WARNING: This is Version 1 of my old archive, so Photos will NOT work and many links will NOT work. But you can find articles by searching on the Titles. There is a lot of information in this archive. Use the SEARCH BAR at the top right. Prior to December 2012; I was a pro-Christian type of Conservative. I was unaware of the mass of Jewish lies in history, especially the lies regarding WW2 and Hitler. So in here you will find pro-Jewish and pro-Israel material. I was definitely WRONG about the Boeremag and Janusz Walus. They were for real.
Original Post Date: 2010-08-02 Time: 23:00:02 Posted By: News Poster
By Zephania Ubwani
Arusha – Deposit insurance systems (DIS) can help bring financial stability, Bank of Tanzania governor Prof Benno Ndulu.
“The recent global financial crisis amply confirms this. Toxic assets originating from mortgage financial institutions and used to back up credit in the banking system led to very significant distress and ripples throughout the financial system,” he said.
He was speaking during the opening of an annual conference of the International Association of Deposit Insurers (IADI) in Arusha recently.
The event attracted participants from various African countries.
Stressing that financial stability required greater coordination in different categories of financial institutions, Prof Ndulu said problems did not need to start in banks or deposit-taking bodies to trigger distress in those institutions.
He noted that vast resources beyond what DIS could muster were needed to stabilise the system.
He urged various countries to ensure financial stability to forestall contagions that had become potent means for propagating crises from one country to another.
“Much as most DIS institutions are national in function and mandate, they should create resilience and buffers against externally originated distress,” he warned.
He said during the 2008/2009 global financial crunch, countries which were more exposed to or much more integrated into the global financial system had to deal with problems “that are disproportionately larger than their national-based capacity to resolve.”
According to him, this calls for much greater global coordination of DIS through strategies such as adopting globally accepted and vetted standards, exchange of information.
He noted that IADI was an important part of the required global architecture because it supported the integration of financial systems across the borders.
He added that national systems must be coordinated to deal with such challenges.
“There is a need to strengthen regional coordination of DIS as operations of banks and other deposit-taking financial institutions in Africa are being increasingly regionalised,” he said.
He challenged African countries to set up regional mechanisms to address the financial stress.
He hinted that within East Africa had taken a much greater sense of urgency.
He said it was pity that only few member states of the Common Market for Eastern and Southern Africa (Comesa) had established explicit DIS to protect depositors. Tanzania is not a member of Comesa, but it is still a member and beneficiaries of services of several Comesa institutions such as the PTA Bank.
Original date published: 2 August 2010
Source: http://allafrica.com/stories/201008021592.html?viewall=1