Deutsche Bundesbank

The Deutsche Bundesbank is the central bank of Germany, established in 1957 as the successor to the Bank deutscher Lander. Founded after the negative experience of a central bank subject to direct government orders, the Weimar-era Reichsbank's hyperinflationary money creation of the early 1920s among the formative memories behind the decision, the Bundesbank was built as the first central bank given full legal independence from government instruction, a model that became known internationally as the 'Bundesbank model.' Its firm, credible commitment to low inflation through the second half of the twentieth century made the Deutsche Mark one of the world's most respected currencies. Since 1999 the Bundesbank has operated as an integral part of the Eurosystem and the European System of Central Banks, implementing the single monetary policy the European Central Bank sets for the euro area while retaining national banking-supervision and financial-stability functions.