FSB published an update on the meeting of its Regional Consultative Group (RCG) for Sub-Saharan Africa. The Bank of Mauritius hosted this meeting, which took place in Balaclava, Mauritius. The key topics of discussion included the FSB work program for 2019, the implementation of Basel framework in developing countries, and the regulatory frameworks for outsourcing to cloud service providers.
The key highlights of the meeting are as follows:
- The RCG started with a discussion regarding the FSB work program and activities for 2019. The RCG members were updated on the FSB work to evaluate the effects of the post-crisis reforms, particularly work on an ongoing evaluation of the impact on financing of small and medium-size enterprises.
- The members then discussed the work of FSB that looks at examples of financial activities wherein supervisory practices and regulatory policies may give rise to market fragmentation. Members of the group discussed preliminary conclusions from the work, along with the issues that may be of relevance to the region.
- Members discussed ways to improve the effectiveness of the RCGs as part of the broader effort of FSB to enhance engagement with stakeholders. The discussion will feed into the ongoing work to consider ways in which jurisdictions that are not members of FSB can contribute to the direction of FSB’s work.
- Also considered were the issues and implementation challenges for developing countries that choose to implement the Basel framework. Members acknowledged the characteristics of the countries in the region which need to be carefully considered when designing the regulatory framework in these countries.
- The meeting concluded with a discussion on the use of cloud computing in the financial sector. While the adoption by regulated financial institutions appears to have been limited, anecdotal evidence suggests that this is changing. Members of the group discussed risks such as the sharing of sensitive data, the cross-border nature of service provision, and the concentration of cloud service providers as risks that supervisors need to consider. The RCG discussed regulatory frameworks for outsourcing to cloud service providers, including governance, risk management, and information security.
The FSB RCG for Sub-Saharan Africa is co-chaired by Lesetja Kganyago, the Governor of SARB, and Moses Pelaelo, the Governor of Bank of Botswana. Membership includes financial authorities from Angola, Botswana, Ghana, Kenya, Mauritius, Namibia, Nigeria, South Africa, Tanzania, Uganda, and Zambia as well as the Central Bank of West African States (BCEAO) and the Bank of Central African States (BEAC).
Related Link: Meeting Update
Keywords: Middle East and Africa, Sub-Saharan Africa, Banking, Insurance, Securities, RCG, International, Basel, Cloud Computing, SME, FSB
A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.
The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.
The Australian Prudential Regulation Authority (APRA) is seeking comments, until October 21, 2022, on the introduction of CPS 230, which is the new cross-industry prudential standard on operational risk management.
The European Commission published a Delegated Regulation 2022/1301 on the information to be provided in accordance with the simple, transparent, and standardized (STS) notification requirements for on-balance-sheet synthetic securitizations.
The Australian Prudential Regulation Authority (APRA) is announced revisions to the capital framework for authorized deposit-taking institutions to implement the "unquestionably strong" capital ratios and the Basel III reforms.
The European Banking Authority (EBA) published a report that examines the use of certain exemptions included in the large exposures regime under the Capital Requirements Regulation (CRR).
The Bank of England (BoE), the Prudential Regulation Authority (PRA), and the Financial Conduct Authority (FCA) published a joint discussion paper that sets out potential measures to oversee and strengthen the resilience of services provided by critical third parties to the financial sector in UK.
The Bank of England (BoE) issued a communication to firms to provide an update on the progress of the joint data transformation program—which is being led by BoE, the Financial Conduct Authority (FCA), and the industry—for the financial sector in UK.
The European Banking Authority (EBA) published the draft methodology, templates, and template guidance for the European Union-wide stress test in 2023.
The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) jointly published the final guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP) for investment firms.