Costa Rica: Technical Assistance Report - Financial Sector Stability Review
IMF Staff Country Reports, April 2, 2018
Source details
- Canonical URL
- Costa Rica: Technical Assistance Report - Financial Sector Stability Review
Other formats
Bibliographic details
- Published: April 2, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484347317.002
Summary and purpose
- This Technical Assistance Report discusses the findings and recommendations made by the IMF mission to assist Costa Rica in delivering sound financial sector reform in support of financial stability.
- It was found that despite progress, the financial stability framework in Costa Rica is not well prepared to handle a potential systemic financial crisis without seriously compromising fiscal resources.
Key findings
- Supervision of the financial sector is becoming risk-based and intensive, but it lacks key legal powers, tools, and responsibilities for the effective oversight of institutions and markets.
- Serious vulnerabilities in the pension sector, the secondary markets, and financial-crisis safety nets need urgent attention.
Policy implications and recommendations (as stated)
- Assist Costa Rica in delivering sound financial sector reform in support of financial stability.
- Strengthen the legal powers, tools, and responsibilities of financial-sector supervisors to enable effective oversight of institutions and markets.
- Address urgent vulnerabilities in the pension sector, secondary markets, and financial-crisis safety nets to reduce systemic risk.
- Reinforce the financial stability framework so a potential systemic financial crisis can be managed without seriously compromising fiscal resources.
Subject areas and keywords
- Subject: Financial sector policy and analysis, Financial sector stability, Legal support in revenue administration, Public debt, Revenue administration, Stress testing, Systemic risk
- Keywords: authority, bank, bank resolution process, banking sector, banking system, Caribbean, Central America, CR, credit risk, exchange rate risk, Financial sector stability, foreign currency, insurance market participant, ISCR, Legal support in revenue administration, market, market maker, market sector, monetary policy, secondary market, solvency concern, Stress testing, Systemic risk, trading mechanism
Content in this bundle
- Country Report