A bill that would force the central bank to consult with the government and report to the parliament on a regular basis, has been rejected by the Czech Senate. The bill also stipulated that the government would take over from the central bank’s governor the responsibility for nominating the bank’s board. This was viewed by the Senate as an unjustified infringement of the bank’s independence and an affront to the constitution.
Whilst this has no immediate ramifications in terms of the Czech factoring industry, it does seem to indicate that the road to financial regulation, and with it the recognition of factoring as a business activity, will be a long one.
BCR Publishing
