Riyadh: The Financial Stability Board (FSB) Regional Consultative Group for the Middle East and North Africa (RCG MENA) met Tuesday at the headquarters of the Saudi Central Bank (SAMA) in Riyadh.

The meeting was co-chaired by SAMA Governor Ayman Al-Sayari and Egypt Central Bank Governor Hassan Abdulla and was attended by FSB Chair Klaas Knot.

The group members discussed the challenges to global and regional financial stability, including the implementation of the global regulatory framework for crypto-asset activities, the lessons learned from the turmoil that affected the global banking sector in 2023, and the financial risks arising from the high interest-rate environment and non-bank financial intermediation (NBFI).

In his remarks, the SAMA governor pointed out that the MENA region’s advantages -- including economic diversification, rapid technological progress, and its strategic location -- remain significant sources for the region’s development, highlighting the affirmation of the International Monetary Fund (IMF) in its regional economic outlook that the Middle East and Central Asia region is resilient to adverse macrofinancial risk scenarios.

Al-Sayari stressed the importance of using different approaches of financial stability policies that take into consideration the region’s economic and financial circumstances and the interconnectedness between its economies.

During the meeting, members received an update on the FSB’s program for 2024 and discussed the FSB’s report on the initial lessons learned from the banking disturbances in 2023.