الهيئة العامة للرقابة المالية

• FRA Chairman and Vice Chair of the IOSCO Board participates in in the Annual Meetings of the International Monetary Fund (IMF) in Washington entitled “Stabilizing the Future: Managing the Nexus between Growing Capital Markets and Stability Implications”
• Mohamed Farid : “Our constant presence and active participation in international forums keeps us informed about the latest trends and challenges facing markets and investors around the world. “
• Traditional pricing methods might not be enough to encourage investment in government bonds tied to sustainability and climate goals.
• To unleash the full potential of government and corporate bond markets and attract more investors, this requires greater transparency and disclosure, as well as simplifying and speeding up the bond issuance process and providing market diversification.
• Creating a fair balance in the regulations imposed on companies, whether they are publicly traded or private, can contribute significantly to a more stable and adaptable financial system.

Dr. Mohamed Farid – FRA Chairman and Vice Chair of the IOSCO Board participates in in the Annual Meetings of the International Monetary Fund (IMF) in Washington,

He participated in the 1^st  IMF-IOSCO Conference – Stabilizing the Future: Managing the Nexus between Growing Capital Markets and Stability Implications.

The session focused on how recent crises and challenges exposed vulnerabilities in different financial markets. These weaknesses included lack of liquidity and flexibility in areas like short-term funding, corporate debt, and government bonds.

In addition, the session identified the key factors causing shortage of liquidity in these markets. It also looked for practical solutions and policy changes that could make these markets more flexible to future challenges.

It brought together important figures from across these markets, including issuers , investors and brokers.

Prominent figures from various regulatory, financial, and supervisory bodies around the world attended the session. Key participants included Gita Gopinath, the First Deputy Managing Director of the International Monetary Fund (IMF) , Joanna Cound – Global Head of Public Policy, BlackRock and Andrew Mogavero –  Managing Director and Head of US Credit Trading at Barclays.

Dr. Farid emphasized the importance of FRA’s participation in these international meetings and collaboration with global experts. He explained that such events give Regulatory Bodies  a unique perspective in addressing the key issues facing markets and investors , improve the regulatory framework, ensure markets’ flexibility and stability , ultimately safeguarding investors.

Dr. Farid added that discussing different financial market types, business models, systems, and products, especially those related to short-term government debt and corporate bonds, would require more extensive sessions with in-depth discussions.

“Undoubtedly, since 2008, at the time of the global financial crisis, markets witnessed an improvement in terms of issuing and trading, but what has happened is insufficient and there is a need for more effort regarding settlement and clearing process, thus increasing the appeal of developing country bonds and expanding investors’ base.” Dr. Farid Stated.

On the other hand, Dr.  Farid stressed on the need to facilitate bond issuance procedures and join global settlement platforms, accordingly attracting a wider range of international investors.

Dr. Farid went on to highlight the Egyptian government’s recent commitment to bold reforms. These reforms include devaluation of the EGP and raising interest rates to rebuild confidence among both international and domestic investors, ultimately strengthening key economic indicators, along with accelerating negotiations with the Monetary Fund for a financial support package.

Dr. Farid underlined the importance of diversifying Egypt’s financial resources instead of relying on just one or two markets. This broader approach would provide decision makers with more flexibility and options upon securing funding for critical development plans in Egypt.

In addition, Dr. Farid emphasized the need for a better balance between public and private markets. He highlighted that listed companies face stricter requirements, such as good governance practices and sustainability disclosures (including climate-related aspects) and other issues. These stricter rules are not applied to non-listed companies, which may motivate companies to go public and raise money by selling shares on stock market.

Noting in this regard that the subscribers and investors of various kinds in different securities of both public and other non-public companies are insurance companies, investment funds, qualified investors and individuals.

Thus, there is a pressing need to step up efforts towards strong corporate governance, addressing climate change, and implementing sustainable practices across all companies. This will not only safeguard financial stability for markets and the businesses operating within them, but also significantly improve client protection.