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Parliament elects former central bank governor chairman of MNB supervisory board

Parliament elected Zsigmond Járai, a former central bank governor, chairman of the supervisory board of the National Bank of Hungary.

Parliament voted with 332 ayes, two nays and six abstentions to put Járai at the head of the MNB supervisory board.

Speaking to reporters after the vote, Járai said the new members of the supervisory board would not make any proposals to change the Central Bank Act. The board will work within the bounds of the current law, and it will have some oversight tasks on which it works together with the state audit office ÁSz, he added.

The task of the board is not to serve as a “counterweight” to the central bank's management, Járai said. The Central Bank Act clearly delineates the work of the supervisory board and that of the rate-setting Monetary Council.

Járai is currently the chairman of the supervisory board of CIG Pannonia Life Insurance. He was MNB governor between 2001 and 2007. Between 1998 and 2001, Járai was finance minister in the first Orbán government.

The supervisory board has got no formal influence on the monetary policy of MNB.

Parliament voted with 345 ayes and one abstention to make Gábor András Szényei, Tamás Katona, Péter Róna and István Varga members of the MNB's supervisory board.

Parliament could vote to make László Madarász a member of the MNB supervisory board next week. Madarász, currently the chairman of the supervisory board of Malév and the former CEO of Postabank, was proposed for the post by governing Fidesz.

Delegates to the supervisory board are proposed by parliamentary parties. (MTI – Econews)