Working Group on Home-Host Cooperation and Information Sharing: Initial findings
This report from the FSB Regional Consultative Group (RCG) for Sub-Saharan Africa provides an analysis of home-host cooperation and information sharing among supervisors in the Sub-Saharan African region with a view to identifying the current status of, and challenges associated with, home-host cooperation and information sharing in the region. The report includes steps that could be taken to enhance and strengthen the oversight of financial groups operating in multiple jurisdictions.
The RCG recognised that in globally integrated financial markets, strong international cooperation and information sharing are essential to overcome vulnerabilities affecting financial systems. International standard-setting bodies have dedicated great efforts to achieve this goal, but the international principles on cooperation and information sharing are not always applied in equal measure in all jurisdictions. Overcoming cross-border regulatory arbitrage and the constraints on the sharing of information between home and host supervisors is crucial to financial stability. The authorities also noted that international financial standard-setting bodies – in particular, the Basel Committee on Banking Supervision, the International Association of Insurance Supervisors and the International Organization of Securities Commissions – have included standards related to cross-border cooperation and home-host relationships in their core principles. However, despite international standards and minimum criteria for effective coordination and information sharing among supervisors, in practice there are gaps in the way the international standards are implemented across jurisdictions, and as a result there could be a lack of effective, timely and relevant sharing of information and cooperation.
Against this background, the objectives of the Working Group that developed the report were to identify the extent of cross-border financial activities in the region both in terms of size and type of activities; the risks posed by such activities; to assess the extent to which supervisors cooperate and share information to oversee banks operating in multiple jurisdictions; and to identify any impediments to the current arrangements for supervisory cooperation and information sharing.
Based on the responses provided by the jurisdictions, the report sets out 11 recommendations for consideration on risk assessment, information sharing arrangements, and capacity building and adequacy of resources within the context of home-host cooperation and information sharing.
This document has been prepared by the FSB RCG for Sub-Saharan Africa and is being published to disseminate information to the public. The views expressed in the document are those of the RCG for Sub-Saharan Africa and do not necessarily reflect those of the FSB.