The Central Bank of Cyprus needs to undergo a substantial reform to become a modern central bank through the adoption of a governance model that ensures flexibility, collegiality, and more efficient operation, its governor, Christos Patsalides, has said.
He added that the bank’s current governance model is outdated and does not satisfactorily meet the requirements and obligations of a modern central bank and member of the Eurosystem.
According to a CBC press release, Patsalides outlined the proposal recently submitted to the president of the Republic and the minister of finance for the modernization of the CBC’s governance model.
Patsalides described the essential advantages of this model as being the collective, simple constitution of the supreme administrative body, as well as its executive capacity. These factors, he noted, allow for the functional distribution of powers and responsibilities and more effective participation in decision-making within the Eurosystem. The proposal includes legislative amendments to build a governance structure that will allow the CBC to adequately respond to its institutional role and mission, he added.