Guatemala,
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DESCRIPTION OF THE ADMINISTRATIVE STRUCTURE OF THE

BANCO DE GUATEMALA

 

I.              LEGAL FRAMEWORK

Article 26, clause (h) of Decree 16-2002 of the Congress of the Republic of Guatemala, Organic Law of the Banco de Guatemala, declares that one of the duties of the Monetary Board is to approve or modify the administrative structure of the Banco de Guatemala, when proposed by the General Manager. Also, article 32 of the above-mentioned Decree establishes that the General Manager has the administration of the Banco de Guatemala under his responsibility and will render accounts to the President of this institution and before the Monetary Board on the correct and efficient operation of the Bank.


In that sense, and so that the Banco de Guatemala complies with its fundamental objective of contributing to the creation and maintenance of the most favorable monetary, foreign exchange rate and credit conditions for the orderly development of the national economy, and to promote the stability of the general level of prices and to develop the operations that are defined by the cited Decree in its 4th article, the Institution has the herein below administrative structure.

 

II.            ADMINISTRATIVE STRUCTURE

The Banco de Guatemala, in order to comply with its fundamental objective, efficiently and effectively develops the functions that the Organic Law establishes, specifically its organic law. For that purpose, it establishes an organizational structure led by its higher state bodies like the Monetary Board, Presidency, Vice-presidency and  General Management and integrated by the administrative structure coordinated by the General Management through the Area Management that consists of Departments, Sections and Units. This structure will count on the offices that, fulfilling their individual functions and purpose, will allow the institution to fulfill its objectives as Central Bank. In summary, the main function of each body and office is the following:

 

A.   MONETARY BOARD

The Monetary Board, constituted according to articles 132 of the Political Constitution of the Republic of Guatemala and 13 of the Organic Law of the Banco de Guatemala, exercises the supreme administration of the Banco de Guatemala.

 

Technical Insurance Advisory Council

As established by article 101 of the Law for Insurance Activity, the main function of the Technical Insurance Advisory Council is to provide all the necessary advice to the Monetary Board to assist in matters of its jurisdiction regarding insurance, reinsure and intermediation.

 

B.    PRESIDENCY

The presidency of the Banco de Guatemala is made up of the President and the Vice-president, who at the same time, are members of the Monetary Board. Among the duties of the President are: to propose the monetary, foreign exchange rate and credit policy to the Monetary Board, including the programmed goals; and to ensure the correct execution of the referred policy.

1. Execution Committee

The Execution Committee is made up of the President of the Banco de Guatemala, who at the same time coordinates; by the authorities of the Banco de Guatemala, and the technical advisors designated by the Monetary Board. The same has the responsibility of the execution of the Monetary, Foreign Exchange Rate and Credit Policy established by the Monetary Board and, for such effect it will fulfill the duties established by the institution’s organic law.

2. Internal Auditing

It is responsible for independent and objective activity for insurance and consultancy, within its jurisdiction, to add value and propose improvements for the operations of the Banco de Guatemala in order to support the institution in the fulfillment of its objectives, providing a systematic and disciplined approach to evaluate and suggest changes to improve risk management, control and administration processes. To fulfill its main function, Internal Auditing will depend, at a staff level, on the Presidency of the Banco de Guatemala, rendering accounts to the same directly, and will manage administratively through the institution’s General Management. The Internal Auditing will have the following administrative units:  

a) Risk and Control Auditing Unit
b) Studies Auditing Unit
c) Systems Auditing Unit
d) Financial Auditing Unit
e) Operative Auditing Unit

C. GENERAL MANAGEMENT

General Management will be responsible for the administration of the Banco de Guatemala and will be accountable to the President of the institution and before the Monetary Board for the correct and efficient management of the Bank.

Fulfillment Office

It is responsible for ensuring the compliance of the guidelines for the Law against Money Laundering or Laundering of Other Assets and prevent and repress Financial Terrorism; as well as programs, norms, procedures and internal controls established by the Banco de Guatemala, as a liable party, regarding prevention, detection, control and administration of money-laundering risks and financial terrorism.

D.  ECONOMIC MANAGEMENT

The Economic Management is responsible for the design and follow-up of the monetary, foreign exchange rate and credit policy of the country, in the framework of the Schem of the specific Inflation Target, the periodic evaluation of the mentioned policy, the identification of the main economic macro-tendencies, the analysis of the National Financial System, mainly regarding aspects related to liquidity, solvency, operation, risk and competitiveness of such a system, as well as the preparation of the main economic statistics necessary for decision making on the monetary policy. To comply with this main function, the Economic Management will have the following branches, described as follows:

 

1. Technical Council

The staff unit is responsible for providing the conditions that allow appropriately channeling the technical support needed by the authorities to fulfill the functions of the institution. Also, to facilitate the communication and coordination among the different departments of the Banco de Guatemala that make up the Technical Council in order to effectively and efficiently carry out the duties assigned to them through the referred council.

 

2. Macro-economic Analysis and Forecast Department

Its main function is to design the Monetary, Foreign Exchange Rate and Credit Policy in the framework of Specific Inflation Targets, as well as to wholly and consistently analyze and evaluate the macro-economic variables and other issues associated with the Monetary Policy adopted by the Monetary Board to pursue the main objective of the Banco de Guatemala. For that purpose, it has the following sections:

 

a) Financial Planning and Inflation Analysis Section

b) Analysis of International Economy, Treaties and Agreements Section

c) Macro-economic Analysis Section

 

3. Macro-economic Statistics Department

Its main function is to gather, collect and disseminate statistical information of the macro-economic variables of the real, external and financial and monetary, that will allow diagnosing and forecasting the behavior of different sectors of the national economy, with the purpose of assiting with the design and evaluation of the Monetary, Foreign Exchange Rate and Credit Policy and in its internal structure have the following sections:

a) National Accounts section

b) Situation Indicators and Price Index section

c) Monetary and Financial Statistics section

d) Payment Balance Statistics section

e) Survey and Basic Statistics section

 

4. Financial Stability Analysis Department

Its main function is to advise the corresponding offices regarding topics associated with the financial stability analysis, trends, risks, competitiveness and regulation of the national financial system, as well as the analysis of macro-prudential measures, that assist in the design, execution and evaluation of the Monetary, Foreign Exchange Rate and Credit Policy. To fulfill such function, the internal structure has the following sections:

a) Section for the Macro-prudential Analysis of the Financial System
b)     Section for Applied Financial Research

5. Economic Research Department

Its main function is to develop applied economic research, economic analysis and systematic studies regarding the evolution and trends of the macro-economic phenomena, domestic as well as foreign, with the purpose of advising the corresponding instances in the design and evaluation process of the Monetary, Foreign Exchange Rate and Credit Policy through relevant macroeconomic and econometric models. To fulfill its function, it has the following sections:

a)    Section for Macro-economic Models

b)    Section for Applied Economic Research

 

E. FINANCIAL MANAGEMENT

The main responsibility of the Financial Management is the coordination of the execution of the Monetary, Foreign Exchange Rate and Credit Policy. The investment of the International Monetary Reserves of the Banco de Guatemala, and the attention to the operations in foreign currency from the public sector and banking system; the preparation and execution of the procurement programs, issue, amortizations and destruction of currency; the attention to deposit operations, withdrawals and currency exchange with banks in the system; monitoring the compliance of the guidelines established by the Monetary Board for the administration of the International Monetary Reserves (IMR), including the measurement and analysis of the risk indicators and performance of the investment portfolios of the Central Bank; the accounting registry of economic and financial events that affect the wealth of the Bank, and; the implementation of actions that allow contributing to the strengthening of the national payment system. To fulfill these functions, the Financial Management has the following branches:

 

1. Monetary, Foreign Exchange Rate and Credit Policy Execution Department

It is responsible for executing the Monetary, Foreign Exchange Rate and Credit Policy determined by the Monetary Board, according to the guidelines of the Execution Committee, as well as to carry out the activities derived from the function that concerns the Banco de Guatemala, as the State’s Financial Agent; thus, it has the following sections:

 

a) Monetary and Foreign Exchange Rate Operations Section

b) Analysis of the Monetary, Foreign Exchange Rate and Credit Market Section

c) Monetary Operations Settlement Section

 

2. International Department

Its main function is to invest the International Monetary Reserves of the Banco de Guatemala according to the guidelines dictated by the Monetary Board, as well as to take care of the operations of foreign currency of the Banco de Guatemala, of the central government and the rest of the public sectors and banking systems. The same has the following sections:  

 

a)  Monetary International Reserve Investment Section

b)  Foreign Operations Section

3. Department for International Monetary Reserves Analysis

It is responsible for contributing to ensuring that the administration of the International Monetary Reserves of the Banco de Guatemala is carried out according to the investment guidelines dictated by the Monetary Board through monitoring its compliance, as well as the measurement and analysis of risk indicators and the performance of the investment portfolios of the Central Bank and research according to the design, development, implementation and use of appropriate analytical tools.   

 

4. Accounting and Payment Systems Department

 

Its main function is to be accountable for and responsible for the wealth of the institution; to ensure the correct operation of the payment sub-system; manage what concerns the Banco de Guatemala, the return of the fiscal credit to exporters; and, register the accountable for operations derived from the execution of the Monetary, Foreign Exchange Rate and Credit Policy, the administraion of the international monetary reserves and the trusts and special funds under the responsibility of the Banco de Guatemala. In its internal structure, it has the following sections:

a) Operations and Financial Statements Regitry Section

b) International Monetary Reserves Registry Section

c) Trusts and Special Funds Section

d) Registry and Settlement Operations of the Payment sub-systems Section

e) Surveillance of the Payment sub-systems

5. Monetary Issue Department

It is responsible for creating and executing programs for the procurement, issue, amortization of currency. It has the following sections:

a) Issue Section
b) Treasury and Banking Operations Section

c) Statistics and Currency Control Section

F. ADMINISTRATIVE MANAGEMENT

The administrative management is responsible for assisting the administrative functions and services, in clearly defined departments according to their nature and specialization. These functions will mainly be framed in the institutional communication and relationships, the administration of human resources, planning and organizational development; information systems; the supplying of goods and services and institutional safety. The following branches will integrate this Management Office:

1. Planning and Organizational Development

It is the staff unit responsible for advising the General Management and offices of the institution regarding organizational development, through the design and implementation of planned change strategies, in order to strengthen the administrative structure of the bank; based on standards and leading practices.  

2. Communication and Institutional Relationships Department

It is responsible for providing advice to the authorities and offices of the Bank regarding communication and institutional relations, proposing and executing communication actions that help strengthen the institutional image, trust and credibility. For that purpose, the same has the following sections:

a) Communications Section
b) Institutional Relations and Cultural Section
c) Libraries

3. Human Resources Department

Its main function consists of coordinating the Human Resources system of the Banco de Guatemala in order to have skilled personnel to support the organizational management in pursuance of the fundamental objective of the Institution. Thus, it has the following sections:

a) Salary Administration and Benefits for the Personnel Section
b) Planning and Labor Relations Section
c) Human Resources Development Section
d) Training, Teaching and Personnel Development Center

4. Administrative Services and Safety Department

It is responsible for providing goods, supplies and services to each of the institution’s offices, to supervise the execution of the functional expenditure budget, as well as to provide safety to the personnel, goods and securities that belong to the Central Bank. For this purpose, the department has the following sections:

a) Procurement and Expenditure Budget Control Section
b) Maintenance Section
c) Administrative Secretariat Section
d) Special Investigations Section
e) Special Security Section
f) Security Section

5. Information Technology Department

Its main function is to provide products, services, advice and technical support regarding information technology to the authorities and offices of the Banco de Guatemala in order to reach the continuous institutional modernization, supporting with that the achievement of the institutional objectives; for that reason, it will have the following sections:

a) Information Technology Safety Unit

b) Information Technology Infrastructure Section

d) Database section

d) Information Technology Projects Section

e) Information Technology Services Section

f) Management and Technology Quality Section

 

G. LEGAL MANAGEMENT

Legal Management is a specialized area in legal matters to advise the Monetary Board, authorities and officers of the Banco de Guatemala, in which the decisions adopted by the Board are made. For that purpose, it has the following offices:

1. Secretariat of the Monetary Board

Its main function is to prepare, summon and attend all sessions of the Monetary Board; to prepare the documents derived from such sessions and to communicate the decisions adopted by the corresponding parties.

 

 

2. Legal Advice

Its main function is to advise the Monetary Board, authorities and officers of the Banco de Guatemala regarding legal matters.