The Financial Stability Board (FSB) Regional Consultative Group (RCG) for the Middle East and North Africa (MENA) held its 19th meeting in virtual form today to discuss financial stability issues affecting the region, including those stemming from recent developments associated with the COVID 19 pandemic.

The RCG MENA is co-chaired by Fahad Almubarak, Governor of the Saudi Central Bank, and Rasheed Al-Maraj, Governor of the Central Bank of Bahrain. Members exchanged views on some of the challenges in assessing the effectiveness of policy measures to support those parts of the economy most vulnerable to the pandemic and in creating an exit strategy from temporary support. Members reiterated the importance of international cooperation to evaluate and coordinate the policy responses, including considerations for their future unwinding.

The group received an update on the FSB's work programme, including planned deliverables to the G20 during the Italian G20 Presidency in 2021, also incorporating follow-up on initiatives begun during the Saudi Arabian G20 Presidency in 2020. Key FSB deliverables for 2021 include: a report on lessons learned from financial policy responses to COVID-19; work on strengthening the resilience of non-bank financial intermediation (NBFI); implementing the G20 roadmap to enhance cross-border payments; the steps being taken to strengthen regulation, supervision and oversight of global stablecoins arrangements; transitioning away from LIBOR; strengthening cyber and operational resilience; and analysing and addressing climate-related financial risks.

RCG MENA members explored ways to contribute to the FSB's work, in particular to the G20's roadmap on enhancing cross-border payments. The roadmap provides a set of actions, with milestones, to make cross-border payments faster, cheaper, more transparent, and more inclusive. Members looked forward to continuing their discussions on enhancing cross-border payments at their workshop on instant payments the following day, when they would also benefit from exchanging views and experiences from private sector participants.

In 2011, six regional consultative groups of the FSB were established responding to the call of the G20 Leaders at the Toronto Summit (June 2010), to bring together financial authorities from FSB member and non-member countries to exchange views on vulnerabilities affecting financial systems and on initiatives to promote financial stability.

The FSB's priorities are to promote the full implementation of agreed financial sector regulatory reforms, develop and implement regulatory and supervisory policies that serve financial stability, strengthen financial systems and finalize post-crisis reforms.

The current membership of the RCG MENA includes financial and regulatory authorities from Saudi Arabia, Algeria, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Tunisia, Turkey and the United Arab Emirates.