National Bank of Poland
Encyclopedia
Narodowy Bank Polski is the central bank
of Poland
. It controls the issuing of Poland's currency, the złoty. The Bank is headquartered in Warsaw
, and has branches in every major Polish town. The NBP represents Poland in the European System of Central Banks
, an EU organization.
Following the death of Sławomir Skrzypek
in the Polish Air Force Tu-154 crash
on 10 April 2010, the Bank's leadership has been until on 10 June 2010, when Marek Belka
was approved by the Parliament (253 votes in favor; 184 against) as Head of National Bank of Poland.
Although the bank has existed under its current name since 1945, it is a continuation of two previous central banks of Poland, both named simply Bank of Poland
(Bank Polski). The first one was founded in Warsaw in 1828 by Duke Franciszek Ksawery Drucki-Lubecki
. An institution of the government of the Kingdom of Poland
, it was entitled with issuance of the Polish currency as well as control over the credit rates. It was also entitled with a concession to operate foreign currencies and buy off credits issued by foreign companies and banks.
Throughout its existence, the Bank of Poland was allowed to issue banknotes and coins
up to the amount of its stock
(initially 30,000,000 złotych, 42 millions in 1834 and 53 millions in 1841). As a legal entity, the bank also financed a number of important enterprises in Russian-held Poland. Between 1829 and 1837 it spent a large part of its income on road construction, until 1842 it was also the main sponsor of the coal mining development in the region of Zagłębie and the Old Polish Industrial Area around Skarżysko-Kamienna
.
Seriously crippled by administrative measures after the November Uprising
, after the January Uprising
it was made subordinate directly to the Russian Imperial Ministry of Treasury. During the period of liquidation of Polish institutions following the failed uprising, in 1870 it was deprived of the rights of a currency issuing organ and banned from giving long-term credits. On 1 January 1886 it was officially closed down and by 1894 its assets were swallowed by the State Bank of Russia.
When Poland regained independence in 1918, it was lacking a central bank. Pursuant to the State Treasury Repair Act of 11 January 1924, Minister Władysław Grabski created a new Bank of Poland as a joint stock company
. Its stock was soon raised from the initial 100,000,000 złotych to 150 million, split into 1.5 million share
s. The bank was independent of the government of Poland, though it carried out the government's monetary policies. As the main shareholder
, the President of Poland had the right to name the chairman and deputy chairman of the bank's board of trustees.
Until 31 December 1944, the bank had a monopoly for printing currency, with gold reserves
of 40% or higher. The dividend
could not exceed 8% of income. In the event of a higher income, the state treasury had the right to 50% to 66% of it. Prior to the invasion of Poland
in 1939, all the gold reserves were evacuated from Poland to Paris, then to London and on to Canada. The Bank continued to function in exile, as the central bank of the Polish Government in Exile
, and financed most of the Polish armed forces. In 1946 the remaining prewar gold reserves were returned to Poland's new communist authorities, while the Bank of Poland itself was closed down and finally in 1952 absorbed by the newly-created National Bank of Poland.
The latter was one of two banks allowed to operate in Poland's postwar planned economy
. It had a monopoly for currency, credits and cumulation of savings. The other bank, PKO Bank Polski
, was responsible for private accounts. After the fall of the communist system in 1989, the market economy
was reintroduced and the NBP limited its functions to currency control and supervision of other, privately-controlled banks.
of 1997 and the National Bank of Poland Act of the same year. The President of the NBP is appointed by the Sejm
, at the request of the President of the Republic of Poland
, for a term of six years. The NBP President is responsible for the organisation and functioning of the National Bank. The same person cannot serve as President of the NBP for more than two terms of office. Apart from his function as the superior of the NBP staff, he is also the chairman of the Monetary Policy Council, the NBP Management Board and the Commission for Banking Supervision. He is also responsible for representing Poland in international banking and financial institutions.
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
of Poland
Poland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
. It controls the issuing of Poland's currency, the złoty. The Bank is headquartered in Warsaw
Warsaw
Warsaw is the capital and largest city of Poland. It is located on the Vistula River, roughly from the Baltic Sea and from the Carpathian Mountains. Its population in 2010 was estimated at 1,716,855 residents with a greater metropolitan area of 2,631,902 residents, making Warsaw the 10th most...
, and has branches in every major Polish town. The NBP represents Poland in the European System of Central Banks
European System of Central Banks
The European System of Central Banks is composed of the European Central Bank and the national central banks of all 27 European Union Member States.-Functions:...
, an EU organization.
Following the death of Sławomir Skrzypek
Sławomir Skrzypek
Sławomir Stanisław Skrzypek was the President of the National Bank of Poland from 2007 until his death in 2010...
in the Polish Air Force Tu-154 crash
2010 Polish Air Force Tu-154 crash
The 2010 Polish Air Force Tu-154 crash occurred on 10 April 2010, when a Tupolev Tu-154M aircraft of the Polish Air Force crashed near the city of Smolensk, Russia, killing all 96 people on board...
on 10 April 2010, the Bank's leadership has been until on 10 June 2010, when Marek Belka
Marek Belka
Marek Marian Belka is a Polish professor of Economics, a former Prime Minister and Finance Minister of Poland, former Director of the International Monetary Fund's European Department and current Head of National Bank of Poland.- Biography :...
was approved by the Parliament (253 votes in favor; 184 against) as Head of National Bank of Poland.
History
Bank of Poland
Bank Polski is the name of two former banks in Poland, each of which acted as a central bank. The first was founded by Franciszek Ksawery Drucki-Lubecki in 1828 in Congress Poland and functioned until 1885, when it was absorbed by the State Bank of the Russian Empire.The second was founded in 1924...
(Bank Polski). The first one was founded in Warsaw in 1828 by Duke Franciszek Ksawery Drucki-Lubecki
Franciszek Ksawery Drucki-Lubecki
Franciszek Ksawery Drucki-Lubecki was an important politician of the first half of the 19th century in the partitioned Poland. He was a prince and minister of the treasury in the Congress Kingdom of Poland. He is known as one of the prominent economists and financiers of his era...
. An institution of the government of the Kingdom of Poland
Congress Poland
The Kingdom of Poland , informally known as Congress Poland , created in 1815 by the Congress of Vienna, was a personal union of the Russian parcel of Poland with the Russian Empire...
, it was entitled with issuance of the Polish currency as well as control over the credit rates. It was also entitled with a concession to operate foreign currencies and buy off credits issued by foreign companies and banks.
Throughout its existence, the Bank of Poland was allowed to issue banknotes and coins
Money supply
In economics, the money supply or money stock, is the total amount of money available in an economy at a specific time. There are several ways to define "money," but standard measures usually include currency in circulation and demand deposits .Money supply data are recorded and published, usually...
up to the amount of its stock
Stock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
(initially 30,000,000 złotych, 42 millions in 1834 and 53 millions in 1841). As a legal entity, the bank also financed a number of important enterprises in Russian-held Poland. Between 1829 and 1837 it spent a large part of its income on road construction, until 1842 it was also the main sponsor of the coal mining development in the region of Zagłębie and the Old Polish Industrial Area around Skarżysko-Kamienna
Skarzysko-Kamienna
Skarżysko-Kamienna is a town in northern Świętokrzyskie Voivodeship in Poland by Kamienna river, to the north of Świętokrzyskie Mountains; one of the voivodship's major towns...
.
Seriously crippled by administrative measures after the November Uprising
November Uprising
The November Uprising , Polish–Russian War 1830–31 also known as the Cadet Revolution, was an armed rebellion in the heartland of partitioned Poland against the Russian Empire. The uprising began on 29 November 1830 in Warsaw when the young Polish officers from the local Army of the Congress...
, after the January Uprising
January Uprising
The January Uprising was an uprising in the former Polish-Lithuanian Commonwealth against the Russian Empire...
it was made subordinate directly to the Russian Imperial Ministry of Treasury. During the period of liquidation of Polish institutions following the failed uprising, in 1870 it was deprived of the rights of a currency issuing organ and banned from giving long-term credits. On 1 January 1886 it was officially closed down and by 1894 its assets were swallowed by the State Bank of Russia.
When Poland regained independence in 1918, it was lacking a central bank. Pursuant to the State Treasury Repair Act of 11 January 1924, Minister Władysław Grabski created a new Bank of Poland as a joint stock company
Joint stock company
A joint-stock company is a type of corporation or partnership involving two or more individuals that own shares of stock in the company...
. Its stock was soon raised from the initial 100,000,000 złotych to 150 million, split into 1.5 million share
Share (finance)
A joint stock company divides its capital into units of equal denomination. Each unit is called a share. These units are offered for sale to raise capital. This is termed as issuing shares. A person who buys share/shares of the company is called a shareholder, and by acquiring share or shares in...
s. The bank was independent of the government of Poland, though it carried out the government's monetary policies. As the main shareholder
Shareholder
A shareholder or stockholder is an individual or institution that legally owns one or more shares of stock in a public or private corporation. Shareholders own the stock, but not the corporation itself ....
, the President of Poland had the right to name the chairman and deputy chairman of the bank's board of trustees.
Until 31 December 1944, the bank had a monopoly for printing currency, with gold reserves
Official gold reserves
A gold reserve is the gold held by a central bank or nation intended as a store of value and as a guarantee to redeem promises to pay depositors, note holders , or trading peers, or to secure a currency....
of 40% or higher. The dividend
Dividend
Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business , or it can be distributed to...
could not exceed 8% of income. In the event of a higher income, the state treasury had the right to 50% to 66% of it. Prior to the invasion of Poland
Invasion of Poland (1939)
The Invasion of Poland, also known as the September Campaign or 1939 Defensive War in Poland and the Poland Campaign in Germany, was an invasion of Poland by Germany, the Soviet Union, and a small Slovak contingent that marked the start of World War II in Europe...
in 1939, all the gold reserves were evacuated from Poland to Paris, then to London and on to Canada. The Bank continued to function in exile, as the central bank of the Polish Government in Exile
Polish government in Exile
The Polish government-in-exile, formally known as the Government of the Republic of Poland in Exile , was the government in exile of Poland formed in the aftermath of the Invasion of Poland of September 1939, and the subsequent occupation of Poland by Nazi Germany and the Soviet Union, which...
, and financed most of the Polish armed forces. In 1946 the remaining prewar gold reserves were returned to Poland's new communist authorities, while the Bank of Poland itself was closed down and finally in 1952 absorbed by the newly-created National Bank of Poland.
The latter was one of two banks allowed to operate in Poland's postwar planned economy
Planned economy
A planned economy is an economic system in which decisions regarding production and investment are embodied in a plan formulated by a central authority, usually by a government agency...
. It had a monopoly for currency, credits and cumulation of savings. The other bank, PKO Bank Polski
PKO Bank Polski
Powszechna Kasa Oszczędności Bank Polski Spółka Akcyjna is Poland's largest bank. It provides services to individual and business clients. The core business activity of PKO Bank Polski is retail banking...
, was responsible for private accounts. After the fall of the communist system in 1989, the market economy
Market economy
A market economy is an economy in which the prices of goods and services are determined in a free price system. This is often contrasted with a state-directed or planned economy. Market economies can range from hypothetically pure laissez-faire variants to an assortment of real-world mixed...
was reintroduced and the NBP limited its functions to currency control and supervision of other, privately-controlled banks.
Structure
The structure and functioning of the National Bank of Poland are regulated by article 227 of the Constitution of PolandConstitution of Poland
The current Constitution of Poland was adopted on 2 April 1997. Formally known as the Constitution of the Republic of Poland , it replaced the temporary amendments put into place in 1992 designed to reverse the effects of Communism, establishing the nation as "a democratic state ruled by law and...
of 1997 and the National Bank of Poland Act of the same year. The President of the NBP is appointed by the Sejm
Sejm
The Sejm is the lower house of the Polish parliament. The Sejm is made up of 460 deputies, or Poseł in Polish . It is elected by universal ballot and is presided over by a speaker called the Marshal of the Sejm ....
, at the request of the President of the Republic of Poland
President of the Republic of Poland
The President of the Republic of Poland is the Polish head of state. His or her rights and obligations are determined in the Constitution of Poland....
, for a term of six years. The NBP President is responsible for the organisation and functioning of the National Bank. The same person cannot serve as President of the NBP for more than two terms of office. Apart from his function as the superior of the NBP staff, he is also the chairman of the Monetary Policy Council, the NBP Management Board and the Commission for Banking Supervision. He is also responsible for representing Poland in international banking and financial institutions.
List of Presidents of the NBP
- Edward Drożniak (1945-1949)
- Witold Trąmpczyński (1950-1956)
- Edward Drożniak (1956-1961)
- Adam Żebrowski (1961-1965)
- Stanisław Majewski (1965-1968)
- Leonard Siemiątkowski (1968-1972)
- Witold Bień (1973-1980)
- Stanisław Majewski (1981-1985)
- (acting) Zdzisław Pakuła (1985)
- Władysław Baka (1985-1988)
- Zdzisław Pakuła (1988-1989)
- Władysław Baka (1989-1991)
- Grzegorz Wójtowicz (1991)
- (acting) Andrzej Topiński (1991-1992)
- Hanna Gronkiewicz-WaltzHanna Gronkiewicz-WaltzHanna Beata Gronkiewicz-Waltz is a Polish liberal-conservative politician who has been the Mayor of Warsaw since 2 December 2006. She is the first woman to ever hold this position....
(1992-2001) - Leszek BalcerowiczLeszek BalcerowiczLeszek Balcerowicz is a Polish economist, the former chairman of the National Bank of Poland and Deputy Prime Minister in Tadeusz Mazowiecki's government...
(2001-2007) - Sławomir SkrzypekSławomir SkrzypekSławomir Stanisław Skrzypek was the President of the National Bank of Poland from 2007 until his death in 2010...
(2007-2010) - (acting) Piotr Wiesiołek (2010)
- Marek BelkaMarek BelkaMarek Marian Belka is a Polish professor of Economics, a former Prime Minister and Finance Minister of Poland, former Director of the International Monetary Fund's European Department and current Head of National Bank of Poland.- Biography :...
(since 2010)