Government approves amendment to CNB Act

The government has approved a draft law amending the Act on the Czech National Bank and the Act on the Circulation of Banknotes and Coins. The draft law is mainly a technical amendment of the two acts. It aims to broaden the range of instruments available to the CNB for performing its statutory duties.

In the area of monetary policy implementation, the draft law extends the range of potential transactions and counterparties. New macroprudential policy tools that would enable the CNB to set legally binding limits on selected credit indicators concerning consumer credit secured by residential property are also being proposed.

The amendment should also enhance the transparency of the CNB, as it broadens the range of senior employees whose salaries will be disclosed. If the Czech Parliament passes the amendment, the CNB will also newly be entitled to issue commemorative banknotes and trade coins (Bohemian ducats) in addition to commemorative coins, although these will not be legal tender.

The amendment also includes other changes that would facilitate clearer interpretation of the Act on the CNB, thus enabling proper performance of the central bank’s activities.

Marek Zeman
Director, CNB Communications Division