Legal status and functions
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.
According to Article 99 of the Constitution of Ukraine, adopted
in 1996, the main function of the country's central bank is to ensure stability of
monetary unit-the Hryvnia. To carry out its main function, the National Bank shall
foster the stability of the banking system and, within its competence, the price
stability.
According to the Law of Ukraine "On the National Bank of
Ukraine", the National Bank is the central bank of Ukraine, a specific central body
of the state administration, its issuing center which pursue common state policy in money
circulation, credit, strengthening of monetary unit; it coordinates functioning of the
banking system in general; determines exchange rate of the monetary unit against foreign
currencies. The National Bank determines a kind of bank notes, their denomination,
distinctive features and their protection system. The National Bank of Ukraine ensures the
accumulation and custody of the gold and currency reserves and the conduction of
transactions with them and the banking metals. The National Bank of Ukraine sets up
the order of determining a discount rate and other interest rates; it gives
permission for commercial banks' registration and licenses banking business; determines
the standard of emergency funds for commercial banks and other financial and credit
institutions.
Main Function
According to the Constitution of Ukraine, the main function
of the National Bank is to ensure the stability of Ukraine's monetary unit.
To carry out its major function, the National Bank shall foster the stability of
the banking system and within its competence, the price stability.
Other Functions
The National Bank shall carry out the following functions:
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to determine and pursue the monetary policy in accordance with the General
Principles of the Monetary Policy developed by the Council of the National
Bank of Ukraine;
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to issue the national currency of Ukraine on a monopoly basis and to
organize its circulation;
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to act as the last-instance creditor for banks and to
organize the refinancing system;
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to establish the rules of conducting banking transactions, accounting and
reporting, protection of the information, funds and property for the banks
and other financial and credit institutions;
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to organize and to provide the methodological support to the system of the
monetary, crediting and banking statistical information and the statistics
of the balance of payments;
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to organize and to provide the methodological support to the system of the
monetary, crediting and banking statistical information and the statistics
of the balance of payments;
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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;
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to exercise the banking regulation and supervision;
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to keep a Register of banks, their branch and representative offices,
currency exchanges and financial and credit institutions, to license banking
business and transactions, if provided for by the laws;.
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to compile, analyze and forecast the balance of payments;
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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;
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to exercise the currency regulation with the competence to be defined by a
special law, to determine the procedure of effecting payments in the foreign
currency, to organise 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;
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to organize the collection and transportation of bank notes, coins and
other values;
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to implement the national policy of the protection of state secrets within
the system of the National Bank;
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to take part in the training of personnel for Ukraine s banking system;
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to exercise other functions in the monetary and crediting sphere within
its competence defined by the law.
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