{
  "title": "Belgium: Financial Sector Assessment Program-Financial System Stability Assessment",
  "publication": "IMF Staff Country Reports, December 8, 2023",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2023/12/07/belgium-financial-sector-assessment-program-financial-system-stability-assessment-542059",
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  "summary": "This paper focuses on the report on Belgium’s Financial Sector Assessment Program. Economic activity has slowed, core inflation remains high, and the fiscal outlook is challenging. The financial sector has remained resilient despite a series of shocks.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Paper focuses on the report on Belgium’s Financial Sector Assessment Program.\n- Economic context:\n  - Economic activity has slowed.\n  - Core inflation remains high.\n  - The fiscal outlook is challenging.\n- Financial sector resilience:\n  - The financial sector has remained resilient despite a series of shocks.\n  - Key financial stability risks emanate from the large, concentrated, and interconnected banking sector, private sector indebtedness, and high exposure to real estate."
    },
    {
      "heading": "Stress testing and solvency",
      "content": "- Bank solvency stress tests indicate that the financial sector is resilient under severe macroeconomic shocks.\n- Although there is some heterogeneity across financial institutions, all banks would satisfy the minimum capital criteria.\n- Keywords and methodologies highlighted: bank solvency stress tests, insurance solvency stress test, Stress testing, cash flow."
    },
    {
      "heading": "Major risks and vulnerabilities",
      "content": "- Large, concentrated, and interconnected banking sector.\n- Private sector indebtedness.\n- High exposure to real estate.\n- Heterogeneity across financial institutions despite aggregate resilience."
    },
    {
      "heading": "Policy recommendations",
      "content": "- Enhance the National Bank of Belgium’s powers to set macroprudential policy in line with its financial stability mandate.\n- In the near term, the extension/ setting of capital requirements should be streamlined, without the requirement for government approval.\n- Strengthen the corporate governance framework and expectations for banks.\n- Boost prudential supervisory staffing, especially given upcoming regulatory developments.\n- Improve NBB coordination and overall bank oversight."
    },
    {
      "heading": "Subject tags and keywords (as provided)",
      "content": "- Subject: Asset and liability management; Financial institutions; Financial Sector Assessment Program; Financial sector policy and analysis; Financial sector stability; Insurance companies; International organization; Monetary policy; Stress testing.\n- Keywords: B. bank Oversight; bank solvency stress tests; cash flow; corporate governance framework; Europe; Financial Sector Assessment Program; Financial sector stability; Global; Insurance companies; insurance solvency stress test; market share; NBB coordination; Stress testing.\n\n---\n\n Content in this bundle\n\n- 1belea2023006\n  - 1belea2023006 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 1belea2023006 (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: December 8, 2023",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9798400261862.002",
    "Paper focuses on the report on Belgium’s Financial Sector Assessment Program.",
    "Economic context:",
    "Financial sector resilience:",
    "Bank solvency stress tests indicate that the financial sector is resilient under severe macroeconomic shocks.",
    "Although there is some heterogeneity across financial institutions, all banks would satisfy the minimum capital criteria.",
    "Keywords and methodologies highlighted: bank solvency stress tests, insurance solvency stress test, Stress testing, cash flow.",
    "Large, concentrated, and interconnected banking sector.",
    "Private sector indebtedness.",
    "High exposure to real estate.",
    "Heterogeneity across financial institutions despite aggregate resilience.",
    "Enhance the National Bank of Belgium’s powers to set macroprudential policy in line with its financial stability mandate.",
    "In the near term, the extension/ setting of capital requirements should be streamlined, without the requirement for government approval.",
    "Strengthen the corporate governance framework and expectations for banks.",
    "Boost prudential supervisory staffing, especially given upcoming regulatory developments.",
    "Improve NBB coordination and overall bank oversight.",
    "Subject: Asset and liability management; Financial institutions; Financial Sector Assessment Program; Financial sector policy and analysis; Financial sector stability; Insurance companies; International organization; Monetary policy; Stress testing.",
    "Keywords: B. bank Oversight; bank solvency stress tests; cash flow; corporate governance framework; Europe; Financial Sector Assessment Program; Financial sector stability; Global; Insurance companies; insurance solvency stress test; market share; NBB coordination; Stress testing.",
    "**1belea2023006**"
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