Eesti Pank / Bank of Estonia

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Annual Report 1999*

CONTENTS

I. THE ROLE OF A CENTRAL BANK IN THE SOCIETY
What Is the Independence of the Central Bank and Why Is it Necessary?
International Experience in Central Bank's Independence
The Strategic Development Plan of Eesti Pank
II. DEVELOPMENT TRENDS IN WORLD ECONOMY
America
Asia
European Union
Northern Europe
Transition Economies in Central and Eastern Europe
Russia
Latvia and Lithuania
Financial Markets of Developed Countries in 1999
World Economic Outlooks in the Year 2000
III. SURVEY OF THE ESTONIAN ECONOMY AND FINANCIAL INTERMEDIATION
REAL SECTOR
The Impact of the External and Monetary Environment
Government Sector
Inflation
FINANCIAL INTERMEDIATION
Credit Institutions
Banking Sector in 1999
Operating Credit Institutions and their Owners
Consolidated Balance Sheet and Prudential Ratios
Major Changes in the Banking Landscape
Other Financial Intermediaries
Bond Market
Insurance
Leasing
Investment Funds
IV. CONSISTENT MONETARY POLICY
Estonia's Monetary Policy Framework
Most Significant Monetary Policy Decisions of 1999
Interest Payment for Reserve Requirement
Monetary Policy Aspects in Eesti Pank's Profit Distribution Strategy
Monetary Policy Aspects in European Integration
FINANCIAL COMMITTEE
V. RESEARCH UNDERLYING DECISION-MAKING
Research Focus in Central Bank
Research Department
Research Completed in 1999
VI. INTERNATIONAL COOPERATION
Eesti Pank and European Union
Accession Negotiations
Action Plans and Reports in Accession Process
Relations with European Central Bank
Economic Policy Cooperation between Estonia and International Monetary Fund
Estonia's Participation in New International Initiatives of IMF
Cooperation in Technical Assistance between Eesti Pank and IMF
Cooperation in Nordic-Baltic Constituency
Cooperation with Other International Organisations
Cooperation with Other National Central Banks
Eesti Pank and Country Rating
VII. OPENNESS AND TRANSPARENCY
Good Practices Ensure Comparability
Comparable with Europe
Eesti Pank Is Maximum Open in its Decisions
Qualitative Changes in Eesti Pank's Publications
Applying New Technology
VIII. BANKING SUPERVISION UNDER NEW LAW
New Credit Institutions Act and Arising Regulations
BANKING SUPERVISION COMMITTEE
Functions and Rights of the Banking Supervision Department under the New Act
Structure of Banking Supervision Department
Consolidated Supervision
Cooperation with Other Supervisory Bodies
Unified Financial Supervision
IX. PAYMENT AND SETTLEMENT SYSTEM PERFORMANCE
Systemic Development in 1999
PAYMENT COMMITTEE
Settling of Payments through Eesti Pank
Payment Instruments
Cash Demand
Issue of Banknotes and Coins and Their Structure
Cash Movement
Introduction of New Banknotes, Cash Examination
Commemorative Coins, Other Numismatic Items
X. STATISTICAL ACTIVITY
Intra-bank Activity
Closer International Cooperation
XI. FOREIGN CURRENCY RESERVE MANAGEMENT
Foreign Currency Reserves: Their Role and Structure
Investment Process
Reserve Management in 1999
XII. LEGISLATIVE DRAFTING
Preparations to Amend Central Bank Act
Towards Improved Cooperation in Legislative Drafting
XIII. DEVELOPING ORGANISATION
Executive Management and Areas of Responsibility
Reorganisation of Organisational Chart
Strategic Planning
DEVELOPMENT COMMITTEE
Bank Employees
Personnel Policy
Training
Hobbies and Traditions
Open to Children and Other Interested Parties
XIV. BOARD OF EESTI PANK
XV. YEAR 2000 PROBLEM: SUCCESSFUL SOLUTION
Organisation of Preparations for Year 2000 in Eesti Pank
The Role of the Central Bank in Securing the Y2K Compliance of the Banking System
Securing Smooth Operation of Payment and Settlement Systems
Meeting Cash Demand
Before and After the Change-over Period
In Conclusion
FINANCIAL STATEMENTS FOR 1999 OF EESTI PANK
Auditors' Report
APPENDICES
Chronicle - 1999
The Strategic Development Plan of Eesti Pank
Brief Overview of Research Year 1999 in Eesti Pank
Statistics

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