Burundi : The Governor of the Central Bank unveils banking law reforms
A revision of the 2003 Banking Act is necessary to ensure the financial stability of the country, the governor of the Central Bank of Burundi Jean Ciza has said.A revision of the 2003 Banking Act is necessary to ensure the financial stability of the country, the governor of the Central Bank of Burundi Jean Ciza has said.
During a workshop on the draft revision of the banking law on Tuesday in Bujumbura, Mr Ciza explained that the law should reflect the dynamism induced by the recent events and innovations that have affected the financial system in Burundi and internationally, Xinhua news agency reports.
"The central bank has been advised to undertake a reform of the regulation governing banking activity in order to ensure compliance with the principles of Basel. Thus, the present revision of the banking law reflects his recommendation," he said.
The legislation should also acknowledge innovations related to the development of electronic money, he
said, such as money transfer by phone, electronic payments and remote compensation.
"These payment systems are developing at such a speed that the regulation of these new instruments is often an afterthought. The Banking law will catch up and even get ahead so they can continue to develop in a well-regulated environment," said the governor.
Finally, the revision will take into account the need to harmonise the rules and supervisory practices with other states of the East African Community (EAC).