The Financial Stability Board (FSB) Regional Consultative Group for the Middle East and North Africa (RCG MENA) convened in Saudi Arabia at the Saudi Central Bank's headquarters in Riyadh. The meeting focused on technological innovation, specifically artificial intelligence (AI), and its impact on the financial sector.
Participants discussed AI advancements and shared experiences regarding its application by supervisors and financial institutions. While AI can improve efficiency and create value, it also introduces new risks. The group anticipates the FSB’s upcoming report on AI's implications for financial stability. Eddie Yue, co-chair of the RCG for Asia and Chief Executive of the Hong Kong Monetary Authority, contributed insights from a recent workshop on AI, tokenisation, and crypto-assets.
The increasing role of technology has led to more frequent operational and cyber incidents in the financial system. Members addressed third-party risk management and cyber incident reporting strategies. They supported the FSB’s public consultation on a Format for Incident Reporting Exchange (FIRE), which aims to streamline reporting processes across multiple authorities. FIRE, along with the FSB’s toolkit for managing third-party risks, is expected to enhance operational resilience.
Discussions also covered global and regional market developments, including inflation expectations management and how technology influences depositor behavior through social media.
Members received an update on the FSB’s work programme and provided input on proposed focus areas for 2025.
The FSB RCG MENA is co-chaired by Governor Ayman Al-Sayari of the Saudi Central Bank and Governor Hassan Abdalla of the Central Bank of Egypt. It includes financial authorities from various countries such as Algeria, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia, Tunisia, Türkiye, and the United Arab Emirates.
The FSB has six Regional Consultative Groups that facilitate discussions among financial authorities worldwide about vulnerabilities affecting financial systems. These groups meet twice annually to promote initiatives that support financial stability.
Klaas Knot chairs the FSB; he is President of De Nederlandsche Bank. The FSB Secretariat operates out of Basel, Switzerland under the auspices of the Bank for International Settlements.