Republic of Mozambique: Financial System Stability Assessment Including Report on the Observance of Standards and Codes on the following topics: Banking Supervision, Payment Systems, and Anti-Money Laundering and Combating the Financing of Terrorism
IMF Staff Country Reports, March 5, 2004
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- Republic of Mozambique: Financial System Stability Assessment Including Report on the Observance of Standards and Codes on the following topics: Banking Supervision, Payment Systems, and Anti-Money Laundering and Combating the Financing of Terrorism
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Bibliographic details
- Published: March 5, 2004
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451827170.002
Key findings: financial system evolution and soundness
- The Mozambican financial system has made "remarkable progress from mono-banking to a full blown, market-based, financial system."
- Mozambican banks are generally profitable and well capitalized.
- Banks remain exposed to significant credit risk in the current environment.
Risks and constraints
- High credit risk exposure for banks in the Mozambican lending environment.
- Limited appetite among banks for making new credits given prevailing conditions.
- Institutional constraints that affect effective monetary policy implementation.
Policy recommendations and reforms
- Enhance the independence of the central bank.
- Ensure the central bank has the financial means to conduct monetary policy in a very low-inflation environment.
- Implement measures to improve banks' appetite for new lending in the difficult Mozambican lending environment.
Thematic coverage and keywords
- Subject areas: Bank credit, Banking, Capital markets, Commercial banks, Financial institutions, Financial markets, Foreign exchange, Loans, Pensions, Treasury bills and bonds
- Keywords: bank, Capital markets, capital position, Commercial banks, CR, exchange rate, ISCR, lending, lending environment, loan, Loans, market, monetary management, Mozambican bank, rate, Sub-Saharan Africa, Treasury bills and bonds
Republic of Mozambique: Financial System Stability Assessment Including Report on the Observance of Standards and Codes on the following topics: Banking Supervision, Payment Systems, and Anti-Money Laundering and Combating the Financing of Terrorism (IMF Staff Country Report, March 5, 2004).