MEFMI supports BoT to strengthen its Crisis Management Framework

The global financial crisis and the recent COVID-19 pandemic revealed the inadequacy of crisis management frameworks in MEFMI member countries, and the need for financial regulators to implement measures to mitigate crises and resolve failing banks as well as other systemic financial institutions in an effective and orderly manner. Against this background, the Bank of Tanzania (BoT) has embarked on strengthening its financial crisis preparedness and management capabilities. The Bank is in the process of reviewing its crisis management framework and developing guidelines for contingency and recovery planning for banks and other financial institutions.

As part of its efforts to support member countries, MEFMI conducted a hybrid workshop on Financial Crisis Preparedness and Management for the Bank of Tanzania from 10 to 14 October 2022. While the participants and three regional resource persons assembled at the Bank of Tanzania’s Zanzibar Branch, the other three international resource persons participated in the workshop virtually.

The Acting Director of the BoT Zanzibar Branch, Mr Mansour Abdullah welcomed participants and the MEFMI team to the workshop and commended the Bank of Tanzania and MEFMI for organising the workshop. The workshop was officially opened by the Deputy Governor, Financial Stability and Deepening, Ms. Sauda Msemo. In her speech, the Deputy Governor emphasised the importance of implementing appropriate crisis management practices in the financial sector. She also underlined the importance of the workshop in terms of the broader work being done to harmonise regulatory and supervisory frameworks in the East African Community (EAC). She expressed gratitude to MEFMI and its partners for organising the training and allowing the Bank to invite its peers from the region.

The workshop was aimed at enhancing the participants’ knowledge of best practices in financial crisis management and bank resolution. It focused on the institutional arrangements and key elements of crisis management and resolution frameworks, recovery and contingency planning, early crisis warning systems and inter-agency and cross-border coordination in crisis management and bank resolution drawing on international best practices and practices in other jurisdictions such as South Africa, England, Zambia and the European Union.

A total of 33 officials from central banks and deposit insurance schemes in the East African Community participated in the training. A third of the participants (33 per cent) were female while the remainder were male.

A total of six (6) resource persons facilitated at the workshop. These are Robert Mbabazize (Bank of Uganda), Fortune Phiri (Bank of Zambia), Jacques Botes (South African Reserve Bank), Tommy Garland (Bank of England), Andrea Gentili (Single Resolution Board of the European Union) and Geoffrey Mortlock (Independent Consultant).

The South African Reserve Bank, the Single Resolution Board and the Bank of England provided resource persons to the workshop on gratis. MEFMI appreciates their support in delivering the training.

By Noel Mahombera