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

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

Committee of Central Bank Governors in SADC (CCBG) n CCBG was established in August 1995 to promote and achieve closer co ‑ operation among central banks n 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 n The CCBG reports to the SADC Ministers responsible for national financial matters

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

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 - -T&D Forum & Steering Committee

Co-operation and Co-ordination of Exchange Control Policies - Signed by CCBG in September 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

Harmonisation of Legal and Operational Frameworks of SADC Central Banks - Discussed intensively with MOF and approved in 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

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

Payment, Clearing and Settlement Systems -Signed by CCBG in September 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

Co-operation in the Area of Information and Communication Technology -Signed by CCBG in September 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

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

Co-operation among Member Stock Exchanges -Signed by COSSE in February 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

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

Outstanding Annexes n Anti-money laundering n Accounting and Auditing Standards n Project Preparation and Development Fund n SADC Banking Association

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

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