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
In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.
The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
The European Insurance and Occupational Pensions Authority (EIOPA) proposed to amend the supervisory statement on supervision of run-off undertakings that are subject to Solvency II regulation.
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.