CBE Leads Regional Initiative to Embed Climate Risks in COMESA Central Bank Stress Tests
Boosting Financial Resilience and Pan-African Cooperation
In a strategic move to safeguard the region’s banking systems, the Central Bank of Egypt (CBE) organized a hands-on training program focused on incorporating climate-related risks into both micro and macroprudential stress-testing frameworks. The five-day event convened 25 delegates representing 11 central banks from the Common Market for Eastern and Southern Africa (COMESA), alongside representatives from the COMESA Monetary Institute (CMI).
This program underscores the ongoing partnership between the CBE and CMI, reinforcing joint efforts to elevate supervisory capabilities and promote sustainable financial stability across Africa.
Hands-On Workshops and Advanced Analytical Models
Hosted at the Egyptian Banking Institute (EBI) in Cairo, the workshop delivered technical insights and empirical modeling tools to help central banks gauge climate shocks.
Delivered by expert teams from the CBE's Macroprudential, Off-site Supervision, and Sustainability divisions, the curriculum covered:
Core Banking Vulnerabilities: Assessing how climate events impact credit risk exposure and liquidity management.
Interbank Contagion: Modeling shock propagation throughout the financial sector under extreme climate scenarios.
Peer Exchange: Sharing country-level experiences and addressing key hurdles surrounding asset quality, funding streams, and regulatory oversight.
Actionable Roadmap for November 2026 Governors' Summit
The sessions wrapped up with actionable recommendations aimed at embedding climate risk assessments deeper into central banking operations across COMESA member states. These proposals will be presented to regional central bank governors during their annual summit in Malawi, slated for November 2026.
Through this initiative, the CBE reinforces its leadership role in driving regional regulatory innovation and building resilient financial architectures capable of withstanding emerging global challenges