Act No. 130 / 1989 Coll.
Law on the Czechoslovak State Bank
Valid
Effective from 01.01.1990
130
THE LAW
of 15 November 1989
concerning the Czechoslovak State Bank
The Federal Assembly of the Czechoslovak Socialist Republic decided on this law:
BASIC PROVISIONS
(1) The Czechoslovak State Bank is the central bank of the Czechoslovak Socialist Republic.
(2) The Czechoslovak State Bank has the status of the Central Authority of the Czechoslovak Socialist Republic in the field of currency and, to the extent provided for by this Act and the special legislation1) in the field of banking, in granting authorisations and issuing generally binding legislation.
(3) In exercising its powers, the Czechoslovak State Bank uses economic instruments and issues generally binding legislation.
(1) The Czechoslovak State Bank is a legal entity based in Prague; its designation in the Czech language is "State Bank of Czechoslovakia 'and in the Slovak language" Štátna Bank of Czechoslovakia'.
(2) The Czechoslovak State Bank is acting on its behalf in its legal relations and is responsible for these relations.
(3) The State Bank of Czechoslovakia does not guarantee the State's obligations unless it expressly accepts such a guarantee. The State is liable for the liabilities of the Czechoslovak State Bank only if it is expressly provided for by law or if it expressly assumes such a guarantee.
(1) The Czechoslovak State Bank provides tasks related to the negotiation of international agreements, the participation of the Czechoslovak Socialist Republic in international organisations and the provision of tasks arising for the Czechoslovak Socialist Republic from these agreements and activities in these organisations.
(2) The Czechoslovak State Bank is in contact with foreign central banks.
In carrying out its functions and activities, the Czechoslovak State Bank cooperates with and provides the relevant central authorities of the Federal and Republic administrations and requires the necessary information and documentation. The Czechoslovak State Bank takes an opinion on the proposals put forward by other institutions to the Government of the Czechoslovak Socialist Republic and the Governments of the Republics when they affect its competence.
MONETARY PLANNING
(1) The Czechoslovak State Bank participates in the creation of comprehensive state plans for the economic and social development of the Czechoslovak Socialist Republic, the Czech Socialist Republic and the Slovak Socialist Republic, budgetary perspectives and state budgets of the Federation and Republics and presents its opinions in terms of ensuring monetary balance and creating conditions for the stability of the Czechoslovak currency. In doing so, it exercises its responsibility for managing money circulation, for the quality and stability of the currency.
(2) The Czechoslovak State Bank processes monetary analyses in which it assesses the socio-economic developments in monetary terms and proposes the necessary measures.
(1) The Czechoslovak State Bank, in cooperation with the relevant central authorities of the Federal and Republic government, draws up and submits to the Government of the Czechoslovak Socialist Republic for approval and the Government of the Czech Socialist Republic and the Government of the Slovak Socialist Republic for consideration a draft five-year and annual monetary plan, broken down into a credit, cash and foreign exchange plan.
(2) The binding outcomes of the five-year and annual monetary plan are governed by banks and savings banks and, to the extent provided by the special law, by other legal entities.
(1) The State Bank of Czechoslovakia produces and, after consulting the Government of the Czech Socialist Republic and the Government of the Slovak Socialist Republic, submits to the Government of the Czechoslovak Socialist Republic for approval a draft banking monetary policy comprising a credit, deposit, interest and foreign exchange policy and is responsible for its implementation within its jurisdiction.
(2) According to the development of the national economy, the Czechoslovak State Bank makes the necessary adjustments to the approved monetary plans and banking monetary policy to the extent authorised by the Government of the Czechoslovak Socialist Republic.
ACTIVITIES OF THE STATE BANK
Czechoslovak State Bank
(a) has the exclusive right to issue Czechoslovak money;
(b) oversees the protection of the currency, the printing and the stamping of money;
(c) declare the issue and description of each type of money and its withdrawal;
(d) manage the cash flow;
(e) determine and declare the foreign exchange rate for foreign currencies on the basis of principles approved by the Government of the Czechoslovak Socialist Republic, taking into account in particular the development of the national economy, the balance of payments and the situation on foreign exchange markets;
(f) determines the price of gold in banking operations;
(g) carry out gold and foreign exchange operations;
(h) manage the currency reserves in gold and foreign currency;
(i) manage supplies of Czechoslovak money and stocks of foreign exchange funds;
(j) manage treasury operations and exchange operations;
(k) manage payment and settlement operations within the country;
(l) to the extent necessary for the implementation of the monetary plan and of the banking monetary policy, in agreement with the Federal Statistical Office, it creates a sub-information system) State banks of Czechoslovakia, banks and savings banks, as well as other payment and settlement organisations;
(m) conduct special banking operations.
The Czechoslovak State Bank directs the process of banks and savings banks in lending to legal persons and in lending to natural persons, as well as in receiving deposits from legal persons and from natural persons. As regards the setting of interest rates on deposits of natural persons with banks and savings banks and on loans granted by banks and savings banks to natural persons, they do so together with the Federal Ministry of Finance and in agreement with the ministries of finance, prices and wages of the Republics.
Czechoslovak State Bank
(a) be responsible for the implementation of the foreign exchange policy, in particular with regard to the development of the balance of payments and the course of the Czechoslovak currency;
(b) directs the procedure of Czechoslovak banks and savings banks in receiving and providing foreign exchange credits;
(c) exercise other powers under the Foreign Exchange Act.
(1) The State Bank of Czechoslovakia, together with the Federal Ministry of Finance, submits to the Government of the Czechoslovak Socialist Republic
(a) draft legislative amendments to the Czechoslovak currency;
(b) draft major monetary and financial measures; If these measures have an impact on the Republic's state budget, they shall proceed in agreement with the relevant Ministry of Finance, Prices and Wages of the Republic;
(c) draft principles for determining the foreign exchange rates of the Czechoslovak currency;
(d) proposals for adjustments to the foreign exchange economy.
(2) The Czechoslovak State Bank, together with the Federal Ministry of Finance, directs the monetary market.
Czechoslovak State Bank
(a) keep bank and savings bank accounts and receive their deposits;
(b) maintain accounts of the State Budget of the Federation and of the Republics and accounts of the State Financial Reserve.
The State Bank of Czechoslovakia is responsible for the implementation of the treasury implementation of the State Budget of the Federation and of the State budgets of the Republics; This implementation shall be ensured by itself or through a designated bank, in the implementation of the treasury implementation of the federal budget of the Federation in agreement with the Federal Ministry of Finance and in the implementation of the treasury implementation of the state budgets of the Republics in agreement with the relevant Ministry of Finance, Prices and Wages of the Republic.
The Czechoslovak State Bank is entitled to entrust banks and savings banks with the deposit of Czechoslovak money and foreign exchange funds by prior agreement.
Bank and savings bank management tools
The Czechoslovak State Bank directs the activities of banks and savings banks in particular
(a) the amount of credit that the banks provide to legal persons and loans to natural persons;
(b) the amount of interest on the loan referred to in (a) and the amount of interest on deposits deposited by banks and savings banks with the Czechoslovak State Bank, as well as on other credit resources which banks and savings banks provide to each other;
(c) liquidity rules for banks and savings banks;
(d) the amount of the compulsory reserves of banks and savings banks with the Czechoslovak State Bank.
Entitlement to issue generally binding legislation
Under this law, the Czechoslovak State Bank issues generally binding legislation on:
(a) monetary planning;
(b) the circulation of legal money;
(c) the granting of compensation for damaged money;
(d) the issue and description of each type of money and its withdrawal;
(e) treasury operations and exchange operations;
(f) the sub-information system of the Czechoslovak State Bank, banks and savings banks, as well as other legal persons engaged in payment and settlement operations within the country;
(g) principles for determining remuneration for the provision of cash services.
Banking supervision
(1) The Czechoslovak State Bank carries out banking supervision of compliance
(a) generally binding legislation issued by the Czechoslovak State Bank and in cases where it is empowered by general binding legislation;
(b) binding monetary plan outputs;
(c) the conditions laid down by the authorisations issued.
(2) Legal persons shall, upon request, submit the necessary documents to the Czechoslovak State Bank, provide the required information, allow for on-the-spot verifications and otherwise allow it to exercise its powers.
(3) Banking supervision does not concern deposits by individual natural persons and loans by individual natural persons.
(4) If, in the exercise of banking supervision, a serious breach of the obligation to conduct banking transactions and transactions and cash services has been established, the State Bank shall determine the Czechoslovak deadline to address the deficiencies identified. If these deficiencies have not been remedied within the prescribed period, the Czechoslovak State Bank shall suspend or withdraw, in a limited or full manner, the authorisation to conduct banking transactions and operations and cash services.
MANAGEMENT AND ORGANISATION OF THE STATE BANK
(1) The State Bank of Czechoslovakia is managed by the President of the State Bank of Czechoslovakia; in his absence, he is fully represented by the first Vice-President of the Czechoslovak Bank.
(2) To the extent set by the President of the Czechoslovak State Bank, he shall be represented by the first Vice-President and the other Vice-Presidents.
The President of the State Bank of Czechoslovakia is appointed and dismissed by the President of the Czechoslovak Socialist Republic on a proposal from the Government of the Czechoslovak Socialist Republic. The first Vice-President of the State Bank of Czechoslovakia and the Vice-President of the State Bank of Czechoslovakia are appointed and dismissed by the Government of the Czechoslovak Socialist Republic on a proposal from the President of the State Bank of Czechoslovakia.
The Czechoslovak State Bank carries out its activities by headquarters in Prague, branches and special-purpose organizational units. The headquarters of the State Bank of Czechoslovakia ensures both relations with the Federation and relations with the authorities of the Republics. Relations with the authorities of the Republic are ensured by the headquarters of the Czechoslovak State Bank through the main institutes.
ECONOMIC AFFAIRS OF THE STATE BANK
The Czechoslovak State Bank runs according to the principles laid down for it by the Government of the Czechoslovak Socialist Republic.
The Czechoslovak State Bank creates a statutory fund, a general reserve fund, funds under generally binding legislation, or other funds provided for by the Government of the Czechoslovak Socialist Republic.
(1) On 1 January 1990, the Statutory Fund amounts to CZK 1,4 billion and serves to secure the liabilities of the Czechoslovak State Bank.
(2) The general reserve fund amounts to CZK 1,4 billion on 1 January 1990 and serves to cover the loss of the Czechoslovak State Bank; is added from the profits of the Czechoslovak State Bank up to the amount of CZK 4,2 billion.
(1) The Czechoslovak State Bank draws up the annual accounts and the annual report with basic data on the Czechoslovak currency and its development and submits them within three months of the end of the calendar year for approval by the Government of the Czechoslovak Socialist Republic.
(2) The Czechoslovak State Bank is obliged to publish the approved annual accounts and annual reports in the extent and manner determined by the Government of the Czechoslovak Socialist Republic.
The Czechoslovak State Bank is the entity of the contributions to the State Budget provided for by the State Budget Act.
GENERAL PROVISIONS
All banking operations of the Czechoslovak State Bank, including the status of the accounts it holds, are covered by the banking secrecy. The status report may be submitted only in cases provided for by law.
Workers of the Czechoslovak State Bank are obliged to remain silent in their business. The obligation to remain silent shall continue after the employment relationship or function has ceased. This obligation may be waived in exceptional cases by the President of the Czechoslovak State Bank for reasons of general interest.
The Czechoslovak State Bank shall, within six months of the entry into force of this Act, issue a Statute in which it shall further adjust its activities, organisation and management; The Statute is approved by the Government of the Czechoslovak Socialist Republic.
TRANSITIONAL AND FINAL PROVISIONS
The right to issue generally binding legislation, which according to existing legislation is granted to the President of the Czechoslovak State Bank, passes to the Czechoslovak State Bank under this law.
The following shall be deleted:
1. Act No. 144 / 1970 Coll., on the State Bank of Czechoslovakia, as amended by Article I of Act No. 175 / 1988 Coll.;
2. § 53 of Act No. 194 / 1988 Coll., on the jurisdiction of federal central government bodies;
3. § 3 (2) and § 9 (a) of Act No. 41 / 1953 Coll.;
4. Government Decree No. 7 / 1954 Coll., on the circulation of legal money, as amended by Government Decree No. 17 / 1960 Coll.;
5. § 2 (2) of Decree No. 35 / 1954 Coll., on commemorative coins.
This Act shall take effect on 1 January 1990.
Husák v. r.
Indra v. r.
Adamec v. r.
1) For example, § 391 (5) of the Economic Code, § 119 (1), § 123 (2) and § 272 (2) of the Labour Code, § 508 (1) of the Civil Code, § 19 (1) (g) and § 22 (g) of Act No. 42 / 1980 Coll., on Economic Relations with Foreign Affairs, as amended by Act No. 102 / 1988 Coll. (full version No. 184 / 1988 Coll.), § 5 (2) and § 18 of Act No. 173 / 1988 Coll., on an undertaking having foreign shareholding.
2) Article 16 of Act No. 21 / 1971 Coll., on the Single System of Social Economic Information, as amended by Act No. 128 / 1989 Coll.
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Regulation Information
| Citation | Act No. 130 / 1989 Coll., on the State Bank of Czechoslovakia |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 28.11.1989 |
|---|---|
| Effective from | 01.01.1990 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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