The International Monetary Fund’s center in East Africa recently held a workshop on the implementation of Basel reforms in Rwanda, drawing 29 officials from East African central banks in Burundi, Ethiopia, Kenya, Malawai, Rwanda, South Sudan, Tanzania and Uganda.
Participants in the discussions focused on challenges and issues that have arisen during the implementation process of Basel II and Basel III frameworks. Experts from the IMF’s monetary and capital markets division, as well as an expert from the Dutch Central Bank, detailed the frameworks.
The experts advised financial institutions to take a phased approach to implementing the frameworks rather than implement them as a single package.
Several participants shared presentations on the status of implementation at their respective institutions, bringing attention to issues like overcoming capacity weaknesses, data quality constraints, time necessary to amend laws and regulations and the availability and quality of management information systems.
The meeting resulted in the conclusion among participants that enhanced information-sharing efforts involving Basel frameworks would benefit all parties and facilitate the implementation process for countries in the initial stages of implementation.
The IMF reaffirmed its support of nations in their implementation and transition into Basel II and III framework through its training, technical assistance and attachment programs.