The created system of monetary regulation is directed on the decision of this problem.
Submits for approval to the NBU Council the annual report of the NBU, the draft estimate of income and expenses for the next year and other documents and decisions;
3. Determines the organizational basis and structure of the NBU, approves the regulations on structural subdivisions and institutions of the NBU, the statutes of its enterprises, the procedure for appointing heads of subdivisions, enterprises and institutions.
4. Approves the staff list of the NBU and forms of remuneration.
5. Establishes the procedure for granting licenses and conducting banking operations, as well as other licenses in cases and according to the procedure provided by law.
6. Issues regulations of the NBU.
7. Approves the Regulations of the NBU Board.
8. Performs functions arising from the main purpose of the NBU.
9. The Board of the NBU is headed by the Chairman of the NBU.
Quantitative and personal composition of the NBU Board is approved by the NBU Council on the proposal of the NBU Chairman.
Deputy Chairmen of the NBU are members of the NBU Board ex officio.
Article 18 of the Law “On the National Bank of Ukraine” defines a clear procedure for the appointment and dismissal of the Chairman of the NBU.
The Chairman of the NBU is appointed by the Verkhovna Rada of Ukraine on the proposal of the President of Ukraine by a majority of the constitutional composition of the Verkhovna Rada for a term of 5 years.
If the Verkhovna Rada does not approve the candidacy proposed by the President of Ukraine, the issue of the NBU leadership and the procedure for submitting a possible candidacy shall be regulated by the Law of Ukraine “On Temporary Performance of Officials Appointed by the President of Ukraine submitted by the President of Ukraine “. One candidate can be nominated no more than 2 times.
The Chairman of the NBU is dismissed from the post of the Verkhovna Rada on the proposal of the President of Ukraine in the following cases:
expiration of the term of office; entry into force of a court conviction for a criminal offense; in connection with the application for resignation for political or personal reasons, submitted in writing and accepted by the President of Ukraine; in case of death or on the basis of a court decision declaring a person dead or declaring him missing; termination of citizenship or departure from Ukraine for permanent residence; at the proposal of the President of Ukraine within the limits of his constitutional powers.
Like any governing body to which certain departments are subordinated, the Governor of the National Bank has the powers and responsibilities.
Manages the activities of the NBU. Acts on behalf of the NBU and represents its interests without a power of attorney in relations with public authorities, banks, financial and credit institutions, international organizations, other institutions and organizations. Chairs the meetings of the NBU Board. Signs protocols, resolutions, orders and directives, as well as agreements concluded by the NBU. Distributes responsibilities among his deputies. Issue administrative acts. Makes decisions on other issues related to the NBU that fall within its competence. He is solely responsible to the Verkhovna Rada and the President of Ukraine for the activities of the NBU.
Banking regulation and banking supervision
The main economic task of the bank is to ensure the stability of the national currency. The created system of monetary regulation is directed on the decision of this problem.
According to Section X of Art. 55 of the Law of Ukraine “On the National Bank of Ukraine” the main purpose of banking regulation and supervision is the security and financial stability of the banking system, protection of the interests of depositors and creditors.
The NBU is the highest authority for all other banks and their institutions, branches in our country, so it is by virtue of its powers to constantly monitor banks’ compliance with banking laws, regulations of the NBU and economic standards.
The concept of “banking legislation” includes all laws issued by the Verkhovna Rada of Ukraine, as well as bylaws and other legal documents of the Verkhovna Rada, the National Bank of Ukraine, which regulate the credit system of the state.
The NBU issues regulations on issues related to its powers, which are binding on public authorities and local governments, banks, enterprises, organizations and institutions, regardless of ownership, as well as for individuals.
Normative acts of the NBU are issued in the form of resolutions of the NBU Board, as well as instructions and rules approved by resolutions of the NBU Board. They may not contradict the laws of Ukraine and shall not have retroactive force, except in cases when they mitigate or cancel liability in accordance with the law. These acts are subject to mandatory state registration with the Ministry of Justice of Ukraine, and they can also be appealed in accordance with current legislation.
Access to information. To perform its functions, the NBU has the right to receive free of charge from banks information about their activities in accordance with the issued license and explanations regarding the information received and transactions. The received information is not subject to disclosure, except for the cases provided by the legislation.
Economic standards. To ensure the financial soundness of banks to protect the interests of depositors and creditors, the NBU sets mandatory economic standards for them. They should be able to control the risks associated with capital, liquidity, loans is there a website that writes lab reports for you to shareholders and insiders, large loans, capital investments, interest rate and currency risk.
Powers of the NBU to perform supervisory and regulatory functions. These functions can be performed by the NBU directly or through the banking supervision body created by it.
Carries out all types of on-site banks in Ukraine (except for inspections and audits of financial and economic activities), as well as verification of information, provided by legal entities and individuals when registering banks, and licensing of banking operations. May require banks to hold a general meeting of shareholders and determines the issues on which decisions should be made. May participate in the work of shareholders’ meetings, meetings of the Supervisory Board, the Management Board and the Audit Commission of the bank with the right of an advisory vote. The National Bank requires mandatory audits of banks, receives opinions of independent audit organizations on the results of banks.
Influence of the National Bank of Ukraine on the development of the domestic government bond market. Abstract
The stock market lives in anticipation of revenues to the budget of Ukraine. It is possible to predict the stabilization of this market, which should be reflected in the growth of securities quotes and lower yields on government bonds. But we should not forget that his condition is influenced not only by trust in the government, but also by fundamental factors.
In Ukraine, the government securities market has existed since March 10, 1995 in the form of domestic government bonds (IGLBs), issued in coupon and discount forms in the system of electronic circulation of securities.
In 1995, IGLBs worth 30.4 million rubles were placed at 28 auctions. The nominal value of one bond was 100 million rubles. (UAH 1,000), the form of issuing electronic records on depot accounts in the Depository of Government Securities of the National Bank of Ukraine. Buyers of bonds at auctions held by the National Bank were commercial banks of Ukraine, which could purchase bonds at the expense of their own or borrowed funds, as well as on behalf of and at the expense of customers. Yield of IGLBs of the first issue in the amount of 1 trillion. krb. was 140% per annum, the second and third 29.4 trillion. krb. – 90% per annum.
Thus, it can be said that by the end of 1995 the government bond market was to some extent already formed and began to rapidly expand its sphere of influence on the credit and stock markets.
In 2000, IGLBs became one of the main sources of covering the state budget deficit, ie they began to occupy the place that in the financial system of countries with developed market economies has long belonged to government securities.
In 2000, 87 IGLBs auctions were held. as a result of which 20388.7 thousand bonds were placed. at face value of UAH 1,000. The State Budget received funds in the amount of 1892.1, the yield (weighted average) was 20.49% per annum.
In 2000, the National Bank not only conducted IGLBs at auctions, but also formed its own IGLBs portfolio. As a result, the structure of loans granted by the National Bank of Ukraine at the expense of issue funds has changed significantly. Thus, out of the total amount of the credit issue carried out by the National Bank of Ukraine in 2000 in the amount of UAH 3,056 million. direct loans of the Government in the national currency for crediting the State budget deficit to UAH 3,568 million, and in foreign currency to UAH 7,158 million.
As in previous years, the bulk of the total amount of funds issued by the National Bank of Ukraine is aimed at meeting the needs of the Government of Ukraine (represented by the Ministry of Finance and the Main Department of the State Treasury).
As of January 1, 2002, the debt of the Government of Ukraine to the National Bank of Ukraine, to UAH 10,777 million, of which UAH 10,591 million in loans, including UAH 3,568 million in national currency, and UAH 7,023 million in foreign currency. … UAH;
In 2002, the government securities market became one of the most powerful segments of the financial market.
In its development, the government securities market has undergone significant positive changes:
1.in the structure of the bond issue;
Previously, most IGLBs issues had short-term bonds with a maturity of 3 months. In 2000, the issue of bonds with maturities of 12 and 24 months increased significantly. The maturity of government bonds in circulation as of January 1, 2000 averaged 182 days, as of January 1, 2001, 273 days, and as of January 1, 2002, 365 days.
2. by the number of market participants;
There is a significant increase in the number of commercial banks – participants in exchange trading. If at the end of 2000 an average of 92 commercial banks participated in the auctions, then at the end of 2001 – 147, and at the end of the year – 170 commercial banks;
3. in the development of the electronic depository of the National Bank of Ukraine;
If since the beginning of its opening it has served only 142 depositors, then as of January 1, 2000 there were 152 of them, and as of January 1, 2001 – 162.