IMF’s Regional Technical Assistance Center for Southern Africa Supports Strengthening Risk Based Supervision
On February 22—26, the International Monetary Fund's (IMF) Regional Technical Assistance Center in Southern Africa (AFRITAC South) held a regional seminar at the Africa Training Institute in Mauritius on improving compliance with Risk Based Supervision (RBS) and Pillar 2 of Basel II.
The event brought together senior and mid-level officials from the supervision departments of the Central Banks of Angola, Botswana, Lesotho, Madagascar, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Zambia, and Zimbabwe as well as a guest speaker from the Macroeconomic and Financial Management Institute of Eastern and Southern Africa.
Mr. Vikram Punchoo, Deputy Governor, Bank of Mauritius, in his opening address said that the seminar was a timely event that would enhance the skills and competencies of the supervisors in the region. Participants at the seminar agreed on the relevance and pertinence of the seminar topic especially at a time when the global supervisory landscape has just gone through a paradigm shift.
Drawing on a recently conducted survey by the Heads of Supervision under the aegis of the Basel Committee on Banking Supervision, participants concurred that the adoption of forward-looking RBS was one of the key challenges for supervisors. Participants also held a series of focused discussions on the supervision of various risks in bank operations and the nuances relating to the implementation of Pillar 2 of Basel II. They shared their experiences and exchanged knowledge regarding the implementation of RBS and the adoption of Pillar 2 of Basel II in their jurisdictions.
Through effective peer learning, the seminar promoted the importance of RBS in the region, complemented ongoing regional integration programs, and suggested measures for overcoming implementation challenges for each country.