Senate Amends Central Bank of Liberia Act
By: Jerome Toe
The Liberian Senate has passed into law a bill seeking to amend part four (4) sections ten of the act creating the central bank of Liberia (CBL).
The Propose bill was the first to be passed into law by the Liberian Senate since the sitting of the 53rd Legislature at its twenty (20th) day sitting.
The passage of the bill follows a recommendation by a joint Senate Committee on Banking and Currency,Finance, Judiciary as well as Claims ans Petitions headed by Grand Gedeh County Senator Isaac W. Nyenabo. It is an Executive bill submitted by the President of Liberian, Madam Ellen Johnson Sirleaf. The Bill as it was submitted, seeks the appointment of another Deputy Bank Governor.
Upon it submission on 23rd February 2012, the Senate joint committee on Banking Currency and finance,judiciary,claims and petition was mandated by the plenary to take the appropriate actions on the proposed bill. Ten (10) days the joint committee submitted to the plenary the final reports during its 20 day sitting of the 1st session of the 53rd Liberian Senate
The Joint Committee report recommended that consistent with the Act creating the Central Bank of Liberia in 1999, it should serve as an independent institution which seeks to carry out its statutory responsibility in the public interest. It is to contribute to the sound economic and financial well-being of the country. According to the committee, the amendment of Part four sections ten of the act will provide the central Bank of Liberia the opportunity to carry on it statutory mandate.
It will also achieve its mission by devising and pursuing policies designed to promote, achieve and maintain price stability in the Liberian Economy as well as maintaining constant regulatory surveillance and effective prudential controls over the domestic financial sector, while at the same time encouraging competition, improved financial services and accessibility for the benefit of the public.
It is stipulated in the CBL act that the Bank encourages the mobilization of domestic and foreign savings and their efficient allocation for productive economic activities to engender sustained economic growth and development. It also aimed at promoting macroeconomic stability, internal and external equilibrium in the national economy.
The amendment will also facilitate the creation of financial and capital markets that are capable of responding to the needs of the national economy and foster monetary discipline. With the amendment, the Bank will also facilitate the creation of financial and capital markets that are capable of responding to the national economy;and foster monetary credit and financial conditions conductive to orderly; balanced and sustained economic growth and development; and provide sounds economic and financial advice to the government.
According to part iv, section 10 of an Act to Authorize the establishment of the Central Bank of Liberia, under the caption “Appointment and Power of executive governor and Deputy Governor “, is hereby amended to revise subsection 10 (1), and to add thereto a new subsection 10(3), as read below:
Section 10(1) of the act is quota as saying that the management of the Central Bank shall be conducted by an executive Governor who shall be chairman of the board of governors of the Central Bank, and two Deputy Governors who shall also serve as principal assistants to the executive Governor.
The section is further quoted that the executive Governor and the Deputy Governors shall be appointed by the president for a term of five (5) each from among individuals of standing or experience in financial and economic matters, subject to confirmation by the Liberian senate on such terms and conditions as may be specified by the board of Governors. The executive Governor and the Deputy Governors shall be eligible for reappointment once.
According to section 10(3),the president may, upon the recommendation of the Executive Governor and the board of Governors, appoint an additional Deputy whose terms and conditions of service shall be the same as stated in subsection 10(1) above.
Section 2 said the act shall take immediate effect upon publication into handbills.
Meanwhile the Liberian senate has mandated the secretary of the senate to communicate with the House of Representative for concurrence.
The Senate has since sent the act to the House of Representative for concurrence.