National Bank of the Kyrgyz Republic is a central bank of the Kyrgyz Republic. It was established on March 6, 1992. The status, objectives, functions, powers and principles of organization 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.
The legal status of the National Bank of the Kyrgyz Republic.
The legal status of the National Bank of the Kyrgyz Republic is defined in comply with the Law on National bank of the Kyrgyz Republic, banks and banking activity.
The principle of independence is the key element of the legal status of the National Bank of the Kyrgyz Republic. First of all it shows that the National Bank is not included in the public authority structure but also a special institution possessing exclusive rights for currency issue and organization of money circulation.
The financial independence of the National Bank of the Kyrgyz Republic is expressed by a fact that it covers its expenditures on its own income and is exempted from all taxes, customs and other fees and also government duties.
Goals, Objectives and Functions of the National Bank
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.
To perform its assigned tasks, the National Bank of the Kyrgyz Republic independently manages and engages in its activity irrespective of governmental authorities.
The National Bank of the Kyrgyz Republic performs the following basic functions:
1) Develops, determines and implements the monetary policy in the Kyrgyz Republic;
2) Exercises regulation and supervision over activities of banks and finance and credit institutions licensed by the National Bank of the Kyrgyz Republic;
3) Develops and conducts the uniform currency policy;
4) Has the sole responsibility to issue banknotes;
5) Promotes effective functioning of the payment system;
6) Establishes rules of conducting banking operations, accounting and reporting for the banking system.