The Financial Stability Board (FSB) Regional Consultative Group for the Middle East and North Africa (RCG MENA) met recently in Riyadh. The meeting, which was the group’s first in-person since 2019 due to the COVID-19 pandemic, was hosted by the Saudi Central Bank (SAMA). The FSB Chair, Klaas Knot, joined RCG members for the meeting. The group discussed global and regional financial stability vulnerabilities, including financial risks arising from the higher interest-rate environment and vulnerabilities in non-bank financial intermediation (NBFI).
Members received an update on the FSB’s work programme for 2024. At their previous meeting, the group discussed ways they could contribute to the FSB’s work programme, bringing in additional perspectives from the region. The discussion, therefore, focused on two key areas of the FSB’s priorities for 2024:
Crypto-asset markets and activities. A key focus for the FSB is the effective implementation of its global regulatory and supervisory framework for crypto-asset activities and markets. Members discussed the joint IMF-FSB roadmap to ensure effective, flexible, and coordinated implementation of the comprehensive policy response for crypto-assets, including the FSB framework. Members shared their experiences in regulating crypto-asset activities and discussed how challenges could be addressed and the role the FSB and other international organisations could play in facilitating implementation.
Lessons learned from the 2023 banking-sector turmoil. The group discussed the FSB’s report on preliminary lessons learnt for resolution from the 2023 bank failures in the US and Europe and exchanged views on relevant policy considerations to ensure a more resilient banking sector and effective resolution frameworks in their own jurisdictions. Members look forward to contributing to the further work in 2024 to follow up on these lessons learnt.
