Paraguay: Financial System Stability Assessment: Update
IMF Staff Country Reports, July 25, 2011
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- Paraguay: Financial System Stability Assessment: Update
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Bibliographic details
- Published: July 25, 2011
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781462321384.002
Executive summary and key findings
- Most banks in Paraguay appear resilient to shocks.
- Exposure to large borrowers is high.
- Paraguay’s banking system safety net is well developed.
Principal recommendations and policy priorities
- Adopt measures that would moderate credit growth.
- Induce financial institutions to build cushions that can protect them and their clients from a sudden reversal of conditions.
- To start building a strong macroprudential policy framework, Executive Directors recommend improving coordination and information sharing among all agencies responsible for financial stability and financial sector oversight.
Financial stability risks and areas for monitoring
- High exposure to large borrowers increases systemic vulnerability despite overall bank resilience.
- Rapid credit growth without adequate buffers could transmit shocks to banks and clients in the event of adverse developments.
- Coordination and information sharing gaps among agencies responsible for financial stability and oversight are priority governance weaknesses to address when developing macroprudential tools.
Subjects and keywords
- Subjects: Banking, Commercial banks, Credit, Deposit insurance, Financial crises, Financial institutions, Loans, Money, Nonperforming loans
- Keywords: Banco regional, bank assets, bank concentration, bank excess reserves, bank liability, bank license, bank ratio, capital adequacy ratio, central bank, Commercial banks, CR, Credit, Deposit insurance, excess reserves, Global, ISCR, Loans, Nonperforming loans, private sector, soundness indicator
Source: Paraguay: Financial System Stability Assessment: Update (July 25, 2011), IMF Staff Country Reports.
Content in this bundle
- Paraguay: Financial System Stability Assessment--Update; IMF Country Report 11/198; May 10, 2011