The second meeting of the Council of the National Bank of Ukraine started at 11:00 a.m. The meeting is held in accordance with the Law of Ukraine On the National Bank of Ukraine, which mandates that the NBU Council hold ten meetings per year.
At its second meeting, the NBU Council will assess the NBU Board’s implementation of Monetary Policy Guidelines in 2015 and during the first nine months of 2016. The meeting agenda will also include defining a procedure for developing Monetary Policy Guidelines and exercising control over their implementation. The NBU Council members will also discuss a draft of the Monetary Policy Guidelines for 2017. The meeting agenda will include other issues falling within the competence of the NBU Council.
All the members of the NBU Council and Board, representatives of the executive and legislative authorities, and international financial institutions, as well as stakeholders, will take part in the open part of the meeting.
It should be mentioned that amendments in 2015 to the Law of Ukraine On the National Bank of Ukraine significantly amended the mandate of the NBU Council by broadening its powers and strengthening its institutional framework.
The tasks of the NBU Council are as follows:
- developing Monetary Policy Guidelines on the basis of NBU Board proposals, issue them in official publications, and submit them annually before 15 September to the Verkhovna Rada of Ukraine for referential use;
- exercising control over monetary policy implementation;
- analyzing the effects of the monetary policy of Ukraine on the social and economic development of the country and developing proposals on amending this policy;
- yearly approving the budget of income and expenditures of the NBU for the following year before 15 September of the current year;
- submitting to the Verkhovna Rada and the Cabinet of Ministers of Ukraine an estimation of the share of forecasted profit before distribution of the following year subject to transfer to the State Budget of Ukraine; and
- making decisions to direct the profit available for distribution to increase the NBU’s authorized capital and build up reserves, which are the source of investment financing to support the NBU’s activities.
In addition, the NBU Council’s mandate also includes the following:
- establish an Audit Committee and other working bodies of the NBU Council, define their composition and chairpersons;
- appoint and dismiss the Head of Internal Audit;
- oversee the activities of the Internal Audit; and
- approve the methods of remuneration calculation for NBU Council members, except the NBU Governor.