The Bank of Latvia is the central bank of the Republic of Latvia. It is one of the key public institutions and carries out economic functions as prescribed by law.
The principal objective of the Bank of Latvia is to regulate currency in circulation by implementing monetary policy to maintain price stability in Latvia. Through its activities the Bank of Latvia encourages free competition, efficient allocation and flow of resources, stability, co-ordination and supervision of the financial system.
The Bank of Latvia's functions are set out in the Republic of Latvia Law "On the Bank of Latvia". Among the most important objectives of the national central bank are the following:
- to establish and implement monetary policy in order to ensure price stability in the country; - to issue the national currency; - to organise and maintain settlement and payment systems in the country; - to gather, process and publish financial statistics that reflect the development of the banking system and the macroeconomic environment; - to manage foreign assets; - to act as financial agent for the government. - to issue permits (licences) to legal persons listed in the Republic of Latvia Register of Enterprises, except credit institutions, for the purchase and sale of foreign currency as a business activity.
The Bank of Latvia represents the Republic of Latvia in foreign central banks and international currency institutions. The Bank of Latvia also consults the Parliament and the Cabinet of Ministers on monetary and banking policy issues.
In execution its functions the Bank of Latvia is guided by the Law "On the Bank of Latvia" and is not subject to decisions and instructions by the Government or its agencies. The Bank of Latvia is independent in setting and implementing policy under its legal mandate.
Supervision of the Bank of Latvia is vested with the Parliament.
The Law "On the Bank of Latvia" proscribes the national central bank from conducting any entrepreneurial activity. The Bank of Latvia finances its activities from revenue received through foreign exchange and credit operations that are carried out within the framework of its objectives.
The Bank of Latvia's profit is appropriated in compliance with the Law "On the Bank of Latvia". Article 18 of said law sets out the requirements for its authorised capital, Article 19, for the maximum reserves, and Article 20, for the nominal capital.
The Law "On the Bank of Latvia" prescribes the authorised nominal capital of the Bank of Latvia at 25 million lats.
The nominal capital is comprised of the State allotted resources and the Bank of Latvia's profit allocations. 10 per cent of the Bank of Latvia's profit is annually appropriated to the reserve capital, which is established to cover potential losses, until one-fourth of the authorised nominal capital is reached. The Law "On the Bank of Latvia" establishes that part of the Bank of Latvia's annual profit, calculated by applying the tax rate set for residents by the Law "On Enterprise Income Tax", shall be transferred to the State budget. On December 31, 2000, the enterprise income tax rate applicable to residents of the Republic of Latvia was 25 per cent. Other reserves are comprised of net profit after the aforementioned appropriations to the reserve capital and the State budget. K. Valdemara iela 2a, Riga, LV-1050, Latvia Tel.: (371) 702 2300, Fax: (371) 702 2420
The Bank of Lithuania is the central bank of the Republic of Lithuania. Its principal objective is to seek price stability. In seeking its principal objective, the Bank of Lithuania is independent from the Government of the Republic of Lithuania or other institutions of the state.
Functions
In implementing the primary objective, the Bank of Lithuania performs the following functions: - issuing the currency of the Republic of Lithuania; - formulating and implementing monetary policy; - determining the litas exchange rate regulation system and announcing the official exchange rate of the litas; - managing, using and disposing of foreign reserves of the Bank of Lithuania; - acting as a State Treasury agent; - issuing and revoking licenses of credit institutions of the Republic of Lithuania and permissions for the establishment and operation of branches and representative offices of credit institutions of foreign states, supervising their activities and establishing the principles and procedures for financial accounting and reporting; - developing and managing an inter-bank funds tranfer system and establishing the requirements for the participants of the inter-bank funds transfer system; - collecting monetary, banking and balance of payments statistics, as well as data on Lithuanian financial and related statistics, implementing standards on the collection, reporting and dissemination of such statistics and compiling the balance of payments of the Republic of Lithuania.
Management and Structure
The Bank of Lithuania is governed by the board of the bank consisting of a Chairperson, three Deputy Chairpersons and seven Members. The activites of the Bank of Lithuania are organised by the Chairperson of the Board. The Chairperson of the Board of the Bank of Lithuania is appointed for a term of five years by the Seimas upon the nomination by the President. The Deputy Chairpersons and Member s of the Board of the Bank of Lithuania are appointed for a term of nine years by the President upon the nomination by the Chairperson of the Board of the Bank of Lithuania. The Board of the Bank of Lithuania is renewed through rotation by one third every three years, with the exception of the Chairperson and one Deputy Chairperson.
The ongoing operations of the Bank of Lithuania are managed by ten departments: Monetary Policy, Market Operations, Credit Institutions Supervision, International Relations, Payment Systems, Cash, Accounting, Information Technology, General Services and Security; five autonomous divisions (Internal Audit, Legal, Organisation and Personnel, General and Public Relations) and Bank of Lithuania Branches in Kaunas and Klaipeda.
Organisational Structure of the Bank of Lithuania (chart)
Accounting and Reporting
In its activities the Bank of Lithuania follows the principles of public accounting and transparency. Publication of information about its activities, disclosure of other financial and economic data helps to ensure the transparency of the operations of the Bank of Lithuania as well as the whole country. This in turn determines the increasing reliability of the country's economic and financial sectors. In adherence to transparency practices, each year the Bank of Lithuania publishes its annual financial statements and the auditor's report. In addition, the Bank of Lithuania publishes its annual report as a separate publication, where it provides information on the basic tasks of monetary policy and their implementation, monetary policy operations, credit institutions supervision activities and other responsibilities established by the legislation as well as information on the national macroeconomic situation, such as analysis of the developments in the national economy and financial markets, and on the financial position of the Bank and the results of its activities.The Bank of Lithuania publishes monthly and quarterly bulletins where it presents information about its activities as well as a wide range of financial and macroeconomic information. Information is also published on the internet site of the Bank of Lithuania. The Bank of Lithuania adheres to the principle of periodical release of information on the basis of an advance release calendar meeting the requirements of the Special Data Dissemination Standard. In addition, twice a year the Bank of Lithuania presents reports to the Seimas of the Republic of Lithuania on the implementation of the primary objective.
Retail financial services, which remain the cornerstone of the Bank's development, are extensively addressed by our business plan. The Bank is a leader in point-of-sale financing and is widely acknowledged for its expertise in mortgage financing. Our retail services cover the full range of savings, investment, financing and transactional services, as well as trust services, which are provided by our subsidiary Laurentian Trust
Legal Status, Primary Objective and Basic Tasks of the National Bank of Hungary Article 1. The National Bank of Hungary (hereinafter referred to as the 'NBH') is the central bank of the Republic of Hungary. The NBH and the members of its decision making bodies shall be independent in carrying out the tasks and duties conferred upon them by this Act, and shall neither seek nor take instructions from the Government or any other body. Article 2. The President of the NBH shall report to the Parliament. Article 3. (1) The primary objective of the NBH shall be to achieve and maintain price stability. (2) Without prejudice to its primary objective, the NBH shall support the economic policy of the Government using the monetary policy instruments at its disposal. Basic Tasks of the NBH Article 4. (1) The NBH shall define and implement monetary policy in the interests of maintaining the stability of the national currency. (2) The NBH shall have the exclusive right to issue banknotes and coins. The banknotes and coins issued by the NBH shall be the legal tender of the Republic of Hungary. (3) The NBH shall form and manage official reserves in foreign exchange and gold. (4) The NBH shall conduct foreign exchange operations in relation to the management of foreign exchange reserves and the implementation of exchange rate policy. (5) The NBH shall develop and regulate the domestic payment and settlement systems, and support the efficient and sound operation of such. (6) In order to undertake its tasks, the NBH shall collect the necessary statistical information and publish such. 2 (7) The NBH shall promote the stability of the financial system and the development and smooth conduct of policies related to the prudential supervision of the financial system. (8) Without prejudice to the achievement of its primary objective and performance of its basic tasks, the NBH may perform other activities, based on statutory authorisation.
In accordance with its Statute as approved by Decree-Law no.14/96/M of 11th March, the "Autoridade Monetбria de Macau" (AMCM), is endowed with the following powers, amongst others:
a) To advise and assist the Chief Executive in formulating and applying monetary, financial, exchange rate and insurance policies;
b) To guide, co-ordinate and oversee the monetary, financial, foreign exchange and insurance markets, ensure their smooth operation and supervise the actions of those operating within them according to the terms established in the regulatory statutes governing each respective area;
c) To monitor internal monetary stability and the external solvency of the local currency, ensuring its full convertibility;
d) To exercise the functions of a central monetary depository and manage the territory's currency reserves and other foreign assets;
e) To monitor the stability of the financial system.
Address: Calзada do Gaio, No. 24 - 26, Macau Telephone: +853 568288 Fax: +853 325432 Telex: 88480 AMCRP OM
