Legal Protection: Liability and Immunity Arrangements of Central Banks and Financial Supervisors

Author/Editor:

Ashraf Khan

Publication Date:

August 2, 2018

Electronic Access:

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

This paper argues that central bank legal protection contributes to safeguarding a central bank and its financial supervisor’s independence, especially for conducting monetary and financial stability policy. However, such legal protection also entails enhanced accountability. To this end, the paper provides a selected overview of legal protection for central banks and financial supervisors (if the supervisor is part of the central bank), focusing on liability, immunity, and indemnification arrangements, and based on the IMF’s Central Bank Legislation Database. The paper also uses data from the IMF’s Article IV and FSAP Database, and the IMF MCM’s Technical Assistance Database. It lists selected country cases for illustrative purposes. It introduces the concepts of “appropriate legal protection” and “function-specific legal protection” as topics for further research.

Series:

Working Paper No. 18/176

Subject:

English

Publication Date:

August 2, 2018

ISBN/ISSN:

9781484372272/1018-5941

Stock No:

WPIEA2018176

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

42

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