Today, the Central Bank of Kenya hosted the third meeting of the Financial Stability Board (FSB) Regional Consultative Group for Sub-Saharan Africa in Nairobi, Kenya. Six regional consultative groups1have been 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 began by reviewing the FSB’s policy priorities and work plan. This was followed by a discussion on vulnerabilities in the global financial system, particularly risks in advanced economies and their possible impact on the region. Region-specific financial stability issues and risks, such as capital flows, rapid credit growth and exposures to other emerging market regions, were also discussed. Drawing upon lessons from the global financial crisis, members considered the importance of macro-prudential policy frameworks as a complement to traditional micro-prudential supervision. In particular, members exchanged views on the types of macro-prudential measures that are appropriate for the region and potential challenges with their implementation.
Members discussed how supervisory cooperation and information sharing among financial sector authorities in the region can be enhanced, including the potential role of supervisory colleges. The final area of attention during the meeting was the importance of micro-finance in Sub-Saharan Africa and how ministries of finance, central banks and supervisory authorities can balance the promotion of these activities with the maintenance of effective oversight.
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 first two meetings of this group were held on 3 February 2012 in Pretoria, South Africa and 25 September 2012 in Cape Town, South Africa.