## Guinea: Financial Sector Stability Review

_IMF Staff Country Reports, February 12, 2020_

## Source details

**Canonical URL:** [Guinea: Financial Sector Stability Review](https://www.imf.org/en/publications/cr/issues/2020/02/11/guinea-financial-sector-stability-review-49041)

## Other formats

- [Markdown version](/en/publications/cr/issues/2020/02/11/guinea-financial-sector-stability-review-49041/index.md)
- [Structured JSON version](/en/publications/cr/issues/2020/02/11/guinea-financial-sector-stability-review-49041/index.json)
- [Bundle manifest](/en/publications/cr/issues/2020/02/11/guinea-financial-sector-stability-review-49041/bundle-manifest.json)

## Bibliographic details
- Published: February 12, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513529844.002

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### Summary
- IMF conducted a Financial Sector Stability Review of the Republic of Guinea in June 2019.
- Review date on page: February 12, 2020.
- Main conclusion: current economic situation is benign and the economic outlook is currently positive, but financial soundness indicators (FSIs) point to increasing vulnerabilities and possibly some idiosyncratic stress in the banking sector.
- Rapid financial inclusion growth driven by quick adoption of mobile money services.
- Data quality and availability issues hinder more in-depth assessment of financial stability and potential vulnerabilities.
- Financial sector structure acts, to some extent, as a mitigant because all banks are part of foreign financial groups that they can fall back on during periods of stress.
- Recommendation emphasis: develop capacity now to handle potential financial stability vulnerabilities.

### Key findings and analysis
- Financial soundness indicators (FSIs):
  - Point to increasing vulnerabilities.
  - Suggest possibly some idiosyncratic stress in the banking sector.
- Economic environment:
  - Current economic situation described as benign.
  - Economic outlook described as currently positive.
- Financial inclusion:
  - Growing rapidly, with mobile money services quickly adopted.
- Structure of banking sector:
  - All banks are part of foreign financial groups, providing potential external support in stress periods.
- Data limitations:
  - Data quality and availability issues make more detailed financial stability assessment difficult.
  - These issues affect the ability to assess vulnerabilities across the banking sector and, later, other financial sectors.

### Policy recommendations and priorities
- Strengthen supervisory capacity:
  - Significantly improve on- and offsite supervision of the banking sector.
- Improve data:
  - Significantly improve the availability and quality of data on the banking sector first, and subsequently for other financial sectors.
- Regulatory modernization:
  - Modernize the regulatory framework for banks.
- Sequencing:
  - Prioritize supervisory capacity and data quality improvements now, while the economic situation is benign, to prepare for potential future vulnerabilities.

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## Content in this bundle

- **Guinea: Financial Sector Stability Review; IMF Country Report No. 20/42; October 2019**
  - [Guinea: Financial Sector Stability Review; IMF Country Report No. 20/42; October 2019 (Markdown version)](/-/media/files/publications/cr/2020/english/1ginea2020001.pdf.md){rel="alternate" type="text/markdown"}
  - [Guinea: Financial Sector Stability Review; IMF Country Report No. 20/42; October 2019 (PDF)](/-/media/files/publications/cr/2020/english/1ginea2020001.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2020/02/11/guinea-financial-sector-stability-review-49041_