Abu dhabi: Governor of the Central Bank of Egypt (CBE) Hassan Abdalla delivered the keynote address at the 20th Annual High-Level Meeting on Financial Stability and Supervisory Priorities. The event is organized by the Arab Monetary Fund in cooperation with the Financial Stability Institute (FSI) and the Basel Committee on Banking Supervision at the Bank for International Settlements.
According to State Information Service Egypt, the governor emphasized the significance of the topics discussed during the meeting, focusing on financial stability and supervisory priorities in the Arab region. He highlighted that these issues are crucial for achieving development goals amid the current global economic phase characterized by inflation, liquidity changes, and geopolitical changes. The Arab region faces heightened challenges due to high public debt, exchange rate volatility, and fluctuating oil prices, affecting public finances, economic activities, and investor confidence.
The governor explained that these challenges have necessitated a more prominent role for central banks in maintaining monetary stability, enhancing economic resilience, and developing financial systems that can support long-term growth and withstand unexpected shocks.
Hassan Abdalla noted the rapid expansion of non-bank financial institutions, which now account for 50% of global financial assets. While they drive economic growth and financial inclusion, this growth also brings increased risks, necessitating advanced supervisory frameworks.
He also addressed the significant expansion in technological innovation, particularly digital assets and stable coins, whose value has doubled in the past three years and plays a key role in cross-border payments. He pointed out the transformations driven by artificial intelligence, which enhance analytical and supervisory capabilities but also introduce risks such as regulatory differences, algorithmic bias, and cyber threats. These advancements call for secure digital infrastructure and forward-thinking legislation.