Central Bank as Banker and Advisor to the Government
By CBSI Media
Article No. : 06/2020
All central banks act as banker and adviser to their respective governments. Section 27 (1) of Central Bank of Solomon Islands Act 1976, amended in 1985 provides that CBSI shall act as banker and adviser to the government.
This section also stipulates that the Bank shall act as adviser to the Minister of Finance on monetary and banking matters.
Before describing these functions in detail, it would be useful to explain why it is necessary to give the Central Bank these particular responsibilities. The main reason is that the execution of these duties will help the Bank in its main task of formulating and implementing policies to maintain monetary stability.