TASCS AND FUNCTIONS OF NATIONAL BANK
Do you have a plastic bank card? Have you ever used any bank serves?
I am sure that your answer will be «yes».
But do you know how the bank system works? Not exactly?
I will try to tell you about it by the example of the National Bank of Belarus.
The National Bank of Belarus occupies the central position in the country’s banking system and is accountable to the Parliament. It has the right of legal initiative. The Head of the National Bank is appointed by the President. His deputies and members of the board are appointed by the Presidium of the Parliament.
The National Bank is an independent institution acting within the limits of the legislation and its Charter. The Charter is the subject to approval by the Parliament. The Bank forwards annual reports of its activities to the Parliament.
Institutions of the state my not intervene with the work of the National Bank. The National Bank has no responsibility for the government debt, nor is the government responsible for any liabilities of the National Bank, if otherwise not specified by the legislation.
The National Bank maintains the foundation capital, reserve, and other aspects which serve as collateral for its liabilities.
In cooperation with the government, the National Bank drafts and forwards to the Parliament the guidelines for financial and credit policies for the coming year and reports the implementation of such policies in the previous year.
The National Bank’s efforts are directed at the stability maintaining of the local currency and prices. Its main responsibilities are to develop monetary and credit politics, encourage the liquidity, solvency and stability of the financial system and provide support for government economic policies.
The National Bank regulates inflation chiefly by internationally accepted economic means, such as interest rates, minimal requirements for banking services and activity on the open financial market.
The National Bank acts as a creditor, economic advisor and representative of the government on the financial market. The Bank represents the Republic of Belarus in all international and other organizations in issues of monetary and credit policies and licensing of banking activities.
The National Bank offers banking services to foreign governments, banks and financial institutions. Acting as the representative of Belarus in international organizations, it makes commitments and conducts operations required by the country’s membership status in such organizations.
Functions of the National Bank:
- monetary, credit and hard currency regulations; monitoring of foreign trade and loan market;
- consulting, crediting and financial representation of the government and local institutions of power, execution of the central and local budgets;
- acting as a central depository;
- registration of banks, their branches and representative offices, monitoring their stability and liquidity operation of the inter-bank settlements system;
- issuing of licenses to financial companies to operate on the financial and hard currency markets;
- maintaining uniform accounting and reporting standards, setting rules and procedures for clearance settlements in the national economy.