The Financial Stability Board (FSB) Regional Consultative Group for the Middle East and North Africa (RCG MENA) convened on January 29-30, 2025, in Sharm El Sheikh. The meeting was hosted by the Central Bank of Egypt.
The gathering began with a review of the FSB's work program for 2025. Participants discussed integrating regional perspectives into planned initiatives, focusing on enhancing cross-border payments, bolstering non-bank financial intermediation (NBFI) resilience, and implementing regulatory frameworks for crypto-assets.
On cross-border payments, members examined the FSB’s 2024 progress report on the G20 Roadmap. They addressed challenges in improving transaction speed and cost, highlighting issues related to laws and regulations for data management in cross-border payments. Implementing FSB recommendations to enhance data framework interoperability was emphasized as crucial.
Recent NBFI developments were also reviewed. Members considered findings from the FSB’s Global Monitoring Report on Non-Bank Financial Intermediation and received updates from IOSCO regarding open-ended funds and liquidity risk management. Discussions included addressing leverage in the NBFI sector with flexible approaches tailored to specific jurisdictional risks while ensuring consistent outcomes across regions.
Participants shared experiences regarding crypto usage and regulatory framework development for crypto-assets and stablecoins within their jurisdictions. Challenges in applying FSB recommendations were noted.
Additionally, discussions covered global and regional market trends, including financial stability outlooks and geopolitical risks. Concerns about high sovereign debt levels as potential vulnerabilities were expressed.
The FSB RCG MENA is co-chaired by Governor Ayman M. Al-Sayari of the Saudi Central Bank and Governor Hassan Abdalla of the Central Bank of Egypt. It includes financial authorities from Algeria, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia, Tunisia, Türkiye, and the United Arab Emirates.
The FSB coordinates international efforts among national financial authorities and standard-setting bodies to promote effective policies for financial stability. It involves national authorities from 24 countries along with international institutions through its six Regional Consultative Groups.
Klaas Knot chairs the FSB as President of De Nederlandsche Bank. The Secretariat is based in Basel under the Bank for International Settlements' auspices.