Somaliland Central Bank trains staff on new risk-based supervision policy
he Central Bank of Somaliland has upgraded its supervision framework by training staff on a new risk-based approach, enhancing oversight of financial institutions and ensuring stability in the regions banking sector.
A specialized training workshop was held in Hargeisa to enhance the capacity of officers and staff in the Supervision and Oversight Department of the Central Bank of Somaliland (CBSL). The training focused on the region’s new financial institution supervision policy, aimed at modernizing oversight and strengthening the bank’s supervisory functions.
The workshop is part of ongoing efforts to upgrade the regulatory framework for financial institutions in Somaliland, ensuring that supervision aligns with international best practices.
Opening the training, Mohamed Abdirahman Ali, Director of the Financial Institutions Supervision Department, emphasized the importance of this initiative. He explained that the new approach moves away from the previous “backward-looking” supervision model and adopts a risk-based, forward-looking system. This modern approach allows the bank to identify and manage risks proactively, improving the overall stability of the financial sector.
“The training is crucial as we transition to a supervision model that emphasizes risk assessment and forward-looking analysis, rather than relying solely on retrospective reviews,” said Ali.
The CBSL plans to continue similar capacity-building programs to ensure that its supervisory staff are equipped with the skills and knowledge necessary to maintain a robust and resilient financial sector in Somaliland.
