Chapter II-III Flashcards
Name the powers of the Central Bank
— establish the rules for conducting settlements in the Republic of Uzbekistan;
— establish the procedures for opening, operating and closing of customer accounts in the national and foreign currency by the Bank
— issuing banknotes into circulation and withdrawing from circulation on the territory of the Republic of Uzbekistan
— exercise the priority right of the state to purchase refined gold to replenish assets in precious metals
— release bullions of precious metals into circulation
— establish the procedure for the purchase and sale of precious metal banknotes
— establish the procedure for banks to carry out transactions with precious metals
— provide banks with short-term credits and emergency liquidity support credits in accordance with the procedure and under the terms and conditions specified by it
— use reasoned judgment in licensing the activity of banks, record registration of organizations, carrying out the activity of microfinance organization and organizations on mortgage refinancing, as well as in regulation and supervision of the activity of banks, organizations, carrying out the activity of microfinance organization, organizations on mortgage refinancing, pawnshops and banking groups
— request and obtain from the state bodies and organizations the information necessary for the fulfillment of its powers
— own, use and dispose of the property reflected in its balance sheet
— establish its subordinate organizations, including the currency exchange
— conducts financial operations, including provision of banking services to foreign governments, central banks of other states
— represent the interests of the Republic of Uzbekistan in the central banks of other states and international financial institutions within the limits of its authority
— open representative offices in foreign countries
— issue bonds
— conclude clearing and payment agreements on its own behalf or on behalf of the Government of the Republic of Uzbekistan
— conduct control activity on detection of violations in banks, organizations carrying out activities of microfinance organization, organizations on mortgage refinancing and pawnshops, including remotely
— establish requirements for the reproduction of banknote and coin images
— opens accounts for banks
— operate in financial markets by buying and selling outright (spot and forward) or under repurchase agreements, and by lending or borrowing market instruments, currencies and precious metals.
List the functions of the Central Bank
— develops and implements monetary policy, including foreign exchange policy
— monitor, analyze and forecast the inflation rate in the Republic of Uzbekistan, publish relevant information materials and statistical data
— formulates and publishes banking, monetary statistics, external sector statistics including balance of payments, international investment position, external debt and reserve assets of the Republic of Uzbekistan
— annually submits to the Government of the Republic of Uzbekistan information on economic and financial issues containing recommendations on preparation of the draft State budget
— organizes cash circulation
— performs currency regulation and currency control
— regularly establishes the exchange rate for the purposes of accounting, statistical and other reporting on currency transactions, as well as for the calculation of customs and other obligatory payments on the territory of the Republic of Uzbekistan
— carries out the state registration of banks and credit bureaus
— licenses activities of banks, payment institutions, payment system operators, currency exchanges and credit bureaus; regulates and supervises the activities of banks, as well as microfinance institutions, pawnshops, organizations for mortgage refinancing (hereinafter - non-bank credit organizations), payment institutions, payment system operators, currency exchanges, credit bureaus and banking groups
— issue documents of permissive nature
— accepts notifications of commencement and termination of activities (actions) carried out under the notification procedure, exercises control over notifiers carrying out activities (actions) under the notification procedure, makes decisions on suspension, resumption and termination of activities (actions)
— independently or by order of the Government of the Republic of Uzbekistan, carries out banking operations and other transactions required to perform the functions of a fiscal agent of the Government
— takes measures to ensure the stability of the payment systems in the Republic of Uzbekistan
— monitor and oversee compliance by persons, subject to supervision by the Central Bank, with internal control rules and procedures for submission to a specially authorized government body of information related to counteraction to legalization of proceeds of crime, financing of terrorism and financing weapons of mass destruction proliferation
— acts as the depositary of funds of the International Monetary Fund in the currency of the Republic of Uzbekistan, carries out transactions and deals, including those stipulated by international treaties of the Republic of Uzbekistan
— takes measures to ensure the protection of rights and legitimate interests of consumers of services of banks and non-bank credit institutions (hereinafter - credit institutions), increasing the availability of financial services and the level of financial literacy of the population and business entities
— manage, account and store international reserves of the Republic of Uzbekistan (hereinafter referred to as international reserves), including the reserves of the Government of the Republic of Uzbekistan under the agreement.
What is authorized capital? What is the amount of authorized capital for Central Bank? What is the amount of authorized capital for commercial banks?
Authorized capital of bank consists of money paid by founders and shareholders of the bank.
Amount of authorized capital for Central Bank is one trillion soums.
Amount of authorized capital for Central Bank is one trillion soums.
Amount of authorized capital for commercial banks is one hundred billion soums.
Tell us about profit determination and distribution of Central Bank. How does Central Bank deal with the unrealized income?
The profit of the Central Bank for each fiscal year shall be determined after making reserves, coverage of possible losses on bad and doubtful debts and other assets, accounting of all income and expenses, as well as actual evaluation of assets and liabilities.
Unrealized income and expenses of the Central Bank arising from revaluation of international reserves resulting from changes in foreign currency exchange rates or precious metals values shall be attributed to the revaluation fund for transactions with international reserves. The mentioned unrealized income shall not be transferred to the State Budget.
Who reviews the annual report of the Central Bank? When is the deadline to submit the annual report?
What should annual report of the Central Bank include?
The annual report together with the auditor’s opinion shall be submitted to the Senate of the Oliy Majlis of the Republic of Uzbekistan no later than May 15.
The annual report of the Central Bank shall include:
— analysis of the state of the economy
— report on the activities of the Central Bank, including a review of the monetary policy and the state of the banking sector.
Tell us about internal audit activities of Central Bank
The Internal Audit Service of the Central Bank shall perform internal audit of the activities of the Central Bank. The Internal Audit Service shall report to the Audit Committee on its activities.
The Audit Committee of the Central Bank shall be composed of three members, including one independent member. The powers, regulations of the Audit Committee, its legal status and requirements to its members shall be defined by the Central Bank Board.
Members of the Audit Committee shall be appointed by the Board of the Central Bank. The Audit Committee can include members of the Board of the Central Bank.
The Audit Committee shall be accountable to the Board of the Central Bank in its activity.
The internal audit of the activity of subordinated organizations of the Central Bank shall be conducted at least once a year.
Tell us about external audit activities of Central Bank
The activity of the Central Bank shall be audited annually by the audit organizations in compliance with the International Auditing Standards.
The information received by the external auditor in the course of audit of the Central Bank shall be confidential and not subject to disclosure without his/her consent.
The requirements to the audit organization conducting external audit shall be determined by the Central Bank.
