European Central Bank is considered as one of the world's most important central banks. It is responsible for making and implementing monetary policy. It cover 16 member states of European Union. This bank was established in the year 1998 and has its head quarters in Frankfurt Germany.
The functions of European Central Bank are as follows:
- Maintain Price stability within the Eurozone.
- Define and implement monetary policy of Eurozone.
- Conduct foreign exchange operations.
- Promote smooth operations of money market infrastructure.
- Authorize issuance of euro bank notes.
- Contributes to a stable financial system and monitoring of banking sector.