BY EDDIE OSIFELO
PARLIAMENT is poised to amend the Central Bank of Solomon Islands (CBSI) Act of 2012 after a decade of its implementation.
Minister of Finance and Treasury, Harry Kuma, announced this during the second reading of the CBSI (Amendment) Bill 2023 in Parliament on Monday.
Kuma highlighted that since the enactment of the CBSI Act in 2012, the global financial and economic landscape has undergone significant changes, reshaping the way business is conducted.
CBSI stands as one of the esteemed institutions in the Solomon Islands, with a vision to lead the development of a modern, stable, and prosperous nation.
The proposed amendment comes in response to the evolving financial environment, with the aim of keeping the CBSI relevant and adaptable to future financial innovations.
Additionally, it seeks to address market failures and bolster the CBSI’s capacity to effectively manage the domestic economy while achieving its objectives.
Moreover, Kuma emphasized that this amendment aligns with the government’s policy to strengthen the financial sector’s legislation and create a conducive environment for growth.
This review opens the door to reevaluate other financial legislations, including the Financial Institution Act and Insurance Act.
The amendment to the CBSI Act is expected to provide the bank with the opportunity to modernize specific sections of the Act in conjunction with other legislations such as the Financial Institution Act and National Payment System Act.
Kuma outlined two key motivations behind the amendment:
Keeping pace with the rapid technical innovation in the financial sector, which has outpaced existing legislation.
Addressing gaps exposed by the recent COVID-19 pandemic and associated financial and economic crises in major markets.
He noted that the swift advancement of technology, particularly in Financial Technology (Fintech), necessitates these changes.
The amendment, once passed in Parliament, will represent a significant step forward in ensuring that CBSI remains aligned with modern central banking practices.
