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
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