The NBU Council is responsible for developing Monetary Policy Fundamentals and monitoring the implementation of monetary policy. It also supervises the NBU’s internal system of controls.
The NBU Council is made up of nine members:
- Four appointed by the Verkhovna Rada of Ukraine
- Four appointed by the President of Ukraine
- The NBU Governor is a standing member of the council
The Verkhovna Rada appointed its members by Resolution No. 1440 dated 7 July 2016:
- Mr Viktor Koziuk (7-year tenure)
- Ms Olena Shcherbakova (6-year tenure)
By Resolution No. 270-IX on 12 November 2019:
Vitaliy Shapran - till July 7, 2021.
President of Ukraine Petro Poroshenko appointed two members by Presidential Decree No. 470/2016 on 24 October 2016:
- Mr Bohdan Danylyshyn (7-year tenure)
- Mr Vasyl Furman (6-year tenure)
Mr Poroshenko appointed one other member by Presidential Decree No. 102/2018 on 17 April 2018:
- Mr Mykola Kalenskyi (5-year tenure)
Mr Poroshenko appointed his final member by Presidential Decree No. 140/2018 on 21 April 2018:
- Mr Oleksandr Petryk (4-year tenure)
At a meeting on November 14, 2019, the NBU Board members elected B. Danilyshyn for the second time.
The core functions of the NBU Council are defined in Article 9 of the Law of Ukraine On the National Bank of Ukraine. Accordingly, the NBU Council:
- Develops Monetary Policy Guidelines based on proposals submitted by the NBU Board. The NBU Council must publish and inform the Verkhovna Rada of Ukraine of the guidelines annually by 15 September.
- Controls the implementation of monetary policy.
- Analyzes the influence of monetary policy on the socioeconomic development of Ukraine and develops proposals for any amendments as needed.
- Approves the annual budget for the NBU (before 15 September for the following year).
- Communicates to the Verkhovna Rada of Ukraine and the Cabinet of Ministers of Ukraine a forecast for a proportion of distributable profits for the current year (annually before 1 April).
- Is responsible for any decision to use distributable profit to increase the NBU’s authorized capital and provisioning fund, which is the source of funding for investments that support the NBU’s operations.
- Manages procedural matters for the National Bank of Ukraine and the Regulation on the Audit Committee and the NBU Council’s other working bodies.
- Is responsible for any decision to increase the NBU’s authorized capital.
- Determines and approves the annual plan for and frequency of internal audits and manages the internal audit function.
- Approves, before 1 November of the accounting year, an audit firm for the audit of the NBU’s annual financial statements, based on a procurement process pursuant to the Law of Ukraine On State Procurement.
- Reviews the auditor’s opinion and approves before 30 April of the year following the reporting year the NBU’s annual financial statements, a report on the implementation of budget estimates for the NBU’s administrative expenses, and the distribution of distributable profit for the reporting year. The Council also publishes the NBU`s annual financial statements on the official website of the NBU.
- Ratifies decisions by the NBU Board for the NBU to participate in international financial organizations.
- Assesses the activities of the NBU Board on the implementation of the Monetary Policy Guidelines and other issues that are subject to binding decisions by the NBU Board, and submits to the NBU Board recommendations on:
the methods of forecasting macroeconomic indicators of Ukraine’s economic and social development, as well as monetary policy;
monetary and regulatory measures and their impact on Ukraine’s economic and social development;
exchange rate and foreign exchange regulation policy;
the development of the banking system and banking regulations;
improvements to the payment system;
and other issues within the remit of the NBU Council.
- Submits recommendations to the Cabinet of Ministers of Ukraine on the impact of public debt policy and tax policy on monetary conditions in Ukraine.
- Approves, based on a recommendation by the NBU Board, the method of determining the salary of the NBU Governor and Deputy Governors.
- Establishes the Audit Committee and other bodies of the NBU Council and defines their membership and heads.
- Appoints and dismisses the Head of Internal Audit.
- Appoints and dismisses the First Deputy Governor and Deputy Governors of the NBU based on recommendations from the NBU Governor.
- Supervises the activities of the internal audit function.
- Approves, based on recommendations by the NBU Board, the method of determining the salaries of NBU Council members, except the NBU Governor. The annual remuneration of a member of the NBU Council shall not exceed four times the maximum salary of a NBU Board member.
If the NBU Board repeatedly fails to execute or properly implement decisions of the NBU Council that are mandatory in accordance with law, the NBU Council has the right to present the issue to the NBU Governor, the Verkhovna Rada of Ukraine, or the President of Ukraine.