- June 30, 2022
- Posted by: admin
- Category: Current News
Across the globe, the financial system was put under considerable strain due to the economic challenges brought by the COVID-19 pandemic. While the COVID-19 pandemic is now waning, it served as a reminder of the need for authorities to put in place measures that are aimed at managing crises and mitigating their impact to maintain financial stability.
Previous crises, including the recent COVID-19 pandemic, have shown that there is an increased likelihood of widespread distress among financial institutions during periods of economic slowdown. In the current environment, there is a risk that the continued subdued economic activity may lead to an increase in non-performing loans and liquidity problems in the financial sector. As such, regulators need to strengthen their crisis management frameworks and clearly define options for resolving distressed institutions. Against this context, MEFMI collaborated with the Toronto Centre to deliver a regional virtual workshop on Financial Crisis Management and Bank Resolution from 30 May to 3 June 2022.
The workshop consisted of 18 sessions covering the conceptual and operational issues related to the management of financial crises and the resolution of troubled banks. It included some crisis simulation exercises and discussions on past episodes of banking distress in order to draw lessons for the present and future. Further, the workshop explored the Financial Stability Board Key Attributes of Effective Resolution Regimes, as well as the practicalities of dealing with the resolution of an institution experiencing distress.
A total of 76 officials from eleven (11) MEFMI member countries (namely Angola, Botswana, Kenya, Lesotho, Malawi, Namibia, Rwanda, Tanzania, Uganda, Zambia and Zimbabwe) participated in the workshop. Females comprised 42% of the participants. The officials are expected to utilise the knowledge gained from the workshop to support the implementation of appropriate crisis management and resolution frameworks in their respective jurisdictions.
Four (4) resource persons namely Messrs Ruzayi Chiviri (an Accredited Fellow at Reserve Bank of Zimbabwe), Fredrick Shirima (a Graduate Fellow at Bank of Tanzania), Stephen Ssendikaddiwa (an Independent Consultant) and Geoffrey Mortlock (a Toronto Centre Consultant) facilitated at the workshop.