Country Reports
2019
July 1, 2019
The Bahamas: 2019 Article IV Consultation-Press Release; and Staff Report
Description: Growth has returned after years of stagnation. The reform-oriented government is tackling structural issues, with notable achievements in the fiscal area. The financial sector is sound and resilient to current stability threats, but credit remains scarce. The offshore sector faces heightened international scrutiny and the government is taking steps to strengthen compliance with AML/CFT and tax transparency standards. Tourism and related foreign investments will support growth in the near-term, while low competitiveness and diversification dampen medium-term prospects. Growth would suffer from a slowdown in the U.S. or higher oil prices, and hurricane vulnerability persists. Reform momentum could stall, undermining fiscal consolidation efforts.
June 26, 2019
Switzerland: Financial Sector Assessment Program; Technical Note-Supervision and Oversight of Financial Market Infrastructures
Description: Financial Sector Assessment Program; Technical Note-Supervision and Oversight of Financial Market Infrastructures
June 26, 2019
Barbados: First Review under the Extended Arrangement and Request for the Completion of the Financing Assurances Review and Modification of Performance Criteria - Press Release; Staff Report; and Statement by the Executive Director for Barbados
Description: First Review under the Extended Arrangement and Request for the Completion of the Financing Assurances Review and Modification of Performance Criteria - Press Release; Staff Report; and Statement by the Executive Director for Barbados
June 26, 2019
Switzerland: Financial Sector Assessment Program; Technical Note-Insurance Regulation and Supervision
Description: Financial Sector Assessment Program; Technical Note-Insurance Regulation and Supervision
June 26, 2019
Switzerland: Financial Sector Assessment Program; Technical Note- Financial Safety Net and Crisis Management Arrangements
Description: Financial Sector Assessment Program; Technical Note- Financial Safety Net and Crisis Management Arrangements
June 26, 2019
Switzerland: Selected Issues
Description: This Selected Issues paper on Switzerland models the evolving behavior of the Swiss franc relative to the world’s major reserve currencies and considers possible reasons for the shifts. Economic fundamentals, including country-partners and currency of denomination of Swiss trade and finance, are likely to affect which currencies the franc co-moves with, although these factors tend to change only slowly. The behavior of the Swiss franc may have also been affected by the global financial crisis and its aftermath, as well as the shift in recent years from synchronized to divergent monetary policies by the major central banks. Identifying reserve currency blocks and the de facto behavior of currencies is an ongoing pursuit. The two dimensions of exchange regimes—the anchor currency (basket) and the degree of exchange rate flexibility—should be identified simultaneously. The implied regimes align well with Switzerland’s de facto exchange rate arrangements and monetary policy frameworks. The approach used in this paper identifies how the franc co-moves with the major reserve currencies but is agnostic about the driving forces behind these moves.
June 26, 2019
Switzerland: Financial System Stability Assessment
Description: Swiss financial institutions are well capitalized and could withstand the severe shocks under the adverse stress test scenarios, but macrofinancial vulnerabilities are deepening. Important reforms have been made since the 2014 FSAP, but several critical recommendations and emerging challenges have yet to be fully addressed. Capital buffers have increased across all categories of banks, and while the two global systemically important banks have downsized and deleveraged significantly since the global financial crisis, since 2013 they have been growing again. Macroprudential measures have not been taken since 2014 and is constrained by having only one mandated tool and a self-regulation agreement with banks. The financial supervisor (FINMA) has developed into a trusted supervisor, but as a small entity, it relies heavily on external auditors to conduct on-site supervision; the associated conflict of interest and supervisory objectivity risks need to be carefully managed. The combination of an ex-post funding mechanism, a low cap on banks’ contributions, and a private deposit insurance agency run by active bankers, weakens the crisis management arrangements.
June 26, 2019
Switzerland: Financial Sector Assessment Program; Technical Note-Insurance Stress Testing
Description: Financial Sector Assessment Program; Technical Note-Insurance Stress Testing
June 26, 2019
Switzerland: Financial Sector Assessment Program; Technical Note-Macrofinancial Analysis and Macroprudential Policy
Description: Financial Sector Assessment Program; Technical Note-Macrofinancial Analysis and Macroprudential Policy