Eesti Pank Annual Report 2003

EXTERNAL ENVIRONMENT 2003

WORLD ECONOMY

United States and Japan
Europe
Finland and Sweden
Baltic and Central European Countries
Russia

THE CHANGING EUROPEAN UNION AND ESTONIA

EU Enlargement
Institutional Impact of the Enlargement
Constitutional Treaty
Economic and Financial Policy of the European Union
Economic Policy Dialogue and Cooperation Between the New Member States and the EU Structures in the Near Future
European System of Central Banks
Changes in Estonia's Internal Coordination Systems of EU Issues
On the Way to the Economic and Monetary Union

EESTI PANK IN ECONOMIC AND FINANCIAL SYSTEM

ESTONIAN NON-FINANCIAL AND FINANCIAL SECTOR

NON-FINANCIAL SECTOR
Monetary Environment
Estonia's Sovereign Rating
External and Domestic Demand
Sources of Financing Economic Growth
General Government
Inflation
Current Account Deficit and Foreign Investments in a Small Open Economy
FINANCIAL SECTOR
Banking
Institutional Development
Assets and Liabilities of Banks
Return on Equity and Risks
Profitability
Capital Adequacy
Credit Risk
Liquidity Risk
Currency Risk
Securities Market
Bond Market
Stock Market
Other Financial Intermediaries
Investment and Pension Funds
Insurance

ENSURING MONETARY POLICY STABILITY

Estonian Monetary System
Estonian Monetary Policy in 2003
Monetary Policy Operational Framework
Supporting Economic Stabilisation
Regular Economic Analyses, Forecasts, and Economic Research as Basis of Economic Policy Decisions
Estonian Monetary Policy on the Way to the Economic and Monetary Union
Economic and Monetary Union

ENSURING FINANCIAL STABILITY

Organisation of Ensuring Financial Stability in Estonia
Financial Stability Cooperation in the European Union
Financial Sector Regulation and Banking Policy
Development of Banking Regulation
Prevention of Money Laundering and Terrorism
Measures Adopted by Eesti Pank in 2003 to Reduce Financial Sector Risks
Monitoring and Analysis of Financial Stability
Object of Analysis
Cooperation in Financial Stability Monitoring and Analysis
Eesti Pank's Financial Stability Survey

DEVELOPMENTS IN STATISTICS

Participation in the Statistics Development Projects of the European Central Bank
Banking and Other Financial Statistics
Balance of Payments Statistics

PAYMENT SYSTEMS AND INSTRUMENTS

Payment Systems Oversight
Assessment of EU and Candidate Countries' Securities Settlement Systems
Tasks of Eesti Pank in Overseeing Payment Systems
Settlement System of Interbank Payments
Payment Instruments
Meeting the Cash Demand
Issued Banknotes and Coins and Their Structure
Cash Circulation
Expert Analysis of Cash
Technological Innovations

RESERVE MANAGEMENT

Organisation of Reserve Management
Foreign Exchange Reserve Structure
Investment Process
Investment Results in 2003 and Associated Factors
International Financial and Commodity Markets
Investing Foreign Exchange Reserves
Adjustments in Benchmark Portfolio
Results of External Asset Managers
Providing Asset Management Services to Public Sector

COOPERATION, PUBLIC RELATIONS, AND ORGANISATION DEVELOPMENT

INTERNATIONAL AND DOMESTIC COOPERATION. PUBLIC RELATIONS

Regular Cooperation with the European Union Bodies
European Central Bank
Council of the European Union
European Commission
Cooperation with the International Monetary Fund
Cooperation with Other International Organisations
Cooperation with Other Central Banks
Domestic Cooperation in Financial and Economic Policy Issues
Public Relations of the Central Bank and Significant Target Groups
Regular Economic Policy Output of Eesti Pank
Handling Information Requests and Enquiries
Media Relations and Public Appearances
Other Communication Events in 2003
Activities of Eesti Pank Museum

ORGANISATION AND PERSONNEL POLICY OF EESTI PANK

General Management and Areas of Responsibility in 2003
Cooperation with the Financial Supervision Authority
Development of the Management System and Work Organisation at Eesti Pank in 2003
Strategic Management
Process Management
Risk Management
Personnel Policy
Bank Employees
Development and Training
Staff Hobbies

Annual Accounts of Eesti Pank For the Financial Year Ended on 31 December 2003

Notes to the Annual Accounts of Eesti Pank
Independent Auditors' Report

APPENDICES

THE MISSION, MAIN OBJECTIVES, AND STATEGIC DEVELOPMENT PLAN
2003 DECISIONS OF THE BOARD OF EESTI PANK AND DECREES OF THE GOVERNOR OF EESTI PANK
PUBLICATIONS OF EESTI PANK
STATISTICS