National Bank of Ukraine

Profile narrative

The National Bank of Ukraine (NBU) serves as the country's central bank, responsible for formulating and implementing monetary policy to maintain price stability. It holds the exclusive right to issue the national currency, the Ukrainian hryvnia, and manages its circulation throughout the economy. In addition to currency issuance, the NBU supervises and regulates banks and other financial institutions to ensure the safety and soundness of the banking system. The institution acts as a lender of last resort, providing liquidity to solvent banks facing temporary funding shortages. It also oversees the functioning of payment and settlement systems, promoting efficiency and reliability in financial transactions. The NBU also manages the state's foreign exchange reserves, which serve as a buffer against external shocks and support the stability of the hryvnia. It participates in international financial institutions and cooperates with other central banks on matters of global monetary and financial stability. Through these functions, the NBU contributes to overall financial stability and supports sustainable economic growth in Ukraine.

The NBU operates as a state-owned institution, fully owned by the Government of Ukraine and accountable to the Verkhovna Rada, the national parliament. Its legal mandate grants it a degree of independence in pursuing monetary policy objectives, while requiring cooperation with the government on broader economic policy. The bank's regulatory role includes setting prudential standards, conducting inspections, and enforcing compliance with banking legislation. Notable attributes of the NBU include its focus on maintaining confidence in the hryvnia and its efforts to modernize the national payment infrastructure. Its governance structure includes a Governor appointed by the President of Ukraine and confirmed by parliament, along with a collegial board responsible for policy decisions. The bank regularly publishes reports on inflation, monetary policy, and financial stability, providing transparency to the public and market participants. The institution gained international attention in June 2017 when a ransomware attack known as Petrwrap/Petya disrupted its operations alongside other Ukrainian critical services. This incident highlighted the NBU's exposure to cyber threats and underscored the importance of resilient information technology systems for central banks.

Incidents

1 incident linked to this organisation.