Democratic Republic of the Congo: Technical Assistance Report-Financial Sector Stability Review
IMF Staff Country Reports, September 1, 2022
Source details
- Canonical URL
- Democratic Republic of the Congo: Technical Assistance Report-Financial Sector Stability Review
Other formats
Bibliographic details
- Published: September 1, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400218620.002
Mission scope and objectives
- Conducted by the Monetary and Capital Markets Department of the International Monetary Fund (IMF) in response to a request from the Central Bank of the Congo (BCC).
- Mission format: virtual.
- Mission dates: January 5–28, 2022.
- Core tasks:
- Performed a diagnostic of the financial system.
- Reviewed progress in implementing previous IMF technical assistance (TA) recommendations.
- Developed a draft Technical Assistance Roadmap to strengthen the BCC’s capacity in areas covered by the FSSR.
- For the first time, covered gender inclusion in financial supervision.
Key macrofinancial vulnerabilities identified
- The FSSR identified five macrofinancial vulnerabilities:
- (i) the quality of the banking system’s capital base;
- (ii) the difficulty in evaluating nonperforming loans following the COVID 19 financial support measures;
- (iii) risks related to financial dollarization;
- (iv) the impact on correspondent banking relationships of “de-risking”; and
- (v) intragroup exposures, as bank subsidiaries in the DRC place surplus funds with parent companies abroad.
Policy developments and near-term technical assistance implications
- The BCC’s adoption of COVID-19 exit measures in December 2021, including specific reporting requirements, is expected to:
- Provide momentum for additional TA in the near term.
- Help the BCC analyze banks’ asset quality going forward.
Notable thematic coverage
- Bank resolution framework
- Bank supervision
- Financial crises
- Financial regulation and supervision
- Financial sector policy and analysis
- Financial sector stability
- Monetary policy
- Stress testing
- Inclusion of gender considerations in financial supervision (first-time coverage in this FSSR)
International Monetary Fund, “Democratic Republic of the Congo: Technical Assistance Report-Financial Sector Stability Review” (September 1, 2022). https://www.imf.org/en/publications/cr/issues/2022/09/01/democratic-republic-of-the-congo-technical-assistance-report-financial-sector-stability-522775
Content in this bundle
- 1codea2022004