The International Monetary and Capital Markets (MCM) Technical Assistance Mission concluded its two week visit to the Central Bank of Lesotho (CBL) on Friday.

A press release issued by CBL says that the purpose of the visit was to continue MCM's collaboration with CBL and further strengthen the Bank's operations in the areas of financial system supervision, money and capital market development and payment system modernisation.

With regard to financial systems, the mission aims to work with CBL to review legal and regulatory frameworks for the supervision of various entities in the financial system with the view to align the Bank's frameworks with those practiced internationally, it says.

The mission will also enhance the supervisory process by focusing on the risky areas of the bank's operation as well as to improve surveillance practices through ensuring that the banks are appropriately assessed and monitored on a continuous basis in order to minimise risks.

Regarding MCM, the mission will work with the bank to device and implement suitable arrangements aimed at developing these markets.

These will include actions to strengthen the structure, settlement processes, legal and regulatory frameworks and institutional arrangements that underpin the development of the government security market and the corporate bond market.

On the issue of modernisation of payment system, the mission will continue to deepen and broaden large value payment system including key government payment, devise an appropriate implementation plan for retail payments. Training in all these areas will also be provided.

While in the country, the mission met with the Minister of Finance and Economic Planning and Managing Directors of local commercial banks.

Source: LENA 06/03/2008