Financial sector regulators in sub-Saharan Africa may establish supervisory colleges to enhance supervisory co-operation and information exchange amongst them.
This was one of the issues discussed by members of the Financial Stability Board (FSB) Regional Consultative Group for Sub-Saharan Africa on Thursday when the body held its meeting in Nairobi, the third since it was formed.
Supervisory colleges are multilateral working groups of relevant supervisors formed for the collective purpose of enhancing effective, consolidated supervision of an international banking group on an ongoing basis. The idea of having such colleges was reinforced in the wake of the global financial crisis as hey are intended to provide effective supervisory oversight.
The regional body is co-chaired by South African Reserve Bank deputy governor Lesetja Kganyago and Central Bank of Kenya governor Njuguna Ndung'u.
The group also discussed the vulnerabilities in the global financial system, particularly risks in advanced economies and their possible impact on the region.
"Region-specific financial stability issues and risks, such as capital flows, rapid credit growth and exposures to other emerging market regions were also discussed," the group said in a statement.
The body drew upon lessons from the global financial crisis and considered the importance of macro-prudential policy frameworks as a complement to traditional micro-prudential measures appropriate for the region and potential challenges with their implementation.
FSB was established to coordinate the work of national financial authorities and international standard setting bodies at the global level and to develop and promote the implementation of effective regulatory, supervisory and other financial sector policies.
It is chaired by chaired by the Bank of England's incoming governor Mark Carney who has been governor of the Bank of Canada.