THE Bank of Zambia (BoZ) says it enjoys a high level of independence although provisions have been included in the draft constitution to address its autonomy.
Speaking at the 10th international good governance conference in Livingstone yesterday, BoZ deputy governor Tukiya Kankasa-Mabula said the autonomy of the central bank is one of the topical issues that have been included in the draft constitution.
Dr Mabula said the BoZ’s vision is to be a dynamic and credible central bank that adds value to the economic development of the country, maintain price and financial stability for balanced macroeconomic development.
“Good economic governance exists where institutions of Government can, among others, have the capacity to manage resources efficiently, formulate, implement and enforce sound policies and regulations; can be monitored and be held accountable,” she said.
She said the BoZ board of directors is responsible for the formulation of bank policy.
“The governor is the chairperson of the board, however, apart from the secretary to the treasury, who is an ex-officio member, the majority six are non-executive directors who choose the vice chairperson from among their members,” she said.
Dr Mabula said although having the secretary to the treasury on the BoZ board has been criticised by many people, it facilitates communication with Government.
She said among the board’s powers include the formulation of policies, increasing the capital of the bank, and with the consent of the Minister of Finance, to reduce the authorised capital within limits permitted by the Act.
Dr Mabula said the BoZ Act contains several sections which places duty on the board to be accountable to shareholders [Government and the public].
She said the central bank is constantly striving for excellence in all areas of its operations.
Dr Mabula said in response to corporate failures on the global scale, BoZ has amended and created new corporate governance codes to create elaborate internal controls and adequate code of ethics.