Tuesday, 5 November 2024
Balanced Scorecard for the Best Macroeconomic Regulator Awards
Central banks and regulators are assessed and benchmarkedon the role that they play in maintaining financial stability. Central banks use risk management, monetary analysis and liquidity management as the core tools to ensure macroeconomic financial stability. These combined with other indicators such as their perception among domestic banks and businesses, level of international co-ordination and the level of technology and operations can help assess regulators of this kind.
| Evaluating Dimension | Weightage (%) | |
|---|---|---|
| 1. | Market intervention capability | 20 |
| Frequency and impact of interest rate intervention | ||
| Effectiveness of price stability measures taken | ||
| Effectiveness of open market operations | ||
| Ease of collection of data for market activity, transaction prices & counterparty exposures for market participants | ||
| 2. | Liquidity Management | 20 |
| Types of liquidity tools used | ||
| Effectiveness in the past 2 months | ||
| 3. | Independence and governance structure | 15 |
| 4. | Degree of International co-ordination | 15 |
| Senior representation in international forums such as the G20 and BCBS. | ||
| 5. | Technology and Operations | 15 |
| Level of automation in treasury operations | ||
| Level of automation in business processes | ||
| Level of automation in clearing and settlement | ||
| 6. | Quality and consistency of reports | 10 |
| No. of different types of reports [ more variety higher score] | ||
| Frequency of each report [ higher frequency-higher score] | ||
| Comprehensiveness in topics covered | ||
| Usability of data | ||
| Availability and ease of use online | ||
| Annual report- level of comprehensiveness (policies explained, boxed case studies etc.) | ||
| Size of recent investment in technology | ||
| Level of automation in treasury operations | ||
| 7. | Perception of domestic banks and businesses | 5 |
| "They may not like you, but do they respect you?" | ||
| Final Score | 100 | |