The Financial Stability Board (FSB) recently reported that its Regional Consultative Group for the Middle East and North Africa (RCG MENA) convened in Riyadh to discuss global and regional financial stability vulnerabilities. This marked the first in-person meeting for the group since the onset of the COVID pandemic.
In a press release from FSB, it was stated that the February 6 gathering, which was hosted by the Saudi Central Bank and attended by FSB Chair Klaas Knot, included discussions on vulnerabilities such as financial risks that have emerged due to higher interest rates and those related to bank financial intermediation.
The press release further revealed that RCG MENA members were also updated on FSB’s work programme for 2024. The discussions revolved around two primary topics. One of these was the crypto-asset market and activities, including the implementation of its global regulatory and supervisory framework for crypto-asset activities and markets along with a joint IMF-FSB roadmap for implementing a comprehensive policy response for crypto-assets. The other significant discussion topic was about the 2023 U.S. and European bank failures, with an emphasis on FSB’s report on preliminary lessons learned.
According to FSB's press release, RCG MENA is co-chaired by the Saudi Central Bank and the Central Bank of Egypt. The membership comprises financial authorities from Algeria, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia, Tunisia, Türkiye and the United Arab Emirates.
As per another announcement from FSB, it has six regional consultative groups that meet twice annually to discuss financial system vulnerabilities. The last time RCG MENA convened was in November 2023 via a virtual meeting.