PRESENTATION TO THE PARLIAMENTARY COMMITTEE ON FINANCE PCOF

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

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

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

Subcommittees of the CCBG - - 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 Subcommittee on Exchange Control (now dissolved)

Co-operation and Co-ordination of Exchange Control Policies - Signed by CCBG in September 2005 - 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 2005 - 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 2005 - 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 2005 - 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 2006 - 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 n n SADC Structure (CCBG reporting) Co-ordination at national level Need for regular interdepartmental discussions Buy in nationally Allocation of task for implementation according to expertise and capacity Committee reporting to President or Parliament on developments in implementation of FIP

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