European Central Bank

The European Central Bank (ECB) is the central institution of the Eurosystem and the Single Supervisory Mechanism. Established in 1998 by the Treaty of Amsterdam, its primary objective is to maintain price stability in the euro area, thereby preserving the purchasing power of the single currency. Its main tasks include defining and implementing monetary policy for the Eurozone, conducting foreign exchange operations, holding and managing the official foreign reserves of the euro area countries, and promoting the smooth operation of payment systems. The ECB also has specific tasks concerning the prudential supervision of credit institutions within the Eurozone.