Benin: Selected Issues

January 7, 2016

Preview Citation

Format: Chicago

Benin: Selected Issues, (USA: International Monetary Fund, 2016) accessed December 26, 2024

Also available in: français

Summary

This Selected Issues paper reviews the vulnerability and risks associated with Benin’s banking sector. Banks in Benin show significant vulnerabilities. Although financial soundness indicators do not present immediate stability concern, the quality of banks’ loan portfolio is low and has constrained credit to the private sector. Stress tests confirm that credit risk is of particular concern. Structural impediments are at the root of these risks, including problems with property titles, information asymmetries, and the weak judiciary, which complicates contract enforcement. Structural reforms and a re-calibration of fiscal policies to reduce the government’s lending needs are necessary to mitigate these risks over time.

Subject: Banking, Commercial banks, Credit, Financial institutions, Financial services, Loans, Money, Nonperforming loans

Keywords: Asset, Asset quality, Bank, Bank assets, Bank efficiency, Benin, Beninese bank, Commercial banks, CR, Credit, Credit risk, Global, ISCR, Loans, Microfinance institution, Nonperforming loans, Pan-African bank, Problem bank, Provision of credit

Publication Details

Pages:

25
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2016/007
Stock No:

1BENEA2016002
ISBN:

9781513571386
ISSN:

1934-7685

Notes

Also Available in French

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