Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/81899
Authors: 
Frisell, Lars
Roszbach, Kasper
Spagnolo, Giancarlo
Year of Publication: 
2008
Series/Report no.: 
Sveriges Riksbank Working Paper Series 221
Abstract: 
Recent research on central bank governance has focused mainly on their monetary policy task. As the sub-prime loan market turmoil reminded us - central banks play a crucial role in financial markets not only in setting monetary policy, but also in ensuring their soundness and stability. In this paper we study the specific corporate governance structures of a number of central banks in light of their complex role of inflation guardians, bankers' banks, financial industry regulators/supervisors and, in some cases, competition authorities and deposit insurance agencies. We review their current institutional arrangements, e.g. formal objectives, ownership, board and governor appointment rules, term limits and compensation, using both existing surveys and newly collected information; and we contrast them with the structures suggested in the corporate and public governance literatures, where present. Our analysis highlights a striking variety in central bank governance structures and a number of specific issues that appear unsatisfactorily addressed by existing research, including the incentive structure for governor and board members, the balance between central banks' multiple objectives, and the need for term limits or post-employment restrictions.
Subjects: 
accountability
bank regulation
board structure
central bank independence
central banks
cooling-off periods
governance
governor remuneration
regulatory capture
term limits
JEL: 
G18
G34
G38
E58
Document Type: 
Working Paper

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