PEMPAL - TCOP WG thematic workshop – Moscow – 5 April 2017

Slides:



Advertisements
Similar presentations
6 Money Markets. Chapter Objectives Provide a background on money market securities Explain how institutional investors use money markets Explain the.
Advertisements

Developing a Deep and Liquid Bond Market - Experience of Sri Lanka Presentation by K.G.D.D.Dheerasinghe Assistant to the Governor Central Bank of Sri Lanka.
Ministry of Finance of the Republic of Kazakhstan Treasury Committee Topic: «Integration of External Financing in the Process of Budget, Accounting and.
ECB: European Central Bank John-Paul Kivlin Educational use only.
Money and Interest Rates. Money and Interest Rates The Meaning and Functions of Money.
Lecture # 4 Role of Central Bank. Interest Rate Interventions.
The monetary policy uses three tactics to maintain the monetary stability. They are  Money supply  Money demand  Managing the risks within banking.
Finance THE BANKING SYSTEM. Finance Lecture outline  The types and functions of banking  Central banking  Commercial and investment.
MARKET OF GOVERNMENT SECURITIES IN BH Securities in the BH Financial Market – Preparation for Issuing of Government Securities Banja Vrućica, 18. May 2006.
University of Palestine International Business And Finance Management Accounting For Financial Firms Part (3) Ibrahim Sammour.
STATE TRASURY. ST was established on the basis of Act No. 291/2002 Coll. on the State Treasury and on Amendment and Supplementation of Certain Laws as.
Office of Debt Management Overview of Treasury’s Office of Debt Management.
An understanding..  It is a market where money or its equivalent can be traded.  Money is synonym of liquidity.  It consists of financial institutions.
THE BANK'S BALANCE SHEET
MONETARY POLICY INSTRUMENTS IN THE REPUBLIC OF CROATIA Monetary policy.
Finance (Basic) Ludek Benada Department of Finance Office 533
M A R C H Building a Debt Management Office: the Brazilian Experience José Antonio Gragnani National Treasury Deputy Secretary Rio de Janeiro,
Ministry of Finance of the Republic of Moldova of March 2016.
Azerbaijan Deposit Insurance Fund «Mandate and powers of deposit insurance schemes» 29 April 2014 Azerbaijan Deposit Insurance Fund Mandate.
Lecture outline Risk factors in public debt management Diversification Liquidity and transparency Structure of public debt management unit.
Financial Management Resource and Research Society November, 2014 Cash Management Reform The Way Forward in Central Government.
TREASURY OF GEORGIA – MISSION AND FUNCTIONS Nino Tchelishvili June, 2016 Chisinau, Moldova.
082SIS52 Ryu Soo-hyun. Money Market  Money Market - Subsection of fixed income market - financial market for short-term borrowing & lending - provides.
9 th Forum on African Public Debt Management SESSION 3: RISK MANAGEMENT, THE RESPONSIBILITIES AND NEW CHALLENGES FACING MIDDLE OFFICES Sturla Palsson,
Ministry of Finance of the Republic of Moldova of June 2016.
Treasury of the Republic of Kazakhstan
MONETARY POLICY Lecture 4 Role of banks in the process of money creation Marijana Ivanov, Ph.D.
Cash management and forecasting The relationship between the Ministry of Finance and the Central Bank of Montenegro Marija Popović Branka Rogošić Pavle.
HASMIK STEPANYAN April
Ministry of finance and Central bank of RM (NBRM)
The Ministry of Finance of the Kyrgyz Republic
CHAPTER 7 Money Markets.
THE STATE TREASURY OF THE REPUBLIC OF CROATIA
Financial System Examine the financial system in an advanced economy.
Basic Finance The Federal Reserve
THE RELATIONSHIP BETWEEN CASH MANAGEMENT AND CENTRAL BANK
4.01 Accounting and Finance
MINISTRY OF FINANCE OF THE REPUBLIC OF MOLDOVA
The Federal Reserve and Monetary Policy
Dr Marek Porzycki Chair for Economic Policy
TREASURY ORGANIZATION AND STRUCTURE
Cash and Debt Management: Interaction and Coordination
State Treasury Structure of the Treasury Single Account
Commercial Bank Operations
Cash and Debt Management: Interaction and Coordination
CHAPTER 6 MONEY MARKETS All Rights Reserved Dr David P Echevarria.
PEFA 2016 Slides selected from the training materials of the PEFA secretariat.
I-Cash and Debt Management: Interaction, Coordination and Integration
External Invoicing & FAST AR
Chapter 9 - Monetary Policy Tools
TREASURY ORGANIZATION AND STRUCTURE
Personal Finance Money Markets
Treasury Management Function in Nepalese Banking Sectors
Well – Come to Treasury Management
Monetary Policy and Central Banking
Foreign Exchange and International Finance
Module 3.2: Treasury Management
Public Debt Management
Explain what the term soft loans mean.
CHAPTER 7 Money Markets.
CASH MANAGEMENT IN TURKEY
PUBLIC CASH MANAGEMENT IN HUNGARY – THE ROLE OF THE GOVERNMENT DEBT MANAGEMENT AGENCY András Réz Deputy CEO.
Chapter Five Money Markets McGraw-Hill/Irwin.
Cash Management Case of Republic of Kosovo
Relationship between MoF/Treasury and Central Bank
PEFA 2016 Slides selected from the training materials of the PEFA secretariat.
Public Debt Management
– Cash Flow Forecasting –
European Economic and Social Committee
Relations between the Central Bank and the Ministry of Finance
Presentation transcript:

PEMPAL - TCOP WG thematic workshop – Moscow – 5 April 2017 Republic of Croatia - Ministry of Finance The Relationship between the Treasury Cash Management Function and the Central Bank Functions PEMPAL - TCOP WG thematic workshop – Moscow – 5 April 2017

The Croatian National Bank Act Regulates correlations: The Croatian National Bank is exclusively owned by the Republic of Croatia The Republic of Croatia is the guarantor for all liabilities of the CNB The CNB is independent and the Republic of Croatia cannot influence its decision-making or execution process, especially: Monetary and FX policy – price and FX rate stability – where necessary, the CNB performs fine tuning operations in the open market – repo and reverse repo operations The government cannot borrow funds from the Central Bank – but the Central Bank can buy government securities on the secondary market.

The Budget and Budget Execution Act Public Debt Management Service Contacts and consults market investors, assesses the financial market situation, conducts risk assessment Negotiates long-term liabilities - credits and bond issuance; and short-term liabilities - credits and treasury bills Transparent publication: annual reports and the public debt management strategy 2017 - 2019, the borrowing and T-bill auction calendar Liquidity Management Service Prepares quarterly and annual liquidity plans which are updated on a daily basis Placement of occasional free cash flow surpluses by using short-term deposits on the money market in commercial banks (with collateral), and government securities (through the Croatian National Bank, for FX placements). Basic principles of investment: security, liquidity and cost-effectiveness Committee for Liquidity - considers monthly liquidity plans

FISCAL, MONETARY AND PUBLIC DEBT POLICY officially - the CNB Act from 2008, 2013; unofficially - where needed, at the highest level MINISTRY OF FINANCE THE CROATIAN NATIONAL BANK borrowing plans bank system liquidity; interest rates PAYMENT OPERATIONS Execution of payment operations - officially - contracts; unofficially - intensive daily contact Development of payment operations - Technical working group - National Committee for Payment Operations, 2003 - Cooperation Agreement Defined deadlines, conditions, technical requirements for execution methods and fees defining and proposing common measures in payment operations, proposing new services pursuant to international standards, e.g. the national SEPA project

MANAGING THE FINANCIAL CRISIS ANALYSES AND PROJECTIONS STATISTICS officially - Cooperation Agreement - 2013 MINISTRY OF FINANCE THE CROATIAN NATIONAL BANK government finance statistics for the IMF the public debt report, government finance statistics for the ECB MANAGING THE FINANCIAL CRISIS officially - memorandum of understanding - 2009 highlighting system risks which threaten financial stability ANALYSES AND PROJECTIONS unofficially regular publishing of macroeconomic projections and analyses, cooperation of experts from both institutions

REPUBLIC OF CROATIA FUNDS AT THE TSA IN THE CNB IBAN: HR12 1001 0051 8630 0016 0 HRK - CNB manages accounts for the RC but is not in charge of the payment operations for these accounts (electronically through FINA) - CNB pays interest on the deposited funds - CNB charges fees for providing services and performing operations to the depositor (and to FINA, as well) €/$/£ - CNB performs payment operations electronically - CNB does not pay interest on foreign deposits, nor does it charge fees for performing payment operations - Since June 2014, interest rates on EUR deposits, as well as for all short term deposits and investments, have been negative (following the ECB decision) - operations via the TSA - CNB does not use cash and certain foreign currencies - account balance accessible in real time, electronically - still no account balance targeting

POSSIBLE PROGRESS IN COOPERATION Cooperation adequate, but can it be better? Increased cooperation (speed) at the operational level Lack of readiness to conduct certain transactions Engaged investment (f/x) consultant, FX rate developments The role of the fiscal agent in reducing public debt management expenses Liquidity fine tuning A common IT system A more pro-active approach

THANK YOU FOR YOUR ATTENTION!