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The European Central Bank (ECB) is the central bank for the eurozone, the group of European Union (EU) countries that have adopted the euro as their primary currency. Its main tasks include defining and implementing the monetary policy for the eurozone, conducting foreign exchange operations, holding and managing the official foreign reserves of the eurozone countries, and promoting the smooth operation of payment systems. The ECB aims to maintain price stability within the eurozone, seeking to keep inflation under control. It does not directly offer banking services to the public or companies but rather influences the economic environment through the management of interest rates and the supply of money. The ECB also plays a crucial role in banking supervision, working alongside national supervisory authorities to ensure the stability and solidity of the banking system. The European Central Bank is headquartered in Frankfurt, Germany.
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