a day ago
CBE hosts regional training on stress testing for COMESA central banks
In line with presidential directives to strengthen Egyptian-African integration, and as part of its ongoing cooperation with the COMESA Monetary Institute (CMI), the Central Bank of Egypt (CBE) hosted a five-day training programme on 'Micro and Macro Stress Testing for Central Banks.' The sessions were held at the Egyptian Banking Institute (EBI) in Cairo.
The programme reaffirmed the CBE's pioneering role in promoting financial integration across African central banks. It brought together 28 participants from 11 COMESA member states, along with a delegation from the CMI. The sessions featured in-depth discussions, case studies, and practical applications of stress testing models used to assess credit risk, liquidity, climate change, and interbank contagion risks.
Naglaa Nozahie, Advisor to the Governor for African Affairs, stressed the importance of such initiatives in enhancing the crisis management and systemic risk assessment capabilities of African central banks. She reaffirmed the CBE's commitment to capacity building and collaboration across the continent—particularly within the COMESA region—highlighting that this marks the twelfth consecutive year the CBE has provided training for COMESA central banks.
Dr. Ahmed Sahloul, Assistant Sub-Governor for the Macroprudential Sector at the CBE, underlined the value of stress testing in evaluating the impact of macro-financial and geopolitical shocks on banking sector resilience. He noted that such tools are increasingly vital for assessing emerging risks, including those related to climate change and cybersecurity. Stress test results, he added, offer crucial insights that guide policymakers in enhancing financial stability and ensuring robust financial intermediation.
Lucas Njoroge, Director of the COMESA Monetary Institute, expressed appreciation for the CBE's sustained efforts in supporting the capacity-building agenda for central banks in the region. He also voiced optimism for further collaboration between the CBE and CMI in the years ahead.
The programme, led by experts from the CBE's Offsite Supervision and Macroprudential sectors, featured interactive sessions that encouraged the exchange of technical expertise and peer learning among participants. These engagements focused on addressing current challenges and devising practical applications of stress testing frameworks within central banks.
At the programme's conclusion, participants formulated a set of proposals and recommendations aimed at deepening the integration of stress testing into central banking operations across COMESA. These recommendations will be presented for discussion during the annual meeting of COMESA central bank governors, scheduled to take place in Uganda in November 2025.
