THE ARAB MONETARY FUND ORGANIZES THE TWELFTH REMOTE MEETING OF THE FINANCIAL STABILITY WORKING GROUP IN THE ARAB COUNTRIES

by **claud39** on Thu Sep 03, 2020 11:23 am

THE ARAB MONETARY FUND ORGANIZES THE TWELFTH REMOTE MEETING OF THE FINANCIAL STABILITY WORKING GROUP IN THE ARAB COUNTRIES

2020-09-02

Wednesday and Thursday 2 and 3 September 2020

15:00 to 17:30 Abu Dhabi time

The team discusses:

The optimal application of macroprudential policy

The implications of the Coronavirus for financial stability and preparation for the post-crisis withdrawal phase

The implications of abandoning the benchmark interest rates Libor and EIBORS

Liquidity coverage ratio and net stable financing

Risks of family businesses and non-financial companies

Sustainable finance and stable digital currencies

The basic principles of deposit insurance institutions for Islamic banks

A framework for assessing and mitigating systemic risks related to the insurance sector

Preparing for the Arab Financial Stability Report for 2021

Today, Wednesday, noon, the twelfth periodic meeting of the Financial Stability Working Group in the Arab Countries, which is held remotely, opened in light of the emerging Corona virus crisis. It is noteworthy that the team emanates from the Board of Governors of Central Banks and Arab Monetary Institutions, and includes in its membership the directors of the financial stability departments of these banks and institutions, in addition to the Arab Monetary Fund, which is responsible for its technical secretariat.

The team’s meeting will also be attended by representatives of regional and international institutions such as the International Monetary Fund, the World Bank, the Financial Stability Board, the Bank for International Settlements, the Institute for Financial Stability, the Basel Committee on Banking Supervision, the International Federation of Deposit Insurance Institutions and the International Federation of Insurance Supervisory Authorities.

The team contributes to developing policies and tools related to enhancing financial stability in Arab countries, and exchanging expertise and experiences among themselves in this regard. The team’s tasks also include preparing the financial stability report in the Arab countries, preparing working papers and studies on the financial stability conditions in the Arab countries, in addition to contributing to enhancing awareness of financial stability issues through holding seminars and workshops and issuing relevant periodic reports.

In the meeting, the team will discuss a number of important topics that keep pace with the latest developments related to financial stability issues, such as the implications of the emerging corona virus crisis on financial stability, preparation for the post-crisis withdrawal phase, and the implications of climate change and natural disasters on financial stability, in addition to discussing the latest related developments. By abandoning reference prices, LIBOR and EIBORS, and its effect on financial sectors business models.

The meeting topics also include discussing the overall stress tests and the experiences of Arab countries in this regard, as these tests are considered important tools for managing risks and measuring the ability of the banking sector to withstand potential shocks.

The team will discuss the experiences of a number of Arab countries in terms of applying liquidity tools, especially the ratios of liquidity coverage and net stable financing. The team’s program also includes many new topics that concern financial stability issues in Arab countries, such as stable digital currencies, the risks of non-financial companies including family companies, the credit environment in Arab countries and its impact on financial stability, the risks of the non-banking financial sector, and a framework for assessing And reduce risks related to the insurance sector.

The meeting will also discuss a number of working papers, including: the risks of concentration in the banking sector, the impact of climate change on financial stability, and the basic principles of deposit insurance institutions for Islamic banks. The team’s discussions also include the preparations for the 2021 Financial Stability Report in the Arab Countries, the report’s themes and the timetable for its issuance.

Finally, the team will listen to a presentation from the Financial Stability Board on the latest developments related to the activities of the Council, especially the two topics of the repercussions of the Coronavirus and the implications of abandoning reference interest rates. In addition to listening to another presentation from the Basel Committee on Banking Supervision on the latest developments related to the committee's activities.

On this occasion, His Excellency the Director General, Chairman of the Board of Directors of the Arab Monetary Fund, Dr. Abdulrahman bin Abdullah Al-Hamidi referred to the great and increasing importance of issues related to financial stability, as maintaining financial stability in Arab countries has become a priority for central banks and Arab monetary institutions.

His Excellency welcomed the important topics discussed by the team, in line with the priorities of Arab countries, expressing his happiness with the development witnessed in the Financial Stability Report and looking forward to the next year's report.

His Excellency also affirmed the increasing interest shown by Excellencies, Governors of Central Banks and Arab Monetary Institutions, for the work of the team and the prominent role it plays in terms of exchanging experiences and expertise among Arab countries with regard to this important topic.

It should be noted that the Arab Monetary Fund, within the framework of its role as the technical secretariat of the Board of Governors of Central Banks and Arab Monetary Institutions, is the team's secretariat. The fund’s tasks in this regard are based on preparing the agenda, contributing to studies and reports prepared by the committee, and following up on the team’s recommendations.

https://www.amf.org.ae/ar/content/%D8%B5%D9%86%D8%AF%D9%88%D9%82-%D8%A7%D9%84%D9%86%D9%82%D8%AF-%D8%A7%D9%84%D8%B9%D8%B1%D8%A8%D9%8A-%D9%8A%D9%86%D8%B8%D9%85-%D8%A7%D9%84%D8%A7%D8%AC%D8%AA%D9%85%D8%A7%D8%B9-%D8%A7%D9%84%D8%AB%D8%A7%D9%86%D9%8A-%D8%B9%D8%B4%D8%B1-%D8%B9%D9%86-%D8%A8%D8%B9%D8%AF-%D9%84%D9%81%D8%B1%D9%8A%D9%82-%D8%B9%D9%85%D9%84-%D8%A7%D9%84%D8%A7%D8%B3%D8%AA%D9%82%D8%B1%D8%A7%D8%B1-%D8%A7%D9%84%D9%85%D8%A7%D9%84%D9%8A-%D9%81%D9%8A-%D8%A7%D9%84%D8%AF%D9%88%D9%84