Republic of Madagascar: Financial System Stability Assessment, including Reports on the Observance of Standards and Codes on the following topics: Banking Supervision, and Anti-Money Laundering
IMF Staff Country Reports, August 15, 2006
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- Republic of Madagascar: Financial System Stability Assessment, including Reports on the Observance of Standards and Codes on the following topics: Banking Supervision, and Anti-Money Laundering
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Bibliographic details
- Published: August 15, 2006
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451825398.002
Key findings: financial sector structure and risks
- The insurance sector is underdeveloped and has been inadequately supervised to date, as the regulator lacks the requisite independence, skills, and resources.
- The three public pension systems cover less than 10 percent of the active population and appear to be fiscally unsustainable.
- The banking regulatory and supervisory framework is broadly adequate, although implementation and enforcement need further strengthening.
- The weak financial position of the Central Bank of Madagascar (BCM) could undermine macroeconomic and financial policies and contribute to economic and financial instability.
Policy implications and priorities (as presented in the report)
- Strengthen independence, skills, and resources of the insurance regulator to improve supervision of the insurance sector.
- Reform the three public pension systems to address fiscal unsustainability, given coverage of less than 10 percent of the active population.
- Enhance implementation and enforcement of the banking regulatory and supervisory framework to ensure effective oversight of banks.
- Restore and safeguard the financial position of the Central Bank of Madagascar (BCM) to prevent risks to macroeconomic and financial stability.
Subject coverage and keywords
- Subject: Banking, Commercial banks, Credit, Financial institutions, Financial regulation and supervision, Loans, Money, Nonperforming loans, Operational risk
- Keywords: asset, balance sheet, bank, bank savings accounts, banking law, BCM loan, capital adequacy ratio, central bank, Commercial banks, CR, Credit, credit history, enterprise, financial situation, ISCR, loan, Loans, Nonperforming loans, Operational risk, parent bank, risk perception