The building of the NBH in Budapest – Photo: wikimedia

Central bank: Finance Minister’s bank legislation would impair independence

Hungary's central bank (NBH) has said amendments to the Central Bank Act drafted by the Finance Ministry would impair its independence and affect its core activities.

“It is the NBH’s firm position that the draft amendment to the Central Bank Act, in its current form, would influence the independence of the central bank,” the NBH said in a statement late on Tuesday.

“Some provisions of the draft transfer to the supervisory board not only further rights of oversight, but management rights that could affect the central bank’s core activities,” it said. “If the new law is approved, it could be used to construct narratives against the Hungarian economy and to damage our financial stability,” it added.

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