Macro-Prudential Surveillance: Multiple Views, One Objective

Sep 03, 2015

Senior officials from African central banks gather to kick off our first of three-series of workshop aimed at enhancing participant's understanding of the practice of macro-prudential surveillance.

Most African banking systems showed remarkable resilience to the global financial crisis, reflecting not only their low exposure to risk emanating from the subprime crisis, but also the major improvements in the quality of banking regulation and supervision over the past two decades. Nevertheless, some banking systems experienced pressures and risks, notably from the threat of cross-border contagion, operational risks (as the use of innovation and technology-based products increases), and the increasingly fragmented regulatory and supervisory frameworks (resulting from deep and complex interconnections between financial institutions).
In this environment, several important trends are taking place. These include a move towards regional harmonization of regulatory frameworks, the emergence of large and complex African financial institutions, and a renewed focus on financial stability issues, as evidenced by the work undertaken by the Financial Stability Board. One of the major issues facing African regulators is dealing with financial sector systemic stability issues. A key challenge for central banks is the establishment of macro-prudential surveillance systems and preparing contingency plans for financial sector distress and crisis resolution. The establishment of the Community of African Banking Supervisors (CABS), endorsed by the Association of African Central Banks (AACB) Assembly of Governors in August 2013, reflects the importance of addressing these underlying
issues, and the vision for the CABS to play a major role in strengthening banking regulatory and supervisory frameworks across the continent. One of the key activities to be undertaken by the CABS in pursuance of its objectives, and in line with its work plan 2014-2016, is the organisation of training workshops on macro-prudential supervision, cross-border banking supervision and crisis preparedness in interconnected markets. It is in this context that the Making Finance Work for Africa (MFW4A), in collaboration with the Toronto Centre, the AACB and the Bank of Algeria, and with the support of the German Federal Ministry of Economic Cooperation and Development (BMZ), the German Agency for International Cooperation (GIZ), the Department of Foreign Affairs, Trade and Development Canada (DFATD), and the International Monetary Fund (IMF) is organizing its first series of three workshops on Macro-Prudential Surveillance: Multiple Views, One Objective, in Algiers, Algeria on September 5-10, 2015. For this program, middle-to-senior level officials from African central banks and supervisory agencies will experience an interactive program through the use of various case studies and exercises delivered by the Toronto Centre. It will aim to provide participants with a practical approach to macro-prudential surveillance, going beyond theoretical concepts to the "how to do it" and the challenges facing macro-prudential surveillance. For more information about Macro-Prudential Surveillance: Multiple Views, One Objective, please contact us at secretariat@mfw4a.org.