TheNBP is one of the most important elements of the Polish economy. Its actions have a direct impact on the lives of every Pole. Find out why!
What is the NBP? Definition of the term
NBP stands for the National Bank of Poland. NBP is Poland’s central bank and as such conducts the country’s monetary policy. Its main tasks include: issuing money, setting interest rates, conducting exchange rate policy and accumulating foreign currency reserves. In addition, the central bank is responsible for maintaining the country’s financial stability. The NBP is an institution independent of political authorities. Its decisions are made by the Monetary Policy Council, which is an advisory body to the bank. Members of the MPC include representatives of various economic and political circles.
The NBP is an institution that has a huge impact on the country’s economy. Its actions have a direct impact on the price level and the economic situation in Poland. Recently, the central bank has taken a number of measures to support the economy during the coronavirus pandemic.
Scope of the NBP’s activities
The role of the National Bank of Poland is very important in the economic life of the country. It is one of the most important decision-making centers in this area. The NBP has a wide range of activities aimed at supporting the Polish economy.
Among its most important tasks are:
- maintaining price stability,
- supporting economic growth,
- protecting the Polish financial market,
- cooperation with other central banks,
- conducting monetary policy,
- supervising the banking sector,
- issuing money,
- conducting foreign exchange reserves,
- servicing the Treasury,
- supporting the country’s economic development.
The NBP is an independent body and acts in the public interest. Its goal is to maintain price stability and promote economic growth. The NBP cooperates with other central banks to exchange experience and knowledge. It conducts monetary policy to protect the interests of consumers. It supervises the banking sector, issues money and maintains foreign exchange reserves.
NBP – organization
The NBP operates on the basis of three basic principles: independence, price stability and public assistance. The central bank supports the country’s economic development by performing its tasks. Among them are:
- conducting monetary policy,
- running the central bank,
- supporting the economic development of the country,
- protecting the interests of the National Bank and its customers,
- conducting foreign exchange market policy,
- conducting exchange rate policy,
- supporting the development of the banking sector,
- maintaining the security and stability of the financial system,
- conducting price stability policy,
- conducting scientific research and development.
To perform its tasks, the NBP has a number of tools that enable it to influence the economy. These include:
- monetary policy instruments (open market operations, lombard, rediscount),
- instruments of exchange rate policy (exchange rates, reference rates),
- foreign exchange market policy instruments (forward, swap operations),
- common funds (ERM II, TARGET2).
The NBP also conducts research and development and educational activities. For this purpose, the bank has the Institute for Market Economy Research and the Center for Economic and Social Education.
The organization of the NBP consists of the President of the National Bank of Poland, the Supervisory Board, the General Board, Departments and Divisions, as well as organizational units reporting directly to the President of the NBP.
History of the NBP – National Bank of Poland
Thehistory of the National Bank of Poland began in 1919, when it was established as a state institution. At that time, its task was to conduct monetary and financial policy of the state. The NBP was also tasked with supporting the national economy.
Until World War II, the bank fulfilled its functions, but its activities were curtailed during the war. After the war, the NBP restarted its activities and continued to support the economy.
In the 1970s, the bank underwent a series of reforms that led to a change in its structure. It was then that the NBP also took on the policy of the banking sector. Since then, the bank has supported the country’s economy and invested in the development of Polish banking.
Today, the NBP is one of the most important institutions in Poland. It conducts the country’s monetary policy and also supports the economy. The bank is also involved in the development of the banking sector and investment in the Polish economy.
