While all central bankers agree that a great deal of focus should be on large, systemic financial institutions, there is also a need to revisit the regulation of small and niche banks, said Yinka Sanni, Chief Executive: Africa Regions at Standard Bank Group.
He made the remarks at Standard Bank’s African Central Banks Conference (ACBC) in Johannesburg.
The recent collapse of banks like Silicon Valley Bank and Signature Bank and the resulting downturn for international banks – put the global spotlight on the effective governance of financial institutions and the role that central banks have to play in ensuring the viability and sustainability of banks.
This was a central topic of discussion at the ACBC. The two-day summit also focused on debates regarding Reserve Management, fintech and Central Bank Digital Currency (CBDC).
In addition, the event provided a platform to discuss key themes within the broader monetary policy environment, economic development, financial markets stability, social justice and environment sustainability and how stakeholders can respond to and provide solutions to the shared challenges.
The event hosted central bankers from key economies in Africa, who gathered to address vital policy and operational questions, with the aim to address the practical needs of today’s central bankers.
Attendants included Dr Ernest Addison , Governor of the Bank of Ghana.
The events of the past weeks have forced analysts to recall the 2009 crash and its ramifications for the global economy.
Governors and the major players in African finance who converged at the conference in South Africa were keen to assess these events and their impact on African economies, while proposing measures that can address Africa’s unique challenges in light of the global situation.
It is clear that central banks in Africa face a range of challenges in managing inflation, promoting sustainability goals, and promoting financial inclusion to name a few, however, solutions such as innovative funding solutions in partnership with private sector capital is an enabler to deliver inclusive growth.
“Even though the challenges are complex, I am confident that, together we can work to overcome them and achieve a sustainable future for the continent”, concluded Mr. Sanni.
Standard Bank’s African Central Banks Conference brings together central bank governors and financial sector regulators from across the continent to discuss critical issues that affect Africa’s financial system.
The theme of this year’s Conference was ‘African Solution for African Problems- ‘Africa’s Seat at the Table’.