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What is the Bundesbank?

Bundesbank Definition – The Deutsche Bundesbank, German for German Federal Bank, is the central bank of the Federal Republic of Germany and a member 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 Deutsche Bundesbank and the European Central Bank (ECB) are located in Frankfurt, Germany. It is also sometimes referred to as “BUBA”. 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 Deutsche Bundesbank was the central bank of the former Deutsche Mark. The Bundesbank was greatly respected for its control of inflation through the second half of the 20th century. The Bundesbank is responsible for maintaining price stability, ensuring the orderly execution of domestic and foreign payments, and contributing to the stability of payment and clearing systems. The Bundesbank has nine regional offices throughout Germany.


Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.