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ČNB – Czech National Bank

The CZECH NATIONAL BANK is the Central Bank of the State. Is independent of the Executive power. Her position defines the law No. 6/1993 Coll. on Česká národní banka, as amended, and is based on the Constitution. The CZECH NATIONAL BANK was founded with the establishment of a separate Czech Republic state, on the 1st of January 1993.

 The CZECH NATIONAL BANK is a separate legal entity and does not written to the commercial register. Has the status of public legal entity and are entrusted with certain competences of the administrative authority.

 The main tasks of the CNB'S

 1)  The main objective is to maintain price stability

       a. If this does not affect the main objective, then it supports the general economic policies of the Government, leading to the sustainable economic growth

       b. Exclusive right of the CNB is the issuing banknotes and coins, emissions of the scriptural money masses

       c. Controls circulation, payment systems, the clearing of bank

       d. By the end of 2002 had the exclusive privilege to operate a technical system for interbank payments in Czech currency

       e. Manages gold and foreign exchange reserves of the CZECH REPUBLIC,

        f. Issued foreign exchange licence

        g. Announces exchange rates

 

2)   Account management of banks and receiving their deposits. Leads accounts State budget, State funds and Government financial assets and liabilities, unless the Ministry of finance not authorize another bank by this role. Coordinates the development of banking information system.

3)   Provides for interest rates and the terms of their deals. Determines the discount rate and other guide interest rates, as the Lombard rate, the repo rate, at which the CZECH NATIONAL BANK provides credit funds to commercial banks.

4)   Gives to the sale of government bonds and provides other services associated with them, keeps records of the securities issued by the Czech Republic and payable within one year, registration of securities issued by the CNB and the registration of bonds with a maturity of up to one year. In the book-entry bonds due in one year also leads these instead of the Securities Centre. The CNB also has permission to issue securities with a maturity up to 6 months and doing business with them.  The issuing of securities and trading with them, if it is implemented by CNB, is not subject to authorisation or the exercise of State supervision by other authorities (Securities Center).

5)  Granted the Banking license to new banks. The Bank shall exercise supervision over the activities of banks and other persons who are authorized to operate under a special law. Makes arrangements to remedy If necessary, imposes penalties. Penalties are an income of State budget at these case. Registers representatives of foreign banks and financial institutions, carrying out banking activities in the Czech Republic.

 

6)  Can issue generally binding regulations on the basis of a mandate, that usually have the form of a decree, and also the so-called measures, which are binding only for banks and branches of foreign banks operating in the Czech Republic.