¹C/o Central Bank of Bosnia and Herzegovina, 25 Marsala Tita St., Sarajevo 71000, Bosnia and Herzegovina. E-mail: pnicholl@CBBH.ba

Abstract

The article explains why good public sector corporate governance is important for an economy's economic performance. Two contrasting case studies are then used, the Reserve Bank of New Zealand (RBNZ) and the Central Bank of Bosnia and Herzegovina (CBBH), to illustrate key elements that have engendered good governance and performance: a good statute, with clear objectives and accountability mechanisms; clearly stated roles for all participants; operational and financial independence; sound internal decision-making processes; formal plans and budgets; effective senior management and board monitoring. The article also discusses why the CBBH is one of the few successful state-level institutions in Bosnia.