Tuesday, 25 June 2024

RCG Sub-Saharan Africa addresses payments, AI and climate risks

5 min read

The Financial Stability Board (FSB) Regional Consultative Group (RCG) for Sub-Saharan Africa met in Dakar, Senegal to discuss cross-border payments, artificial intelligence's (AI) financial impact, and climate-related financial risks.

Governor Jean-Claude Kassi Brou and the BCEAO hosted the meeting for the first time. The group received an update on the FSB’s work programme and discussed recent economic and financial market developments and vulnerabilities, including the increased exposure of banks to sovereign debt, that warranted closer monitoring. They also discussed how they could contribute to the FSB’s work on emerging market and developing economies.

A key focus for the FSB this year is enhancing cross-border payments. The day before the meeting, the RCG held a workshop with invited stakeholders to discuss progress being made under the G20 cross-border payments roadmap.

The FSB’s work under the G20 Roadmap has moved to a new phase focused on implementation in relevant priority areas. The group discussed initiatives being undertaken in their jurisdictions and exchanged views on actions members could take to address the frictions underlying the challenges and to facilitate progress in meeting the G20 quantitative targets for enhancing cross-border payments.

Members discussed the potential benefits and risks of greater use of AI by financial institutions, central banks, and regulators, as well as implications for financial stability. The FSB will also be delivering a stocktake of new developments in AI and their potential implications for financial stability to the Brazilian G20 Presidency later this year.

Members exchanged views on current challenges authorities face in addressing financial risks from climate change. This year, the FSB will focus on deepening its analysis of climate-related financial risks to financial stability and examining the relevance of transition plans for financial stability. Members discussed transition planning and how this was informing their assessments of climate-related financial risks.

Re-disseminated by The Asian Banker

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