The Draft Law Governing BNR aims to update and strengthen the legal framework of the National Bank of Rwanda so that it reflects current central banking standards and international best practices. The revision follows legal gaps identified in recent IMF Safeguards Assessments, including the 2024 assessment, and seeks to improve the Bank’s autonomy, transparency, accountability, and financial governance.

The draft law introduces a number of important reforms. These include a clear mechanism for recapitalization by the State when necessary, stronger protection of the independence of BNR staff and decision-making bodies from external interference, and clearer limits on the powers that the Board of Directors may delegate. It also sets timelines for appeals against BNR decisions and strengthens the Bank’s authority to impose administrative sanctions for non-compliance with its regulations.

In addition, the draft enhances governance and financial oversight by strengthening requirements for Board composition, clarifying the Bank’s role in issuing and distributing government debt securities, establishing safeguards for emergency lending assistance, and reinforcing internal and external audit arrangements. It also provides clearer rules on the treatment of profits, reserves, and unrealized gains and losses.

Overall, the law seeks to provide BNR with a stronger, clearer, and more modern legal foundation to support monetary governance, financial stability, and effective central bank operations.

• Modernize the legal framework governing the National Bank of Rwanda.
• Align BNR’s law with international central banking standards and leading practices.
• Strengthen the autonomy and independence of BNR, including its staff, agents, and decision-making bodies.
• Improve transparency and accountability in BNR governance and operations.
• Establish a clear recapitalization mechanism to protect the Bank’s financial sustainability.
• Clarify governance arrangements, including limits on delegated powers of the Board of Directors.
• Strengthen enforcement powers by allowing administrative sanctions for non-compliance with BNR regulations.
• Improve legal certainty by setting timelines for appeals against BNR decisions.
• Enhance financial oversight and risk management through stronger internal and external audit provisions.
• Support sound monetary governance and financial stability through clearer operational and institutional rules.