Most governments can change mandates without consulting central banks
Most jurisdictions’ central bank laws either limit or forbid monetary financing
Most central banks participating in the Governance Benchmarks 2023 say governments can change their legislative mandate without consulting them.
All 43 central banks said statutes passed by the legislature govern their powers and mandates.
In 93% of participating jurisdictions, the central bank law specifies the degree of independence the institution enjoys. In 88% of jurisdictions, the law either prohibits or restricts the government’s ability to receive monetary financing from the central
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More on Governance
Governance Benchmarks 2024 – model banks analysis
Additional breakdowns of the data reveal details of central bank powers, staffing and more
Governance Benchmarks 2024 report – central banks’ core processes
The benchmarks shed light on central bank profitability and distributions, independence and more
Central banks reveal top staffing constraints
Career progression limits, skills gaps and red tape identified as challenges
Most high income central banks lack formal recapitalisation agreements
Seven respondents report launching recapitalisation in past year
Central banks’ profit distribution widely agreed with governments
Few institutions have arrangements with other parties or private shareholders
Two-thirds of central banks report profit in last fiscal year
Few institutions seek recapitalisation and technological advancement for operational goals
Board non-execs more likely to be appointed by governments
Middle income central banks tend to have more government officials on board
Central bank independence usually safeguarded by law
But one in 10 respondents see their autonomy threatened