Riyadh, February 7, 2024, The Financial Stability Board (FSB) Regional Consultative Group for the Middle East and North Africa (RCG MENA) convened on Tuesday at the headquarters of the Saudi Central Bank (SAMA) in Riyadh. Chaired jointly by SAMA Governor Ayman Al-Sayari and Egypt Central Bank Governor Hassan Abdulla, the meeting saw the participation of FSB Chair Klaas Knot. The group deliberated on various challenges confronting global and regional financial stability, including the implementation of the global regulatory framework for crypto-asset activities, insights gleaned from the upheavals that impacted the global banking sector in 2023, and the financial risks posed by the high interest-rate environment and non-bank financial intermediation (NBFI).
In his address, Governor Al-Sayari underscored the MENA region's strengths, such as economic diversification, rapid technological advancement, and its strategic geographical location, emphasizing their pivotal roles in the region's advancement. He highlighted the International Monetary Fund's (IMF) recognition, as stated in its regional economic outlook, that the Middle East and Central Asia region exhibits resilience against adverse macrofinancial risk scenarios.
Al-Sayari emphasized the imperative of adopting nuanced approaches to financial stability policies tailored to the region's economic and financial landscapes, taking into account the interconnectedness among its economies.
Throughout the session, members received updates on the FSB's agenda for 2024 and delved into the FSB's report on the initial insights gleaned from the banking disruptions witnessed in 2023.