## Colombia: Financial System Stability Assessment

_IMF Staff Country Reports, April 4, 2022_

## Source details

**Canonical URL:** [Colombia: Financial System Stability Assessment](https://www.imf.org/en/publications/cr/issues/2022/04/04/colombia-financial-system-stability-assessment-516087)

## Other formats

- [Markdown version](/en/publications/cr/issues/2022/04/04/colombia-financial-system-stability-assessment-516087/index.md)
- [Structured JSON version](/en/publications/cr/issues/2022/04/04/colombia-financial-system-stability-assessment-516087/index.json)
- [Bundle manifest](/en/publications/cr/issues/2022/04/04/colombia-financial-system-stability-assessment-516087/bundle-manifest.json)

## Bibliographic details
- Published: April 4, 2022
- Series: IMF Staff Country Reports

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### Summary findings
- The pandemic led to Colombia’s largest recession on record, but the economy bounced back strongly in 2021.
- The banking system has so far weathered the shock well, supported by a strong policy and support response and a strong initial position.
- Colombia is exposed to elevated external financing risks and the further prolongation of the pandemic.
- Large and complex financial conglomerates with increasing cross-border exposures dominate the financial system.
- The consumer-credit portfolio has been growing fast and had high impairment rate during the pandemic and therefore deserves attention.

### Financial system resilience and structure
- Banking system performance:
  - Weathered the pandemic shock well to date, aided by policy support and an initially strong position.
- Dominant institution types:
  - Large and complex financial conglomerates with increasing cross-border exposures dominate the financial system.
- Key risk areas highlighted:
  - Elevated external financing risks.
  - Potential further adverse effects if the pandemic is prolonged.

### Consumer-credit portfolio
- Growth and performance:
  - Consumer-credit portfolio has been growing fast.
  - Experienced high impairment rate during the pandemic.
- Policy implication:
  - The consumer-credit portfolio deserves attention from supervisors and policymakers due to rapid growth and elevated impairments.

### External vulnerabilities
- External financing risks:
  - Colombia is exposed to elevated external financing risks.
- Pandemic contagion risk:
  - Further prolongation of the pandemic represents a material downside risk to the financial system and economic outlook.

### Policy response and supervision
- Support measures:
  - A strong policy and support response mitigated banking sector stress during the pandemic.
- Supervisory focus needed:
  - Monitor large conglomerates with cross-border exposures.
  - Focus on consumer credit growth and asset quality deterioration.

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## Content in this bundle

- **Colombia: Financial System Stability Assessment; IMF Country Report No. 22/98; March 10, 2022**
  - [Colombia: Financial System Stability Assessment; IMF Country Report No. 22/98; March 10, 2022 (Markdown version)](/-/media/files/publications/cr/2022/english/1colea2022003.pdf.md){rel="alternate" type="text/markdown"}
  - [Colombia: Financial System Stability Assessment; IMF Country Report No. 22/98; March 10, 2022 (PDF)](/-/media/files/publications/cr/2022/english/1colea2022003.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2022/04/04/colombia-financial-system-stability-assessment-516087_