FSB published a summary of the meeting of the Regional Consultative Group (RCG) for Sub-Saharan Africa. The key topics of discussion at the meeting included financial stability implications of financial market developments worldwide; vulnerabilities from rising non-performing loans and from climate-related risks in Sub-Saharan Africa; the 2020 work program of FSB; the supervision of financial conglomerates; and the ongoing work of FSB on developing a toolkit to support financial institutions before, during, and after a cyber incident. FSB is expected to issue a consultative document, in April 2020, on the toolkit for effective practices with respect to a cyber incident.
The meeting started with a discussion on recent global and regional macroeconomic and financial market developments and their implications for financial stability. The group discussed vulnerabilities created by low bond yields and increased holdings of lower quality debt and illiquid assets by investment funds. The group also noted increasing vulnerabilities from rising debt levels and non-performing loans in the region. Members emphasized the importance of adequate capital buffers for banks in response to these developments. Members discussed the FSB 2020 work program, its contribution to the Saudi Arabian G20 Presidency, and the issues that will be of most interest to authorities in the region. The group also discussed the recent publication of FSB on bigtech and reviewed fintech developments in the region. The meeting concluded with a discussion on the supervision of financial conglomerates. Members discussed trends toward increased consolidation of financial firms in the region and the approaches needed for effective supervision of these firms. In particular, group members noted the importance of continued dialog among supervisory authorities.
Related Link: Press Release
Keywords: International, Sub Saharan Africa, Banking, NPLs, Credit Risk, Work Program 2020, Fintech, Climate Change Risk, Cyber Risk, Cyber Incident, FSB
Previous ArticlePBC Publishes Report on Development of Green Finance in China
The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.
The European Council published a draft Commission Delegated Regulation to amend the regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.
The Monetary Authority of Singapore (MAS) published amendments to Notice 635, which sets out requirements that a bank in Singapore has to comply with when granting an unsecured non-card credit facility to individuals.
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.