Zambia: Financial Sector Assessment Program-Financial System Stability Assessment

November 17, 2017

Preview Citation

Format: Chicago

Zambia: Financial Sector Assessment Program-Financial System Stability Assessment, (USA: International Monetary Fund, 2017) accessed December 21, 2024

Summary

This paper discusses the findings of the assessment of the financial system in Zambia. Nonperforming loans have risen and private sector credit growth has turned negative, owing to the severe pressures of 2015–16. The pressures included slower economic growth, sharply lower copper prices, electricity shortages, very tight monetary policy, and mounting fiscal arrears and severe fiscal funding pressures. Looking ahead, the financial system faces considerable risks, owing to high dependence on copper exports, rising public debt and funding pressures, and an uncertain monetary policy regime. A sharper-than-expected global slowdown may lead to copper price declines and additional pressures on government finance and the exchange rate. A lack of fiscal adjustment may worsen government payments arrears, further impacting asset quality.

Subject: Banking, Commercial banks, Credit, Financial institutions, Financial sector policy and analysis, Financial services, Liquidity stress testing, Money, Pensions, Stress testing

Keywords: Bank assets, Bank risk management system, Banking sector, Banking system, Banking system assets, Cash flow, Central bank, Commercial banks, CR, Credit, Financial system, Global, Impact banks NPL, ISCR, Liquidity stress testing, Market share, Monetary policy, Parent bank, Risk management practice, Security interest, Stress testing, Sub-Saharan Africa

Publication Details

Pages:

43
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2017/349
Stock No:

1ZMBEA2017003
ISBN:

9781484328361
ISSN:

1934-7685

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