The Financial Stability Board (FSB) Regional Consultative Group (RCG) for Sub-Saharan Africa held a conference call today to discuss recent macroeconomic and financial market developments, including the financial stability implications from COVID-19.
Members discussed global and regional financial vulnerabilities including the sharp contraction in economic growth reflecting a combination of demand and supply shocks caused by the pandemic. In particular, they discussed the impact of existing high debt levels in the region, significant capital outflows and access to US dollar funding. The group also considered the effectiveness of policy responses to address the financial stability implications of COVID-19.
Members noted the importance of FSB and non-FSB members continuing to coordinate action, including financial policy responses in their jurisdictions, to maintain global and regional financial stability, keep markets open and functioning, and preserve the financial system’s capacity to finance growth.
The Group also received an update on FSB’s work programme which has been reprioritised to focus on measures to tackle the impact of COVID-19 on the financial system. Members welcomed the FSB policy work in several areas to promote a global financial system that supports a strong recovery after the pandemic.
Background
The FSB RCG for Sub-Saharan Africa is co-chaired by Lesetja Kganyago, Governor, South African Reserve Bank and Ernest Addison, Governor, Bank of Ghana. Membership includes financial authorities from Angola, Botswana, Ghana, Kenya, Mauritius, Namibia, Nigeria, South Africa, Tanzania, Uganda and Zambia as well as the Central Bank of West African States (BCEAO) and the Bank of Central African States (BEAC). Permanent observers include the Committee of Central Bank Governors of the Southern African Development Community, and the East African Community.
The FSB has six Regional Consultative Groups, established under the FSB Charter, to bring together financial authorities from FSB member and non-member countries to exchange views on vulnerabilities affecting financial systems and on initiatives to promote financial stability.1 Typically, each Regional Consultative Group meets twice each year.
The FSB coordinates at the international level the work of national financial authorities and international standard-setting bodies and develops and promotes the implementation of effective regulatory, supervisory, and other financial sector policies in the interest of financial stability. It brings together national authorities responsible for financial stability in 24 countries and jurisdictions, international financial institutions, sector-specific international groupings of regulators and supervisors, and committees of central bank experts. The FSB also conducts outreach with approximately 70 other jurisdictions through its six Regional Consultative Groups.
The FSB is chaired by Randal K. Quarles, Vice Chairman, US Federal Reserve; its Vice Chair is Klaas Knot, President, De Nederlandsche Bank. The FSB Secretariat is located in Basel, Switzerland, and hosted by the Bank for International Settlements.
- The FSB Regional Consultative Groups cover the following regions: Americas, Asia, Commonwealth of Independent States, Europe, Middle East and North Africa, and sub-Saharan Africa. [←]
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