Národná banka Slovenska is the central bank of the Slovak Republic. Národná banka Slovenska was established on 1 January 1993 by the Act of the National Council of the Slovak Republic No. 566/1992 Coll. on the National Bank of Slovakia as the independent central bank of the Slovak Republic.

Since 1 January 2009, National Bank of Slovakia has been part of the Eurosystem. In cooperation with the European Central Bank and central banks of the euro area countries, it maintains the price stability.

History

It is an independent institution, whose basic goal is to hold price stability. It was created on 1 January 1993.

Authorized by the Slovak Government, the Bank represents Slovakia in international financial institutions and in international money market transactions related to monetary policy performance.

The supreme governing body of the National Bank of Slovakia is the Bank Board, which formulates monetary policy, applies appropriate instruments, and rules on monetary measures. It is composed of the Governor and two Vice-Governors, who are appointed and dismissed by the President of Slovakia and other eight members, who are appointed and dismissed by the Slovak government following the proposal of the Governor. As many as three members of the Bank Board are not required to be in a working relationship with the NBS.

Since 1 January 2010 the head of the National Bank of Slovakia has been Doc. Ing. Jozef Makuch, PhD. He was appointed the Governor by the President of Slovakia on 1 January 2010.

Objectives

The primary objective of Národná banka Slovenska is to maintain the price stability. For this purpose the NBS:

• Is involved in the common monetary policy determined by the European Central Bank for the whole euro area;
• Issues euro banknotes and coins according to separate regulations valid in the euro area related to issuing euro banknotes and coins;
• Promotes the smooth operation of payment systems and clearing systems, regulates and coordinates and ensures currency circulation, payment system and clearing of payment system data and is concerned with its smoothness and economic efficiency;
• Maintains and disposes of foreign reserve assets and implements foreign exchange operations according to separate regulations applicable to Euro system operations;
• Conducts other activities resulting from its participation in the European System of Central Banks.

Národná banka Slovenska, in the financial market area, contributes to the financial system stability as a whole, as well as to the safe and sound financial market functioning in order to sustain the financial market credibility, clients´protection and complying with competition rules.

Concurrently, Národná banka Slovenska conducts financial market supervision, i.e. it conducts supervision of banks, branch offices of foreign banks, investment firms, intermediaries of investment services, stock exchanges, management companies, mutual funds and collective investment undertakings, reinsurance undertakings, pension fund managing companies, pension funds, supplementary pension fund managing companies and other supervised entities of the Slovak financial market.

Organization and Structure

The NBS Bank Board is the main governing body of Národná banka Slovenska. The Bank Board primarily determines:

• Procedural principles followed by Národná banka Slovenska and its organizational units when implementing common European monetary policy in accordance with the applicable regulations and rules;
• Principles of conduct and the organisation of supervision of the financial market and of supervision matters entrusted to Národná banka Slovenska.

At present, the NBS Bank Board consists of four members: the Governor, one Vice-Governor, and two other members. The Governor and the Vice-Governors are appointed by the President of the Slovak Republic; the remaining members are appointed by the Slovak Government.

The supreme governing body of Národná banka Slovenska is the Bank Board. The Bank Board ought to consist of 5 members (pursuant to Article 7 of the Act on the National Bank of Slovakia). Members of the Bank Board shall be the Governor, two Vice-Governors and two other members.

The Governor and Vice-Governors shall be appointed and dismissed by the President of the Slovak Republic upon the recommendation of the Government and with approval of the National Council of the Slovak Republic. Two other members of the Bank Board shall be appointed and dismissed by the Government upon recommendation of the Governor of Národná banka Slovenska. The members of the Bank Board shall be appointed for a term of five years.

Since 12th January 2010 the head of the NBS is Mr Jozef Makuch.

International Relations

At the international level, Národná banka Slovenska (NBS) focuses on integration and cooperation within European structures. Since Slovakia acceded to the European Union (EU) on 1 May 2004, NBS has been a member of the European System of Central Banks (ESCB) and the NBS Governor has been a member of the General Council of the European Central Bank (ECB). On 1 January 2009, when the common European currency was introduced in the Slovak Republic, NBS automatically became part of the Eurosystem, and the NBS Governor took up a seat on the ECB Governing Council. Národná banka Slovenska can also contribute indirectly to the decision-making processes of EU bodies, through its participation in selected committees and working groups of the EU Council and the European Commission, as well as in the Committee for EU affairs, based in Slovakia.

As the authority responsible for integrated financial market supervision in Slovakia, Národná banka Slovenska participates in activities of the European System of Financial Supervision (ESFS), the EU supervisory framework that came into operation as of 1 January 2011 with the establishment of new authorities responsible for macro-prudential and micro-prudential oversight. The European Systemic Risk Board (ESRB) exercises macro-prudential supervision, and meetings of the ESRB's General Board will be attended by the NBS Governor. At the micro-prudential level, NBS is engaged in the work of the European Securities and Markets Authority (ESMA), the European Banking Authority (EBA), and the European Insurance and Occupational Pensions Authority (EIOPA). These European Supervisory Authorities (ESAs) replaced the so-called three Level 3 Committees (CEIOPS, CEBS, CESR) as of 1 January 2011.

Národná banka Slovenska plays an active role in numerous international economic, financial and other institutions. The NBS Governor serves as the Governor representing the Slovak Republic at the International Monetary Fund (IMF) and as the Alternate Governor for the Slovak Republic in the European Bank for Reconstruction and Development (EBRD). The NBS Deputy Governor acts as Slovakia's Alternate Governor at the World Bank. Národná banka Slovenska is also a member of international institutions focused on cooperation in financial market supervision (BIS, IOPS, IOSCO, IAIS) and it is actively engaged in the work of other international organisations, such as the OECD.

In addition, Národná banka Slovenska provides technical assistance both on a bilateral basis, and as part of regional projects organised by the ECB in cooperation with national central banks.

Useful links

Currency of Slovakia:

Slovak koruna

List of Central Banks:

Central Banks

Official website of National Bank of Slovakia:

www.nbs.sk

The Ministry of the Finance of the Slovak Republic:

www.finance.gov.sk

Ministry of Economy of the Slovak Republic:

www.economy.gov.sk