Commentary
Two-thirds of central banks regularly audit policy processes
Internal and external audit functions are combined in most jurisdictions
Larger central banks more likely to have diversity policy
Boards with appointment powers more often focus on diversity
Most governing boards operate under charters
Strategy-setting and budget approval are boards’ top responsibilities
One in three central banks operate supervision committee
Government officials’ membership on boards still rare
Governors serving limitless terms tend to earn lower salaries
But governors’ average salary remains over $200,000 a year
Most governors lack legal immunity against prosecution
One-fifth of removable central bank governors shielded from legal actions
Governors serve unlimited terms in half of central banks
While term length averages five years, majority of governors can be dismissed early
Smaller central banks more likely to manage government debts
Consumer protection widely overseen in larger institutions
Half of central banks must be consulted on law changes
Practice is slightly more common at banks with government officials on the board
Central banks split on whether CBDC will impact seigniorage
Some respondents see seigniorage depending on CBDC design choices
Central banks widely exploring RTGSs’ interoperability with CBDCs
High income institutions more likely to research the issue than their middle income counterparts
Half of institutions have a central data collection centre
Respondents with data collection system more likely to automate regulatory filings
Flexibility and business continuity seen as key benefits of cloud services
But three in four fintech teams point at privacy as concern
Central banks more likely to use software-based cloud services
Cloud widely used for cyber security and other applications
AI spreads further among fintech teams
Centralised fintech teams more likely to apply AI/ML to sentiment analysis
Half of planned CBDCs designed to be programmable
Two-thirds of wholesale CBDCs likely to be programmable
Most central banks without CBDC mandate engaged in retail projects
Only one in three banks has a legal mandate for CBDC issuance, but many are still working on digital currency
American central banks less likely to struggle with fintech recruitment
But American banks face toughest battle for talent retention
Fintechs more likely to be licensed in upper-middle income countries
Licence issue rate across central banks broadly unchanged year on year
Cyber, suptech and CBDCs are top areas for fintech research
Central banks with fintech strategy more likely to prioritise CBDCs
Cyber security and legacy systems still greatest technology challenges
But concerns differ by central banks’ CBDC mandate
Central banks lacking fintech unit less likely to have a strategy
Respondents’ strategic priorities include digitalisation, regulations, collaborations and others
Four in five central banks lack chief fintech officers
Centralised fintech teams more likely to have chief fintech officers
Privacy and security seen as greatest AI risks
Larger risk teams more likely to provide training to staff on risk types