Published February 10, 2009

New law to help Bank Negara work effectively

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(KUALA LUMPUR) Bank Negara is to table a new Central Bank Act in Parliament, the central bank's governor Zeti Akhtar Aziz said on Sunday.

Ms Zeti: Says the Act will institutionalise many of the practices introduced in recent decade

The proposed Act would provide the central bank with the powers and instruments to perform its roles and functions effectively, she said in her address at Bank Negara's 50th anniversary celebrations.

'The proposed Act will also institutionalise many of the practices that have been introduced in recent decade which are deemed critical to ensure the central bank has the necessary authority and is in the state of readiness to face future challenges,' she said.

Ms Zeti said the Act involves a holistic review of the central bank's mandates, governance, accountability and the present legislative framework to ensure Bank Negara remains effective in performing its functions in the expected changed future environment.

'The new Act will further reinforce the existing governance framework with adequate mechanisms to ensure sufficient checks and balances are in place,' she said.

Ms Zeti said the governance framework will further facilitate and enhance high-quality decision-making in the central bank, institutionalising both existing and new procedures and processes to enhance accountability, professionalism and transparency.

Also, strengthening of governance and accountability would form the pre-requisite for Bank Negara to maintain its public legitimacy and autonomy and to ensure its integrity as a public institution in serving the nation's interests. -- Bernama