IMF Staff Country Reports

Republic of Equatorial Guinea: Selected Issues

November 18, 2016

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Republic of Equatorial Guinea: Selected Issues, (USA: International Monetary Fund, 2016) accessed December 22, 2024

Also available in: español

Summary

This Selected Issues paper analyzes macrofinancial linkages in Equatorial Guinea. Insufficient fiscal consolidation in response to falling oil prices and production has translated into arrears accumulation, leading to a sharp deterioration in commercial banks’ balance sheets. Although banks’ capital and liquidity ratio appear adequate, profitability has been shrinking, owing to weak economic activity and decelerating credit supply. Moreover, recent stress tests reveal a high sensitivity to negative liquidity and asset quality shocks. Financial development remains lackluster, which hurts economic development and effective structural transformation. Finally, strong macrofinancial linkages compounded by regional subsidiary-parent interlinkages call for increased scrutiny.

Subject: Banking, Commercial banks, Credit, Financial institutions, Financial markets, Financial sector development, Financial sector policy and analysis, Financial sector stability, Money, Oil prices, Prices

Keywords: Africa, Asset quality, Bank, Bank linkage, Bank-borrower relationship, Banking sector, Capitalized bank, CEMAC, Commercial banks, CR, Credit, Economic activity, Equatorial Guinea banking sector, Financial sector development, Financial sector stability, Global, ISCR, Lending portfolio, Oil prices, Oil-price shock, Price, Risk profile, Sub-Saharan Africa

Publication Details

  • Pages:

    20

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Country Report No. 2016/358

  • Stock No:

    1GNQEA2016002

  • ISBN:

    9781475555981

  • ISSN:

    1934-7685

Notes

Also Available in Spanish

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