{
  "title": "Principles",
  "sourceUrl": "https://www.imf.org/en/data/cbt/principles",
  "canonical": "https://www.imf.org/en/data/cbt/principles",
  "overlayPath": "/en/data/cbt/principles/index.md",
  "summary": "The CBT is an international code that allows central banks and their stakeholders to map transparency practices of the central bank to international best practices. The purpose of the CBT is to enhance transparency and accountability of the central bank and contribute to policy effectiveness.",
  "sections": [
    {
      "heading": "General Principle on Central Bank Transparency",
      "content": "- Purpose: To strengthen accountability and, as a prerequisite for Autonomy, enhance transparency and accountability of the central bank and contribute to policy effectiveness, while taking legitimate needs for confidentiality into account.\n- Scope: Central banks disclose their governance, policies, operations, outcomes of policies and operations, and official relations with government, domestic, foreign, and international agencies, and other institutions.\n- Note: The CBT is not intended as a governance code."
    },
    {
      "heading": "Pillar I—Central Bank Governance",
      "content": "- 1.1. Legal Structure: Disclose Legal Framework in a manner that is clear and Easily accessible.\n- 1.2. Mandate: Disclose Mandate—including Objectives, Functions, and legally defined Powers—in a manner that is clear and Easily accessible.\n- 1.3. Autonomy: Disclose Autonomy as defined in legislation/regulations, revealing extent, forms, and conditions of autonomy in a clear and Easily accessible manner.\n  - 1.3.1. Institutional/Operational Autonomy: Clarify prohibition on seeking or taking instructions; disclose variation of Autonomy across Mandate elements; clarify goal or instrument Autonomy where appropriate.\n  - 1.3.2. Functional Autonomy: Clarify whether duties can be performed without prior government approval.\n  - 1.3.3. Personal Autonomy: Clarify Security of Tenure for Decision-making Bodies, including eligibility, disqualification, appointment and dismissal procedures, remuneration, duration of tenure.\n  - 1.3.4. Financial Autonomy: Disclose financial resources, capital, recapitalization rules, budget, reserves, provisions, profit distribution mechanism, monetary financing, and applicable accounting standards.\n- 1.4. Decision-Making Arrangement: Disclose organizational structure and allocation of responsibilities to Decision-making Bodies.\n- 1.5. Risk Management: Disclose principal risks (financial, operational, legal) and the framework to manage them, including Risk Governance Structure and Risk Strategy.\n  - 1.5.1. Risk Exposure: Disclose principal risks required to meet Objectives.\n  - 1.5.2. Risk Framework: Disclose process for identifying risks, overall Risk Strategy, and Risk Governance Structure.\n- 1.6. Accountability Framework: Disclose transparency and reporting mechanisms to internal bodies, political institutions, and the public.\n  - 1.6.1. Arrangements: Identify internal/external audit arrangements and compliance; reporting to audit committee or Board; external publication of audited financial statements and annual reports.\n  - 1.6.2. Tools:\n    - Independently Audited Financial Statements: Disclose auditing and accounting standards and compliance frameworks; provide information to assess financial performance and transactions with government and stakeholders.\n    - Internal Audit: Disclose internal audit framework, compliance, and scope of responsibilities.\n    - Audit Committee: Disclose existence and published activities of internal oversight body reporting to the Board.\n  - 1.6.3. Anti-Corruption Measures and Internal Code of Conduct: Disclose applicability of domestic anti-Corruption legislation and internal Code of Conduct specifics.\n  - 1.6.4. Human Capital Management: Disclose policies and practices on governance and management of human capital.\n- 1.7. Communication: Disclose means, methods, and forms of communication to stakeholders.\n  - 1.7.1. Arrangement: Disclose organizational structure, responsibilities, and processes relevant for communication.\n  - 1.7.2. Strategy/Tools: Disclose Objectives, target audiences, channels, and tools of communication policy.\n- 1.8. Confidentiality: Disclose policy on confidentiality or secrecy of central bank information and reasons for disclosure choices."
    },
    {
      "heading": "Pillar II—Central Bank Policies",
      "content": "- 2.1 Monetary Policy: Publicly and clearly disclose Objectives, policy framework, and instruments.\n  - 2.1.1. Objectives and Framework: Disclose Monetary Policy Framework and strategy.\n  - 2.1.2. Policy Decisions: Timely disclosure of decisions, explanation of how decisions foster Objectives, and disclosure of process including meeting calendar and voting procedures.\n  - 2.1.3. Supporting Analysis: Disclose relevant economic information and supporting analysis informing decisions.\n- 2.2 Cross-Border Financial Flows and Foreign Exchange Administration: Disclose role, objective(s), legal and institutional frameworks, policy decisions, and decision-making process.\n  - 2.2.1. Objectives and Framework: Disclose objectives, legal/institutional frameworks, strategy, and delegation modalities where applicable.\n  - 2.2.2. Policy Decisions: Announce, explain, and disclose policy decisions in a timely manner; clarify decision process.\n  - 2.2.3. Supporting Analysis: Disclose supporting analysis and intended outcomes in a timely manner.\n- 2.3 Foreign Exchange Management: Disclose policy Objectives, hierarchy of Objectives, operational framework, and intervention instruments.\n  - 2.3.1. Objectives and Framework: Disclose policy Objectives and legal, operational, and institutional frameworks, consistent with the chosen foreign exchange regime.\n  - 2.3.2. Policy Decisions: Disclose decision-making process, rationale for instruments, and means/methods of reaching decisions; explain potential impact in a timely manner.\n  - 2.3.3. Supporting Analysis: Disclose assumptions, transmission channels, analysis backing intervention decisions, and ex-post evaluation of economic impact.\n- 2.4 Foreign Exchange Reserve Management: Disclose policy Objectives, key considerations, oversight allocation, and potential impact.\n  - 2.4.1. Objectives and Framework: Disclose broad investment Objectives, operative models, oversight allocation, and institutional framework.\n  - 2.4.2. Policy Decisions: Disclose key elements of policy formulation, related risk exposures, instruments, decision-making hierarchy, and oversight allocation.\n  - 2.4.3. Supporting Analysis: Disclose key assumptions and assessment process related to policy decisions.\n- 2.5 Macroprudential: Clearly communicate Objectives, decision-making process, instruments, indicators, and supporting analysis for macroprudential measures.\n  - 2.5.1. Objectives and Framework: Disclose macroprudential policy framework, Objectives, instruments, and strategy.\n  - 2.5.2. Policy Decisions: Publicly announce macroprudential decisions in a timely manner and disclose decision-making process.\n  - 2.5.3. Supporting Analysis: Disclose key indicators and analyses used to assess need; explain rationale and expected transmission channels.\n- 2.6 Microprudential Supervision: Selected principles from BCP, ICP, and IOSCO (see Annex).\n- 2.7 Emergency Liquidity Assistance: Disclose scope and Objectives while maintaining necessary confidentiality to preserve financial stability and support monetary policy.\n- 2.8 Resolution: Selected principles from KA (see Annex).\n- 2.9 Financial Market Infrastructures: Selected principles from PFMI (see Annex).\n- 2.10 Financial Integrity: Disclose policies and Powers for Anti-Money Laundering/Countering the Financing of Terrorism supervision and describe internal control framework relating to Money Laundering/Terrorist Financing risk.\n- 2.11 Consumer Protection: Disclose policies relating to Consumer Protection, conducted solely or jointly with other agencies."
    },
    {
      "heading": "Pillar III—Central Bank Operations",
      "content": "- 3.1 Monetary Policy: Disclose operational framework with operational target, Objectives, instruments, collateral, and access criteria.\n  - 3.1.1. Instruments: Disclose Monetary Policy Instruments.\n  - 3.1.2. Coverage: Disclose type of instrument, characteristics of each instrument, and collateral framework.\n  - 3.1.3. Access: Disclose monetary policy counterparties’ framework.\n- 3.2 Cross-Border Financial Flows and Foreign Exchange Administration: Disclose implementation instruments and scope of operations.\n  - 3.2.1. Instruments: Define and disclose instruments and circumstances for use.\n  - 3.2.2. Coverage: Disclose regulated persons, transactions, licensing/approval/monitoring/sanctioning scope, and foreign exchange transactions performed.\n- 3.3 Foreign Exchange Management: Disclose implementation in terms of instruments, markets, size, and mode of access.\n  - 3.3.1. Instruments: Disclose instruments, selection considerations, eligibility criteria, and mode of access.\n  - 3.3.2. Coverage: Disclose targeted markets and agents.\n- 3.4 Foreign Exchange Reserve Management: Disclose principles governing operations, and relationships with counterparties and service providers.\n  - 3.4.1. Instruments: Disclose selection criteria for eligible asset classes, composition of instruments, investment horizon and constraints.\n  - 3.4.2. Coverage: Disclose criteria to select eligible counterparties, service providers, and markets.\n  - 3.4.3. Assessment: Disclose criteria to assess adequacy and liquidity parameters and publish analysis regularly at predetermined times.\n- 3.5 Financial Stability Assessments and Stress Testing: Periodically disclose assessment of domestic financial stability and transparency about stress testing framework.\n  - 3.5.1. Financial Stability Assessments: Periodically provide assessment of risk to financial stability, including new and emerging sources of vulnerability.\n  - 3.5.2. Macroprudential Stress Testing Methods: Disclose methods and key assumptions of stress testing.\n  - 3.5.3. Stress Testing Coverage: Disclose coverage of stress testing exercises.\n  - 3.5.4. Central Bank Use of Stress Test Results: Clarify how stress test results are used.\n- 3.6 Macroprudential Policy Implementation: Disclose design of instruments and enforcement arrangements.\n  - 3.6.1. Instruments: Disclose precise design and Objectives of instruments, and scope of entities and instruments subject to constraints.\n  - 3.6.2. Enforcement: Disclose enforcement mechanisms and responsibilities.\n- 3.7 Microprudential Supervision: Selected principles from BCP, ICP, and IOSCO (see Annex).\n- 3.8 Emergency Liquidity Assistance: May disclose ongoing provision and conditions once confidentiality is no longer required.\n- 3.9 Resolution: Selected principles from KA (see Annex).\n- 3.10 Financial Market Infrastructures: Selected principles from PFMI (see Annex).\n- 3.11 Financial Integrity: Disclose AML/CFT supervisory processes and resources allocated to internal AML/CFT controls.\n- 3.12 Consumer Protection: Disclose operations relating to Consumer Protection conducted solely or jointly with other agencies."
    },
    {
      "heading": "Pillar IV—Central Bank Outcome",
      "content": "- 4.1 Monetary Policy: Be transparent about outcomes of monetary policy conduct.\n  - 4.1.1. Governance Actions: Clarify to whom accountability is owed and how it is discharged.\n  - 4.1.2. Policies: Disclose progress toward achieving monetary policy objective(s) and prospects.\n  - 4.1.3. Operations: Disclose volumes and interest rates of operations and level of operational target achieved.\n- 4.2 Cross-Border Financial Flows and Foreign Exchange Administration: Disclose outcomes of policy implementation.\n  - 4.2.1. Governance Actions: Disclose to whom accountability on the policy is owed and how it is discharged.\n  - 4.2.2. Policies: Regularly disclose results in achieving policy Objectives.\n  - 4.2.3. Implementation: Regularly disclose results of policy implementation.\n- 4.3 Foreign Exchange Management: Disclose accountability and reporting on foreign exchange interventions.\n  - 4.3.1. Governance Actions: Disclose decision-making structure and accountability for Foreign Exchange Management.\n  - 4.3.2. Policies: Disclose role of Foreign Exchange Management toward policy objectives and interaction with broader monetary policy Objectives.\n  - 4.3.3. Operations: Disclose results of market operations, volume of activity, and direction of interventions on website at a predefined time lag.\n- 4.4 Foreign Exchange Reserve Management: Disclose changes to internal governance principles and outcomes.\n  - 4.4.1. Governance Actions: Publicly disclose general principles of internal governance to ensure integrity of policy formulation and operations.\n  - 4.4.2. Reporting on Implementation: Disclose data on level and composition of reserve assets, short-term liabilities, and drains at a predefined frequency.\n  - 4.4.3. Financial Results: Ensure clarity in audited financial statements on amount, composition, profit/loss, and risks from reserves.\n- 4.5 Macroprudential Policy: Disclose outcomes and evaluations of macroprudential actions and accountability.\n  - 4.5.1. Governance Actions: Clarify to whom accountability is owed and how it is discharged.\n  - 4.5.2. Policies: Disclose ex-post evaluations of macroprudential policies.\n- 4.6 Microprudential Supervision: Selected principles from BCP, ICP, and IOSCO (see Annex).\n- 4.7 Emergency Liquidity Assistance: Framework allows appropriate disclosure of provision, terms, conditions, and amounts provided while maintaining confidentiality as long as required.\n- 4.8 Resolution: Selected principles from KA (see Annex).\n- 4.9 Financial Market Infrastructures: Selected principles from PFMI (see Annex).\n- 4.10 Financial Integrity: Disclose outcomes of AML/CFT supervisory actions and oversight of internal AML/CFT controls.\n- 4.11 Consumer Protection: Clarify results and implications of Consumer Protection policies and operations conducted solely or jointly with other agencies."
    },
    {
      "heading": "Pillar V—Central Bank Official Relations",
      "content": "- 5.1 Government: Disclose relationship with the government, including information exchange, policy coordination, financial aspects such as rules on profit distribution, and clearly distinguish roles and modalities.\n  - 5.1.1. Disclose institutional relationship between central bank and government/agencies.\n  - 5.1.2. Publicly disclose policies and terms governing financial transactions with government, including fiscal agent role, current account management, deposit taking, advances, guarantees, loans and credit arrangements, and agency services.\n  - 5.1.3. Define and publicly disclose instruments used in interactions with government/agencies.\n  - 5.1.4. Publicly disclose regularly the outcome of interactions and operations with government/agencies.\n- 5.2 Domestic Financial Agencies: Disclose relationships with domestic financial agencies relevant to the Mandate and Functions.\n  - 5.2.1. Clearly define and publicly disclose relationships, cooperation and information-sharing arrangements.\n  - 5.2.2. Make transparent the policies, instruments, and outcomes of interactions.\n  - 5.2.3. Disclose role, responsibility, actions, and any advice received with respect to macroprudential policy.\n  - 5.2.4. Disclose arrangements to restore or maintain financial stability, including data sharing, liquidity support, and decision responsibilities at each stage.\n- 5.3 Foreign Agencies: Disclose dealings with international organizations, foreign governments, other central banks, and relevant foreign agencies, including nature of interactions and any obligations or commitments.\n  - 5.3.1. Clearly define and publicly disclose relationships for information exchange and policy coordination.\n  - 5.3.2. Publicly disclose policies, terms, and conditions governing interactions.\n  - 5.3.3. Define and publicly disclose instruments used in interactions, including financial transactions.\n  - 5.3.4. Publicly disclose regularly the outcome of relationships with foreign agencies.\n- 5.4 Other Relations: Disclose involvement with private or semi-public institutions.\n  - 5.4.1. Disclose investments in and ownership of subsidiaries and joint ventures with private, semi-public, or public entities."
    }
  ],
  "bullets": [
    "Purpose: To strengthen accountability and, as a prerequisite for Autonomy, enhance transparency and accountability of the central bank and contribute to policy effectiveness, while taking legitimate needs for confidentiality into account.",
    "Scope: Central banks disclose their governance, policies, operations, outcomes of policies and operations, and official relations with government, domestic, foreign, and international agencies, and other institutions.",
    "Note: The CBT is not intended as a governance code.",
    "1.1. Legal Structure: Disclose Legal Framework in a manner that is clear and Easily accessible.",
    "1.2. Mandate: Disclose Mandate—including Objectives, Functions, and legally defined Powers—in a manner that is clear and Easily accessible.",
    "1.3. Autonomy: Disclose Autonomy as defined in legislation/regulations, revealing extent, forms, and conditions of autonomy in a clear and Easily accessible manner.",
    "1.4. Decision-Making Arrangement: Disclose organizational structure and allocation of responsibilities to Decision-making Bodies.",
    "1.5. Risk Management: Disclose principal risks (financial, operational, legal) and the framework to manage them, including Risk Governance Structure and Risk Strategy.",
    "1.6. Accountability Framework: Disclose transparency and reporting mechanisms to internal bodies, political institutions, and the public.",
    "1.7. Communication: Disclose means, methods, and forms of communication to stakeholders.",
    "1.8. Confidentiality: Disclose policy on confidentiality or secrecy of central bank information and reasons for disclosure choices.",
    "2.1 Monetary Policy: Publicly and clearly disclose Objectives, policy framework, and instruments.",
    "2.2 Cross-Border Financial Flows and Foreign Exchange Administration: Disclose role, objective(s), legal and institutional frameworks, policy decisions, and decision-making process.",
    "2.3 Foreign Exchange Management: Disclose policy Objectives, hierarchy of Objectives, operational framework, and intervention instruments.",
    "2.4 Foreign Exchange Reserve Management: Disclose policy Objectives, key considerations, oversight allocation, and potential impact.",
    "2.5 Macroprudential: Clearly communicate Objectives, decision-making process, instruments, indicators, and supporting analysis for macroprudential measures.",
    "2.6 Microprudential Supervision: Selected principles from BCP, ICP, and IOSCO (see Annex).",
    "2.7 Emergency Liquidity Assistance: Disclose scope and Objectives while maintaining necessary confidentiality to preserve financial stability and support monetary policy.",
    "2.8 Resolution: Selected principles from KA (see Annex).",
    "2.9 Financial Market Infrastructures: Selected principles from PFMI (see Annex).",
    "2.10 Financial Integrity: Disclose policies and Powers for Anti-Money Laundering/Countering the Financing of Terrorism supervision and describe internal control framework relating to Money Laundering/Terrorist Financing risk.",
    "2.11 Consumer Protection: Disclose policies relating to Consumer Protection, conducted solely or jointly with other agencies.",
    "3.1 Monetary Policy: Disclose operational framework with operational target, Objectives, instruments, collateral, and access criteria.",
    "3.2 Cross-Border Financial Flows and Foreign Exchange Administration: Disclose implementation instruments and scope of operations.",
    "3.3 Foreign Exchange Management: Disclose implementation in terms of instruments, markets, size, and mode of access.",
    "3.4 Foreign Exchange Reserve Management: Disclose principles governing operations, and relationships with counterparties and service providers.",
    "3.5 Financial Stability Assessments and Stress Testing: Periodically disclose assessment of domestic financial stability and transparency about stress testing framework.",
    "3.6 Macroprudential Policy Implementation: Disclose design of instruments and enforcement arrangements.",
    "3.7 Microprudential Supervision: Selected principles from BCP, ICP, and IOSCO (see Annex).",
    "3.8 Emergency Liquidity Assistance: May disclose ongoing provision and conditions once confidentiality is no longer required.",
    "3.9 Resolution: Selected principles from KA (see Annex).",
    "3.10 Financial Market Infrastructures: Selected principles from PFMI (see Annex).",
    "3.11 Financial Integrity: Disclose AML/CFT supervisory processes and resources allocated to internal AML/CFT controls.",
    "3.12 Consumer Protection: Disclose operations relating to Consumer Protection conducted solely or jointly with other agencies.",
    "4.1 Monetary Policy: Be transparent about outcomes of monetary policy conduct.",
    "4.2 Cross-Border Financial Flows and Foreign Exchange Administration: Disclose outcomes of policy implementation.",
    "4.3 Foreign Exchange Management: Disclose accountability and reporting on foreign exchange interventions.",
    "4.4 Foreign Exchange Reserve Management: Disclose changes to internal governance principles and outcomes.",
    "4.5 Macroprudential Policy: Disclose outcomes and evaluations of macroprudential actions and accountability.",
    "4.6 Microprudential Supervision: Selected principles from BCP, ICP, and IOSCO (see Annex).",
    "4.7 Emergency Liquidity Assistance: Framework allows appropriate disclosure of provision, terms, conditions, and amounts provided while maintaining confidentiality as long as required.",
    "4.8 Resolution: Selected principles from KA (see Annex).",
    "4.9 Financial Market Infrastructures: Selected principles from PFMI (see Annex).",
    "4.10 Financial Integrity: Disclose outcomes of AML/CFT supervisory actions and oversight of internal AML/CFT controls.",
    "4.11 Consumer Protection: Clarify results and implications of Consumer Protection policies and operations conducted solely or jointly with other agencies.",
    "5.1 Government: Disclose relationship with the government, including information exchange, policy coordination, financial aspects such as rules on profit distribution, and clearly distinguish roles and modalities.",
    "5.2 Domestic Financial Agencies: Disclose relationships with domestic financial agencies relevant to the Mandate and Functions.",
    "5.3 Foreign Agencies: Disclose dealings with international organizations, foreign governments, other central banks, and relevant foreign agencies, including nature of interactions and any obligations or commitments.",
    "5.4 Other Relations: Disclose involvement with private or semi-public institutions.",
    "**Central Bank Transparency Code—Self-Review**"
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