Country Reports
2013
March 15, 2013
European Union: Publication of Financial Sector Assessment Program Documentation—Technical Note on Cross-Border Issues, Central Counterparties, and Central Securities Depositories
Description: The analysis focuses on the effectiveness of the regulatory, supervisory, and oversight frameworks for central counterparties (CCPs) and central securities depositories (CSDs) in the European Union (EU) as these are essential for financial stability. Cooperation between authorities within and outside the EU is critical to reduce the risks related to the cross-border nature of clearing and settlement within the EU. In this context, crisis management arrangements among EU authorities are of key importance to adequately fulfill the various responsibilities that authorities may have in relation to CCPs and CSDs in crisis situations.
March 15, 2013
European Union: Publication of Financial Sector Assessment Program Documentation ––Technical Note on European Insurance and Occupational Pensions Authority Assessment
Description: Slow economic growth and continuing low interest rate environment is putting pressure on the insurance sector. Delays in the implementation of Solvency II could create vulnerabilities in the insurance sector. The approval of internal models is important for determining adequacy of capital levels to warrant a solvent industry. The new European system of financial supervision has been proactive, but much work has to be done. Access to information for monitoring, analyzing trends, and preventing systemic risk need to improve, along with operational independence.
March 15, 2013
European Union: Publication of Financial Sector Assessment Program Documentation—Technical Note on European Banking Authority
Description: This report is an overview of the performance of the European Banking Authority (EBA) against its mandates, given economic conditions prevailing in the banking sector in the European Union (EU). Banks remain a key contributor to the EU financial and professional services industry. Outlook for the sector remains challenging as asset quality has been deteriorating. Priority should be given to increasing its supervisory convergence and quality assurance tasks; regulatory and supervisory actions; and strengthening transparency and the reliability of data.
March 15, 2013
European Union: Publication of Financial Sector Assessment Program Documentation—Technical Note on Deposit Insurance
Description: This article is an overview of existing deposit insurance in the European Union. There are various national deposit schemes that form the source of insurance. The schemes come up with various coverage, contributions, and fund sizes. The recent financial crisis has brought about a change in the coverage system. The main intention of this insurance is to enhance financial stability. The role of this insurance varies both within the EU and worldwide. This insurance is important to sustain financial integration and internal functioning.
March 15, 2013
European Union: Publication of Financial Sector Assessment Program Documentation—Technical Note on Progress with Bank Restructuring and Resolution in Europe
Description: This article is an analysis on the restructuring banking system of the European Union. The global financial crisis created the need to restructure by immensely reflecting weaknesses in the public, households, corporate, and other financial sectors. The restructuring includes the strengthening of bank resolution tools, the activation of nonperforming loans, the maintenance of macrofinancial framework, recovery of market access, and so on. The Executive Board recommends this transition of the European Union because this paves the way to financial stability globally.
March 15, 2013
European Union: Publication of Financial Sector Assessment Program Documentation ––Technical Note on Issues in Transparency and Accountability
Description: In recent years, the IMF has released a growing number of reports and other documents covering economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with government officials, is published at the option of the member country.
March 11, 2013
Burundi: Second Review Under the Extended Credit Facility—Staff Report; Staff Supplement; Press Release on the Executive Board Discussion
Description: The Burundian economy faced several adverse shocks. The government responded by allowing greater exchange rate flexibility and by tightening its monetary policy. The fiscal stance was in line with the program, and program implementation has been broadly satisfactory despite difficult circumstances. Sustaining revenue mobilization remains a top priority. Public financial management needs to be bolstered significantly and the country remains at high risk of debt distress, underscoring the importance of reinforcing debt management. Monetary policy should remain tight until inflation falls.
Notes: Also available in French
March 11, 2013
Bangladesh: Joint Staff Advisory Note on the Poverty Reduction Strategy Paper
Description: Executive Directors commend Bangladesh in addressing the major challenges to growth and poverty reduction. The strategy is comprehensive and confronts the key issues impeding sustainable development and inclusive growth in Bangladesh. Implementing sound macro-financial policies, intensifying revenue mobilization, improving the business environment, ensuring trade liberalization, and improving governance and accountability are top priorities. Actions should be sequenced according to these priorities. Severe external shocks could reignite macroeconomic pressures and undermine socioeconomic targets.
March 11, 2013
Bangladesh: Poverty Reduction Strategy Paper
Description: The Sixth Five Year Plan, as outlined in Bangladesh's Poverty Reduction Strategy Paper, targets strategic growth and employment. The medium-term macroeconomic framework plan entails the involvement of both the private and public sectors. Human resources development strategy programs reaching out to the poor and the vulnerable population, as well as environment, climate change, and disaster risk management, have been included in the plan. Managing regional disparities for shared growth and strategy for raising farm productivity and agricultural growth have been outlined. Diversifying exports and developing a dynamic manufacturing sector are all inclusive in the proposed plan.
March 11, 2013
Bangladesh: First Review Under the Three-Year Arrangement Under the Extended Credit Facility and Request for Waiver of Nonobservance of a Performance Criterion—Staff Report, Staff Statements and Supplement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Bangladesh
Description: Fiscal performance has been broadly in line with program targets. As a result, the current account deficit has narrowed, reserves have increased significantly, and headline inflation is under control. However, implementation of structural benchmarks has lagged, necessitating sharper focus and greater ownership by the authorities. The global economic slowdown coupled with election-year uncertainty in Bangladesh poses the most immediate challenge to policymakers. The balance of risks is to the downside in the near term, potentially putting pressure on growth and inflation and undermining financial stability.