FSB published a summary of the November meeting of the Regional Consultative Group (RCG) for Middle East and North Africa (MENA). The meeting was hosted by SAMA in Riyadh. The key topics of discussion included financial regulatory priorities, ongoing work of FSB, effects of post-crisis reforms, transition from London Inter-bank Offered Rate (LIBOR) and other Inter-bank Offered Rate (IBORs), regional financial vulnerabilities, implications of stablecoins, cyber risk, and implementation of G20 regulatory reforms.
The following are the key highlights of the discussion:
- Members received an update from the Saudi Arabian authorities on the financial regulatory priorities for the G20 Presidency starting next month.
- The group also received an update on the ongoing work of FSB and its plans for 2020.
- RCG members discussed the program of evaluation of the effects of post-crisis reforms, including the evaluation of small and medium-size enterprise finance, a report on which is to be published this month.
- Members discussed international work on the transition from LIBOR and other IBORs and underlined the importance of financial and non-financial firms being prepared for the risk that LIBOR will end once official sector support for the benchmark is withdrawn at end-2021.
- Members discussed global and regional financial vulnerabilities and the implications of stablecoins on financial stability and monetary stability.
- Given the increasing risk of cyber incidents, the RCG members discussed work to develop effective practices for cyber incident response and recovery. The FSB toolkit on this is expected to be issued for public consultation in early 2020.
- Members discussed implementation of G20 regulatory reforms in non-G20 jurisdictions and jurisdictions’ experiences in tailoring implementation to the specificities of their financial systems.
- The group expressed support for a set of recommendations developed by a working group of FSB and RCG members and adopted by the FSB Plenary in early November, to enhance the effectiveness of RCGs as an outreach and feedback mechanism.
Related Link: Press Release
Keywords: International, Middle East and Africa, North Africa, Banking, Securities, LIBOR, IBOR, G20, Stablecoins, Cyber Risk, FSB
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