Benin : Selected Issues

Author/Editor:

International Monetary Fund. African Dept.

Publication Date:

January 7, 2016

Electronic Access:

Free Full text (PDF file size is 567 KB).Use the free Adobe Acrobat Reader to view this PDF file

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.

Series:

Country Report No. 16/7

Subject(s):

Notes:

Also Available in French

English

Publication Date:

January 7, 2016

ISBN/ISSN:

9781513571386/1934-7685

Stock No:

1BENEA2016002

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

25

Please address any questions about this title to publications@imf.org