Press Release No. 14/426

Press Release: East AFRITAC Holds a Workshop on Principles for Financial Market Infrastructures for Member Central Bank Officials

September 16, 2014

The International Monetary Fund (IMF)’s East African Regional Technical Assistance Center (East AFRITAC) held a workshop on the Committee for Payment and Market Infrastructures (CPMI) and IOSCO Principles for Financial Market Infrastructures (PFMIs) of April 2012 and the related Disclosure Framework and Assessment Methodology of December 2012 in Kigali, Rwanda, from September 9-12, 2014. The workshop was part of East AFRITAC’s contribution to member countries’ efforts towards application of the principles.

In her opening remarks, National Bank of Rwanda Vice Governor Dr. Monique Nsanzabaganwa said the workshop came at an opportune time, as regulatory authorities faced challenges from the East African Community (EAC) member countries’ move to a monetary union. She expressed confidence that the workshop would provide participants with an opportunity to discuss the regulatory and oversight challenges caused by innovation, including mobile money, in the context of the PFMIs. The training would also enable them to contribute to concrete plans for implementation of the PFMI in their respective countries and the EAC monetary union.

Presenters included experts from the World Bank and the South African Central Securities Depository, as well as payment system experts. The discussion focused on the principles most relevant to payments systems in the region, including the FMIs’ legal basis, governance, and framework for comprehensive risk management, credit risk and collateral, Central Securities Depositories, general business risk and operational risk. The responsibilities of central banks, market regulators and other regulators for FMIs were discussed in detail as was the Disclosure Framework and Assessment Methodology. Using a case study approach, participants applied the principles to the national payments system of a hypothetical country.

Participants expressed the view that the workshop enhanced their understanding of the principles significantly and would enable them to contribute meaningfully to their respective central bank’s efforts toward consistent application of the principles. However, they observed that member central banks would require further support as they apply the principles going forward, including on establishment of suitable frameworks for assessment of the FMIs against the PFMI within their respective jurisdictions.

The East AFRITAC Advisor on Monetary Policy and Operations reiterated East AFRITAC’s commitment to supporting member central banks’ efforts toward meeting emerging challenges in monetary policy and operations. This included challenges in payment systems, which is a highly dynamic sub-sector in member countries driven both by economic needs and advances in technology.