About the NBS
The status, organisation, mandate and functions of the National Bank of Serbia (NBS), as well as its relations with other bodies of the Republic of Serbia and international institutions are regulated by the Constitution of the Republic of Serbia and the NBS Law (RS Official Gazette, Nos 72/2003, 55/2004, 44/2010, 76/2012 and 106/2012).
The National Bank of Serbia is independent and autonomous in fulfilling its functions stipulated by the NBS Law and other laws, and is accountable for its work to the National Assembly of the Republic of Serbia.
The primary objective of the NBS is to achieve and maintain price stability. Without prejudice to its primary objective, the NBS also contributes to the maintaining and strengthening of financial stability.
The National Bank of Serbia:
- determines and implements monetary and foreign exchange policies;
- manages foreign exchange reserves;
- establishes and implements activities and measures coming under its remit, relating to the maintaining and strengthening of financial stability;
- grants and revokes operating licenses, supervises bank solvency and legality of operations, and performs other activities in accordance with the law governing banks;
- grants and revokes operating licenses and/or authorisations to insurance companies, supervises these companies and performs other activities in accordance with the law governing insurance;
- grants and revokes operating licences to voluntary pension fund management companies, supervises these companies and performs other activities in accordance with the law governing voluntary pension funds;
- grants and revokes operating licenses to financial leasing companies, supervises these companies and performs other activities in accordance with the law governing leasing operations;
- protects the rights and interests of users of services rendered by banks, financial leasing providers, insurance companies and voluntary pension fund management companies, in accordance with law;
- issues banknotes and coins and manages cash flows;
- regulates, oversees and promotes uninterrupted functioning of domestic and international payment operations, in accordance with law;
- performs statutory tasks for the Republic of Serbia or tasks established by treaties, without jeopardising its autonomy and independence.
The governing bodies of the NBS comprise:
The Executive Board determines monetary and foreign exchange policies and performs activities to maintain and strengthen financial stability. The Executive Board determines in particular:
- the monetary policy programme of the NBS,
- manner of setting interest rates of the NBS and the manner of calculation, collection and payment of rates on loans and other claims of the NBS, including other balances on which the NBS pays interest; the terms and conditions and manner of issue of securities;
- the terms and conditions and manner in which the NBS carries out open market operations and discount operations;
- short-term lending policy;
- dinar exchange rate policy;
- the base for calculating required reserves and the reserve requirement ratio, and the manner, terms and timeframe for allocation and use of banks’ required reserve balances;
- foreign exchange reserves policy, and guidelines for foreign exchange reserves management;
- other instruments and measures of monetary and foreign exchange policies;
- measures for maintaining bank liquidity;
- measures and activities coming under the NBS’s remit, relating to the maintaining and strengthening of financial stability.
The Executive Board sets the key policy rate and other rates applied by the NBS in the conduct of monetary policy. On proposal of the Administration for Supervision of Financial Institutions, the Executive Board issues regulations relating to NBS’s supervisory function, in accordance with laws governing the discharge of this function.
The Executive Board also decides on granting of preliminary approvals, as well as on granting and revocation of operating licenses to/from banks, insurance companies, financial leasing companies and voluntary pension fund management companies.
The Executive Board takes decisions at meetings by the majority vote. In case of a tie, the Governor’s vote decides.
The Governor of the NBS represents and acts on behalf of the NBS. The Governor is appointed by the National Assembly for a six-year term, with the right to re-election.
The Governor manages and organises the NBS; implements decisions of the Executive Board and the Council; enacts regulations, general and individual acts falling within the scope of authority of the NBS, which are not assigned by law to the authority of the Executive Board and the Council; proposes regulations, general and individual acts to be enacted by the Executive Board and the Council, unless stipulated otherwise by law; regulates the NBS’s internal organisation, job classification and labour relations; appoints and dismisses managers of NBS organisational units; and performs other activities stipulated by the NBS Law. Presiding over the Executive Board, the Governor signs resolutions adopted by the Executive Board.
The Council of the Governor consists of five members, including the president, appointed by the National Assembly on proposal of the National Assembly’s committee in charge of finance. Members of the Council are appointed for a five-year renewable term of office.
The Council of the Governor:
- adopts the NBS’s By-Law, on proposal of the Executive Board;
- determines the dinar exchange rate regime, on proposal of the Executive Board and with the Government’s consent;
- adopts the strategy of foreign exchange reserves management, on proposal of the Executive Board;
- decides on membership of international financial institutions;
- adopts the NBS’s financial plan;
- adopts NBS’s annual financial statements;
- appoints the internal audit manager at the NBS;
- appoints the external auditor;
- considers the external auditor’s report and monitors the implementation of audit recommendations at the NBS;
- oversees the system of financial reporting, risk management and internal controls at the NBS;
- assesses the adequacy of accounting policies and procedures adopted at the NBS;
- adopts the annual plan of internal audit at the NBS and periodically considers internal audit reports;
- oversees the performance of internal audit and compliance at the NBS;
- adopts the development strategy of the NBS, proposed by the Executive Board, and monitors its implementation.
The Administration for Supervision of Financial Institutions was established in accordance with the 2012 NBS Law and the By-Law.
- supervises banks, insurance companies, voluntary pension fund management companies and financial leasing companies;
- protects financial services consumers;
- oversees domestic and international payment operations;
- conducts research in the field of NBS’s supervisory function;
- cooperates with financial supervision international and domestic institutions.
The NBS is a legal entity headquartered in Belgrade. The NBS may set up branches which do not have a legal entity status. The internal organisation, scope of operation and responsibilities of branches are defined by NBS’s By-Law.
The Institute for Manufacturing Banknotes and Coins – Topčider is a specialised organisation within the NBS. Its tasks and responsibilities are laid down by the NBS Law and By-Law.
Within its scope of authority, the NBS performs its duties through its organisational units:
- Monetary Operations Department,
- Directorate for Economic Research and Statistics,
- Foreign Exchange Department,
- Financial Stability Department,
- Centre for Financial System Development,
- Bank Supervision Department,
- Insurance Supervision Department,
- Pension Funds Supervision Department,
- Centre for Information Systems Supervision,
- Centre for Financial Consumer Protection and Education,
- Cash Department,
- International Relations Department,
- Payment System Department,
- Chief Economist’s Office,
- Corporate Liaisons Office,
- National Payment Card Centre,
- Enforced Collection,
- Governor’s Office,
- Internal Audit,
- Compliance and Operational Risk Control,
- Legal Department,
- Accounting and Finance Department,
- Human Resources,
- General Affairs,
- Procurement Centre,
- NBS – Belgrade Branch,
- NBS – Novi Sad Branch,
- NBS – Niš Branch,
- NBS – Kragujevac Branch,
- NBS – Užice Branch,
- NBS – Institute for Manufacturing Banknotes and Coins.