Representatives from Regional Consultative Group for the Middle East and North Africa (RCG-MENA) and the Basel Committee on Banking Supervision, World Bank and International Monetary Fund recently met in Bahrain to review the Financial Stability Board's (FSB) work plan and policy priorities and discuss a variety of topics pertaining to the region’s economy.
The FSB chairman listed three priorities of the organization in a letter to the G20: finalizing the designs for post-crisis reforms, implementing a consistent and punctual application of the agreed reforms, and addressing the new vulnerabilities and risks of the design.
After reviewing these topics, the representatives discussed the region's financial stability, issues and vulnerabilities. They exchanged their opinions about regional and global growth prospects as well as how the recent fall in oil prices will impact them, and discussed these price decreases impacting the various macroeconomic implications of oil exporting and oil importing industries. There were also discussions about potential policy responses to these declines.The representatives discussed how the decline in correspondent banking services from international banks will impact Bahrain’s region and considered the impact of Anti-Money Laundering/Counter Terrorist Financing enforcement actions.The FSB’s planned focus will help in this area. Losing correspondent banking services may inhibit emerging market financial factors, cause financial exclusion, or even begin cross-border financial transactions. They also talked about the availability of financing dedicated specifically to small- and medium-sized businesses.
RCG-MENA's membership includes financial and regulatory authorities from Algeria, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia, Tunisia, Turkey and the United Arab Emirates. Further details about the meeting are available online.