONIA) as a result of the proposed transition from EONIA to the euro short-term rate (€STR).The EONIA legal action plan addresses two events: (i) the proposed change to the methodology for computing EONIA on 2 October, whereby it will become €STR plus a spread; and (ii) the

Read More »

ECB amends monetary policy implementation guidelines

May 13, 2019

PRESS RELEASE13 May 2019ECB harmonises definition of agencies as issuers or guarantors of debt instrumentsTransparency requirements of EU Securitisation Regulation now part of collateral frameworkUse of rating tools to be phased out from general framework for monetary policy operationsThe European Central Bank (ECB) today published amendments to its guidelines on the implementation of monetary policy in the Eurosystem. The new guidelines (Guidelines ECB/2019/11, ECB/2019/12 and ECB/2019/13) amend (i) the Guideline on the implementation of the Eurosystem monetary policy framework (ECB/2014/60), (ii) the Guideline on the valuation haircuts applied in the implementation of the Eurosystem monetary policy framework (ECB/2015/35), and (iii) the Guideline on additional temporary measures relating

Read More »