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(NYASATIMES) SADC must regulate financial markets says -Ligoya

SADC must regulate financial markets says -Ligoya
By Nyasa Times
Published: September 17, 2009

The Southern African Development Community must maintain a high standard of financial markets’ regulation to limit the impact of the global economic crisis, Malawi’s central bank Governor Perks Ligoya said on Thursday.

Ligoya told financial sector professionals from the 15 member countries of the SADC that recent global developments highlight the importance of effective regulatory regimes in capital markets.

“Many countries in the developed world are now calling for a review of the regulatory infrastructure because the general feeling is that (ineffective regulation) caused the financial crisis,” Ligoya said.

The world economy is in a recession brought on by a financial markets’ crisis that has its roots in the sub-prime mortgage industry in the United States.

This week marks a year since the failure of large investment bank Lehman Brothers, which spread panick and exacerbated the global slowdown.

Ligoya said misguided regulation can have adverse impact on the financial sector and economies in the region.

“It is for this reason that SADC must maintain high standards of regulation for our financial markets,” said Ligoya, who was appointed as governor for the central bank on Monday.

The global economic slowdown has hit the world’s poorest continent and international financial institutions slashed Africa’s growth rates from around seven percent to below two percent.

The SADC Committee of Insurance, Securities and Non-Banking Financial Authorities is meeting in Malawi to discuss the impact of the global financial crisis in the region and harmonise legislation of capital markets.–Reuters (Editing by Phumza Macanda)

Labels: FINANCIAL CRISIS, GREAT DEPRESSION II, PERKS LIGOYA, REGULATION, SADC

posted by MrK @ 6:47 PM