IMF Staff Country Reports

Belgium: Financial System Stability Assessment

March 8, 2018

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Belgium: Financial System Stability Assessment, (USA: International Monetary Fund, 2018) accessed October 11, 2024

Summary

This paper assesses the stability of Belgium’s financial system. The financial sector remains resilient in the face of the rising cyclical vulnerabilities, but there is a need for closely monitoring risks. Stress tests on banks and insurance companies confirm that they can absorb credit, sovereign, and market losses in the event of a severe deterioration in macro-financial conditions. The risk of interbank contagion through direct exposures is low. Insurance companies are also generally resilient and the losses incurred by those that belong to banking groups do not threaten the soundness of those groups. Bank resilience reflects relatively healthy loan portfolios and limited exposure to market and liquidity risks, while insurance companies have sound solvency levels and reduced exposures to guaranteed rates.

Subject: Banking, Commercial banks, Financial institutions, Financial services, Insurance companies, Loans, Mortgages, Shadow banking

Keywords: Asset, Asset encumbrance, Asset encumbrance ratio, Assets of shadow bank, Bank, Bank assets, Banking system assets, BNP Paribas, Commercial banks, CR, Encumbrance ratio, Global, Insurance companies, Interest rate, IRB bank, ISCR, Loans, Mortgage, Mortgages, NBB, NBB regulation, Peer bank, Resilience to liquidity stress, Return on equity

Publication Details

  • Pages:

    42

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Country Report No. 2018/067

  • Stock No:

    1BELEA2018001

  • ISBN:

    9781484345733

  • ISSN:

    1934-7685