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Annual Report 2001

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Annual Report 2001 Deutsche Bundesbank Annual Report 2001 We mourn the death in the year 2001 of the former President of the Land Central Bank in the Free and Hanseatic City of Hamburg and Member of the Central Bank Council Friedrich Wilhelm von Schelling † 27 February 2001 of the former President of the Land Central Bank in Bavaria and Member of the Central Bank Council Carl Wagenhöfer † 3 March 2001 of the former President of the Land Central Bank in the Free and Hanseatic City of Hamburg and Member of the Central Bank Council Hans Hermsdorf † 30 December 2001 and of the following members of our staff: Bernd Schultze 8 February 2001 Manfred Arndt 5 March 2001 Ulrich Klopke 29 March 2001 Rainer Fischer 19 April 2001 Wolfgang Thiel 30 April 2001 Heidrun Stahl 16 May 2001 Lutz Wollmann 19 May 2001 Peter Szynka 27 May 2001 Horst Breuer 20 June 2001 Konrad Gronwald 10 July 2001 Denise Schöffler 5 August 2001 Frank Hugendubel 9 September 2001 Theodor L’Honneux 21 September 2001 Peter Schultz 26 September2001 Dr. Achim Hennecke 28 September 2001 Cornelia Soest 6 November 2001 Christa Linke 18 November 2001 Gudrun Graetz 21 November 2001 Peter Wolfraum 14 December 2001 Gerd Fischer 28 December 2001 Günter Kratzke 31 December 2001 We also keep in remembrance the retired staff members of the Bank and of the former Deutsche Reichsbank who died in 2001. We will honour their memory. DEUTSCHE BUNDESBANK Ernst Welteke Members of the Chairman of the Central Bank Council Central Bank Dr Jürgen Stark Deputy Chairman Council of the of the Central Bank Council Deutsche Professor Rolf Eggert Bundesbank Dr Hans Georg Fabritius on 11 April 2002 Dieter Haferkamp Dr Eberhard Heinke Hans-Jürgen Koebnick Hans-Helmut Kotz Klaus-Dieter Kühbacher Edgar Meister Dr Christian Milow Dr Hans Reckers Professor Hermann Remsperger Helmut Schieber Professor Franz-Christoph Zeitler Ernst Welteke Members of the President Directorate of of the Deutsche Bundesbank Dr Jürgen Stark the Deutsche Vice-President Bundesbank of the Deutsche Bundesbank from 4 April 2001 Dr Hans Georg Fabritius to 11 April 2002 Dieter Haferkamp Edgar Meister Professor Hermann Remsperger Baden-Württemberg Free and Hanseatic City of Members Hamburg, Mecklenburg- Helmut Schieber West Pomerania and of the President Schleswig-Holstein Wilhelm Ergenzinger Professor Hans-Jürgen Krupp Executive Vice-President President (until 30 April 2001) Boards Professor Rolf Eggert Free State of Bavaria President of the Land (from 1 May 2001) Professor Franz-Christoph Zeitler Georg Kutter Central Banks President Vice-President from 4 April 2001 Dr Erich Fein Hesse to 11 April 2002 Vice-President Dr Hans Reckers Günter Bäumer President Jürgen Hettinger Berlin and Brandenburg Vice-President Klaus-Dieter Kühbacher President North Rhine-Westphalia Ulrich Preuss Dr Eberhard Heinke President Vice-President Friedel Fleck Vice-President Free Hanseatic City of Bremen, Lower Saxony Dr Axel Stier (until 31 January 2002) and Saxony-Anhalt Hans-Helmut Kotz Rhineland-Palatinate President and Saarland Horst Langefeld Hans-Jürgen Koebnik Vice-President President Bolko Leopold Vice-President Free States of Saxony and Thuringia Dr Christian Milow President Dietmar Girst Vice-President Deutsche Bundesbank Annual Report 2001 Deutsche Bundesbank Telex 41 227 within Germany Wilhelm-Epstein-Strasse 14 4 14 431 from abroad 60431 Frankfurt am Main Fax +49 69 5 60 10 71 Postfach 10 06 02 60006 Frankfurt am Main Internet http://www.bundesbank.de Federal Republic of Germany Reproduction permitted only if source is stated. Tel +49 69 95 66 -1 or +49 69 95 66 . plus extension number The Annual Report is published autonomously by the Deutsche Bundesbank, Frankfurt am ISSN 0418 -9292 Main, by virtue of section 18 of the Bundes- The German original of this Report bank Act of 26 July 1957. It is available to went to press on 11 April 2002 interested parties free of charge. Deutsche Bundesbank Annual Report 2001 Contents Foreword by the President of the Deutsche Bundesbank 8 Completion of European 1 Technical implementation 12 monetary union through 2 Price developments 18 the introduction of euro 3 Exchange rate effects 19 banknotes and coins 4 Fiscal effects 21 5 Longer-term aspects 22 The currency I The international and European setting 26 and the economy 1 The global economic background 26 2 The economic performance of the European monetary union 33 II Monetary policy and financial markets 41 1 The monetary policy of the Eurosystem 41 2 The financial markets in the euro area 58 3 The financial markets in Germany 62 III Economic trends and economic policy in Germany 73 1 Sharp economic decline with high risks 73 2 Foreign trade: restraining influence of world economy 89 3 Public finance facing greater consolidation need 97 IV European and international cooperation 108 1 European integration 108 2 Strengthening the international monetary and financial system 115 3 International financial assistance 123 Deutsche Bundesbank Annual Report 2001 Operations of the I The Bank’s involvement in the operations Deutsche Bundesbank of the European System of Central Banks 130 II Processing cash payments and cashless payments 138 1 Cash payments 138 2 Cashless payments 140 3 Notable developments in domestic and cross-border payments 142 III Securities clearing and settlement 148 IV The Bank’s money-market and refinancing operations as part of the Eurosystem 148 V The Bank’s involvement in the issuance of Federal securities and in asset management 152 VI The Bank’s participation in banking supervision and changes in banking supervision legislation 159 1 International harmonisation of banking supervision 159 2 Amendments of national banking supervision legislation 163 3 Ongoing banking supervision operations 166 VII UN/EU financial sanctions: new developments 170 VIII The Economic Research Centre 174 IX Technical central bank cooperation 176 X Organisation and staff 177 Deutsche Bundesbank Annual Report 2001 Annual accounts of the I Balance sheet of the Deutsche Bundesbank Deutsche Bundesbank as at 31 December 2001 182 for 2001 II Profit and loss account of the Deutsche Bundesbank for the year 2001 184 III External auditors’ report 185 Overview of the principles for the accounting of the Deutsche Bundesbank 186 IV General information on annual accounts 188 V Notes on the individual balance sheet items 189 1 Assets 189 2 Liabilities 194 VI Notes on the profit and loss account 199 Records of policy 1 Record of domestic and external monetary policy measures measures 42 2 Record of general economic and fiscal policy measures 100 Tables 1 Macroeconomic benchmark figures of selected industrialised countries 29 2 Economic performance in the euro area 35 3 Factors determining bank liquidity 51 4 Monetary developments in the euro area 57 5 Sales and purchases of securities 63 6 Key economic variables in Germany 75 7 Balance of payments 93 8 General government finance 99 9 Indebtedness of central, state and local government 107 Deutsche Bundesbank Annual Report 2001 Tables (cont’d) 10 Planned fiscal developments according to the EU countries’ updated stability or convergence programmes 109 11 Purchases, repurchases and total credit outstanding under IMF facilities 125 12 Currency in circulation and its pattern 138 13 Counterfeits detained in payments, as recorded by the Bundesbank 139 14 The cashless payments of the Deutsche Bundesbank 140 15 Bund Issues Auction Group 153 16 Issues of Federal bonds in 2001 155 17 Issues of five-year special Federal bonds in 2001 155 18 Issues of Federal Treasury notes in 2001 157 19 Issues of Federal Treasury discount paper in 2001 157 20 Issues of Federal savings bonds in 2001 157 21 Ongoing banking supervision operations 167 22 Credit register of loans of 31.5 million or more 168 23 Staff numbers at the Bundesbank on 31 December 2001 179 Charts 1 Coin and banknote circulation during the changeover to euro cash 17 2 US and global economic growth 27 3 Major official interest rates and capital-market yields 31 4 Exchange rate of the euro 39 5 Official interest rates and overnight interest rate 47 6 Liquidity management in the Eurosystem 49 7 M3 growth in the euro area 53 8 Interest rates in the euro-area bond market 59 9 Share prices and earnings expectations 61 10 Net borrowing in the German capital markets 65 11 Cash in circulation and overnight deposits in Germany 67 12 Short-term savings deposits of domestic non-banks at German MFIs 69 13 Loans to enterprises and individuals in Germany 71 14 Selected bank interest rates 72 Deutsche Bundesbank Annual Report 2001 Charts (cont’d) 15 Gross domestic product and selected expenditure components 77 16 Demand trends 79 17 Wage and salary trends, and tax and price wedge 81 18 Labour market 83 19 Domestic prices 87 20 International commodity and import prices 88 21 Foreign trade and current account 91 22 Financial transactions with non-residents 95 23 Foreign reserves of the Bundesbank 96 24 General government fiscal ratios 105 25 Risk premiums on emerging-market government bonds 121 26 Ratio of the liable capital and liable own funds of individual institutions filing Principle I reports 169 Branch Offices of the Deutsche Bundesbank 203 Abbreviations p Provisional and symbols r Revised e Estimated pe Partly estimated ... Figure available at a later date . Figure unknown, not to be published or not meaningful 0 Less than 0.5 but more than nil – Nil Discrepancies in the totals are due to rounding. Deutsche Bundesbank Annual Report 2001 Foreword by the President of the Deutsche Bundesbank Deutsche Bundesbank Annual Report 2001 Foreword European monetary union (EMU) was completed by the introduction of euro 1 currency on 1 January 2002 – 11 2 years after the launch of what was known as Stage One, and three years after the introduction of the euro in the financial markets.
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