## Section I. Financial System of Suriname ## Source details **Canonical URL:** [Section I. Financial System of Suriname](https://www.imf.org/-/media/files/publications/tar/2024/english/tarea2024018.pdf) ## Other formats - [Markdown version](/-/media/files/publications/tar/2024/english/tarea2024018.pdf.md) - [Structured JSON version](/-/media/files/publications/tar/2024/english/tarea2024018.pdf.json) --- ### Mission overview and priority recommendations - Mission visit: May 8–19, 2023. - Objective: Review compilation framework of monetary statistics for the central bank (CB) and other depository corporations (ODCs) in accordance with the 2016 Monetary and Financial Statistics Manual and Compilation Guide (MFSMCG 2016); establish a roadmap to incorporate insurance corporations and pension funds in the MFS compilation; improve MFS for financial sector surveillance. - Key outcomes: - Mapping for 1SR and 2SR found broadly in line with MFSMCG 2016; some adjustments to 2SR with no major impacts on main aggregates; no adjustments to 1SR. - Plan developed to compile SRF 4SR for insurance corporations and pension funds using FSD-collected supervisory data and a database program to generate uniform outputs mapped to 4SR. - Shared an Excel file generating an annual Balance Sheet Approach (BSA) matrix using SRFs 1SR, 2SR, 4SR (as of December 2021) and external sector data; briefed MDSD on BSA sources and uses. - Priority recommendations (Table 1): - December 2023 — Review the mapping for the SRF 2SR and update the classification of accounts listed in Appendix II as applicable. Responsible: MDSD. - January 2024 — Finalize and report to STA for review the SRF 4SR, covering insurance corporations and pension funds, and the related metadata. Responsible: MDSD. - March 2024 — Start submitting to STA the SRF 4SR, covering insurance corporations and pension funds, and the related metadata, for publication in IFS. Responsible: MDSD. ### Financial system structure and concentration (December 2022) - Overall: - Commercial banks dominate the financial system. - As of December 2022, commercial banks accounted for 78 percent of all financial sector assets outside of the central bank, and 99.5 percent of all ODC assets. - ODC coverage and institutions: - Nine banks (six majority private domestically controlled banks, two fully state-owned banks, and one foreign-controlled bank). All nine banks and one small deposit-taking microfinance company are included in the 2SR coverage. - Nine small credit unions are not included in the 2SR coverage and account for a negligible share of ODC assets; historically included April 2006–May 2010 when they accounted for two percent of all financial sector assets; currently represent 0.1 percent of all financial sector assets. - One deposit-taking microfinance institution included in 2SR. - Dollarization: - 78 percent of deposits denominated in foreign currency as of end-December 2022. - 56 percent of loans denominated in foreign currency as of end-December 2022. - Other financial corporations (OFCs): - OFCs hold around 22 percent of financial system assets. - Of OFC assets: 58 percent held by insurance corporations, 38 percent by pension funds, and less than 4 percent by other financial auxiliaries. - Ten insurance corporations (4 life, 6 non-life); 29 active pension funds (13 pension funds not active and under liquidation process). - Other institutions: 5 provident funds, 21 foreign exchange offices, 5 money transfer houses, a development bank, 1 stock exchange. - Concentration: - Insurance subsector: largest group (including three subsidiaries) holds about 75 percent of subsector assets; second largest holds another 13 percent. - Pension funds: 10 largest hold about 95 percent of total pension fund assets. - Regulatory and compilation responsibilities: - Central Bank of Suriname (CBS) is solely responsible for compiling and disseminating MFS; the Monetary Division of the Statistics Department (MDSD) performs compilation and reporting. - MDSD collaborates with the Supervision Directorate and is expected to start regular collaboration with Insurance and Pension Fund Supervision Departments in June 2023. - CBS functions and responsibilities under the new Central Bank Act of 2022 (enacted April 2023): maintain monetary stability, promote financial stability, ensure soundness of financial system, issue national currency, conduct monetary and foreign exchange policies, manage international reserves, regulate financial institutions, transact with IMF, act as banker to government. ### Key statistics (Table 2: The Financial Sector (December 2022)) - Central Bank of Suriname - Number of Institutions: 1 - Total Assets (Million, SRD): 52,493 - Share of Total Subsector Assets (in percent): 61 - Other Depository Corporations - Number of Institutions: 19 - Total Assets (Million, SRD): 81,749 - Share of Total Subsector Assets (in percent): 100 - Share in Financial Sector Assets (in percent): 78 - Total Assets to GDP: 95 - Commercial Banks - Number of Institutions: 9 - Total Assets (Million, SRD): 81,259 - Share of Total Subsector Assets (in percent): 99.4 - Share in Financial Sector Assets (in percent): 77.5 - Total Assets to GDP: 94.5 - Domestically controlled banks - Number of Institutions: 8 - Total Assets (Million, SRD): 67,051 - Share of Total Subsector Assets (in percent): 82.1 - Share in Financial Sector Assets (in percent): 64 - Total Assets to GDP: 78 - Government ownership note: The government has a share of roughly 34.5 percent in one of these banks. - Government owned (subset) - Number of Institutions: 2 - Total Assets (Million, SRD): 5,708 - Share of Total Subsector Assets (in percent): 7 - Share in Financial Sector Assets (in percent): 5.4 - Total Assets to GDP: 7 - Foreign controlled banks - Number of Institutions: 1 - Total Assets (Million, SRD): 14,208 - Share of Total Subsector Assets (in percent): 17.4 - Share in Financial Sector Assets (in percent): 13.5 - Total Assets to GDP: 17 - Credit Unions - Number of Institutions: 9 - Total Assets (Million, SRD): 85.6 - Share of Total Subsector Assets (in percent): 0.1 - Share in Financial Sector Assets (in percent): 0.1 - Total Assets to GDP: 0.1 - Deposit-taking Microfinance Institutions - Number of Institutions: 1 - Total Assets (Million, SRD): 404 - Share of Total Subsector Assets (in percent): 0.5 - Share in Financial Sector Assets (in percent): 0.4 - Total Assets to GDP: 0.5 - Other Financial Corporations - Number of Institutions: 85 - Total Assets (Million, SRD): 23,050 - Share of Total Subsector Assets (in percent): 100 - Share in Financial Sector Assets (in percent): 22 - Total Assets to GDP: 27 - Insurance Corporations - Number of Institutions: 10 - Total Assets (Million, SRD): 13,368 - Share of Total Subsector Assets (in percent): 58 - Share in Financial Sector Assets (in percent): 13 - Total Assets to GDP: 16 - Life insurance: Number of Institutions: 4; Total Assets (Million, SRD): 8,577; Share of Subsector (in percent): 37; Share in Financial Sector Assets (in percent): 8; Total Assets to GDP: 10 - Non-life insurance: Number of Institutions: 6; Total Assets (Million, SRD): 4,801; Share of Subsector (in percent): 21; Share in Financial Sector Assets (in percent): 5; Total Assets to GDP: 6 - Pension funds* - Number of Institutions: 42 - Total Assets (Million, SRD): 8,8 74 - Share of Total Subsector Assets (in percent): 38.5 - Share in Financial Sector Assets (in percent): 8 - Total Assets to GDP: 10 - *Only 29 pension funds are actually active and included in the data. - Other financial institutions** - Number of Institutions: 33 - Total Assets (Million, SRD): 808.4 - Share of Total Subsector Assets (in percent): 3.5 - Share in Financial Sector Assets (in percent): 1 - Total Assets to GDP: 1 - **Only 24 other financial institutions are included in the data. - Sources: CBS and IMF staff. ### Data compilation, reporting, and methodological notes - SRF 1SR (central bank): - Source: CBS general ledger; data compiled monthly by MDSD within 1 day of end of reference month. - Compliance: Report fully complies with MFSMCG 2016; CBS organizing central bank data using 1SR form (no mapping necessary). - Accounting: CBS is in the process of implementing IFRS in its accounting system. - Presentation issue: Miscellaneous items represented 10 percent of total assets in 1SR; mission recommended investigating allocation of the largest three miscellaneous items. - SRF 2SR (ODCs): - Source: Monthly bank reports provided within 15 days of end of reference month; central bank and ODC data published within five weeks. - Coverage: 2SR includes nine banks and one deposit-taking microfinance company; credit unions currently excluded due to capacity issues. - Data limitations: Accrued interest not broken down by counterpart sector or instrument; missing counterpart and currency breakdowns for financial derivatives and other accounts receivable/payable. - Actions: MDSD revising ODC reporting forms to comply with MFSMCG 2016; draft Dutch form provided to mission. Mission suggested including detailed accrued interest and financial derivatives information. New reporting forms expected to be introduced and incorporated into MFS reporting by December 2023. - Reclassifications made by mission in 2SR: several reclassifications with no major impact on main aggregates; within assets, a large volume of short-term time deposits with the central bank (mostly in domestic currency for open market operations) reclassified from transferable deposits to other deposits; some required reserves reclassified from transferable deposits to other deposits. Effects: no effect on base money, broad money, or net claims on other sectors; marginal increase in credit to private sector from allocation of accrued interest (see Appendix II). - Insurance corporations and pension funds (SRF 4SR): - FSD collects quarterly supervisory data: insurance corporations (lags of 10 days) and pension funds (lags of one month). - Plan: Introduce supervisory data into a database program to generate full balance sheets with currency and counterpart breakdowns; map outputs to SRF 4SR using temporary mapping provided by the mission. - Target milestones: - introduce insurance company data into database (11/30/2023 — Completed) - finalize mapping of insurance data to 4SR (12/31/2023) - introduce pension fund data into database (09/30/2023 — Completed) - finalize mapping of pension fund data to 4SR (12/31/2023) - finalize and report SRF 4SR to STA (01/31/2024) - start submitting SRF 4SR to STA for IFS publication (03/31/2024) - Metadata and dissemination: - Revise MFS metadata and submit through ICS to update the IFS country note for Suriname (02/29/2024). - Encourage MFS compilers to participate in IMF’s MFS workshop/training (continuous). ### Recommended actions and capacity building (Action Plan highlights) - High-priority and priority actions: - Finalize SRF 4SR and related metadata and start STA submissions for IFS publication (target dates: 01/31/2024 and 03/31/2024). - Review and update SRF 2SR mapping and reclassifications listed in Appendix II (target date: 12/31/2023). - Introduce insurance and pension fund data into a database to generate full balance sheets with currency and counterpart breakdowns (insurance: 11/30/2023 — Completed; pension funds: 09/30/2023 — Completed). - Finalize detailed mapping of insurance and pension fund outputs to SRF 4SR (target date: 12/31/2023). - Review miscellaneous items in SRF 1SR assets and reclassify where appropriate (target date: 12/31/2023). - Encourage staff participation in IMF MFS training (continuous). - Staffing and training: - Increase staff capacity through training on source data development, compilation methods, and dissemination. ### Revisions to 2SR mapping and short-term time deposits - The mission assisted the CBS to revise the mapping of 2SR. The mapping included classifications of both commercial bank and credit union data, though no credit union data are currently being reported. - The main revisions in 2SR included the reclassifications of the short-term time deposits with the central bank (Appendix II). - Recommendations from 2SR review: - Review items classified as miscellaneous in the assets of SRF 1 SR with a view to reallocating them. - Reclassify some accounts in the SRF 2SR, using the mapping developed during the mission. ### Other Financial Corporations (OFCs) — source data and reporting progress - Pension funds: - All pension funds report complete data using forms introduced prior to the covid pandemic. - Insurance companies: - New reporting forms were introduced for insurance companies during the pandemic; the second largest insurance company has begun reporting using the new forms while the largest is expected to do so soon with others to follow. - New reporting forms are detailed enough to allow for proper classification and sectorization for SRF 4SR, but forms are reported in Excel as a summary balance sheet with numerous annexes that lack a uniform structure practical to map in Excel. - Data Warehouse Project and database: - Authorities are working on a Data Warehouse Project to enable automatization of compilation and use of data; data for pension funds and insurance corporations will be introduced into a database program to classify instruments and assign sectors to counterparts. - FSD will develop the database; mission provided guidance on mapping pension funds and insurance corporations into the 4SR. - Data for neither sector could be introduced into the database program before the end of the mission, so the mission provided a temporary mapping and guidance. - Collaboration recommendation: - MDSD staff should closely collaborate with FSD for sectorization of institutional units in accordance with the MFSMCG 2016 methodology; a simple guideline for sectorization and classification was provided (Appendix III). ### Temporary mapping and authorities’ estimates - Temporary mapping steps taken by mission and SD staff: - Adding missing currency and counterpart breakdowns to summary balance sheets. - Populating them with the authorities’ estimates where only simple breakdowns (foreign/national currency or ODC/OFC) existed. - Authorities committed to replicate this mapping once the database produces more detailed balance sheets. ### Coverage and dissemination targets - If insurance corporations and pension funds are added to SRF 4SR reporting along with commercial banks in 2SR, coverage would capture more than 98 percent of the assets of the financial sector in Suriname. - Authorities expected pension fund reporting could begin by September of this year. - Authorities believed that data for at least the largest two insurance companies could be reported as soon as the end of this year and this would represent 88 percent of the assets of the subsector. - The CBS is encouraged to disseminate these improved monetary statistics on its website and to start reporting the SRF 4SR on a regular quarterly basis to STA for publication in IFS. ### Data reporting to the IMF - The CBS reports the SRF 1SR for the central bank and 2SR for ODCs for publication in International Financial Statistics (IFS) on a monthly basis. - The SRF 2SR will be updated with the new mapping provided by the mission with data starting from December 2022 and submitted to the IMF by December 2023. - The CBS aims to regularly report the SRF 4SR to STA for posting on the IMF’s website with quarterly frequency; the CBS should follow the plan developed during the mission to compile and submit the SRF 4SR including insurance corporations and pension funds. MDSD will closely collaborate with FSD to implement the plan. - The IFS country notes for Suriname were last updated in 2017 and need updating to reflect the improvements in MFS compilation; the CBS should update the IFS notes and submit revisions through the ICS. Metadata for the SRF 4SR should be provided as soon as OFC data are submitted. - The CBS has been submitting information on CUs to the IMF’s Financial Access Survey (FAS) voluntarily; figures include the amount of outstanding loans and deposits and are small. Expanding them for 2SR compilation could be a challenge. - Recommendation (metadata): - Revise the MFS metadata and submit through the ICS to update the IFS country notes of Suriname. ### Balance Sheet Approach (BSA) - With full coverage of the financial corporations sector, the CBS could develop a balance sheet approach (BSA) matrix for Suriname to summarize exposures of main sectors to one another and identify vulnerabilities from intersectoral financial positions. - The SRFs alone (SRFs 1SR, 2 SR and 4 SR) cover about 70 percent of the data required by the BSA matrix; additional information is required from the IIP, real sector, and fiscal accounts. - The mission presented the BSA, the BSA tool, country examples, and BSA charts/tables to MDSD staff; MDSD staff expressed interest in using these analyses for policy decisions. ### Resources, training, and technical cooperation - Mission-provided MFS training: lectures on CB, ODC, and DC modules from the MFS remote course, presentations on the 4SR, hands-on mapping discussions, technical support on classification questions, and breakdown of changes in stocks into valuation changes and other changes. - Tool developed with mission assistance: measure changes in valuation of foreign exchange assets that breaks down changes into exchange rate movements and other changes; tool is harmonized with authorities’ reporting forms. - Staffing as of May 2023: - SD’s Monetary Division had seven staff, all participating in MFS work; only two staff had participated in IMF MFS training courses. - Follow-up assistance: - May be useful to help develop a more precise 4SR mapping once detailed pension and insurance data are entered into a database; TA could be a full mission, a virtual mission, or more limited assistance. - Recommended action: - Support relevant staff to participate in the IMF’s MFS training courses to improve methodological knowledge and skills in compilation and dissemination of MFS (ongoing). ### Selected key statistics and reclassification changes (Appendix II) - NET FOREIGN ASSETS: 19,452,585 (CBS) — 19,452,585 (IMF) — Difference: - - CLAIMS ON NONRESIDENTS: 22,275,922 — 22,275,922 — Difference: - - LIABILITIES TO NONRESIDENTS: (2,823,336) — (2,823,336) — Difference: - - CLAIMS ON CENTRAL BANK: 28,971,669 — 28,971,669 — Difference: (0) - CURRENCY: 505,991 — 505,991 — Difference: - - RESERVE DEPOSITS AND SECURITIES OTHER THAN SHARES: 24,937,607 — 24,942,505 — Difference: 4,898 - OTHER CLAIMS ON CENTRAL BANK: 3,528,070 — 3,523,172 — Difference: (4,898) - NET CLAIMS ON CENTRAL GOVERNMENT: 3,853,878 — 3,853,878 — Difference: - - CLAIMS ON OTHER SECTORS: 20,308,683 — 20,708,784 — Difference: 400,100 - CLAIMS ON OTHER FINANCIAL CORPORATIONS: 390,823 — 390,823 — Difference: - - CLAIMS ON PUBLIC NONFINANCIAL CORPORATIONS: 1,790,606 — 1,790,606 — Difference: - - CLAIMS ON PRIVATE SECTOR: 18,127,254 — 18,527,354 — Difference: 400,100 - LIABILITIES TO CENTRAL BANK: 47,200 — 47,200 — Difference: - - TRANSFERABLE DEPOSITS INCLUDED IN BROAD MONEY: 31,466,609 — 31,466,609 — Difference: 0 - OTHER DEPOSITS INCLUDED IN BROAD MONEY: 32,238,039 — 32,238,039 — Difference: (0) - FINANCIAL DERIVATIVES: 17,540 — 17,540 — Difference: - - INSURANCE TECHNICAL RESERVES: 109,318 — 241,368 — Difference: 132,051 - SHARES AND OTHER EQUITY: 5,886,511 — 5,886,511 — Difference: - - OTHER ITEMS (NET): 2,821,599 — 3,089,649 — Difference: 268,050 ### Appendices and guidance (Appendix III highlights) - Guidelines for completing the reporting form for insurance corporations: - Unit: data expressed in thousands of Surinamese dollars (SRD); FC positions converted using the buying exchange rate at end of reference month as published on CBS website. - Valuation rules: tradable financial instruments at market or fair value; deposits and loans at nominal value; specific table of instrument valuation preserved in guidance. - Residency: based on economic center of interest; specific exceptions (embassies, consulates, international organizations, tourists, foreign nationals staying less than a year, and technical assistance personnel of foreign governments) are always considered nonresidents. - Counterpart sectors: residents split into Central Bank of Suriname; Commercial banks and other deposit-taking institutions in Suriname; Other financial corporations; General Government; Public nonfinancial corporations; Private nonfinancial corporations; Households. - Financial instrument classifications include Currency; Transferable Deposits; Other Deposits; Securities other than shares; Loans; Shares and other Equity; Insurance, pension, and standardized guarantee schemes. *Section I. Financial System in Suriname, IMF Technical Assistance Report – Monetary and Financial Statistics.* ### Section I. Financial System of Suriname ................................................................................ ### Section I. Financial System of Suriname ### Mission overview and priority recommendations - Mission visit: May 8–19, 2023. - Objective: Review compilation framework of monetary statistics for the central bank (CB) and other depository corporations (ODCs) in accordance with the 2016 Monetary and Financial Statistics Manual and Compilation Guide (MFSMCG 2016); establish a roadmap to incorporate insurance corporations and pension funds in the MFS compilation; improve MFS for financial sector surveillance. - Key outcomes: - Mapping for 1SR and 2SR found broadly in line with MFSMCG 2016; some adjustments to 2SR with no major impacts on main aggregates; no adjustments to 1SR. - Plan developed to compile SRF 4SR for insurance corporations and pension funds using FSD-collected supervisory data and a database program to generate uniform outputs mapped to 4SR. - Shared an Excel file generating an annual Balance Sheet Approach (BSA) matrix using SRFs 1SR, 2SR, 4SR (as of December 2021) and external sector data; briefed MDSD on BSA sources and uses. - Priority recommendations (Table 1): - December 2023 — Review the mapping for the SRF 2SR and update the classification of accounts listed in Appendix II as applicable. Responsible: MDSD. - January 2024 — Finalize and report to STA for review the SRF 4SR, covering insurance corporations and pension funds, and the related metadata. Responsible: MDSD. - March 2024 — Start submitting to STA the SRF 4SR, covering insurance corporations and pension funds, and the related metadata, for publication in IFS. Responsible: MDSD. ### Financial system structure and concentration (December 2022) - Overall: - Commercial banks dominate the financial system. - As of December 2022, commercial banks accounted for 78 percent of all financial sector assets outside of the central bank, and 99.5 percent of all ODC assets. - ODC coverage and institutions: - Nine banks (six majority private domestically controlled banks, two fully state-owned banks, and one foreign-controlled bank). All nine banks and one small deposit-taking microfinance company are included in the 2SR coverage. - Nine small credit unions are not included in the 2SR coverage and account for a negligible share of ODC assets; historically included April 2006–May 2010 when they accounted for two percent of all financial sector assets; currently represent 0.1 percent of all financial sector assets. - One deposit-taking microfinance institution included in 2SR. - Dollarization: - 78 percent of deposits denominated in foreign currency as of end-December 2022. - 56 percent of loans denominated in foreign currency as of end-December 2022. - Other financial corporations (OFCs): - OFCs hold around 22 percent of financial system assets. - Of OFC assets: 58 percent held by insurance corporations, 38 percent by pension funds, and less than 4 percent by other financial auxiliaries. - Ten insurance corporations (4 life, 6 non-life); 29 active pension funds (13 pension funds not active and under liquidation process). - Other institutions: 5 provident funds, 21 foreign exchange offices, 5 money transfer houses, a development bank, 1 stock exchange. - Concentration: - Insurance subsector: largest group (including three subsidiaries) holds about 75 percent of subsector assets; second largest holds another 13 percent. - Pension funds: 10 largest hold about 95 percent of total pension fund assets. - Regulatory and compilation responsibilities: - Central Bank of Suriname (CBS) is solely responsible for compiling and disseminating MFS; the Monetary Division of the Statistics Department (MDSD) performs compilation and reporting. - MDSD collaborates with the Supervision Directorate and is expected to start regular collaboration with Insurance and Pension Fund Supervision Departments in June 2023. - CBS functions and responsibilities under the new Central Bank Act of 2022 (enacted April 2023): maintain monetary stability, promote financial stability, ensure soundness of financial system, issue national currency, conduct monetary and foreign exchange policies, manage international reserves, regulate financial institutions, transact with IMF, act as banker to government. ### Key statistics (Table 2: The Financial Sector (December 2022)) - Central Bank of Suriname - Number of Institutions: 1 - Total Assets (Million, SRD): 52,493 - Share of Total Subsector Assets (in percent): 61 - Other Depository Corporations - Number of Institutions: 19 - Total Assets (Million, SRD): 81,749 - Share of Total Subsector Assets (in percent): 100 - Share in Financial Sector Assets (in percent): 78 - Total Assets to GDP: 95 - Commercial Banks - Number of Institutions: 9 - Total Assets (Million, SRD): 81,259 - Share of Total Subsector Assets (in percent): 99.4 - Share in Financial Sector Assets (in percent): 77.5 - Total Assets to GDP: 94.5 - Domestically controlled banks - Number of Institutions: 8 - Total Assets (Million, SRD): 67,051 - Share of Total Subsector Assets (in percent): 82.1 - Share in Financial Sector Assets (in percent): 64 - Total Assets to GDP: 78 - Government ownership note: The government has a share of roughly 34.5 percent in one of these banks. - Government owned (subset) - Number of Institutions: 2 - Total Assets (Million, SRD): 5,708 - Share of Total Subsector Assets (in percent): 7 - Share in Financial Sector Assets (in percent): 5.4 - Total Assets to GDP: 7 - Foreign controlled banks - Number of Institutions: 1 - Total Assets (Million, SRD): 14,208 - Share of Total Subsector Assets (in percent): 17.4 - Share in Financial Sector Assets (in percent): 13.5 - Total Assets to GDP: 17 - Credit Unions - Number of Institutions: 9 - Total Assets (Million, SRD): 85.6 - Share of Total Subsector Assets (in percent): 0.1 - Share in Financial Sector Assets (in percent): 0.1 - Total Assets to GDP: 0.1 - Deposit-taking Microfinance Institutions - Number of Institutions: 1 - Total Assets (Million, SRD): 404 - Share of Total Subsector Assets (in percent): 0.5 - Share in Financial Sector Assets (in percent): 0.4 - Total Assets to GDP: 0.5 - Other Financial Corporations - Number of Institutions: 85 - Total Assets (Million, SRD): 23,050 - Share of Total Subsector Assets (in percent): 100 - Share in Financial Sector Assets (in percent): 22 - Total Assets to GDP: 27 - Insurance Corporations - Number of Institutions: 10 - Total Assets (Million, SRD): 13,368 - Share of Total Subsector Assets (in percent): 58 - Share in Financial Sector Assets (in percent): 13 - Total Assets to GDP: 16 - Life insurance: Number of Institutions: 4; Total Assets (Million, SRD): 8,577; Share of Subsector (in percent): 37; Share in Financial Sector Assets (in percent): 8; Total Assets to GDP: 10 - Non-life insurance: Number of Institutions: 6; Total Assets (Million, SRD): 4,801; Share of Subsector (in percent): 21; Share in Financial Sector Assets (in percent): 5; Total Assets to GDP: 6 - Pension funds* - Number of Institutions: 42 - Total Assets (Million, SRD): 8,8 74 - Share of Total Subsector Assets (in percent): 38.5 - Share in Financial Sector Assets (in percent): 8 - Total Assets to GDP: 10 - *Only 29 pension funds are actually active and included in the data. - Other financial institutions** - Number of Institutions: 33 - Total Assets (Million, SRD): 808.4 - Share of Total Subsector Assets (in percent): 3.5 - Share in Financial Sector Assets (in percent): 1 - Total Assets to GDP: 1 - **Only 24 other financial institutions are included in the data. - Sources: CBS and IMF staff. ### Data compilation, reporting, and methodological notes - SRF 1SR (central bank): - Source: CBS general ledger; data compiled monthly by MDSD within 1 day of end of reference month. - Compliance: Report fully complies with MFSMCG 2016; CBS organizing central bank data using 1SR form (no mapping necessary). - Accounting: CBS is in the process of implementing IFRS in its accounting system. - Presentation issue: Miscellaneous items represented 10 percent of total assets in 1SR; mission recommended investigating allocation of the largest three miscellaneous items. - SRF 2SR (ODCs): - Source: Monthly bank reports provided within 15 days of end of reference month; central bank and ODC data published within five weeks. - Coverage: 2SR includes nine banks and one deposit-taking microfinance company; credit unions currently excluded due to capacity issues. - Data limitations: Accrued interest not broken down by counterpart sector or instrument; missing counterpart and currency breakdowns for financial derivatives and other accounts receivable/payable. - Actions: MDSD revising ODC reporting forms to comply with MFSMCG 2016; draft Dutch form provided to mission. Mission suggested including detailed accrued interest and financial derivatives information. New reporting forms expected to be introduced and incorporated into MFS reporting by December 2023. - Reclassifications made by mission in 2SR: several reclassifications with no major impact on main aggregates; within assets, a large volume of short-term time deposits with the central bank (mostly in domestic currency for open market operations) reclassified from transferable deposits to other deposits; some required reserves reclassified from transferable deposits to other deposits. Effects: no effect on base money, broad money, or net claims on other sectors; marginal increase in credit to private sector from allocation of accrued interest (see Appendix II). - Insurance corporations and pension funds (SRF 4SR): - FSD collects quarterly supervisory data: insurance corporations (lags of 10 days) and pension funds (lags of one month). - Plan: Introduce supervisory data into a database program to generate full balance sheets with currency and counterpart breakdowns; map outputs to SRF 4SR using temporary mapping provided by the mission. - Target milestones: introduce insurance company data into database (11/30/2023 — Completed); finalize mapping of insurance data to 4SR (12/31/2023); introduce pension fund data into database (09/30/2023 — Completed); finalize mapping of pension fund data to 4SR (12/31/2023); finalize and report SRF 4SR to STA (01/31/2024); start submitting SRF 4SR to STA for IFS publication (03/31/2024). - Metadata and dissemination: - Revise MFS metadata and submit through ICS to update the IFS country note for Suriname (02/29/2024). - Encourage MFS compilers to participate in IMF’s MFS workshop/training (continuous). ### Recommended actions and capacity building (from Action Plan highlights) - High-priority and priority actions include: - Finalize SRF 4SR and related metadata and start STA submissions for IFS publication (target dates: 01/31/2024 and 03/31/2024). - Review and update SRF 2SR mapping and reclassifications listed in Appendix II (target date: 12/31/2023). - Introduce insurance and pension fund data into a database to generate full balance sheets with currency and counterpart breakdowns (insurance: 11/30/2023 — Completed; pension funds: 09/30/2023 — Completed). - Finalize detailed mapping of insurance and pension fund outputs to SRF 4SR (target date: 12/31/2023). - Review miscellaneous items in SRF 1SR assets and reclassify where appropriate (target date: 12/31/2023). - Encourage staff participation in IMF MFS training (continuous). - Staffing and training: - Increase staff capacity through training on source data development, compilation methods, and dissemination. *Section I. Financial System in Suriname, IMF Technical Assistance Report – Monetary and Financial Statistics.* ### 20. The mission assisted the CBS to revise the mapping of 2SR. The mapping included ### tarea2024018 - 20. The mission assisted the CBS to revise the mapping of 2SR. The mapping included ### Revisions to 2SR mapping and short-term time deposits - The mission assisted the CBS to revise the mapping of 2SR. The mapping included classifications of both commercial bank and credit union data, though no credit union data are currently being reported. - The main revisions in 2SR included the reclassifications of the short-term time deposits with the central bank (Appendix II). ### Recommendations (from 2SR review) - Review items classified as miscellaneous in the assets of SRF 1 SR with a view to reallocating them. - Reclassify some accounts in the SRF 2SR, using the mapping developed during the mission. ### Other Financial Corporations (OFCs) — source data and reporting progress - All pension funds report complete data using forms introduced prior to the covid pandemic. - New reporting forms were introduced for insurance companies during the pandemic; the second largest insurance company has begun reporting using the new forms while the largest is expected to do so soon with others to follow. - The new reporting forms are detailed enough to allow for proper classification and sectorization for SRF 4SR, but: - Forms are reported in Excel as a summary balance sheet with numerous annexes that lack a uniform structure practical to map in Excel. - Authorities are working on a Data Warehouse Project to enable automatization of compilation and use of data; data for pension funds and insurance corporations will be introduced into a database program to classify instruments and assign sectors to counterparts. - FSD will develop the database; mission provided guidance on mapping pension funds and insurance corporations into the 4SR. - Data for neither sector could be introduced into the database program before the end of the mission, so the mission provided a temporary mapping and guidance. - The mission recommended MDSD staff closely collaborate with FSD for sectorization of institutional units in accordance with the MFSMCG 2016 methodology; a simple guideline for sectorization and classification was provided (Appendix III). ### Temporary mapping and authorities’ estimates - The mission, in collaboration with SD staff, developed a temporary mapping of the summary balance sheets in reporting forms by: - Adding missing currency and counterpart breakdowns to summary balance sheets. - Populating them with the authorities’ estimates where only simple breakdowns (foreign/national currency or ODC/OFC) existed. - The authorities committed to replicate this mapping once the database produces more detailed balance sheets. ### Coverage and dissemination targets - If insurance corporations and pension funds are added to SRF 4SR reporting along with commercial banks in 2SR, coverage would capture more than 98 percent of the assets of the financial sector in Suriname. - Authorities expected pension fund reporting could begin by September of this year. - Authorities believed that data for at least the largest two insurance companies could be reported as soon as the end of this year and this would represent 88 percent of the assets of the subsector. - The CBS is encouraged to disseminate these improved monetary statistics on its website and to start reporting the SRF 4SR on a regular quarterly basis to STA for publication in IFS. ### Recommendations (OFCs / SRF 4SR) - Introduce data for insurance companies into the database program to allow for the automatic generation of a full balance sheet with currency and counterpart breakdowns once data become available. - Introduce data for pension funds into the database program to allow for the automatic generation of a full balance sheet with currency and counterpart breakdowns. - Produce and begin submitting to STA the SRF 4SR on a regular quarterly basis for publication in IFS. ### Data reporting to the IMF - The CBS reports the SRF 1SR for the central bank and 2SR for ODCs for publication in International Financial Statistics (IFS) on a monthly basis. - The SRF 2SR will be updated with the new mapping provided by the mission with data starting from December 2022 and submitted to the IMF by December 2023. - The CBS aims to regularly report the SRF 4SR to STA for posting on the IMF’s website with quarterly frequency; the CBS should follow the plan developed during the mission to compile and submit the SRF 4SR including insurance corporations and pension funds. MDSD will closely collaborate with FSD to implement the plan. - The IFS country notes for Suriname were last updated in 2017 and need updating to reflect the improvements in MFS compilation; the CBS should update the IFS notes and submit revisions through the ICS. Metadata for the SRF 4SR should be provided as soon as OFC data are submitted. - The CBS has been submitting information on CUs to the IMF’s Financial Access Survey (FAS) voluntarily; figures include the amount of outstanding loans and deposits and are small. Expanding them for 2SR compilation could be a challenge. ### Recommendation (metadata) - Revise the MFS metadata and submit through the ICS to update the IFS country notes of Suriname. ### Balance Sheet Approach (BSA) - With full coverage of the financial corporations sector, the CBS could develop a balance sheet approach (BSA) matrix for Suriname to summarize exposures of main sectors to one another and identify vulnerabilities from intersectoral financial positions. - The SRFs alone (SRFs 1SR, 2 SR and 4 SR) cover about 70 percent of the data required by the BSA matrix; additional information is required from the IIP, real sector, and fiscal accounts. - The mission presented the BSA, the BSA tool, country examples, and BSA charts/tables to MDSD staff; MDSD staff expressed interest in using these analyses for policy decisions. ### Resources, training, and technical cooperation - The mission provided MFS training: lectures on CB, ODC, and DC modules from the MFS remote course, presentations on the 4SR, hands-on mapping discussions, technical support on classification questions, and breakdown of changes in stocks into valuation changes and other changes. - The mission assisted CBS staff to develop a tool to measure changes in valuation of foreign exchange assets that breaks down changes into exchange rate movements and other changes; the tool is harmonized with authorities’ reporting forms. - As of May 2023, the SD’s Monetary Division had seven staff, all participating in MFS work; only two staff had participated in IMF MFS training courses. - CBS officials and the mission agreed that staff training is required to enhance understanding of MFS concepts and to improve source data quality. - Follow-up assistance may be useful to help develop a more precise 4SR mapping once detailed pension and insurance data are entered into a database; TA could be a full mission, a virtual mission, or more limited assistance. - Recommended action: - Support relevant staff to participate in the IMF’s MFS training courses to improve methodological knowledge and skills in compilation and dissemination of MFS (ongoing). ### Selected key statistics and reclassification changes (Appendix II) - NET FOREIGN ASSETS: 19,452,585 (CBS) — 19,452,585 (IMF) — Difference: - - CLAIMS ON NONRESIDENTS: 22,275,922 — 22,275,922 — Difference: - - LIABILITIES TO NONRESIDENTS: (2,823,336) — (2,823,336) — Difference: - - CLAIMS ON CENTRAL BANK: 28,971,669 — 28,971,669 — Difference: (0) - CURRENCY: 505,991 — 505,991 — Difference: - - RESERVE DEPOSITS AND SECURITIES OTHER THAN SHARES: 24,937,607 — 24,942,505 — Difference: 4,898 - OTHER CLAIMS ON CENTRAL BANK: 3,528,070 — 3,523,172 — Difference: (4,898) - NET CLAIMS ON CENTRAL GOVERNMENT: 3,853,878 — 3,853,878 — Difference: - - CLAIMS ON OTHER SECTORS: 20,308,683 — 20,708,784 — Difference: 400,100 - CLAIMS ON OTHER FINANCIAL CORPORATIONS: 390,823 — 390,823 — Difference: - - CLAIMS ON PUBLIC NONFINANCIAL CORPORATIONS: 1,790,606 — 1,790,606 — Difference: - - CLAIMS ON PRIVATE SECTOR: 18,127,254 — 18,527,354 — Difference: 400,100 - LIABILITIES TO CENTRAL BANK: 47,200 — 47,200 — Difference: - - TRANSFERABLE DEPOSITS INCLUDED IN BROAD MONEY: 31,466,609 — 31,466,609 — Difference: 0 - OTHER DEPOSITS INCLUDED IN BROAD MONEY: 32,238,039 — 32,238,039 — Difference: (0) - FINANCIAL DERIVATIVES: 17,540 — 17,540 — Difference: - - INSURANCE TECHNICAL RESERVES: 109,318 — 241,368 — Difference: 132,051 - SHARES AND OTHER EQUITY: 5,886,511 — 5,886,511 — Difference: - - OTHER ITEMS (NET): 2,821,599 — 3,089,649 — Difference: 268,050 ### Appendices and guidance - Appendix III provides Guidelines for completing the reporting form for insurance corporations, including: - Unit: data expressed in thousands of Surinamese dollars (SRD); FC positions converted using the buying exchange rate at end of reference month as published on CBS website. - Valuation rules: tradable financial instruments at market or fair value; deposits and loans at nominal value; specific table of instrument valuation preserved in guidance. - Residency: based on economic center of interest; specific exceptions (embassies, consulates, international organizations, tourists, foreign nationals staying less than a year, and technical assistance personnel of foreign governments) are always considered nonresidents. - Counterpart sectors: residents split into Central Bank of Suriname; Commercial banks and other deposit-taking institutions in Suriname; Other financial corporations; General Government; Public nonfinancial corporations; Private nonfinancial corporations; Households. - Financial instrument classifications include Currency; Transferable Deposits; Other Deposits; Securities other than shares; Loans; Shares and other Equity; Insurance, pension, and standardized guarantee schemes. *IMF | Technical Assistance Report – Suriname Monetary and Financial Statistics* --- _Source: https://www.imf.org/-/media/files/publications/tar/2024/english/tarea2024018.pdf_