AMF issues guidelines for Central Banks to deal with the implications of natural disasters and climate changes on banking systems and financial stability

AMF issues guidelines for Central Banks to deal with the implications of natural disasters and climate changes on banking systems and financial stability

AMF issues guidelines for Central Banks to deal with the implications of natural disasters and climate changes on banking systems and financial stability In the Framework of the AMF mandate to offer the support to its member states in the field of economic, Financial and monetary reforms promoting financial stability in the Arab region, the AMF has issued today "General Guidelines for Central Banks to deal with the implications of natural disasters and climate changes on banking system and financial stability“.

The guiding principles include a set of recommendations related to the central bank policy to strengthening the system of natural disasters and climate change management. The guiding principles confirm the importance for central bank to adopt a comprehensive risk management policy that includes implications of climate change and natural disasters and how to deal with them. In addition Central Banks to constitute an ad-hoc committee to manage natural disasters (or adding catastrophe management to the framework of the committee of crisis management) as well as defining its missions and responsibilities which include, among others, setting up recovery plans to address the effects of climate change and natural disasters, recover from their effects and return to work Normally.

Moreover, the