CBE governor stresses financial stability in Arab banking sector
The Central Bank of Egypt (CBE) governor Hassan Abdalla emphasised the importance of enhancing financial stability in the Arab banking sector during the 19th annual high-level meeting of the Arab Monetary Fund‘s annual meeting.
The meeting covered various topics such as risk developments in Arab financial systems, supervisory priorities in changing economies, central banks’ role in technology, governance enhancement, and revised banking supervision principles.
Abdalla emphasised the crucial role of central banks in promoting banks’ adoption of robust risk management policies to address climate change and cybersecurity challenges effectively, according to an official statement from the CBE.
This involves using macroprudential policy tools to coordinate fiscal and monetary policies to enhance economic stability, control inflation, and channel more funding to the private sector to stimulate economic growth.
Abdalla emphasised that the CBE regularly evaluates the banking sector’s ability to withstand risks that could jeopardise financial stability. This assessment includes macro stress tests that consider economic, financial, geopolitical, and climate-related risks.
The tests that were carried out have shown that the Egyptian banking sector remains strong in the face of different challenges, highlighting the success of the CBE’s macroprudential and microprudential policies in maintaining financial stability.
This annual meeting is highly significant for policymakers, decision-makers in central banks, financial institutions, and senior banking supervision officials in the Arab region. It serves as a high-level forum that brings together experts and officials to discuss important developments in financial stability and regulatory legislation.
Attribution: Amwal Al Ghad English
Subediting: M. S. Salama
