National Bank of the Kyrgyz Republic
The National Bank of the Kyrgyz Republic (
History
The National Bank of the Kyrgyz Republic was established upon the country's independence in 1991 from the
Functions
The overall objective of the activity of the National Bank of the Kyrgyz Republic is to achieve and maintain stability of prices by means of implementing an appropriate monetary policy. The primary task contributory to attainment of the corporate objective of the bank is to maintain a purchasing power of the national currency, and safety and reliability of the banking and payment system of the republic. The central bank independently manages and engages in its activity irrespective of governmental authorities action to perform its assigned tasks efficiently. The National Bank of the Kyrgyz Republic performs the following basic functions:
- Develops, determines and implements the monetary policy in the Kyrgyz Republic
- Exercises regulation and supervision over activities of banks and finance and credit institutions licensed by the National Bank of the Kyrgyz Republic
- Develops and conducts the uniform currency policy
- Has the sole responsibility to issue banknotes
- Promotes effective functioning of the payment system
- Establishes rules of conducting banking operations, accounting and reporting for the banking system
Monetary policy
The monetary policy carried out by the central bank is to meet the overall objective of price stability in the country. A quantitative target of the monetary policy as set out by the bank is the maintaining of inflation rate within the range of 5-7 percent in the medium-term period. In the event of internal macroeconomic instability due to the small and open economy of the Kyrgyz Republic, monetary policy measures will be focused on returning inflation rate to the quantitative target. The medium-term objective of this policy is to strengthen operation of the interest rate channel in the transmission mechanism. Development of the policy will be carried out on the basis of the interest rates targeting, because using interest rates as the target for the monetary policy will allow the central bank to affect the short-term market rates, thereby creating conditions for convergence of the rates in the money and lending market. The central bank also develops policies to promote financial inclusion which targets the rural parts of the country as the economy there is still largely agricultural based. These would overall contribute to long-term economic growth in the republic.[7]
Exchange rate policy
The central bank follows an approved floating
Communication and cooperative policy
The central bank carries out regular meetings with the Ministry of Finance within the framework of the Inter-agency Coordination Council in order to provide coordinated implementation of the monetary and fiscal policies. During the development and implementation of these policies the central bank also carries out an active communication policy in order to provide transparency and openness of the decision making process, as well as submit information on the issues connected with the monetary policy to the general public. These come in the form of published press-releases and
Laws and regulation
The status, objectives, functions, powers and principles of organisation and activity of the National Bank of the Kyrgyz Republic are legislatively determined by the Constitution of the Kyrgyz Republic and the Law on National bank of the Kyrgyz Republic, banks and banking activity. However the central bank still has power in the implementation of rules and regulations to which commercial banks and related industries within the republic have to abide by, these include minimum charter capital and obligatory reserves. For example, in December 2013, the central bank published draft legal amendments related to
Issuance of currency
The central bank has the sole authority to issue banknotes and coins of the Kyrgyz Republic som. All four series of Kyrgyz banknotes are still legal tender and are able to be used for all transactions within Kyrgyz Republic, despite the first two series being withdrawn by the central bank from active circulation. The banknotes are printed in France and the United Kingdom, while the coins are minted in Kazakhstan.[9]
Commemorative currency
On 11 Aug 1995, the central bank issued its first collectible coins, in gold and silver, with a face value of 100 and 10 som respectively. These were issued to commemorate the 1000th anniversary of the
Museum
The central bank also manages the Numismatic Museum of the National Bank of the Kyrgyz Republic. The museum first started off in 1998 as an exhibition to mark the fifth anniversary of the introduction of the national currency. However this exhibition was subsequently transformed into a permanent numismatic museum, due to the great interest displayed by visitors during the duration of the exhibition. It now showcases the transformation of the som through the years as well as various first sketches of the national currency.
Board of directors
The Board of the National Bank of the Kyrgyz Republic consists of seven members, which are the Chairman of the National Bank, his three deputies and three other members of the Board. All board members have shared power and responsibilities, with members of the board appointed by the President of Kyrgyz Republic by recommendation of the Chairman of the National Bank for a period of seven years.
Chairmen
- Kemelbek Nanaev, 1992 - 1994[11]
- Marat Sultanov, 1994 - 1999
- Ulan Sarbanov, January 1999 - 2006[12][13]
- Marat Alapaev, 2006 - 2010[14]
- Baktygul Jeenbaeva, July 2010 - June 2011
- Zina Asankojoeva, June 2011 - April 2014[15][16]
- Tolkunbek Abdygulov, May 2014 - September 2018[17]
- Kubanychbek Kulmatov, September 2018 - December 2018[18]
- Tolkunbek Abdygulov , December 2018 - September 2021[18]
- Kubanychbek Bokontaev, September 2021 -[19]
Organisational structure
The National Bank of the Kyrgyz Republic is structured into ten different departments that tackle various aspects of operation of the bank to accomplish its mission and function. It is further aided by 15 other smaller units that allow for the smooth operation of the bank.
Departments of the bank | Units of the bank |
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The central bank also has branches in different regions of Kyrgyz Republic
- Issyk-Kul, town of Karakol
- Naryn, town of Naryn
- Talas, town of Talas
- Jalalalabat, town of Jalalalabat
- Osh, city of Osh
- Batken, town of Batken
Local relation
The central bank has as part of its outreach campaign taken various steps to engage with citizens as well as stakeholders in the banking industry. In 1999, the central bank began an informational and educational campaign for the general public known as "Som- the face of Kyrgyzstan". The goal of the campaign was to attract the attention of the public to the usage of the national currency and many posters and booklets were distributed as a result. The Union of Banks of Kyrgyzstan was also established by the central bank to bring the various commercial banks operating in Kyrgyz Republic together to allow for better representation of interest and protection of rights of these banks. The emergence of e-payments as an alternative to cash payments worldwide also saw the central bank establishing and promoting the usage of these modes of payments. The Elcard (Элкарт) was introduced as a national payment system and POS terminals (POS-терминалдарды) were actively promoted and incorporated into businesses around the country to allow for its use.[20] Inter-bank payment system of "Real-Time Gross Settlement System (RTGS, Айкын убакыт ыргагында эсептешүүлөрдүн гросстук система)" and the "Bulk Clearing System (BCS, Пакеттик клиринг системасы)" are also found within Kyrgyz Republic banks to allow for the transfer of inter-bank funds.
International relation
Kyrgyz Republic through its central bank is an active member of several international financial organisations. The republic acceded into the International Monetary Fund and World Bank in 1992, Asian Development Bank and Islamic Development Bank in 1994 and later the World Trade Organization in 1998. The republic is also a member of the Alliance for Financial Inclusion.[21] The three largest external debt loaned from multilateral organisations by the republic, according to its annual bank report released in 2017,[20] were incurred from the World Bank, Asian Development Bank and International Monetary Fund, from which US$667 million, 601 million and 200 million were loaned respectively. The external debt was mainly used to finance multiple infrastructural, agricultural and healthcare developments in the country.
International payment system like
Statistics
Credit Rating | ||||||
---|---|---|---|---|---|---|
National Bank of the Kyrgyz Republic | ||||||
Agency | Fitch Ratings | Moody's Investors Service
|
Standard & Poor's
| |||
Current Ratings | NR | since 2004 | B2/stable | since 2015 | NR with n/a outlook | since 2016 |
Previous Ratings | CCC/C B+/B |
since 2001 since 1998 |
NR | B/B | since 2015 |
See also
References
- ^ Weidner, Jan (2017). "The Organisation and Structure of Central Banks" (PDF). Katalog der Deutschen Nationalbibliothek.
- ^ "Валовые международные резервы" (XLS). nbkr.kg. Retrieved 4 September 2019.
- ^ "Национальный банк Кыргызской Республики | Музей денег". Muzeydeneg.ru. Retrieved 27 February 2015.
- ^ "Kyrgyzstan economy". 1 September 2003. Retrieved 21 August 2018.
- ^ "Kyrgyz currency symbol approved by National Bank". 10 February 2017. Retrieved 21 August 2018.
- ^ "Collection coins of the series "Historical events"". 7 February 2018. Retrieved 31 August 2018.
- ^ a b c "MAIN DIRECTIONS OF THE MONETARY POLICY FOR THE MEDIUM-TERM" (PDF). 17 December 2014. Retrieved 21 August 2018.
- ^ Barnett, Ryan (27 December 2013). "National Bank of the Kyrgyz Republic posts draft amendments". CISTRAN Finance. Chicago, Ill. Retrieved 3 January 2014.
- ^ "Kyrgyz currenсy printed in France and UK, coins minted in Kazakhstan – NBKR". 2 June 2017. Retrieved 21 August 2018.
- ^ Waits, Douglas (9 September 2013). "National Bank of the Kyrgyz Republic announces Independence Day collectible coins". Cistran Finance. Archived from the original on 29 October 2013. Retrieved 25 October 2013.
- ^ Pastor, Mr Gonzalo C. (22 April 2001). "The IMF and the Ruble Area, 1991-93". International Monetary Fund – via Google Books.
- ^ "САРБАНОВ Улан Кытайбекович | ЦентрАзия".
- ^ "Kyrgyz Rep's Sarbanov resigns". Central Banking. 10 April 2006.
- ^ "National Bank of the Kyrgyz Republic". www.nbkr.kg.
- ^ "АСАНКОЖОЕВА Зина Мукаевна | ЦентрАзия".
- ^ "National Bank of the Kyrgyz Republic". www.nbkr.kg.
- ^ "State secretary takes over at Kyrgyz central bank - Central Banking". 7 May 2014.
- ^ a b "NBKR's Abdygulov returns to top job after stint in government". Central Banking. 4 January 2018.
- ^ MASALIEVA, Jazgul (29 September 2021). "Parliament approves Kubanychbek Bokontaev as head of National Bank". 24.kg.
- ^ a b c "National Bank of the Kyrgyz Republic Annual Report 2017" (PDF). 14 March 2018. Retrieved 21 August 2018.
- ^ "AFI members". AFI Global. 10 October 2011. Archived from the original on 20 February 2012. Retrieved 23 February 2012.
External links
- Official website (in Russian, Kyrgyz, and English)