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Money and credit - Ivanov VM

Subject 25. NATIONAL BANK OF UKRAINE AND ITS OPERATIONS

25. 1. The National Bank of Ukraine: tasks and functions

National Bank of Ukraine is the central bank of Ukraine, a specific central body of state administration, the legal status, tasks, functions, powers and principles of the organization are determined by the Constitution of Ukraine, the Law of Ukraine "On the National Bank of Ukraine" and other laws of Ukraine.

National Bank of Ukraine was organized in 1991 on the basis of the former Ukrainian Republican Office of the USSR State Bank and its regional departments. It is a single bank system and includes a central office, located in Kiev, Crimean Republican control and 24 regional management. NBU The structure is built on the principle of centralization with vertical subordination and includes a central office, territorial management, clearing houses, Mint, factory banknote paper, the State treasury of Ukraine, central storage, specialized enterprises, banking institutions and other structural units and divisions.

The supreme governing body is the Board of the National Bank National Bank of Ukraine, to which the powers are as follows:

• development and introduction of information by 15 September to the Verkhovna Rada of Ukraine "Main directions of monetary policy" and to monitor their implementation;

• analysis of the impact of monetary policy on the state of socio-economic development and the need for its correction;

• making recommendations to the Board of the NBU in the framework developed "Guidelines for the monetary policy";

• approve the budget of income and expenses of the bank and the presentation of the Verkhovna Rada and the Cabinet of Ministers of Ukraine before September 1 of the current year information on the cost estimates for inclusion in the draft state budget;

• establishment of compensation for the employees of the bank;

• a decision on changing the size of the authorized fund;

• definition of the audit company for the audit of the NBU inspection;

• approval before 1 July each year a report on the implementation of cost estimates and the distribution of profit for the fiscal year;

• approval of the regulations of the National Bank;

• The right of veto on certain decisions of the Management Board;

• The presentation of the Chairman of the National Bank consent to the appointment and removal from office of members of the Board.

There are a number of powers defined by the Law of Ukraine "On the National Bank of Ukraine."

Bank Council consists of 14 people, seven of whom shall be appointed by decree President of Ukraine (including the chairman), and the rest of the Verkhovna Rada by the adoption of the corresponding resolution. The term of office of board members - 7 years. The Chairman is appointed for a term of office perform, t. E. For 3 years.

NBU Board according to the "Guidelines of Monetary Policy" by appropriate monetary instruments and other means of banking regulation ensures the implementation of monetary policy, the implementation of functions in accordance with Art. 6 and 7 of the National Bank Act and manages the activities of the National Bank of Ukraine.

The authorized capital of the National Bank of Ukraine is the property of the state and is 10 million USD. National Bank of economically independent, ie, produces costs from its own revenues within the limits of the approved budget, and in some cases -.. At the expense of budget funds (defined by law).

The legislation of Ukraine determined the construction of its banking system in accordance with the principle of a two-level organization. National Bank is the Bank of the first level. It performs the traditional functions that are typical of the central bank of the state: is the issue and settlement center of the state, banks and bank banker government.

Under the law, the National Bank of Ukraine has the following functions:

• basic - ensuring the stability of the monetary unit of Ukraine;

• Others:

• conducting monetary policy;

• the sole issuer of the national currency of Ukraine and organizes its circulation;

• the lender of last resort for banks and the organizer of the refinancing system;

• sets all financial institutions conduct operations law, accounting and reporting, protect information assets and property;

• organizes and provides a system of monetary and banking statistics and balance of payments statistics;

• defines the system, procedure and forms of payment;

• contributes to the implementation and use of modern electronic banking technologies;

• carries out banking regulation and supervision;

• maintains the Register of financial institutions and carries out the licensing of activities and operations;

• is the balance of payments, conducts its analysis and forecasting;

• represent the interests of Ukraine with the central banks of other countries;

• organizes within the powers currency regulation;

• ensures the accumulation and preservation of foreign reserves;

• analyzes the state of monetary, financial, pricing and currency relations;

• organizes the collection and issue licenses for the right to collection;

• protect state secrets in the NBU system;

• taking part in training for the banking system;

• performs other duties within the limits of their powers established by law.

Consider some of these features in more detail.

National Bank determines the following organizational and technical rules of the cash turnover:

• rules of storage, transportation and collection of cash;

• rules for the implementation of cash transactions by banks and economic entities;

• rules for the creation and management of reserve funds of banknotes and coins;

• rules for setting features of banknotes to pay.

As settlement NBU center of the country establishes the procedure for non-cash payments by economic entities, as well as organizes settlements between commercial banks in Ukraine. He represents the state's interests in relations with the central banks of other countries, international financial institutions.

National Bank of Ukraine sets the rules and conducts the registration of commercial bank licenses to conduct foreign exchange operations, oversees the activities of commercial banks in Ukraine. As the bank of banks, he maintains the accounts of commercial banks, provides their cash management services, provides loans to commercial banks, sets the rules for the functioning of the interbank credit market in Ukraine.

In addition, the NBU imposed operations related to the functioning of the foreign exchange market of Ukraine. He agreed with the Cabinet of Ministers of Ukraine set the official exchange rate of the national currency, foreign exchange reserves creates, organizes operations with monetary metals.

At the stage of privatization in Ukraine Certificate NBU was charged with banking regulation related to the handling of privatization of the securities: the establishment of forms of cashless deposits privatization securities; emission privatization papers; determine the conditions of their storage, accounting and redemption.

The main economic objective of the bank is to ensure stability of the national currency. In its decision to focus monetary policy. In carrying out this task, the NBU is actively using the following tools and methods:

• definition and regulation of reserve requirements for all financial institutions;

• interest rate policy;

• refinancing of commercial banks;

• Management of foreign exchange reserves;

• transactions with securities in the open market;

• regulation of the import and export of capital. National Bank of Ukraine to ensure that the functions assigned to it performs the following operations:

• provides loans to all financial and credit institutions;

• carries out discount operations with bills and checks;

• buying and selling on the secondary market of securities;

• opens its own correspondent and metal accounts in foreign banks and maintains the accounts of correspondent banks;

• buying and selling foreign currency, for the purpose of monetary regulation;

• performs all operations with precious metals and other jewelry;

• performs all operations with gold and foreign exchange reserves;

• assumes the storage and management of government securities and other valuables;

• guarantees and sureties;

• scores of the State Treasury of Ukraine without payment and interest;

• performs operations of servicing the public debt associated with the placement of government securities, their repayment and payment of income on them;

• conducts the personal accounts of the National Bank employees;

• maintains the accounts of international organizations;

• produces indisputable write-off of funds from the accounts of its customers in sotvetsvii with Ukrainian law by the court.

National Bank of Ukraine has the right to perform other operations necessary for the performance of its functions.