Central Bank Independence in Transition Economies

13D. Banking Supervision and Exchange Rate Policy 

The National Bank of Slovenia supervises commercial banks (Art. 50-59) and is 

responsible for exchange rate policy (Art. 40-49). 

14. Ukraine

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National Bank of Ukraine (NBU) was established in. In March 1991 the law "On 

banks and banking activity" was passed by the Parliament. Chapters II and V of this 

law establish a legal framework for National Bank activity.  

14A. Governing Bodies and Financial Management 

The NBU is managed by a Board of the Bank. The Board consists of the 

Governor, Vice-Governors and other members. By the amendment to the law (passed 

on 23 December, 1993) the Governor is appointed by the Parliament, on 

recommendation of the Chairman of the Parliament, for four years period. Vice-

Governors and other members of the Board are nominated by the Presidium of the 

Parliament on recommendation of the Governor (Art. 10). 

14B. Objectives, Formulation of Monetary Policy and Relations with 

other State Institutions 

The law on NBU does not mention maintaining the price stability among the 

Bank's tasks enumerated in Art. 8. The Bank is subordinated to the Parliament (Art. 7). 

Each year the Parliament passes the guiding principles of the monetary and credit 

policy for the following year (Art. 12). The draft of the monetary policy assumptions is 

submitted by the Board of the Bank. The Bank presents annual report on its activity 

and situation of the banking system, as well as financial report, to the Parliament. The 

statute of the Bank is approved by the Parliament. 

14C. Limitations on Lending 

The Parliament may allow the Bank to grant credit to the Government, but 

formally the law prohibits the Bank from financing Government deficit (Art. 14). 

                                              

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 Law “On banks and banking activity” (20 March, 1991) with latter amendments. 

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W. Maliszewski 

CASE Foundation 

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14D. Banking Supervision and Exchange Rate Policy 

The NBU sets the exchange rate (Art. 8) and  (the amendment passed on 17 June, 

1993). The Bank is responsible for supervision of commercial banks (Chapter V).