Posted: February 2nd, 2016

Banking Control Law in Saudi Arabia, shortcomings and development

Bank of England (‘BoE’) independence: There are a number of references throughout the thesis regarding the BoE’s independence. Do you mean control over certain key central bank functions or just freedom from political interference? Can a central bank ever be wholly independent? Is independence relative and is it especially important regarding certain key functions? For instance, on page 50 you refer to independence as being a very important attribute and seemingly define it by reference to freedom from political interference, as you also do on pages 120 and 127. On page 25 you refer to the pre-independent BoE being subject to “political meddling” as “a daily affair.”On page 51 you refer to the BoE being “completely independent”. On page 62 you refer to the BoE enjoying “full independence” and on page 63 it is described as “a completely independent agency.” On page 64 you then describe this independence as being “essential to the maintenance of monetary stability.” On page 80 you describe the BoE as enjoying “almost complete independence.” Later central bank independence is linked to economic growth. All this needs to be addressed in an early section that sets the position out clearly – how is central bank independence crucial and in what way?
Clarify the exact meaning of independence of the central bank in introduction (abstract) and other chapters then linking with the whole story.( I mean take the full freedom for the central bank when practising their authorities in banking supervision such as licensing, inspection, issuing regulations related to their jurisdictions. But these independence doesn’t meaning the central bank can work alone and without the fully coordination with the government as a major part on economy of each country. Therefore, prevent the government to interfere on the central bank doesn’t agreed with the approach the central banks work without controlling and coordination with the government. You have to mention to the appendix such as BCL 1966, and SAMA’s charter on the introduction to make