By: Fred Yaw Sarpong
Bank of Ghana (BoG), the regulator of the banking industry hosted the fifth meeting of the Financial Stability Board (FSB) Regional Consultative Group (RCG) for Sub-Saharan Africa in Accra, Ghana.
The meeting offered the members of the FSB RCG for Sub-Saharan Africa the opportunity to review the FSB’s work plan and the completion of policy reforms in four priority areas.
The areas are building resilient financial institutions; ending too-big-to-fail; transforming shadow banking; and making derivatives markets safer. Members also heard a report on the ongoing review of the structure of the FSB’s representation.
A statement from the central bank stated that they discussed vulnerabilities in the global financial system and regional financial stability issues. In this context, they considered uncertainties in the global growth outlook and the unwinding of accommodative monetary policies in advanced economies, and their impact on the Sub-Saharan Africa region.
Members also discussed the application of financial soundness indicators in Sub-Saharan Africa.
According to the bank, members further considered financial regulatory factors affecting the availability of long-term investment finance. They exchanged views on long-term finance and recent developments in the region and how financial regulation can facilitate the channeling of funds to support long- term investment.
‘Implementation of the FSB’s key attributes of effective resolution regimes for financial institutions and the related assessment methodology was another focus of the meeting,’ said the bank.
Daily Express gathered that in this context, members discussed cross-border cooperation and information sharing with host authorities who are not members of crisis management groups for global systemically important financial institutions (G-SIFIs), in particular with those authorities in jurisdictions where a G-SIFI has a systemic presence.
Members turned their attention to supervisory and regulatory capacity building. They argued that while capacity building among financial sector supervisors in the region has been a challenge for a number of years, the global regulatory reforms developed in response to the financial crisis further highlight the need for well trained, experienced, adequately staffed and well-funded supervisory authorities.
The FSB RCG for Sub-Saharan Africa is co-chaired by Lesetja Kganyago, Deputy Governor, South African Reserve Bank and Rundheersing Bheenick, Governor, Bank of Mauritius.
Membership includes financial authorities from Angola, Botswana, Ghana, Kenya, Mauritius, Namibia, Nigeria, South Africa and Tanzania, as well as the Central Bank of West African States (BCEAO) based in Senegal.
Permanent observers include the Committee of Central Bank Governors of the Southern African Development Community, and the East African Community.