The Central Bank of the Republic of San Marino was created by merging the San Marino Credit Institute and the Administrative Office of the Credit and Monetary Inspection.
The Central Bank Charitable Fund currently stands at EUR 12.9 million. The fund splits into 2500 registered shares; the value of each of them is 5,164.57 euros.
These shares belong to the state and shareholders and companies in San Marino engaged in financial, credit, and insurance activities.
The primary responsibilities of the Central Bank of the Republic of San Marino are: to promote the stability of the financial system and safeguard savings; Perform incentive and leadership functions; Promoting financial and economic activities; Establish reliable and efficient payment systems for the Republic.
To carry out the functions provided by law, the Central Bank has the competence to take specific measures in the relevant areas, including orders, regulations, recommendations, circulars, instructions, standard letters, which, in addition to relations with various parties, also perform their duties to the Central Bank. The Central Bank will develop the methods that will be most relevant and in line with the established norms.
The Central Bank has the power to inform the State Congress about economic measures and issues that are particularly important in the opinion of the Central Bank. The Central Bank will present its resolutions on the proposed instruments and laws. They will develop the proposed bills in the area of competence. Through the Savings Committee, the Central Bank transmits credit information to the State Congress about essential facts used in the performance of institutional functions. Together with the representatives of the State Congress, the Central Bank represents the Republic of San Marino in all the international financial institutions in which the Republic participates.
During the annual meeting, the shareholders approve the financial statements and the annual report. The Board of Directors is in charge of preparing and submitting the report. The council decides to admit new members to the city, represented by the Secretary of State for Finance and Budget and another representative of the Government.
The Governing Council consists of a Chairman and five Advisers, appointed by the General Council, Parliament, for a five-year term. They have the option of standing for re-election another time. The law gives the Governing Council the authority to formulate and manage the policy of the Central Bank. The Board of Directors prepares statements. It is then submitted to the shareholders’ assembly for approval, with an annual explanatory report. In addition, the Board has the authority to appoint a Director-General, a Deputy Director, officers, a Supervisory Committee, and new staff.
The Governing Board appoints the CEO for a term of six years. He attends meetings of the Board of Directors and shareholders without the right to vote and serves as the Chairman of the Supervisory Committee. The CEO is responsible for auditing, human resource management, and job coordination.
The functions of the Central Bank of the Republic of San Marino are:
Financial System Supervision – The Central Bank exercises control over the supervisory entities and their activities; To this end, it issues its regulations and receives periodic statistics while at the same time carrying out monitoring. In the event of a temporary cash imbalance, the central bank intervenes in the loans to maximize the stability of financial intermediaries. The function of the supervisory body is carried out by the objectives of protection of savings provided by the regulations of the Central Bank.
The Central Bank can also operate in foreign currency. This is identical to the plan of credit institutions implemented in Italy.
Maintaining an efficient payment system is a prerequisite for the success of economic transactions. The Central Bank aims to ensure the stable operation of the payment system, in compliance with high-security standards, to offer the best conditions to operators. The Central Bank controls and manages a particular local IT network. CBSM aims to make the San Marino payment system closely connected to foreign systems to facilitate integration and payment.
The central bank is actively trying to prevent fraud promptly. CBSM manages the systemic needs of European authorities.
The bank must provide consulting services to the state about a wide range of activities.
Statistics are essential to the central bank, so it constantly collects statistics and surveys from supervisors; Similar activities occur regularly. The received data is used for monitoring purposes and is transmitted to international contacts as needed.
The Central Bank has managed the only treasury service since 1993. CBSM makes all payments based on payment orders issued. In addition, it produces periodic reports for various units.
The State Tax Department was created in 2004 and transferred to the Central Bank. It focuses on managing taxes and sanctions for the tax authority. CBSM prepares tax collection notices based on entries in the register.
Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. If you are interested in following the latest news on the topic, please follow Finance Brokerage on Google News.