Czech National Bank
Logo of the Czech National Bank
|
|
| Headquarters | Prague, Czech Republic |
|---|---|
| Coordinates | 50°05′13″N 14°25′42″E / 50.08694°N 14.42833°E |
| Established | January 1993 (1919 as Banking Office of the Ministry of Finance) |
| Governor | Jiří Rusnok |
| Central bank of | Czech Republic |
| Currency |
Czech koruna CZK (ISO 4217) |
| Preceded by | The State Bank of Czechoslovakia, 1950–1992 |
| Website | www.cnb.cz/en/ |
The Czech National Bank, (Czech: Česká národní banka, ČNB) is the central bank and financial market supervisor in the Czech Republic with its headquarters in Prague, and a member of the European System of Central Banks. The Bank's governor is Jiří Rusnok. In accordance with its primary objective, the CNB sets monetary policy, issues banknotes and coins and manages the circulation of the Czech koruna, the payment system and settlement between banks. It also performs supervision of the banking sector, the capital market, the insurance industry, pension funds, credit unions and electronic money institutions, as well as foreign exchange supervision.
The first independent banking system, in what is now the Czech Republic, was The Banking Office of the Ministry of Finance. The bank was established in 1919, due to the development of a new state. When the kingdom of Bohemia ceased to exist in 1918, the creation of Czechoslovakia called for a new central bank and currency. Czechoslovakia, which was the only democratic government in central and Eastern Europe before World-War II, located the main headquarters of the bank in Prague.
Established as the central bank of Issue, the Banking office of the ministry of Finance held the authority of the Minister of Finance. Like most central banks, the Ministry of Finance controlled the circulation of money, government debt and the issuance of money. The organizational structure of the Ministry of Finance consisted of 10 members called the “Banking Committee”. Each member was appointed by the Minister of Finance.
The Czechoslovakia economy suffered a major economic downturn between 1921 and 1923. In response to the economic decline, the Finance Minister at the time, Alois Rašín, implemented strong deflationary policies in an attempt to prevent further hyperinflation. Economists cannot be certain as to the extent of the benefits of the deflationary polices. But despite the policies of Rašín most likely lessening the effects of the hyperinflation in Germany and Austria, public opinion was against the Minister of Finance. Seen as a partial cause for the economic crisis, Rašín was assassinated on January 5, 1923 by a disturbed youth. The Banking Office of the Ministry of Finance continued to exist until the creation of The National Bank of Czechoslovakia in 1926.
...
Wikipedia