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Sunday, February 19, 2012

THE NATIONAL BANK OF UKRAINE


The National Bank of Ukraine is the central bank of Ukraine. Legal status, principles of organization and activities of the National Bank of Ukraine are determined by the Constitution of Ukraine and the Law of Ukraine "On the National Bank of Ukraine".
The National Bank of Ukraine is a legal entity with separated property, which is the object of the state property. Its authorized capital amounts to UAH 10 million and is the state-owned property which is in the full economic competence of the National Bank.
The governing bodies of the National Bank are the Council of the National Bank of Ukraine and the Board of the National Bank of Ukraine. The Governor of the National Bank is appointed by the Verkhovna Rada of Ukraine on the recommendation of the President of Ukraine for a period of five years. The Governor directs the work of the Board and is a member of the Council. Since the Banks' establishment, the following statesmen were the Governors of the National Bank of Ukraine (initially the title of the position was the Chairman of the Board):
Name                                           In office
Volodymyr Matvienko              1991 - 1992
Vadym Hetman                              1992
Viktor Yushchenko                   1993 - 1999
Volodymyr Stelmakh                2000 - 2002
Sergiy Tigipko                          2002 - 2004
Volodymyr Stelmakh                2004 – 2010
Sergiy Arbuzov                        2010 – present
According to the Constitution of Ukraine, the main function of the National Bank is to ensure stability of Ukraine's monetary unit - the hryvnia. To carry out its major function, the National Bank fosters the stability of the banking system and within its competence, the price stability.
The National Bank of Ukraine also carries out the following functions:
·     to determine and pursue the monetary policy;
·     to issue the national currency of Ukraine on a monopoly basis and to organize its circulation;
·     to act as the lender of last resort for banks and to organize the refinancing system;
·     to establish the rules of conducting banking transactions, accounting and reporting, protection of the information, funds and property for the banks;
·     to determine the system, procedure and modes of payments, including those between banks;
·     to determine the areas of the development of modern electronic banking technologies, to establish, co-ordinate and control the creation of electronic means of payment, payment system, banking automation and the banking information protection facilities;
·     to keep the official Register of identification numbers of issuers of payment cards of domestic payment systems;
·     to exercise the inspection certification of auditors for conducting audit of banks, temporary administrators and liquidators of a bank;
·     to compile, analyze and forecast the balance of payments;
·     to represent Ukraine's interests in central banks of other states, international banks and other crediting institutions, where the cooperation takes place at the level of central banks;
·     to exercise the currency regulation with the competence to be defined by a special law, to determine the procedure of effective payments in the foreign currency, to organize and exercise the currency control over the commercial banks and other credit institutions which are in possession of a National Bank's license for the transactions with currency values;
·     to ensure the accumulation and custody of the gold and currency reserves and the conduction of transactions with them and the banking metals;
·     to analyze the status of the monetary, crediting, financial, pricing and currency relations;
·     to organize the collection and transportation of bank notes, coins and other values; to grant licenses for collection and transportation of bank notes, coins and other values;
·     to take part in the training of personnel for Ukraine’s banking system;
to exercise other functions in the monetary and crediting sphere within its competence defined by the law. 


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