National Bank of Serbia is the central bank of the Republic of Serbia and as such its main responsibilities are the protection of price stability and maintenance of financial stability.
The Law on the National Bank of Serbia further stipulates that in carrying out its responsibilities the National Bank of Serbia acts an autonomous and independent institution. It is not obliged neither to request nor to take instructions from the government institutions or other bodies. That is to say, on the basis of the determined economic policy targets and key macroeconomic indicators adopted by the Parliament, the National Bank then independently sets forth its projections of monetary and credit aggregates growth relative to the set targets and develops the monetary and credit policy measures that are to be implemented.
The National Bank of Serbia is a legal entity with its headquarters located in Belgrade. The National Bank of Serbia may establish branches, even though the branches do not enjoy the status of legal entities and their internal organization and the scope of authority and operations are set forth in the NBS By-Law.
The National Bank of Serbia has one specialized organizational unit, namely the Institute for Manufacturing Banknotes and Coins – Topcider, the duties and responsibilities of which are stipulated by the Law on the National Bank of Serbian and the NBS By-Law.
The most significant responsibilities entrusted to the National Bank of Serbia include:
Determination of the monetary policy, regulation of the money in circulation, operations performed in the name and for the account of the Republic of Serbia (pertains to short-term government lending for bridging liquidity gap between the inflow of revenues and financing the budgetary expenditures), regulation of the level and manner of maintaining minimal liquidity of banks, determining of the dinar exchange rate policy, as well as setting the level of standing and current required reserves for external payments liquidity, domestic and external payment operations and issue of banknotes and coins.
Supervisory function aimed at monitoring the solvency and legal grounding of operations performed by commercial banks and other financial institutions. The National Bank of Serbia may issue an order to a bank that acting in breach of monetary policy measures, to remove the discovered irregularities, while simultaneously taking legal measure(s) against it, depending on the severity of the issue. The National Bank also provides for the minimal scope of auditing for banks and other financial institutions. In cases when the submitted audit reports fail to meet the specified auditing standards, the NBS may demand from a bank or other financial institution to submit, within the prescribed deadline, a new report prepared by another independent auditor.
Within its scope of authority, the National Bank of Serbia performs its duties through its organizational units: