Since introduction of the national currency
- tenge (November 15, 1993) in accordance with the
Decree of the President of the Republic of Kazakhstan
"On Introduction of the National Currency of
the Republic of Kazakhstan" dated November
12, 1993, the National Bank of the Republic of Kazakhstan
(the National Bank of Kazakhstan) has become the
central bank of the country responsible for functioning
of the monetary and credit sphere.
The basic goal of the National Bank of Kazakhstan
is the maintenance of internal and external stability
of the national currency of Kazakhstan: its purchasing
power and exchange rate in correlation to basic
foreign currencies. Also the National Bank of
Kazakhstan is entrusted to:
ü Develop and realize the state policy in
the sphere of money circulation, credit, organization
of bank settlements and currency correlations
promoting economic development of the Republic
of Kazakhstan and its integration in the world
economy;
ü Assist in providing a stable monetary,
credit and banking system;
ü Protect interests of banks' creditors and
investors, as well as customers of organizations
performing foreign currency purchase, sale and
exchange operations, by approving documents regulating
activities of banking and other organizations
and carrying out control over their observance.
In Soviet times, the National Bank was a republican
office of the State Bank of the USSR. In the Kazakh
Soviet republic the money turnover management
was carried out in a centralized order.The national
banking system started to be formed by the Law
of the Republic of Kazakhstan "On State Independence
of the Republic of Kazakhstan" dated April
16, 1991, according to which the National Bank
of the Republic of Kazakhstan (NBK) received the
right to create the financial, credit, and monetary
systems, gold reserve, diamond and currency funds.
The law of the Republic of Kazakhstan "On
the National Bank of Republic of Kazakhstan"
dated April 13, 1993 determined NBK's tasks, principles
of activity, legal status and authorities, its
role and place in the banking system, relations
with state governmental bodies of the Republic
of Kazakhstan.
During developing and restructuring of the Kazakhstani
economy, the role of NBK changed essentially.
NBK, as the central bank of the country, reinforced
functions of the basic regulating and supervising
body independent of the Government and Parliament.
On March 30, 1995, a Decree of the President of
the Republic of Kazakhstan "On the National
Bank of the Republic of Kazakhstan", having
validity of the law, was signed. In accordance
with it, NBK is a unified centralized structure
with a vertical subordination scheme. On August
31, 1995, a Decree of the President of the Republic
of Kazakhstan "On Banks and Banking Activity",
having validity of the law, was adopted. In accordance
with it, the Republic of Kazakhstan has a two-level
banking system, and NBK represents the top (first)
level of the banking system. The second level
of the banking system is basically represented
by commercial banks.
In its activity, NBK is guided by the Constitution,
Decrees of the President "On the National
Bank of the Republic of Kazakhstan" and "On
Banks and Banking Activity" having validity
of the law, other legislative acts of the republic,
acts of the President of the Republic of Kazakhstan,
and international contracts (agreements) concluded
by the Republic of Kazakhstan.
The National Bank of Kazakhstan is accountable to
the President of the Republic of Kazakhstan. Within
the limits of authorities given by legislative acts,
NBK is independent in its activity. The bodies of
representative and executive power are not entitled
to interfere with the activity of NBK and its structural
divisions concerned realization of its legislatively
secured authorities. NBK coordinates its activity
with the Government of the Republic of Kazakhstan.
NBK and the Government are obliged to inform each
other on prospective actions and achieved results
having the nation-wide importance and to conduct
regular consultations. In its activity, NBK takes
into account the economic policy of the Government
and promotes its realization provided it does not
contradict the accomplishment of its basic functions
and carrying out of monetary, credit and exchange
policies. NBK acts as a banker, financial adviser
and agent of the Government of the Republic of Kazakhstan
and other state bodies by agreement with them. NBK
can act as a financial agent of the Government of
the Republic of Kazakhstan on conditions coordinated
between NBK and the Government of the Republic of
Kazakhstan. |
NBK is a body determining and carrying out the
state monetary and credit policy of the Republic
of Kazakhstan. The National Bank of Kazakhstan
represents interests of the Republic of Kazakhstan
in relations with central banks and banks of other
countries, in international banks and other financial
and credit organizations.
NBK is a legal person, has an independent balance
sheet and constitutes a unified structure together
with divisions dependent on it. NBK is a unified
centralized structure with a vertical subordination
scheme. Managerial bodies of the National Bank
are the Board of Administration and the Board
of Directors (Directorate). The Board of Administration
is a supreme managerial body of NBK. The Board
of Directors (Directorate) is a body of its operative
management. The Board of Administration and the
NBK Chairman bear the responsibility for its activity.
The NBK structure includes the central body consisting
of departments and independent services, regional
(territorial) offices, district branches and other
subdivisions.
The priority of the monetary policy will be maintenance
of low inflation rates.In future the National
Bank intends to adhere to the policy of floating
exchange rate of tenge, which predetermines adequacy
of devaluation to changes in the inflation rate
(i.e. at the level of 10-12%). At essential worsening
of the economic situation in countries - trade
partners of Kazakhstan, tenge devaluation will
be adequate to changes of the real effective exchange
rate of tenge. In case of significant currency
inflow to the domestic market, the National Bank
will not admit tenge strengthening above the level
seriously worsening exporters' competitiveness.
The National Bank will carry out interventions
only in case of significant tenge rate fluctuations
caused by a speculative demand.
The basic instruments of the monetary policy
will be:
* open market operations;
* official rates regulation and refinancing of banks
by registering bills;
* granting short-term credits (day-time and overnight)
to banks.
The National Bank will continue the policy of
keeping the refinance rate slightly positive in
real terms. Development of the primary market
of government securities will be carried out by
coordinated actions of the Ministry of Finance
and the National Bank.
To give a possibility of hedging risks to investors
having invested funds in tenge government securities,
the National Bank will promote the formation of
the currency options market and further the development
of the currency futures market.
The National Bank intends to restore the organized
interbank money market as the most acceptable
source of borrowed resources for banks.
With a view to provide achievement of stable economic
growth, work on providing favourable conditions
for the real sector will become more active.
For refinancing banks crediting manufacture,
a scheme for registering commercial bills of first-class
emitters - large national companies - will be
introduced. The National Bank assumes to refinance
banks actively crediting gold-mining enterprises,
with probable attraction of financial institutions
of other countries.
To increase confidence of the population and
to make attraction of savings to the financial
system of the country more active, the National
Bank will promote rise in stability of all segments
of the organized financial market. The National
Bank promotes activization of circulation on the
stock exchange market of shares and other securities,
development of new types of financial institutions,
such as mutual funds, postal saving funds.
With a view to improve the payment system, a
transition from the System of Large Payments to
an Interbank System of Money Transfers has been
carried out. The basis of it incorporates the
principle of the Swiss Interbank System of Large
Payments, and it will meet all requirements of
international financial organizations to a system
of payments.
The normative legal base regulating the activity
of banks and organizations carrying out separate
kinds of bank operations will be improved for
the purpose of further strengthening and consolidation,
of raising their level of capitalization and financial
stability. With a view to promote development
of the accumulative pension system, the National
Bank of Kazakhstan will continue work to increase
reliability, strengthen control and supervision
over banks' custodial activities, as well as to
provide uninterrupted passing of payments on obligatory
pension instalments through the payment systems.
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