Central Bank of Cuba
The creation of the Central Bank of Cuba (BCC), arranged by the Council of State by Decree Law No. 172, of May 28, 1997.The National Banking System, headed by the Central Bank of Cuba, is made up of 9 commercial banks, 14 non-bank financial institutions, 9 representative offices of foreign banks in Cuba and 4 representative offices of non-bank financial institutions.
In 1948 the National Bank of Cuba was created as the central bank of the State, assuming the functions of the nation’s issuing body until the establishment of the Central Bank of Cuba. In 1950, the bank began operations under the name of Banco Nacional de Cuba.
Thus, most of the banknotes currently in circulation correspond to the issues made by the Central Bank of Cuba. The coins, both the Cuban peso and the convertible peso, have been issued regularly in accordance with the needs of circulation in the country.
After the revolutionary triumph, in 1959, an important event occurred with the approval of Law No. 930, in February 1961, centralizing in the Banco Nacional de Cuba, in parallel, the functions of central banking and all existing commercial banking activity. then in the country. A year earlier, in 1960, national and foreign banking entities had been nationalized.
On April 1, 2004, the Banco Central de Cuba created the Office of Banking Supervision through Resolution No. 17 of 2004, which will assist the Banco Central de Cuba in fulfilling the responsibilities related to the supervision of institutions. financial, which are assigned to it in Decree Laws No. 172 and No. 173, both dated May 28, 1997.
To achieve the aforementioned purposes, the Banking Supervision Office will have the following functions:
1. Carry out on-site and remote supervision of financial institutions and representative offices established in the country.
2. Propose the ratings of banks and non-bank financial institutions in accordance with established regulations and standards.
3. To control that the financial institutions keep watch on the risks of any type, derived from the credit operations in accordance with the established norms of qualification of the credit portfolio, provisions and legal reserve.
4. Evaluate all the documentation of the primary information, records, books and balance sheets of banks, non-bank financial institutions and representative offices .
5. Propose to the Central Bank of Cuba action plans to be fulfilled by banks, non-bank financial institutions and representative offices to eradicate the deficiencies detected in supervisions and control their application once they have been approved.
6. Propose to the Central Bank of Cuba the imposition of sanctions, precautionary or definitive, on the supervised non-bank banking and financial entities and their leaders and administrative officials, if appropriate, in accordance with current regulations.
7. Propose suspensiontemporary, total or partial and the closure of those financial intermediaries who present serious deterioration in their financial activity or who incur in repeated or serious legal breaches, supervising the liquidation process, until its completion, whether in the case of forced or voluntary closings.
8. Propose and dictate, within its competence, norms and procedures that regulate the work of banking supervision , as well as develop application programs that support the supervision functions.
9. Implement the information system that allows the proper exercise of its objectives and functions.
10. Prepare periodic reports that show the behavior and situation of the financial system .
11. Design and keep updated the register of external auditors for banks and non-bank financial institutions.
12. Propose the guidelines for crime prevention plans in the Cuban banking system .
13. Process information from the Risk Information Center and others about criminal activities, illegalities, corruption and possible money laundering operations that are linked to the Cuban banking system, sending them to the corresponding instances and applying the necessary measures so that the norms and regulations established by the Central Bank of Cuba are complied with regarding these behaviors.
14. Participate and act as Secretary of the Technical Fraud Prevention Committee.
15. Guide and control the work of regional compliance officers.
16. By instructions of the Central Bank of Cuba, formulate the charges for infractions of the established banking and financial regulations before the competent courts.
Function of the Central Bank
- Issuing the national currency and ensuring its stability.
- Contribute to macroeconomic balance and the orderly development of the economy.
- Safeguard the country’s international reserves.
- Propose and implement a monetary policy that allows achieving the economic objectives that the country sets itself.
- Ensure the normal operation of internal and external payments.
- Dictate mandatory standards.
- Exercise the functions related to the discipline and supervision of financial institutions and representative offices that are authorized to be established in the country and any others that the laws entrust to it.
Monetary Policy Regulations
The Decree Law No. 361 establishes within the mission of the Central Bank of Cuba (BCC) : ” promote, in accordance with its powers, the stability of the purchasing power of the national currency and contribute to the harmonious development of the economy “.
Agreement No. 13 of the Monetary Policy Committee, March 17, 2005. Reevaluation of the Cuban peso exchange rate.
Resolution No. 33 of 2010, June 17, 2010. Liquidity window.
Resolution 99 of 2011, November 18, 2011. Of credits to natural persons authorized to exercise self-employment and other forms of non-state management.
Agreement No. 11 of the Monetary Policy Committee, March 12, 2011. Revaluation of the convertible peso exchange rate.
Instruction No. 5 of 2013, July 11, 2013. Granting of credits to non-agricultural cooperatives.
Circular No. 3 of 2017 of the General Treasury Directorate of the BCC. Commercial margins to be applied by the financial system for foreign exchange operations.
Resolution No. 191 of 2018, August 10, 2018. General bases of operation of the interbank market.
Resolution No. 198 of 2018, August 13, 2018. BCC Monetary Policy Committee.
Instruction No. 5 of 2018, from the Minister President of the BCC. Interbank market operations.
Circular No. 1 of 2019 of the General Treasury Directorate of the BCC. Interest rates of the financial system.
Resolution No. 173 of 2019, July 31, 2019. Of the legal reserve.
Commercial Banks under BCC
- National Bank of Cuba
- Popular Savings Bank
- Banco de Inversiones SA
- Banco Metropolitano SA
- Banco Internacional de Comercio SA
- Banco Financiero Internacional SA
- Banco de Crédito y Comercio
- Banco Exterior de Cuba
- Banco de Venezuela SA
Non-bank financial institutions
Source: Banco Central de Cuba –
Cuba # 402 e / Lamparilla y Amargura. Old Havana. Havana. Cuba
