Draft Amendments and Supplements to Law on NBS ready – Conditions met for its full integration into European System of Central Banks

The National Bank of Serbia has prepared a Draft Law on Amendments and Supplements to the Law on the National Bank of Serbia, which has been submitted to the European Commission for opinion. As pointed out, these amendments will ensure that the conditions are met for its full integration into the European System of Central Banks once when the Republic of Serbia accedes to the EU, the NBS said after a meeting between Governor Jorgovanka Tabakovic and members of the TAIEX (Technical Assistance and Information Exchange) expert mission, which is part of a broader regional initiative of the European Commission and intended for EU candidate countries.

The mission aims to provide support for further strengthening the legal and institutional framework safeguarding central bank independence, which is one of the key EU requirements in the area of economic and monetary policy. The TAIEX mission comprised a team of experts led by Klaas Knot, who served as Governor of De Nederlandsche Bank (DNB) and Chair of the Financial Stability Board, together with Fons van Overbeek, Senior Economist, and Cees Ullersma, Head of International Cooperation at the DNB.

The recommendations and findings of the mission are intended to complement, but not replace, the monitoring and assessment process carried out by the European Commission under negotiating Chapter 17 – Economic and Monetary Policy.

At the meeting, Tabakovic emphasized the NBS’s full commitment, as the lead institution responsible for the Economic and Monetary Policy chapter, to further strengthening the legal and institutional framework and applying the highest standards in the area of central bank independence.

– Alignment with EU legislation is a dynamic process that requires continuous adjustment. A sound legal framework is an important element of a predictable business environment. However, even the best legal framework cannot guarantee central bank independence if there is an insufficient number of individuals within the institution whose professional and personal integrity give the principle of independence real substance and meaning – just as their commitment cannot be sustained without a framework that protects it – she said.

During the meeting, Knot noted that central banks were generally recognized as institutions employing people whose expertise enabled them to respond to all macroeconomic circumstances, including the exceptionally complex ones of the present moment.

– Running a central bank is founded on openness and on building and maintaining trust – Knot emphasized.

Narodna banka Srbije Beograd

TAIEX

Technical Assistance and Information Exchange

Jorgovanka Tabaković

Draft Amendments and Supplements to Law on NBS

European System of Central Banks