Egypt’s c. bank hosts AFSC meeting to boost financial systems

The Central Bank of Egypt (CBE) hosted the first meeting of the African Financial Stability Committee (AFSC) to improve financial stability in Africa from December 9 – 11, 2024, in line with presidential directives.

Tarek ElKholy, Deputy Governor of the CBE, highlighted the importance of grouping African countries into one committee to promote financial stability and sustainable economic growth.

Given the threats and challenges African countries have faced in recent years, it is crucial to improve financial stability by coordinating frameworks across the continent, ElKholy added in his remarks.

“This will enable us to create Africa’s own bloc and adopt a unified voice for the Continent’s financial stability, thereby underscoring the stability of the African financial systems internationally,” he said.

The AFSC is a pioneering Committee that will issue the first Financial Stability Report (FSR) covering all African central banks, reflecting the development and performance of African financial institutions through a risk assessment framework.

The committee will play a key role in employing analytical tools, implementing macroprudential policy tools, and recommending pre-emptive policies against risks to safeguard financial system stability in Africa.

Hassan Abdalla, Governor of the CBE, suggested creating the AFSC at the Association of African Central Banks (AACB) annual meetings on September 4, 2024, to uphold financial stability in Africa with a macroprudential policy.

Attribution: CBE statement

Subediting: M. S. Salama