Recent studies by the COMESA Monetary Institute (CMI) have revealed that some Member States have experienced a significant impact on their financial stability caused by shocks from Non-Bank Financial Institutions (NBFIs).
The impact of NBFIs’ shocks on financial stability has been mixed with some countries experiencing significant instability while for other countries, the impact was insignificant. This was revealed during the validation workshop held 08 – 09 September 2025 in Kenya for the country studies conducted by staff from COMESA Member Central Banks on the “Impact of Non-Bank Financial Institutions (NBFIs) Shocks on member country’s Financial System Stability”.
The meeting also noted key common policy recommendations arising from the studies, largely pointing to the need for strengthening governance, implementing risk-based supervision and promoting diversification within the NBFIs sector. In addition, the studies noted the need to institutionalize cross-sector stress testing and enhance oversight of concentrated NBFIs funding, harmonizing liquidity standards across the financial sector and strengthening financial stability surveillance and early-warning frameworks to include NBFIs. These interventions are expected to enhance NBFIs’ stabilizing role and mitigate systemic financial risks.
Other policy recommendations included strengthening cross-sector supervisory coordination among the Financial Sector’s Regulatory Agencies, developing contingency and resolution planning for NBFIs, including liquidity support and recovery strategies; upgrading cross-sector data granularity and disclosure (including climate and cyber metrics); and undertaking regular stress tests for NBFIs, as this helps to identify vulnerabilities and inform policy responses to emerging risks and market developments, among others.
The meeting further considered the training and other activities undertaken by CMI related to the COMESA Financial System Development and Stability Sub-Committee in 2025 and prepared a work plan for 2026 which will be implemented by CMI.
The workshop and meetings were attended by delegates from thirteen (13) COMESA member Central Banks, namely, the Central Bank of Burundi, DRC, Egypt, Eswatini, Kenya, Malawi, Mauritius, Madagascar, Rwanda, Sudan, Uganda, Zambia and Zimbabwe.