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Reputation Lasts Longer Than Life: How can Central Banks Quantify their Reputational Risk? Cover

Reputation Lasts Longer Than Life: How can Central Banks Quantify their Reputational Risk?

Open Access
|Sep 2023

Abstract

It takes multiple decades of commitment and credibility to create repute but only a few seconds to tarnish it, as the instances of misinformation, disinformation and malinformation galore. In light of this, Central banks, as delicate and sensitive public institutions, are significantly vulnerable to such reputation risk due to their mandate for policy decisions and implementation. Thus, this study aims to formulate a barometer that quantifies the reputation score of central banks. The Central Bank Reputation (CBR) score is derived based on the respondents’ responses to a questionnaire that includes twelve attributes and twenty-eight indicators, which is administered among the eight set of audiences. The reputation score ranges from −100 to +100, that indicates the reputation of the Central Bank at a point of time. The deviation in reputation score between two points of time thus measures the reputational risk. However, the study suggests applying other qualitative analysis tools in complement with this quantitative barometer, to come up with the robust assessment.

Language: English
Page range: 159 - 178
Submitted on: Aug 26, 2022
Accepted on: Feb 14, 2023
Published on: Sep 5, 2023
Published by: Central Bank of Montenegro
In partnership with: Paradigm Publishing Services
Publication frequency: 3 issues per year

© 2023 Pradip Kumar Kafle, published by Central Bank of Montenegro
This work is licensed under the Creative Commons Attribution 4.0 License.