DEFINITION of 'Bundesbank'

The central bank of Germany. The Bundesbank is the U.S. equivalent of the Federal Reserve. The Deutsche Bundesbank is located in Frankfurt, Germany and operates a group of nine offices throughout differing regions of Germany. Like most central banks around the world, the Deutsche Bundesbank is responsible for supervision over the nation's banking system and monetary measures, along with numerous other responsibilities.

BREAKING DOWN 'Bundesbank'

The Bundesbank was in charge of the German deutsche mark but now that the country has adopted the euro, it is part of the European system of central banking. As such, the Deutsche Bundesbank is considered by many to be the most important and stable central bank in the European Union, due to Germany's reputation of diligent fiscal and monetary measures.

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