De Nederlandsche Bank published a speech by Executive Board member Olaf Sleijpen to an international conference of central bank internal auditors in Amsterdam, stressing that strong internal audit is essential for central banks to maintain public trust and credibility as supervisory authorities. He positioned internal audit as a key source of independent assurance on risk management, internal control and governance, and argued that central banks must meet the same standards they expect of the financial sector. Sleijpen highlighted five elements of effective internal auditing: adherence to the Global Internal Audit Standards and internal rules; deep understanding of the organisation supported by a strong internal network, particularly challenging in hybrid working environments; active external networking to learn from private-sector and public-sector best practices and from peer central banks; clear and direct communication, including the willingness to “speak truth to power”; and synthesising audit findings to show how risks interrelate, including behavioural and cultural drivers, for example through consolidated reporting across audits. He also pointed to ongoing change projects within DNB and noted that, while the bank’s four domains (Monetary, Supervision, Resolution and Internal Operations) are individually well organised, improving cross-domain cooperation is necessary for bank-wide priorities such as operational risk management and business continuity, with the internal audit department playing an independent role in testing and assessing how ambitions work in practice. In closing, he linked the exchange among internal auditors to the wider importance of international cooperation, warning that pressure on multilateralism can undermine the ability to address shared challenges and calling for continued cooperation among central banks, including through the Bank for International Settlements.
De Nederlandsche Bank 2025-05-23
De Nederlandsche Bank speech outlines five elements of effective internal audit for central banks
Olaf Sleijpen of De Nederlandsche Bank stressed strong internal audits for central banks to maintain trust. He outlined five elements: adherence to standards, understanding the organization, external networking, clear communication, and synthesizing findings. Sleijpen also emphasized improved cross-domain and international cooperation among central banks.