## Senegal: Financial System Stability Assessment Update

_IMF Staff Country Reports, April 18, 2005_

## Source details

**Canonical URL:** [Senegal: Financial System Stability Assessment Update](https://www.imf.org/en/publications/cr/issues/2016/12/31/senegal-financial-system-stability-assessment-update-18179)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/31/senegal-financial-system-stability-assessment-update-18179/index.md)
- [Structured JSON version](/en/publications/cr/issues/2016/12/31/senegal-financial-system-stability-assessment-update-18179/index.json)
- [Bundle manifest](/en/publications/cr/issues/2016/12/31/senegal-financial-system-stability-assessment-update-18179/bundle-manifest.json)

## Bibliographic details
- Published: April 18, 2005
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451833973.002

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### Summary findings
- The banking sector remains the cornerstone of the financial sector.
- Risk concentration remains the main source of vulnerability.
- The largest microfinance institutions (MFI) are sound, but smaller MFIs are weaker and need to be consolidated and better supervised.
- Commercial banks and large MFIs provide credit to small- and medium-sized enterprises, but access to financial services suffers from asymmetries of information and flaws in the judicial system.
- The development of the regional capital market has not met expectations.

### Financial sector structure and vulnerabilities
- Banking sector: identified as the central pillar of the financial system; primary vulnerabilities arise from risk concentration.
- Microfinance sector:
  - Largest MFIs: sound.
  - Smaller MFIs: weaker; require consolidation and enhanced supervision.
- Credit intermediation: commercial banks and large MFIs are key providers of credit to small- and medium-sized enterprises, but effectiveness is limited by information asymmetries and judicial system weaknesses.
- Capital markets: regional capital market development has fallen short of expectations.

### Policy implications and recommendations (implied by findings)
- Strengthen supervision and regulatory oversight, particularly targeted at smaller MFIs, to support consolidation where appropriate.
- Address information asymmetries that hinder SME access to finance (e.g., improve credit information, borrower profiling).
- Reform judicial processes affecting creditor rights and contract enforcement to reduce barriers to financial access.
- Reassess measures to promote regional capital market development given current underperformance.

### Key statistics and publication metadata
- Publication date: April 18, 2005
- Pages: 24
- Volume: 2005
- Issue: 126
- Series: Country Report No. 2005/126
- DOI: https://doi.org/10.5089/9781451833973.002
- Stock No: 1SENEA2005003
- ISBN: 9781451833973
- ISSN: 1934-7685

*Senegal: Financial System Stability Assessment Update, IMF Staff Country Reports 2005, 126.*

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## Content in this bundle

- **Senegal:  Financial System Stability Assessment Update**
  - [Senegal:  Financial System Stability Assessment Update (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2005/_cr05126.pdf.md){rel="alternate" type="text/markdown"}
  - [Senegal:  Financial System Stability Assessment Update (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2005/_cr05126.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/senegal-financial-system-stability-assessment-update-18179_