Hawkamah and IMF focus on key trends impacting governance of central banks

DUBAI- Hawkamah, the Institute for Corporate Governance, and the International Monetary Fund, IMF, convened the sixth high-level Central Bank Governance Forum in Dubai from 21st-23rd January, 2020.

A total of 89 representatives from 44 countries gathered for the three-day forum, which was meant for the governors, deputy governors and director-level and board members, senior staff with risk management, data and audit responsibilities, and partners from external auditors of central banks. The 2020 forum addressed a number of topical issues, including autonomy, financial risk management, board oversight and technological innovations.

Regarding the gathering, Dr. Ashraf Gamal El Din, CEO of Hawkamah, said, "This forum focuses on the governance challenges facing central banks, which play a vital role with their responsibility for monetary policy and the stability of financial systems, while balancing a very complex balance sheet." Other topics discussed at this year’s forum included key trends, the impacts of evolving financial technologies and new international standards, legal considerations related to the autonomy of central banks and the personal autonomy of central bank officials, and corruption.

Simon Bradbury, Chief Accountant and Deputy Director of the IMF Finance Department, noted that governance at central banks remains an important aspect of the IMF's safeguards assessment work. Yan Liu, Deputy General Counsel at the IMF’s Legal Department, added, "Countries are embracing the opportunities of fintech to boost economic growth and inclusion, while seeking to balance risks to financial stability and integrity. While central banks are responding proactively to these profound changes, aspects of central bank governance are being affected.

It will be critical to ensure that the actions of central banks are clearly supported by their legal mandates, and that their decision-making bodies understand the opportunities and risks stemming from developments in financial technology." Established in 2006 to bridge the corporate governance gap in the region, Hawkamah was founded by the Organisation for Economic Co-operation and Development, the International Financial Corporation, the World Bank and other international organisations, and by regional organisations, including the Union of Arab Banks and the Dubai International Financial Centre Authority. The IMF works to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty throughout the world.