ECB President or other members of the Executive Board of Directors may be heard by the European Parliament on its own initiative or at the request of Parliament. In addition, national laws generally provide that the leaders of CS will also be heard by the national parliaments. European Court of Justice has the power to control the acts or omissions of the ECB. The scope of the ECB includes: 5. loans, including Lombard, financial institutions; 6. open market operations with a variety of financial instruments; 7. the establishment of minimum reserve requirements for credit institutions EMU member countries. A characteristic feature of the ECB is that all the major decisions taken by simple or qualified (2/3) majority, require that "weighted" voting governors of the central banks, in which the "weight" (ie, the number of votes each) determined in accordance with the proportion of the country (its central bank) in the total capital of the ECB. This does not apply to members of the Executive Board of Directors, each of whom has one vote only.
The ECB can do normal operations for central banks: lending, including Lombard (against securities), financial institutions and open market operations with a variety of financial instruments denominated in any currency, including the currency of the non - EMU, as well as precious metals. The same operation can lead national central banks, guided by the general principles which develops the ECB. Charter ECB provides a significant decentralization of the European system of central banks, so that operations such as repurchase agreements and foreign exchange intervention, carried out independently by the national central banks.
Each of them can also independently decide which assets of the commercial banks are acceptable as collateral. The European Central Bank and the national central banks are not lending right (in any form) interstate (in the EEC), state, regional and local authorities and organizations operating on the basis of state law. This, however, does not apply to government lending institutions, which in this case is treated the same as private credit institutions. The ECB and the NCBs may establish relations with central banks and financial institutions in other countries and international organizations and to carry with them all kinds of banking activities, using all financial assets and currencies. Own capital of the ECB to the top of its activity was determined in the amount of 5 billion ECU (ie 5 billion euros since January 1, 1999).
subsequently approved by the Board of Governors, he may increase. The shareholders of the ECB can only national central banks. ECB's capital is generated in proportion to the comparative demographic and economic weight of the NCB. A key indicator in this case is a weighted average of the share of each country's population and GDP, "the euro zone," which is defined by the following formula: o 50% of the shares - in accordance with a specific weight of each country in the total population of the European Economic Community; o 50% - in line with its specific gravity of the combined gross domestic product of the EEC. These data are adjusted every 5 years. According to the constituent documents of the net profit of the ECB shall be distributed as follows: o part of it, which is determined by the Board of Governors (but not more than 20% of net profit) will be transferred to the general reserve fund (the amount of which shall not exceed 100% of the share capital); o the rest distributed among the holders of shares in proportion.
Instruments of monetary policy and operations of the ESCB The Statute of the ESCB (Articles 17 to 24) are defined monetary policy instruments and operations, which will allow the system to solve the tasks entrusted to it. The main instruments of the monetary policy of the ESCB: conducting open market operations, the discount rate by regulation of deposit and loan transactions and the establishment of minimum reserve requirements for credit institutions. The main object of regulation in these operations - liquidity of credit institutions, which directly affects the demand and supply of money in the economy, thereby significantly affecting the rate of inflation. The same for all countries - participants of the "euro zone" conditions of these transactions provide information to participants of the money market on the main directions of monetary policy of the European Economic and Monetary Union and ensure its unity. The operations allowed EMU credit institutions that meet the following eligibility requirements: stability, good governance, broad operational capabilities.
In the list of credit institutions, which must comply with the minimum reserve requirements, includes more than 8000 euro area credit institutions, with over four thousand of them have access to the deposit and loan operations, and about three thousand are involved in the operations of the refinancing.