RISK BASED SUPERVISION GUIDE IN THE MAKING FOR MEFMI REGION

PRESS STATEMENT

 

OCCASION:  OFFICIAL OPENING OF A RISK BASED SUPERVISION FOR BANKS STUDY SEMINAR

VENUE:   RAINBOW TOWERS HOTEL, HARARE, ZIMBABWE

DATE:   WEDNESDAY 30 MARCH 2016

TIME:   09:00 HOURS  

MEFMI has been undertaking a study on risk based supervision for banks.  The study which commenced in July, 2015 has culminated into a draft guideline which will be discussed by regional experts from bank supervisory bodies of MEFMI member countries, representatives of regional and international commercial banks and industry experts at a seminar which will be held at the Rainbow Towers Hotel in Harare, Zimbabwe on Wednesday 30 March 2016.  The seminar will be officially opened by the MEFMI Executive Director, Dr Caleb Fundanga.

The final document to be produced after the study and seminar will be a comprehensive guideline on Risk Based Supervision for Banks. The document is the hallmark for risk based supervision (RBS) methodology implementation.

Risk Based Supervision is a very important subject in bank supervision and has remained one of the most topical subjects in the MEFMI region.  The study will support MEFMI capacity building activities and the development of risk based supervision principles for MEFMI member countries through regional workshops and in-country missions. Some of these events have involved MEFMI helping the respective countries to develop their own risk management guidelines, risk based supervision policy frameworks as well as implementing the practices in their day to day work.

These initiatives have seen an overwhelming improvement in our member countries’ compliance with the Basel Committee’s Core Principles for Effective Banking Supervision as noted by Financial Sector Assessment Program (FSAP) reviews carried out by the World Bank. MEFMI is cognisant of the dearth of skilled staff in bank supervision in central banks. In this regard the study on risk based supervision is expected to address some skills deficiencies by providing member countries with tools that can capture and demonstrate how emerging issues in bank supervision such as Basel II/III, stress testing, macro-prudential surveillance and the Revised Core Principles of Effective Bank Supervision can be incorporated in the Risk Based Supervision approach. Once finalized, the study will be adopted by MEFMI member countries as a guiding tool to develop or enhance their risk based supervision guidelines.

The 30 participants who are senior central bankers from 12 MEFMI member countries (Angola, Burundi, Botswana, Lesotho, Kenya, Malawi, Mocambique, Tanzania, Swaziland, Uganda, Zambia and Zimbabwe) will put the draft document through a vigorous quality assurance process so that at the end of this exercise MEFMI is able to put forth a well-researched, well written and pertinent tool that will not only stand the test of scrutiny anywhere in the world but also incorporates member countries’ needs and can serve as comprehensive guiding tool.

 …ENDS…

For more information on this event please contact; Mrs Sipho Makamba, Programme Manager, FSM Programme Email: siphon.makamba@mefmi.org or Ms Gladys Siwela, MEFMI Public Relations

Manager Email: gladys.siwela@mefmi.org

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