Managing Financial Sector Risks from the COVID-19 Crisis in the Caucasus and Central Asia

By Iulia Ruxandra Teodoru, Klakow Akepanidtaworn

March 10, 2022

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Format: Chicago

Iulia Ruxandra Teodoru, and Klakow Akepanidtaworn. Managing Financial Sector Risks from the COVID-19 Crisis in the Caucasus and Central Asia, (USA: International Monetary Fund, 2022) accessed November 23, 2024

Disclaimer: The views expressed herein are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

The COVID-19 crisis raises the risk of renewed financial sector pressures in the Caucasus and Central Asia (CCA) region in the period ahead. Bank distress and its economic and fiscal fallout have been recurring features of many CCA countries, as seen after the global financial crisis and the 2014–15 oil price shock. Strong policy responses have delayed the full impact of the COVID crisis so far, but financial sector risks will increase once public support is phased out. If these risks are not preemptively addressed, banks’ ability to lend during the recovery phase could be impaired and there may be a need for costly public interventions, as in the past.

Subject: Commercial banks, Credit risk, Financial institutions, Financial regulation and supervision, Financial sector policy and analysis, Financial sector risk, Foreign exchange, Nonperforming loans

Keywords: CCA banking systems, CCA bank's capital adequacy ratios, CCA country, Central Asia and the Caucasus, Commercial banks, Credit risk, Financial risks, Financial sector risk, Financial supervision and regulation, FX risk, FX-induced credit risk, Nonperforming loans, Stress tests

Publication Details

Pages:

38
Volume:

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DOI:

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Issue:

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Series:

Departmental Paper No 2022/005
Stock No:

MFSRCCCCAEA
ISBN:

9798400201189
ISSN:

2616-5333

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