24th June 2013

Senate: Act on CNB passed

The Senate passed the Act on Czech National Bank (CNB) at its last session. The Bill that has been proposed by the Ministry of Finance reflects comments of the European Commission regarding the institutional independence of the CNB within the political system. According to that section, the Bill stipulates that the CNB should inform the Chamber of Deputies about the monetary policy; the Bill also reacts on some EC’s rebukes objecting to the personal dependence of the CNB on current political elites. The Bill also stipulates that the CNB supervises any financial institution in the Czech Republic. The CNB should also communicate with other supervising institutions in the European Union. 
Senators of the Senate’s Committee on Constitution objected to the Bill that it breaches the institutional balance of state property. The Bill introduces that foreign exchange reserve should be in the property of the CNB. The Senate, however, rejected the proposal of the Committee to put the Bill back to the Chamber of Deputies for re-discussion. According to the proposer of the Bill (CNB), the Bill transposes the EU standards that protect foreign exchange reserve in higher extent.
The Bill is heading to the president. The Bill should come into force on 1 July.
For further information, click here; for discussion at Senate's floor, click here.

Members of the American Chamber of Commerce in the Czech Republic