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MEFMI / BIS – FSI HOLD EXECUTIVE WORKSHOP FOR BANKING SUPERVISORS IN THE MEFMI REGION

  • November 18, 2019
  • Posted by: admin
  • Categories: Current News, Financial Sector Management
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Financial systems in developing and emerging economies face unique challenges that require adjustments to some of the existing international standards. Specifically, developing and emerging economies are characterised by the nature of access to international capital markets, high macroeconomic and finan­cial instability, less developed banking systems and public capital markets, limited transparency and data availability, weak governance structures and inadequate regulatory capacity. Taken together, these challenges require a different approach to regulatory reform than what might apply to the typical advanced economy. It remains important, therefore, for pol­icymakers, in the MEFMI region, to deliberate on how best to adjust the different regulatory standards to meet their economies’ needs. Also, multilateral organisations, standard setting bodies and regional development banks need to evaluate the impact of these new regulatory tools on developing economies.

It is against this background that MEFMI in collaboration with the Financial Stability Institute (FSI) of the Bank for International Settlement (BIS) organised its third annual Executive Workshop and Policy Implementation Seminar. The event was held from 15-17 October 2019 in Gaborone, Botswana. The 2019 ….. (PIM) intended to enhance delegates’ understanding of the revised Basel III standardised approach to credit risk and proportionality in bank regulation and supervision. It aimed to support countries to develop frameworks for proportional implementation of Basel standards in non-Basel Committee on Banking Supervision (BCBS) countries.

In addition, a stocktaking assessment exercise of this annual event was conducted on the sidelines of the workshop. The exercise was intended to ascertain the level of progress that has been made by MEFMI countries with regards to supervisory reforms, since the launch of the PIM.

The Deputy Governor of the Bank of Botswana, Mr. Andrew Motsomi, officiated at the opening ceremony. He thanked MEFMI and the FSI, for their commitment and devotion in enhancing knowledge and skills of supervisors and regulators in the region. He stated that by promoting sound, stable and resilient banks that are positioned to meet the intermediation needs of economies, countries are able to achieve growth and development. Mr. Motsomi stressed that reliable access to banking and risk intermediation services is especially important in MEFMI Member State economies where capital markets are still developing.

The event helped to reveal key supervisory areas that need immediate central bank attention. MEFMI remains committed to prioritise interventions in the following areas:

  1. Recovery planning and bank resolutions;
  2. Basel III elements – Revised Standardized Credit and Operational Risk Measurement Approaches;
  3. Oversight of Discount Houses;
  4. IFRS-9 implementation; and
  5. Integration of SREP and ICAAP into the Risk Based Supervision Framework.