Training on Macro-Prudential Policy Tools Relevant for COMESA Member Countries

An advanced training on “Macro-prudential policy tools relevant for COMESA member countries”, organized by the COMESA Monetary Institute (CMI) was held in Nairobi from 20th to 24th October, 2014. The event was officially opened by Mr. Ibrahim Zeidy, the Director, COMESA Monetary Institute (CMI).In the opening remarks, the Director emphasized the need to develop capacity in macro-prudential regulation and policy. Noting that one of the key lessons from the Global Financial crisis is the vulnerability of the entire global system to systemic risks, He observed that there is need for the prudential regulatory framework for COMESA countries to be re-oriented to have a system –wide focus. He noted that this will be possible through developing skills on macro-prudential policy tools to assist COMESA member countries to confront this changing reality of the global financial architecture.

The training followed a directive to CMI by the 19th Meeting of the COMESA Committee of Governors of Central Banks held in Lilongwe, Malawi in November 2013, to organize a course on “Macro-prudential policy tools relevant for COMESA member countries”. Providing a balance between theoretical and applied skills, the training covered, among others: the Rationale for Macro-prudential Policies; Pro-cyclical and Counter- cyclical policy measures; the Role of Macro Stress Testing; Understanding Systemic Risk and the Network Approach; Macro-prudential Approach to Banking Regulation: Basel III; the Interactions Between Monetary and Macro-prudential Policies; the Framework for Communication of Macro-prudential Policies in the Context of Forward-Looking Financial Stability Reports; and, Systemic Risk and the Emerging Regulatory Architecture in the COMESA Region.

The training was attended by participants from the following COMESA member countries: Egypt, Kenya, Rwanda, Sudan, Swaziland, Uganda, Zambia, and Zimbabwe. The five day workshop equipped the participants with appropriate analytical skills and rigour on Macro-prudential policy tools relevant for COMESA member countries. Participants gained hands on skills and theoretical exposition on how the time dimension tools deal with pro-cyclicality of the financial system and how the cross section tools deal with systemic risk.