General Information on the National Bank of Kazakhstan Since introduction of the national currency - tenge (November 15, 1993) in accordance with the Decree of the President of the Republic of Kazakhstan "On Introduction of the National Currency of the Republic of Kazakhstan" dated November 12, 1993, the National Bank of the Republic of Kazakhstan (the National Bank of Kazakhstan) has become the central bank of the country responsible for functioning of the monetary and credit sphere.
The basic goal of the National Bank of Kazakhstan is the maintenance of internal and external stability of the national currency of Kazakhstan: its purchasing power and exchange rate in correlation to basic foreign currencies. Also the National Bank of Kazakhstan is entrusted to:
Develop and realize the state policy in the sphere of money circulation, credit, organization of bank settlements and currency correlations promoting economic development of the Republic of Kazakhstan and its integration in the world economy; Assist in providing a stable monetary, credit and banking system; Protect interests of banks' creditors and investors, as well as customers of organizations performing foreign currency purchase, sale and exchange operations, by approving documents regulating activities of banking and other organizations and carrying out control over their observance. ***
In Soviet times, the National Bank was a republican office of the State Bank of the USSR. In the Kazakh Soviet republic the money turnover management was carried out in a centralized order.
The national banking system started to be formed by the Law of the Republic of Kazakhstan "On State Independence of the Republic of Kazakhstan" dated April 16, 1991, according to which the National Bank of the Republic of Kazakhstan (NBK) received the right to create the financial, credit, and monetary systems, gold reserve, diamond and currency funds.
The law of the Republic of Kazakhstan "On the National Bank of Republic of Kazakhstan" dated April 13, 1993 determined NBK's tasks, principles of activity, legal status and authorities, its role and place in the banking system, relations with state governmental bodies of the Republic of Kazakhstan.
During developing and restructuring of the Kazakhstani economy, the role of NBK changed essentially. NBK, as the central bank of the country, reinforced functions of the basic regulating and supervising body independent of the Government and Parliament.
On March 30, 1995, a Decree of the President of the Republic of Kazakhstan "On the National Bank of the Republic of Kazakhstan", having validity of the law, was signed. In accordance with it, NBK is a unified centralized structure with a vertical subordination scheme. On August 31, 1995, a Decree of the President of the Republic of Kazakhstan "On Banks and Banking Activity", having validity of the law, was adopted. In accordance with it, the Republic of Kazakhstan has a two-level banking system, and NBK represents the top (first) level of the banking system. The second level of the banking system is basically represented by commercial banks.
In its activity, NBK is guided by the Constitution, Decrees of the President "On the National Bank of the Republic of Kazakhstan" and "On Banks and Banking Activity" having validity of the law, other legislative acts of the republic, acts of the President of the Republic of Kazakhstan, and international contracts (agreements) concluded by the Republic of Kazakhstan.
The National Bank of Kazakhstan is accountable to the President of the Republic of Kazakhstan. Within the limits of authorities given by legislative acts, NBK is independent in its activity. The bodies of representative and executive power are not entitled to interfere with the activity of NBK and its structural divisions concerned realization of its legislatively secured authorities. NBK coordinates its activity with the Government of the Republic of Kazakhstan. NBK and the Government are obliged to inform each other on prospective actions and achieved results having the nation-wide importance and to conduct regular consultations. In its activity, NBK takes into account the economic policy of the Government and promotes its realization provided it does not contradict the accomplishment of its basic functions and carrying out of monetary, credit and exchange policies. NBK acts as a banker, financial adviser and agent of the Government of the Republic of Kazakhstan and other state bodies by agreement with them. NBK can act as a financial agent of the Government of the Republic of Kazakhstan on conditions coordinated between NBK and the Government of the Republic of Kazakhstan.
NBK is a body determining and carrying out the state monetary and credit policy of the Republic of Kazakhstan.
The National Bank of Kazakhstan represents interests of the Republic of Kazakhstan in relations with central banks and banks of other countries, in international banks and other financial and credit organizations.
NBK is a legal person, has an independent balance sheet and constitutes a unified structure together with divisions dependent on it. NBK is a unified centralized structure with a vertical subordination scheme. Managerial bodies of the National Bank are the Board of Administration and the Board of Directors (Directorate). The Board of Administration is a supreme managerial body of NBK. The Board of Directors (Directorate) is a body of its operative management. The Board of Administration and the NBK Chairman bear the responsibility for its activity.
The NBK structure includes the central body consisting of departments and independent services, regional (territorial) offices, district branches and other subdivisions.
The Istituto di Credito Sammarinese (ICS) is San Marino's Central Bank. ICS was created by the State Law n.21 of 12 February 1986, with pubblic (70 % of the endowned fund) and private resources (the remaining 30% was provided by Sammarinese banks). It performs a series of functions aimed to promote the economic and financial development of the Republic of SAn Marino.
Among its functions, ICS :
advises Government and State Authorities on financial issues; keeps the State Treasury and performs the Treasury and Tax collection services; stimulates and steers San Marino economy; co-ordinates San Marino banking system; administrates San Marino Banks required reserves; mantains relationships with foreign financial institutions and with International Insitutions (IMF); manages financial transactions with foreign counterparties.
The Hong Kong Monetary Authority (HKMA) was established on 1 April 1993 by merging the Office of the Exchange Fund with the Office of the Commissioner of Banking. Its main functions and responsibilities are governed by the Exchange Fund Ordinance and the Banking Ordinance and it reports to the Financial Secretary.
The HKMA is the government authority in Hong Kong responsible for maintaining monetary and banking stability. Its main functions are:
keeping the Hong Kong dollar stable managing the Exchange Fund - Hong Kong's official reserves - in a sound and effective way promoting the safety of Hong Kong's banking system developing Hong Kong's financial infrastructure to enable money to flow smoothly, freely and without obstruction Our Objectives
The HKMA's policy objectives are:
to maintain currency stability, within the framework of the linked exchange rate system, through sound management of the Exchange Fund, monetary policy operations and other means deemed necessary; to promote the safety and stability of the banking system through the regulation of banking business and the business of taking deposits, and the supervision of authorised institutions; and to enhance the efficiency, integrity and development of the financial system, particularly payment and settlement arrangements.
More information of the work of the HKMA can be found from the latest HKMA Annual Report, the HKMA Fact Sheet and its Policy Areas.
The European System of Central Banks (ESCB) is composed of the European Central Bank (ECB) and the national central banks (NCBs) of all 15 EU Member States. The "Eurosystem" is the term used to refer to the ECB and the NCBs of the Member States which have adopted the euro. The NCBs of the Member States which do not participate in the euro area, however, are members of the ESCB with a special status - while they are allowed to conduct their respective national monetary policies, they do not take part in the decision-making with regard to the single monetary policy for the euro area and the implementation of such decisions. In accordance with the Treaty establishing the European Community ( the "Treaty") and the Statute of the European System of Central Banks and of the European Central Bank (the "Statute of the ESCB" [pdf 200 kB]), the primary objective of the Eurosystem is to maintain price stability. Without prejudice to this objective, the Eurosystem shall support the general economic policies in the Community and act in accordance with the principles of an open market economy.
The basic tasks to be carried out by the Eurosystem are: to define and implement the monetary policy of the euro area; to conduct foreign exchange operations; to hold and manage the official foreign reserves of the Member States; and to promote the smooth operation of payment systems. In addition, the Eurosystem contributes to the smooth conduct of policies pursued by the competent authorities relating to the prudential supervision of credit institutions and the stability of the financial system. The ECB has an advisory role vis-а-vis the Community and national authorities on matters which fall within its field of competence, particularly where Community or national legislation is concerned. Finally, in order to undertake the tasks of the ESCB, the ECB, assisted by the NCBs, shall collect the necessary statistical information either from the competent national authorities or directly from economic agents.
The process of decision-making in the Eurosystem is centralised through the decision-making bodies of the ECB, namely the Governing Council and the Executive Board. As long as there are Member States which have not yet adopted the euro, a third decision-making body, the General Council, shall also exist. [Current members of the decision-making bodies of the ECB]
The Governing Council comprises all the members of the Executive Board and the governors of the NCBs of the Member States without a derogation, i.e. those countries which have adopted the euro. The main responsibilities of the Governing Council are: to adopt the guidelines and take the decisions necessary to ensure the performance of the tasks entrusted to the Eurosystem; to formulate the monetary policy of the euro area, including, as appropriate, decisions relating to intermediate monetary objectives, key interest rates and the supply of reserves in the Eurosystem, and to establish the necessary guidelines for their implementation. The Executive Board comprises the President, the Vice-President and four other members, all chosen from among persons of recognised standing and professional experience in monetary or banking matters. They are appointed by common accord of the governments of the Member States at the level of the Heads of State or Government, on a recommendation from the EU Council after it has consulted the European Parliament and the Governing Council of the ECB (i.e. the Council of the European Monetary Institute (EMI) for the first appointments). The main responsibilities of the Executive Board are: to implement monetary policy in accordance with the guidelines and decisions laid down by the Governing Council of the ECB and, in doing so, to give the necessary instructions to the NCBs; and to execute those powers which have been delegated to it by the Governing Council of the ECB. The General Council comprises the President and the Vice-President and the governors of the NCBs of all 15 Member States. The General Council performs the tasks which the ECB took over from the EMI and which, owing to the derogation of one or more Member States, still have to be performed in Stage Three of Economic and Monetary Union (EMU). The General Council also contributes to: the ECB's advisory functions; the collection of statistical information; the preparation of the ECB's annual reports; the establishment of the necessary rules for standardising the accounting and reporting of operations undertaken by the NCBs; the taking of measures relating to the establishment of the key for the ECB's capital subscription other than those already laid down in the Treaty; the laying-down of the conditions of employment of the members of staff of the ECB; and the necessary preparations for irrevocably fixing the exchange rates of the currencies of the Member States with a derogation against the euro. The Eurosystem is independent. When performing Eurosystem-related tasks, neither the ECB, nor an NCB, nor any member of their decision-making bodies may seek or take instructions from any external body. The Community institutions and bodies and the governments of the Member States may not seek to influence the members of the decision-making bodies of the ECB or of the NCBs in the performance of their tasks. The Statute of the ESCB makes provision for the following measures to ensure security of tenure for NCB governors and members of the Executive Board: a minimum renewable term of office for governors of five years; a minimum non-renewable term of office for members of the Executive Board of eight years (it should be noted that a system of staggered appointments was used for the first Executive Board for members other than the President in order to ensure continuity); and removal from office is only possible in the event of incapacity or serious misconduct; in this respect the Court of Justice of the European Communities is competent to settle any disputes. The ECB's capital amounts to EUR 5 billion. The NCBs are the sole subscribers to and holders of the capital of the ECB. The subscription of capital is based on a key established on the basis of the EU Member States' respective shares in the GDP and population of the Community. It has, thus far, been paid up to an amount just over EUR 4 billion. The euro area NCBs have paid up their respective subscriptions to the ECB's capital in full. The NCBs of the non-participating countries have paid up 5% of their respective subscriptions to the ECB's capital as a contribution to the operational costs of the ECB. As a result, the ECB was endowed with an initial capital of just under EUR 4 billion. When Greece entered the third stage of EMU on 1 January 2001 the Bank of Greece paid up the remaining 95% of its subscription to the ECB's capital.
In addition, the NCBs of the Member States participating in the euro area have provided the ECB with foreign reserve assets of up to an amount equivalent to around EUR 40 billion. The contributions of each NCB were fixed in proportion to its share in the ECB's subscribed capital, while in return each NCB was credited by the ECB with a claim in euro equivalent to its contribution. 15% of the contributions were made in gold, and the remaining 85% in US dollars and Japanese yen.
For more information on the institutional framework, see the article entitled "The institutional framework of the European System of Central Banks" in the July 1999 issue of the ECB's Monthly Bulletin, pages 55 to 63. Address Kaiserstrasse 29 D-60311 Frankfurt am Main Germany Postal address Postfach 16 03 19 D-60066 Frankfurt am Main Germany Telephone (Switchboard) +49 69 1344 0 Telefax (central) +49 69 1344 6000 Telex 411 144 ecb d
The Mission of Eesti Pank The mission of Eesti Pank is to strengthen both domestic and international confidence in the stability and integrity of the Estonian currency and the Estonian monetary system.
The Main Objectives of Eesti Pank To maintain and ensure the value and integrity of the Estonian kroon in fulfilling the functions of the currency. To foster the safety, stability and development of the Estonian financial system. To meet the cash demand of the public. Estonia bld. 13, 15095 Tallinn Estonia Information service Phone: +372 668 0719, 668 0900, 668 0951, 668 0953 Fax: +372 668 0954
The Eastern Caribbean Central Bank was established in October 1983. It is the Monetary Authority for a group of eight small island economies namely - Anguilla, Antigua and Barbuda, Commonwealth of Dominica, Grenada, Montserrat, St Kitts and Nevis, St Lucia, and St Vincent and The Grenadines. Mission Statement To maintain the stability of the EC dollar and the integrity of the banking system in order to facilitate the balanced growth and development of member states.
The monetary arrangements are characterised by:
The issuance of a single common currency, the flow of which is unrestricted among its members. A common pool of foreign exchange reserves; and The existence of a Central Monetary Authority which decides on the Union's monetary policy.
The purposes of the Bank are:
To regulate the availability of money and credit. To promote and maintain monetary stability To promote credit and exchange conditions and a sound financial structure conducive to the balanced growth and development of the economies of the territories of the Participating Governments. To actively promote through means consistent with its other objectives the economic development of the territories of the Participating Governments Powers and Responsibilities The governing bodies of the Eastern Caribbean Central Bank are the Monetary Council and the Board of Directors. The Monetary Council is the highest decision making authority. It is comprised of one Minister appointed by each Government of the participating countries. The function of the Council is to provide directives and guidelines on matters of monetary and credit policy to the Bank. The Board of Directors is comprised of ten Directors - the Governor and Deputy Governor, and one Director appointed by each Government of the eight participating countries. The Board of Directors is responsible for policy and general administration of the Bank, while the Governor, the Chief Executive, is responsible for the day-to-day management and operations.
The Bundesbank participates in the fulfillment of the ESCB's tasks with the primary objective of maintaining the stability of the euro, it ensures the orderly execution of domestic and foreign payments and shall contribute to the stability of payment and clearing systems.
The Bundesbank maintains nine Regional Offices in the German federal states.