In an initiative to build the capacity of regional financial institutions, the COMESA Monetary Institute (CMI) conducted a virtual training on “Financial Crisis Management and Resolution Framework for Banks and Non-Banking Financial Institutions”, on 8 – 12 July 2024. It was attended by 40 delegates from seven COMESA Member States’ Central Banks namely Burundi, Egypt, Eswatini, Ethiopia, Malawi, Zambia and Zimbabwe.

The training was necessitated by the pressing need to improve crisis management tools to mitigate the negative impact of financial crises particularly in low-income countries in general, including those in the COMESA region.

Moreover, macroeconomic and financial stress associated with shocks such as the COVID-19 pandemic, has highlighted the complexities of managing a financial crisis and the necessity for adjusting universally applicable good practices to prevent such crises.

Among the key adverse effects of financial crises are job losses, reduced access to credit, large fiscal deficits, significantly enhanced sovereign debt levels, and decreased economic growth, among others.

The training was therefore designed to provide participants with the knowledge and skills to identify, prevent, and manage financial crises in countries characterized by underdeveloped financial markets and weaknesses in legal and institutional arrangements required to facilitate bank resolution.

Addressing the participants, CMI Director Dr. Lucas Njoroge observed:

“Since most countries in the COMESA region share similar characteristics, the training equips participants with the necessary tools and strategies to effectively manage banking or financial crises in their respective economies.”

At the training, participants shared knowledge and country experiences on crisis management and resolution frameworks and gained skills on strategies and tools to effectively manage banking or financial crises in their jurisdictions.