Eesti Pank Annual Report 2006

MAIN FEATURES AND FUNCTIONS OF EESTI PANK

FOREWORD BY GOVERNOR OF EESTI PANK

ACCOUNTABILITY

Legal framework for accountability and compulsory publications of the central bank
Accountability vis-à-vis the Riigikogu
Interpellations raised by members of the Riigikogu in 2006
Regular reporting on economic policy views and publishing economic data

STRATEGIC OBJECTIVES FOR PERFORMING THE MAIN FUNCTIONS OF EESTI PANK

MAJOR ACTIVITIES AND ACHIEVEMENTS OF EESTI PANK IN 2006

MONETARY POLICY

Ensuring the smooth functioning of Estonia's monetary policy framework
Key features of the Estonian monetary system
Monetary policy in 2006
Preparations for harmonising the Estonian monetary system with requirements for joining the euro area
Economic analysis, forecast and research as the basis for monetary and financial policy-making
Monitoring
Economic reviews
Forecasts
Research
Reserve management
Structure of foreign exchange reserves
Investment process
Investment results in 2006 and related factors
Changes in the benchmark portfolio in 2006
Asset management services provided to the public sector

ENSURING FINANCIAL STABILITY

Financial sector analysis and financial stability assessment
MEASURES ADOPTED BY EESTI PANK IN 2006
Cross-border cooperation and other EU financial policy issues
Financial safety net
Banking legislation
Payment systems oversight

DEVELOPMENTS IN STATISTICS

Banking and other financial statistics
Balance of payments statistics
General economic statistics

CURRENCY CIRCULATION

Development of the payment and settlement environment
Payments and Settlement System of Interbank Payments
Meeting the cash demand
Banknotes and coins in circulation and their structure
Expert analysis and handling of cash
Defective 100-kroon banknotes
Preparation of new banknotes and coins
Preparations for the changeover to the euro cash

ORGANISATION AND COOPERATION

INTERNATIONAL COOPERATION
Regular cooperation within the European Union structures
European Central Bank
Role of Eesti Pank after the adoption of the euro
Council of the European Union
European Commission
Cooperation with the International Monetary Fund
Selection of the key topics covered in the ecb meetings in 2006
Selection of the key topics on the 2006 agenda of the council of the european union
Cooperation with rating agencies
Selection of topics from the international monetary fund forums in 2006
COOPERATION WITHIN ESTONIA
Cooperation with the Offi ce of the President
Cooperation with the Ministry of Finance
Cooperation with the Financial Supervision Authority
Cooperation with the Estonian Banking Association and Estonian banks
Assessment of euro readiness in 2006: convergence reports
Public relations and communications
Principles of informing the public
Media relations and public appearances
Communication on the euro
GOVERNANCE, ORGANISATION AND PERSONNEL POLICY
Eesti Pank's governing bodies and decision-making processes
Supervisory Board of Eesti Pank
Governor of Eesti Pank
Executive Board of Eesti Pank
Monetary Policy Committee
Financial Supervision Authority
Development of the management system and work organisation of Eesti Pank in 2006
Strategic management
Process management
Risk management
e-Eesti Pank 2006
Renovation of the building of Eesti Pank at Sakala 6
Eesti Pank's personnel policy
Employees
Development and training
Hobbies and traditions of the staff

ANNUAL ACCOUNTS OF EESTI PANK for the Financial Year Ended 31 December 2006

AUDITOR'S REPORT

ANNEXES

GLOBAL ECONOMY IN 2006 

United States and Japan
Euro area
International financial and commodity markets

ESTONIAN ECONOMY IN 2006

NON-FINANCIAL SECTOR
Monetary policy environment
Domestic and external demand
Inflation
General government
Ratings
FINANCIAL SECTOR
Banking
Institutional development
Assets and liabilities of banks
Profitability
Capital adequacy and risks
Securities market
Debt securities market
Stock market
Other financial intermediaries
Investment and pension funds
Insurance
Payment methods

KEY POINTS OF THE ECONOMIC FORECASTS OF EESTI PANK IN 2006

DECREES, DECISIONS AND PUBLICATIONS

DECREES OF THE GOVERNOR OF EESTI PANK IN 2006

DECISIONS ADOPTED BY THE SUPERVISORY BOARD OF EESTI PANK IN 2006

PUBLICATIONS OF EESTI PANK IN 2006