De Nederlandsche Bank
Encyclopedia
De Nederlandsche Bank is the central bank
of the Netherlands
. It is part of the European System of Central Banks
(ESCB).
(ESCB). On that same day, the new Bank Act (of 1998) came into force. Nearly 185 years into its existence, the Nederlandsche Bank has entered a new phase.
The first two tasks – also known as the ESCB tasks – ensue entirely from the Maastricht Treaty. Decisions in these areas are taken at the European level by the ECB Governing Council, on which the President of the Nederlandsche Bank has a seat. Promoting the smooth operation of payment systems has both a European and a national dimension. The statistical task is also partly ESCB-related and partly a national concern. These two tasks will not be transferred to ESCB level at the start of EMU. Here the Nederlandsche Bank remains fully in control. However, in a Europe where economies are becoming increasingly interlocked, many banking supervisory rules are drawn up at the international level.
One of the government appointed members of the Social-Economic Council
is always a representative of the DNB.
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
of the Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
. It is part of the European System of Central Banks
European System of Central Banks
The European System of Central Banks is composed of the European Central Bank and the national central banks of all 27 European Union Member States.-Functions:...
(ESCB).
History
On 2 May 1998, the European heads of state or government decided that Economic and Monetary Union (EMU) will set off on 1 January 1999 with eleven Member States of the European Union (EU), the Netherlands included. As from 1 June 1998, the Dutch central bank, De Nederlandsche Bank N.V., forms part of the European System of Central BanksEuropean System of Central Banks
The European System of Central Banks is composed of the European Central Bank and the national central banks of all 27 European Union Member States.-Functions:...
(ESCB). On that same day, the new Bank Act (of 1998) came into force. Nearly 185 years into its existence, the Nederlandsche Bank has entered a new phase.
Tasks of De Nederlandsche Bank
Under the 1998 Bank Act – replacing that of 1948 – the Bank has the following tasks:- Within the framework of the ESCB, the Bank shall contribute to the definition and implementation of monetary policy within the European Community (EC). The Bank has the objective to maintain price stability. Without prejudice to this objective, the Bank shall support the general economic policy in the EC.
- The Bank shall hold and manage the official foreign reserves, and shall conduct foreign-exchange operations.
- The Bank shall collect statistical data and produce statistics.
- The Bank shall promote the smooth operation of payment systems; it shall take care of the banknote circulation.
- The Bank shall supervise banks, investment institutions and exchange offices.
- The Bank may, subject to permission by Royal Decree, perform other tasks in the public interest. The European Central Bank (ECB) may also ask the Bank to perform extra tasks.
The first two tasks – also known as the ESCB tasks – ensue entirely from the Maastricht Treaty. Decisions in these areas are taken at the European level by the ECB Governing Council, on which the President of the Nederlandsche Bank has a seat. Promoting the smooth operation of payment systems has both a European and a national dimension. The statistical task is also partly ESCB-related and partly a national concern. These two tasks will not be transferred to ESCB level at the start of EMU. Here the Nederlandsche Bank remains fully in control. However, in a Europe where economies are becoming increasingly interlocked, many banking supervisory rules are drawn up at the international level.
One of the government appointed members of the Social-Economic Council
Social-Economic Council
The Sociaal-Economische Raad is a major economic advisory council of the Dutch government. Formally it heads a system of sector-based regulatory organizations. It represents the social partners trade unions and employers' organizations...
is always a representative of the DNB.
See also
- Economy of the NetherlandsEconomy of the NetherlandsOn the Index of Economic Freedom, the Netherlands is the 13th most laissez-faire capitalist economy out of 157 surveyed countries. At the time of writing the Netherlands is the 16th largest economy of the world. Between 1998 and 2000 annual economic growth averaged nearly 4%, well above the...
- European Central BankEuropean Central BankThe European Central Bank is the institution of the European Union that administers the monetary policy of the 17 EU Eurozone member states. It is thus one of the world's most important central banks. The bank was established by the Treaty of Amsterdam in 1998, and is headquartered in Frankfurt,...
- Central Bank of Curaçao and Sint Maarten
- Central Bank of ArubaCentral Bank of ArubaThe Central Bank of Aruba is a central bank in Aruba responsible for implementation of monetary policy of the Aruban florin.-History:The Centrale Bank van Aruba started its operations on January 1, 1986, when Aruba obtained its status as an autonomous country within the Kingdom of the Netherlands...
- Euro
- Dutch gulden
- Netherlands Authority for the Financial MarketsNetherlands Authority for the Financial MarketsThe Netherlands Authority for the Financial Markets is the financial services regulatory authority for the Netherlands. Its role is comparable to the role of the SEC in the United States.-History:...