Although the ECB is governed by European law directly and thus not by corporate law applying to private law companies, its set-up resembles that of a corporation in the sense that the ECB has shareholders and stock capital. Its capital is five billion euros which is held by the national central banks of the member states as shareholders. The initial capital allocation key was determined in 1998 on the basis of the states' population and GDP, but the key is adjustable. Shares in the ECB are not transferable and cannot be used as collateral. COUNT 5
QSN1 What governs the ECB? ANS1 European law QSN2 How does the ECB mimic a corporation? ANS2 shareholders and stock capital QSN3 How much does the ECB have as capital? ANS3 five billion euros QSN4 Who holds the ECB's capital? ANS4 the national central banks of the member states as shareholders QSN5 What determined the ECB's initial capital? ANS5 the basis of the states' population and GDP