Banque Centrale Du Luxembourg (BCL)

The Banque centrale du Luxembourg (BCL) is the monetary authority of Luxembourg and a member of the Eurosystem and the European System of Central Banks. It was established on 1 June 1998 in accordance with the provisions of the law of 22 April 1998. The BCL is currently governed by its Organic Law of 23 December 1998, as amended several times. The BCL was set up at the same time as the European Central Bank (ECB). Their inception represents the outcome of long efforts pertaining to the creation of the European Economic and Monetary Union. The state of Luxembourg is the sole shareholder of the BCL's capital for an amount of 175 million euro (25 million euro as of 31 December 2008). The capital increase was realised by incorporation of reserves amounting to 150 million euro as of 1 June 2009. The BCL, however, is independent, a fact that is provided for in its Organic Law and in the Treaty. The role of the BCL is of utmost importance not only for the euro area but also for Luxembourg. The Treaty on European Union and the advent of the euro made the establishment of a central bank in Luxembourg an absolute necessity. The BCL is entrusted with essential missions related to monetary policy, the issuing of banknotes, financial stability, payment systems and economic analysis.