Democratic Republic of the Congo: Technical Assistance Report-Financial Sector Stability Review
September 1, 2022
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Democratic Republic of the Congo: Technical Assistance Report-Financial Sector Stability Review, (USA: International Monetary Fund, 2022) accessed November 21, 2024
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Summary
In response to a request from the Central Bank of the Congo (BCC), the Monetary and Capital Markets Department of the International Monetary Fund (IMF) conducted a Financial Sector Stability Review (FSSR) mission virtually, during January 5–28, 2022. The FSSR performed a diagnostic of the financial system, reviewed progress in implementing previous IMF technical assistance (TA) recommendations, and developed a draft Technical Assistance Roadmap to help strengthen the BCC’s capacity in the areas covered by the FSSR. The FSSR also for the first-time covered gender inclusion in financial supervision. It identified five macrofinancial vulnerabilities pertaining to: (i) the quality of the banking system’s capital base; (ii) the difficulty in evaluating nonperforming loans following the COVID 19 financial support measures; (iii) risks related to financial dollarization; (iv) the impact on correspondent banking relationships of “de-risking”; and (v) intragroup exposures, as bank subsidiaries in the DRC place surplus funds with parent companies abroad. The BCC’s adoption of COVID-19 exit measures in December 2021, including specific reporting requirements, should provide momentum for additional TA in the near term to help the BCC analyze banks’ asset quality going forward.
Publication Details
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Pages:
78
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Volume:
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DOI:
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Issue:
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Series:
Country Report No. 2022/285
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Stock No:
1CODEA2022004
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ISBN:
9798400218620
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ISSN:
1934-7685
