The Banque de France is the central bank of France; it is linked to the European Central Bank (ECB). Its main charge is to implement the interest rate policy of the European System of Central Banks (ESCB).
Linkage with the ESCB
On June 1, 1998, a new institution was created, the European Central Bank (ECB), charged with steering the single monetary policy for the euro. The body formed by the ECB, and the national central banks (NCB) of all the member states of the European Union, constitute the European System of Central Banks (ESCB).
The ESCB is an institutional framework of a single monetary policy for the euro. According to the Banque de France's website, the "sharing of responsibilities between the ECB and the NCBs is based upon significant decentralization of the conduct of the ESCB's single monetary policy".
History
- 1716 John Law opens Banque Generale
- 1718 Banque Generale is acquired by the government and renamed Banque Royale
- 1800 Creation of the Banque de France
- 1808-1936 The Bank's notes became legal tender; expansion of the branch network
- 1936-1945 Nationalization
- 1973 Rewriting of the Bank's statutes
- 1993 A landmark reform granted the Bank independence, in order to ensure price stability, regardless of domestic politics. This reform cleared the path for the European monetary union.
- 1998 Entered the European System of Central Banks
This timeline is based largely on the official Banque de France website (http://www.banque-france.fr/gb/banque/main.htm ).
External link