As central banks around the world upgrade their governance and strategic planning and manage major internal and external reforms, this new compilation of studies by leading experts shows how these challenges can be met.

In-depth case studies

The principal elements and stages of the modernisation process are analysed in detail. Then each of these is illustrated by means of fascinating case studies:

• The separation of monetary and supervisory functions – case studies from the UK and Kazakhstan.

• The reengineering of the payments system – how the Central Bank of Bosnia and Herzegovina created an RTGS system linked to the EU.

• Taking the long view – how New Zealand ’s reserve bank became the forerunner of the modern central bank.

• Financial services reform – the State Bank of Pakistan sets an example.

• The creation of a new central bank – how Timor-Leste created a monetary authority from the chaos of the newly independent state.

• The Governor’s role – Leszek Balcerowicz, deputy premier and minister of finance in the first non-communist government in Poland, now governor of the National Bank of Poland .

These case studies are authored by the senior staff, often the governor, of the institutions involved.

Other sections of the book examine the main drivers for change:

• demands for transparency and accountability;

• increasing calls for information on economic performance;

• Renewed scrutiny of the appropriate scale and scope of the central bank;

• a new focus on central bank efficiency.

Process improvement

A further section analyses how central banks can develop, maintain and improve their most important functions. These studies allow peer institutions to benchmark their own practices, and draw on tried and tested solutions.

• How the Fed manages its IT;

• How the central banks of South Africa and Canada use strategic management planning to enhance their corporate governance and policy delivery;

• A groundbreaking chapter by Marko Skreb, former governor of Croatia’s central bank, explaining how (and why) central banks should develop their research functions;

• How central banks like the Cleveland Fed, Sweden’s Riksbank and the Central Bank of Sri Lanka have achieved efficiency gains through strategic reviews of key functions.

Who should read Central Bank Modernisation

Policymakers, advisors, researchers and managers in:

• Central banks;
• Ministries of finance;
• Development banks;
• Government auditors;
• Supervisory agencies;
• International financial institutions;
• NGOs;
• Consultants;
• Audit firms;
• Think-tanks and independent research institutes.

For all those involved in central bank and financial sector reform, whether in developed countries or emerging markets, this new book provides an indispensable collection of institutional wisdom, drawing together tried and tested solutions into a single volume.

Table of contents

In-depth case studies

Process improvement

Who should read Central Bank Modernisation

"Efficiency"
(This is an extended version of chapter 5, 1.4MB Pdf)