The Financial Stability Board (FSB) Regional Consultative Group for Sub-Saharan Africa convened on December 6 in Cape Town, hosted by the South African Reserve Bank. The meeting outlined the FSB's work programme for 2025, focusing on implementing recommendations regarding crypto-assets and global stablecoins and enhancing cross-border payments.
Discussions included an analysis of global and regional financial vulnerabilities, highlighting persistent issues such as high debt levels across governments, corporations, and households. There was significant attention on challenges faced by regional authorities in monitoring risks from non-bank financial intermediation. Participants anticipated the upcoming FSB Global Monitoring Report on this subject for 2024.
An area of concern addressed was the rise in financial scams and fraud cases globally. The group explored opportunities for cross-border cooperation to protect investors and consumers from online threats, ensure capital market integrity, and maintain financial stability. Experiences were shared regarding preventive measures against these disruptions, with discussions on how artificial intelligence can aid in fraud detection and prevention.
Crisis preparedness and resolution planning were also key topics due to the increasing interconnectedness within the financial system. Members stressed the importance of being prepared for bank failures beyond globally systemic important banks. They highlighted the need for collaboration among African regulators in crisis preparedness efforts and discussed promoting cross-border cooperation during crises through crisis management groups.
The FSB Regional Consultative Group for Sub-Saharan Africa is co-chaired by Lesetja Kganyago, Governor of the South African Reserve Bank, and Denny Kalyalya, Governor of the Bank of Zambia. Its membership includes financial authorities from several African countries along with permanent observers from regional committees.
The FSB operates six Regional Consultative Groups to facilitate dialogue between member and non-member countries on vulnerabilities affecting financial systems and initiatives promoting stability. These groups meet biannually to coordinate international efforts towards effective regulatory policies supporting global financial stability.