Central Bank releases consultation paper for draft bill
The Central Bank of The Bahamas has released for consultation a paper on its proposed Central Bank of The Bahamas Bill, 2018, which seeks to modernize its governing laws, many of which have not been revised since the 1970s.
In 2012 the Central Bank received technical assistance for the legislation from the International Monetary Fund, which recommended a number of comprehensive amendments to the act, according to the paper.
Generally the bill, which would repeal and replace the Central Bank of The Bahamas Act, 2000, would ensure that the legislation provides the bank with the ability to carry out its monetary policy mandate effectively and its operational responsibilities with more flexibility.
“Generally, these amendments articulate a clearer and more robust legal framework for central bank governance and accountability by strengthening/clarifying existing provisions regarding the objectives and functions of the bank, the legal environment of the bank and the statutory safeguards to credits to the government and subscription of public debts in primary markets,” the consultation paper states.
Additionally it would provide greater operational flexibility to the bank in conducting its investment activities; eliminating ambiguity and ensuring clarity and consistency in the act, and with other legislation which governs the Central Bank’s regulatory functions, such as the Banks and Trust Companies Regulation Act, 2000; and reorganizing provisions in a more logical order and under broad thematic headings.
“The provisions in the bill are aligned with international best practices for central banking legislation, and the bill will, once enacted, enhance the corporate governance provisions in the act, provide needed operational flexibility without compromising the safety principle or introducing new risks and improve the readability of the legislation,” the paper said.