• Data analysis; • Interpretation of the results; • Policy Recommendations; • Policy Implementation. 4 Action Plan Develop in-country Action Plan for Implementation of COMESA Framework covering: • Conduct of consultative meetings and/or meetings with other stakeholders; • Establishment of technical subcommittee where necessary; • Issuance of customized guidance on on-going surveillance, diagnostic assessment, and policy actions; • Review of legislation where necessary; • Roll-out of the Framework. 31 March 2012 Kenya, Mauritius, Rwanda, Uganda, Egypt Sudan, Swaziland, DRC, Malawi, Madagascar, Zimbabwe, Burundi, Zambia 5 Financial Stability Assessment Implement Financial Stability Assessment Framework incorporating: • Financial Stability Report (FSR) in Prescribed Format; • Financial Stability Assessment Matrix; • five-tier coding system; • Financial Soundness Indicators (FSIs); • Macro-prudential analysis; • Stress testing; • Household Sector Survey Results; • SHIELDS Rating System. 30 September 2011 Kenya, Mauritius, Uganda, Rwanda, Swaziland, DRC, Malawi, Madagascar , Zimbabwe, Burundi, Egypt, Zambia 6 Financial Stability Assessment Reports Electronic submission of Financial Stability Assessment Reports to the Secretariat for posting onto the COMESA website 31 October 2011 Kenya, Mauritius, Uganda, Rwanda, Burundi, Egypt, Swaziland, Sudan, DRC, Malawi, Madagascar , Zimbabwe, Zambia 7 Financial Soundness Indicators Electronic submission of Financial Soundness Indicators (FSIs) to the Secretariat for posting onto the COMESA website 60 days after end of each quarter with effect from December 2010 Kenya, Rwanda, Uganda, Sudan, Egypt, Burundi Mauritius, Malawi, Zimbabwe, Swaziland, DRC, Zambia, Madagascar 8 Monitor compliance with the 25 Basel Core Principles for Effective Banking Supervision Member countries conduct 31 March 2011 Burundi, Egypt, Kenya, Mauritius, Malawi, Rwanda, Sudan, Uganda, Zimbabwe, DRC Swaziland, Madagascar, Zambia Workshop on Macro-Econometric Modeling for Assessing Financial System Stability (Agenda item 3(b)(i)) The following were discussed this agenda item: Overview of the COMESA Financial System Stability Assessment Framework
The Member States Central will need to redesign their communication policies to inform what goes into the Financial Stability Reports. Discussions In the discussions that followed the meeting well received the Manual for Forward-Looking Financial Stability Reports and Stress Testing and made the following comments: The need to address the matter of transparency of country financial stability reports. The issue was whether two versions of FSR’s should be produced, one for internal review and discussion, and another publication for the external stakeholders. The committee agreed that this is a country specific issue and will be decided by the different member state jurisdictions based on their own country situations; The need to exclude the discussion in the Manual of countries that were yet to produce or release their Financial Stability Reports; The Report should include a disclaimer as well as provide more elaborate examples of financial stability reports and stress testing methodologies from COMESA member countries; and The manual should retain micro stress testing aspects while expounding on macro stress testing. This will allow for variations in levels of sophistication of stress tests implemented by member states given differences in the levels of development of the financial sectors in the countries in the region. Recommendations In addition to the above mentioned observations the meeting recommended the need for further comments on the Manual by all those involved in the financial stability analysis in member countries. The meeting agreed on the following timeliness for the finalization and full validation of the Manual: CMI to receive the initial comments from Member Central Banks by end September 2013; The comments of member Central Banks to be incorporated in the Manual and circulated for final review by end October 2013; and The final validated version of the Manual to be ready by 21st November 2013. Validation of the Manual of COMESA Framework for Assessing Financial Stability
regulators to study and revert back as agreed. Also pointed out by Uganda was comparison with other bilateral and multilateral organisations. Recommendations The meeting recommended the following: a) In order to enable COMESA member Central Banks to make informed decision on the implication of the proposal to their regulatory and supervisory activities, ATI should officially communicate to member countries via CMI, the following: The insurance agreement or underwriting policy and confirm if that is standard for all banks; and The financial performance for the last five years including shareholding structure plus any other information ATI consider necessary to the regulators to make informed decisions. Comparison of its agreements with other agreements of bilateral and multilateral organisations b) There is need to have mechanisms in place to ensure that ATI does not issue guarantees beyond its capital base to guard against speculative underwriting of businesses. Work plan for Financial System Development and Stability Sub-Committee for the Year 2014 (Agenda item 5) The work plan was presented by the Director of CMI. Recommendations After the presentation, the subcommittee recommended the following: The need for CMI to circulate electronically the Terms of Reference for the Financial System Development and Stability Sub-Committee and the Medium Term Strategic Plans of the CMI to the members of the The need for consolidation of the Financial Soundness Indicators for all member countries and put them on the CMI website. It was proposed that the member country, which assumes the chairmanship of the COMESA Committee of Central Banks should consolidate the information which will be received from member countries. Based on this proposal, the Reserve Bank of Malawi, which will assume chairmanship next year, will be responsible for the consolidation of the 2014 Financial Soundness Indicators of all member countries.