The Central Bank of Egypt (CBE) hosted a specialized training program on “Incorporating Climate Risks in Micro and Macro Stress Testing for Central Banks,” reinforcing its leading role in promoting cooperation and integration among African central banks and strengthening its ongoing partnership with the COMESA Monetary Institute (CMI).
The program brought together 25 participants representing 11 central banks from COMESA member states, alongside a delegation from the CMI, to exchange expertise and enhance institutional capabilities in assessing climate-related financial risks and their implications for banking sector resilience and financial stability.
Central Bank of Egypt Hosts Specialized Training on Climate Risk Stress Testing
Held over five days at the headquarters of the Egyptian Banking Institute (EBI) in Cairo, the training program featured specialized discussions, practical examples, and experience-sharing sessions focused on climate risks and their integration into micro and macro stress testing frameworks using standard models.
The program also covered practical applications of stress testing across several key risk categories, including credit risk, liquidity risk, climate change risks, and interbank contagion. These applications aimed to deepen participants’ understanding of how climate-related risks can affect financial institutions and the broader banking system.
Integrating Climate-Related Risks into Micro and Macro Stress Testing Frameworks
The training program featured specialized and interactive sessions delivered by lecturers from the CBE’s Macroprudential Sector, Offsite Supervision Sector, and Sustainability Department within the Financial Inclusion Sector.
The sessions addressed the theoretical and practical aspects of integrating climate-related risks into micro and macro stress testing frameworks. They also provided a platform for discussing different approaches and practices, while facilitating the exchange of expertise among representatives of participating central banks.
Discussions focused on the challenges associated with climate risks and their potential impact on the banking sector and financial stability, highlighting the importance of strengthening risk assessment methodologies and developing supervisory capabilities to address emerging financial challenges.
Strengthening Climate Risk Management Across COMESA Central Banks
At the conclusion of the training program, participants developed a set of proposals and recommendations aimed at deepening understanding of the implications of incorporating climate-related risks into stress testing for the operations of central banks across COMESA member states.
The recommendations are scheduled to be discussed by central bank governors during their upcoming annual meeting in Malawi in November 2026.
The initiative reflects the importance of regional cooperation and knowledge-sharing in strengthening climate risk management frameworks, enhancing the supervisory capabilities of African central banks, and supporting the resilience of banking systems and long-term financial stability across the COMESA region.
