Germany - 50th Anniversary of German Federal Bank
2007 J Proof Silver 10 Euros 32.5mm (18.03 grams) 0.925 Silver (0.5353 oz. ASW)
Reference: KM# 266
10 EURO 2007 J BUNDESREPUBLIK DEUTSCHLAND, Eagle on rectangular design.
50 JAHRE DEUTSCHE BUNDESBANK, Buildings right, coin-stack, gold bars and currency left on graph.
Edge Lettering: PREISSTABILITÄT GEWÄHRLEISTEN
You are bidding on the exact item pictured, provided with a Certificate of Authenticity and Lifetime Guarantee of Authenticity.
 The Deutsche Bundesbank is the central bank of the Federal Republic of Germany and as such part of the European System of Central Banks (ESCB). Due to its strength and former size, the Bundesbank is the most influential member of the ESCB. Both the Bundesbank and the European Central Bank (ECB) are located in Frankfurt, Germany. It is sometimes referred to as "Buba" for Bundesbank, while its official abbreviation is BBK.
The Bundesbank was established in 1957 and succeeded the Bank deutscher Länder, which introduced the Deutsche Mark on 20 June 1948. Until the euro was physically introduced in 2002, the Bundesbank was the central bank of the former Deutsche Mark ("German Mark", sometimes known in English as the "Deutschmark"). The Bundesbank was the first central bank to be given full independence, leading this form of central bank to be referred to as the Bundesbank model, as opposed, for instance, to the New Zealand model, which has a goal (i.e. inflation target) set by the government. Nowadays, the ECB also uses the Bundesbank model, making the concept the foundation of the entire Euro system. The Bundesbank was greatly respected for its control of inflation through the second half of the 20th century. This made the German Mark one of the most respected currencies, and the Bundesbank gained substantial indirect influence in many European countries. 1948-1957The history of the Bundesbank is inextricably linked with the history of the German currency after the Second World War. Following the total destruction after the war, the old Reichsmark was practically worthless, and a currency reform was implemented in the western occupation zones including West Berlin: on 21 June 1948, the D-Mark, or Deutsche Mark, replaced the Reichsmark. The currency reform was based on laws enacted by the Allied military government. In preparation, the Western Powers established a new two-tier central bank system in the occupied zones; in its federal structure, it was modeled on the Federal Reserve System of the USA. It comprised the central banks of the states (Länder) of the West German occupation zones and the Bank deutscher Länder in Frankfurt am Main, which was created on 1 March 1948. The central banks of the Länder acted as central banks within their areas of jurisdiction. The Bank deutscher Länder, whose share capital was held by the central banks of the Länder, was responsible for issuing bank notes, co-ordinating policy and various central tasks including management of foreign exchange. The supreme governing body of the two-tier central bank system was the Central Bank Council (Zentralbankrat) set up at the Bank deutscher Länder. It consisted of a president, the presidents of the central banks of the Länder and the president of the directorate (board) of the Bank deutscher Länder. Amongst other things, the Central Bank Council determined policy on bank rate and minimum reserve policy, open-market policy guidelines and granting of credit. After the negative experience with a central bank subject to government orders, the principle of an independent central bank was established. The Bank deutscher Länder was independent of German political bodies from the start, including the federal German government, which was active from September 1949. It achieved independence from the Allies in 1951. 1957-1990The German "Basic Law" (constitution), which had come into force on 23 May 1949, placed an obligation on the German federal legislature to establish a federal bank responsible for the issue of bank notes and currency. The legislature fulfilled this obligation by passing the Bundesbank Act (BBankG) of 26 July 1957, which abolished the two-tier structure of the central bank system. The central banks of the Länder were now no longer independent note-issuing banks, but became regional headquarters of the Bundesbank, nevertheless retaining the title "state central bank" (Landeszentralbank). The Central Bank Council remained the supreme decision-making body of the Bundesbank. It was now made up of the presidents of the central banks of the Länder and a board of directors based in Frankfurt. The Central Bank Council decided on the currency and credit policy and laid down rules for management. As the central executive body of the Bundesbank, the Directorate (Direktorium) was responsible for implementing the decisions of the Central Bank Council. The Directorate ran the bank and was, in particular, responsible for dealings with the federal government and its "special assets" (Sondervermögen), for transactions with credit institutes operating in the Federal republic of Germany, for currency transactions, and foreign commercial transactions, and for open-market dealings. The Directorate was made up of the president and the vice-president of the Bundesbank and up to six additional members. The central banks of the Länder carried out business falling in their areas independently. The Bundesbank Act explicitly made them responsible for dealings with public bodies and credit institutes. The central Banks of the Länder also controlled the subsidiary bodies (Zweiganstalten), now called branches (Filialen). Overall management of each Land central bank was in the hands of its executive board (Vorstand), which as a rule consisted of the president and the vice-president of the bank. 1990-1993In the wake of the Fall of the Berlin Wall, the Federal Republic of Germany and the German Democratic Republic signed a treaty on 18 May 1990, that created an economic, social and currency union between the two German nations; it came into force on 1 July 1990, and made the Deutsche Mark the sole legal tender in both German states. The Bundesbank was made responsible for money and currency policy within the whole of the currency union. A "Provisional Administration Body" was set up for the purpose of implementing the treaty, and this body continued to operate beyond the official date of reunification until 31 October 1990. The Bundesbank Act was amended to adjust the organizational structure of the Bundesbank to better match changed circumstances following German reunification, and at the same time streamline the organisation. The eleven central banks of the Länder and the Provisional Administrative Body were replaced by nine central banks of similar economic size. The Maastricht Treaty that came into force on 1 November 1993 laid the foundation for the European Economic and Currency Union (EECU). National responsibility for monetary policy was transferred, at the Community level, to the European System of Central Banks (ESCB), comprising the European Central bank (ECB) and the national central banks (NCBs) of the EU states. Until the ECB became fully responsible for currency in 2001, the Bundesbank had three governing bodies. The Central Bank Council (Zentralbankrat) was the supreme body of the Bundesbank. It was made up of: - the Directorate, which comprised the president, the vice-president and six additional members. These eight people were nominated by the Federal Government (Bundesregierung)
- The nine presidents of the Landeszentralbanken. These were nominated by the Bundesrat.
The Directorate was the executive body of the Bundesbank, while all currency policy decisions were made by the Central Bank Council. 2001-present (2006)In 2001 the ECB took over full control of currency. The Bundesbank Act was last amended in 2002 by the 7th Law Amending the Law on the Bundesbank of 30 April 2002, which gave the Bundesbank its current structure.
 Germany, officially the Federal Republic of Germany is a federal parliamentary republic in western-central Europe. It includes 16 constituent states and covers an area of 357,021 square kilometres (137,847 sq mi) with a largely temperate seasonal climate. Its capital and largest city is Berlin. With 81 million inhabitants, Germany is the most populous member state in the European Union. After the United States, it is the second most popular migration destination in the world.
 Various Germanic tribes have occupied northern Germany since classical antiquity. A region named Germania was documented before 100 CE. During the Migration Period the Germanic tribes expanded southward. Beginning in the 10th century, German territories formed a central part of the Holy Roman Empire. During the 16th century, northern German regions became the centre of the Protestant Reformation.
 The rise of Pan-Germanism inside the German Confederation resulted in the unification of most of the German states in 1871 into the Prussian-dominated German Empire. After World War I and the German Revolution of 1918-1919, the Empire was replaced by the parliamentary Weimar Republic. The establishment of the Third Reich in 1933 led to World War II and the Holocaust. After 1945, Germany split into two states, East Germany and West Germany. In 1990, the country was reunified.
In the 21st century, Germany is a great power and has the world's fourth-largest economy by nominal GDP, as well as the fifth-largest by PPP. As a global leader in several industrial and technological sectors, it is both the world's third-largest exporter and importer of goods. Germany is a developed country with a very high standard of living sustained by a skilled and productive society. It upholds a social security and universal health care system, environmental protection and a tuition free university education. Germany was a founding member of the European Union in 1993. It is part of the Schengen Area, and became a co-founder of the Eurozone in 1999. Germany is a member of the United Nations, NATO, the G8, the G20, and the OECD. The national military expenditure is the 9th highest in the world. Known for its rich cultural history, Germany has been continuously the home of influential artists, philosophers, musicians, sportsmen, entrepreneurs, scientists and inventors.
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