Today, the South African Reserve Bank hosted the second meeting of the Financial Stability Board (FSB) Regional Consultative Group for Sub-Saharan Africa in Cape Town, South Africa. The group was established pursuant to the FSB’s announcement in November 2010 that it intends to expand and formalise outreach beyond its membership. To this end, six regional consultative groups1were established to bring together financial authorities from FSB member and non-member economies to exchange views on vulnerabilities affecting financial systems and on initiatives to promote financial stability.
At their meeting today, members of the FSB Regional Consultative Group for Sub-Saharan Africa discussed vulnerabilities in the global financial system and regional financial stability issues. The group also reviewed the FSB’s policy priorities and work plan, including the initiative to take forward the development of a global Legal Entity Identifier for financial markets being led by the FSB.
Earlier this year, several members of the group provided input to a report that the FSB published in June 2012 on the impact of the regulatory reforms on emerging markets and developing economies.
2The report and its conclusions, as well as possible follow-up monitoring, analysis and reporting to the G20, were discussed at the meeting today. Members then considered key financial sector reforms for Sub-Saharan Africa, including the Basel capital and liquidity requirements, and implementation challenges facing the region. Finally, members discussed the resolution of financial institutions, including the FSB’s Key Attributes of Effective Resolution Regimes for Financial Institutions,3cross-border cooperation, recovery and resolution plans, crisis management groups and information sharing.
The FSB Regional Consultative Group for Sub-Saharan Africa is co-chaired by Lesetja Kganyago, Deputy Governor, South African Reserve Bank and Njuguna Ndung’u, Governor, Central Bank of Kenya. Membership includes financial authorities from Angola, Botswana, Ghana, Kenya, Mauritius, Namibia, Nigeria, South Africa and Tanzania, as well as the Central Bank of West African States based in Senegal. Permanent observers include the Committee of Central Bank Governors of the Southern African Development Community, and the East African Community. The inaugural meeting of this group was held on 3 February 2012 in Pretoria, South Africa.