Staff of Central Banks from the COMESA region have been trained on macro and micro stress testing which are key tools for assessing the stability of the financial system. The virtual training was conducted by the COMESA Monetary Institute from 10 – 14 April 2021.

Forty six delegates from 10 Central Banks from the Democratic Republic of Congo, Kenya, Libya, Madagascar, Malawi, Mauritius, Tunisia, Uganda, Zambia and Zimbabwe participated.

The training familiarized the participants with stress testing tools, which focuses on identification of channels through which shocks are transmitted between the financial sector and the real economy, and within and between financial systems.

They learned to link changes in macroeconomic and financial variables with financial results and measure their relative impact on the health of the banking system. Besides, the training will enable them to assess the resilience of individual banks and the financial system to solvency, liquidity and contagion risks and their interaction. Ultimately, the trained staff will be able to analyze the health of commercial banks and assess their interconnectedness.

In his address to the delegates, Director of CMI Mr. Ibrahim Zeidy underscored the importance of systemic risk assessment as pertinent in uncovering direct exposures between banks that can cause instability in the entire financial system.