PRESENTATION TO THE PARLIAMENTARY COMMITTEE ON FINANCE (PCOF)

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PRESENTATION TO THE PARLIAMENTARY COMMITTEE ON
FINANCE (PCOF)
Presentation by Mr M Belle - Head
International Relations CCBG Secretariat, South
African Reserve Bank 8 May 2007 Parliament,
Cape Town
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Overview of the Presentation

• Background information on the CCBG
• Structures
• Sub committees
• Role of CCBG in developing annexes of the FIP
  Future Challenges

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Committee of Central Bank Governors in SADC (CCBG)

• CCBG was established in August 1995 to promote
  and achieve closer co-operation among central
  banks
• Deals with the development of well-managed
  financial institutions and markets, co-operation
  regarding international and regional financial
  relations, and monetary, investment and foreign
  exchange policies
• The CCBG reports to the SADC Ministers
  responsible for national financial matters

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Structure of the CCBG

• Committee of Central Bank Governors
• - Chairman Mr. TT Mboweni
• - Meets 2 times per year (April and
  September)
• CCBG Secretariat (located at the SARB)
• Working Group
• - Representative of three central banks
  (Angola, Botswana Zimbabwe) and SADC CCBG
  Secretariats
• CCBO - all central banks are represented by two
  officials meets twice a year

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Subcommittees of the CCBG

• - Subcommittee on Exchange Control (now
  dissolved)
• - Payment System Country Leaders Project Team
• - IT Forum Forum Co-ordinating Team
• - SADC Subcommittee of Banking Supervisors
  Steering Committee
• - Macroeconomic Subcommittee
• - Legal Operational Frameworks Steering
  Committee
• - TD Forum Steering Committee

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Co-operation and Co-ordination of Exchange
Control Policies

• - Signed by CCBG in September 2005
• - Article 6 of the FIP
• Objective
• - Establish a framework for cooperation and
  coordination of exchange controls
• - Review exchange control policies to ensure
  convergence as countries move towards
  liberalisation
• -Implement exchange control policies aimed at
  achieving currency convertibility

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Harmonisation of Legal and Operational Frameworks
of SADC Central Banks

• - Discussed intensively with MOF and approved in
  2005
• - Article 7 of the FIP
• Objective
• - Establish principles that will facilitate
  the creation of a coherent and convergent status
  in the legal and operational frameworks of
  Central Banks

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Legal annex continued

• - Promote the adoption of principles that will
  facilitate operational independence of Central
  Banks
• - Create best practices in legal and
  operational frameworks
• - Create a framework for the creation of a
  Model Central Bank
• -Model Central Bank Bill is currently under
  discussion

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Payment, Clearing and Settlement Systems

• -Signed by CCBG in September 2005
• - Article 8 of FIP
• Objective
• -Establish a framework for co-operation and
  coordination on payment, clearing and settlement
  systems in order to
• -Define and implement a safe and efficient
  payment system based on internationally accepted
  principles

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Co-operation in the Area of Information and
Communication Technology

• Signed by CCBG in September 2005
• Article 9 of the FIP
• Objective
• - Establish a framework that will encourage the
  use of ICT solutions in supporting and enabling
  modern business functions and operations within
  SADC Central Banks

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Co-operation Co-ordination in the Area of
Banking Regulatory Supervisory Matters

• - Approved 2006 by MOF
• - Article 10 of the FIP
• Objective
• To promote regionally efficient and effective
  banking regulatory and supervisory system based
  on internationally accepted principles
• - To harmonise banking regulatory and supervisory
  policies and practices

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Co-operation among Member Stock Exchanges

• Signed by COSSE in February 2006
• Annex 11 of FIP
• Objective
• Establish an integrated real time network of
  national securities markets
• To encourage cross border listings, trading and
  investments
• To encourage the development of a harmonised
  securities market

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SADC Banking Association

• - a draft MOU framework has been developed in
  March 2006
• Objective
• To promote cooperation and cooperation within the
  banks
• To encourage a harmonised banking system

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Outstanding Annexes

• Anti-money laundering
• Accounting and Auditing Standards
• Project Preparation and Development Fund
• SADC Banking Association

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Challenges

• SADC Structure (CCBG reporting)
• Co-ordination at national level
• Need for regular interdepartmental discussions
• Buy in nationally
• Allocation of task for implementation according
  to expertise and capacity
• Committee reporting to President or Parliament on
  developments in implementation of FIP

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