## Zimbabwe: Technical Assistance Report-Financial Sector Stability Report Follow Up Technical Assistance on the Implementation of the Basel III Liquidity Framework

_Technical Assistance Reports, September 20, 2024_

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## Bibliographic details
- Published: September 20, 2024
- Series: Technical Assistance Reports
- DOI: https://doi.org/10.5089/9798400290251.019

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### Mission scope and activities
- Follow-up to the 2019 FSSR through a hybrid remote TA mission supporting the Reserve Bank of Zimbabwe (RBZ) on finalizing the implementation of the Basel III liquidity framework, with a particular focus on the Net Stable Funding Ratio (NSFR).
- Reviewed drafts of the NSFR regulation and the template for prudential reporting.
- Supported the RBZ to elaborate a questionnaire for a Quantitative Impact Study (QIS).
- Discussed identified gaps with the BSD management and relevant supervisors.
- Delivered training on Liquidity Coverage Ratio (LCR) and NSFR.
- Provided recommendations on enhancing the drafts of regulation and reporting templates.
- Discussed outputs of LCR first assessments, highlighting the importance of checking the quality of LCR data reported by banks.

### Key findings
- The mission identified gaps in the draft NSFR regulation and prudential reporting templates that required clarification and enhancement.
- Initial LCR assessments were completed and their outputs were discussed with RBZ, with emphasis on the need to verify the quality of reported LCR data from banks.
- Capacity-building needs were evident, addressed through targeted training on LCR and NSFR.

### Policy recommendations and TA deliverables
- Enhance clarity and completeness of the NSFR regulation drafts to align with the Basel III liquidity framework.
- Improve the prudential reporting template to capture necessary data for monitoring NSFR and LCR compliance.
- Implement the QIS questionnaire developed with RBZ to assess quantitative impacts of NSFR requirements on banks.
- Strengthen supervisory review processes to identify and close gaps discussed with BSD management and relevant supervisors.
- Establish procedures to routinely check and validate the quality of LCR data reported by banks.

### Training and follow-up
- Delivered training sessions covering both LCR and NSFR concepts, measurement, and supervisory assessment.
- Recommended continued technical assistance and training to support RBZ in implementing and supervising the Basel III liquidity framework, including the conduct and analysis of QIS results.

### Publication metadata
- Pages: 23
- Volume: 2024
- DOI: https://doi.org/10.5089/9798400290251.019
- Issue: 081
- Series: Technical Assistance Report No. 2024/081
- Stock No: TAREA2024081
- ISBN: 9798400290251
- ISSN: 3005-4575

*Zimbabwe: Technical Assistance Report-Financial Sector Stability Report Follow Up Technical Assistance on the Implementation of the Basel III Liquidity Framework, September 20, 2024.*

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_Source: https://www.imf.org/en/publications/technical-assistance-reports/issues/2024/09/20/zimbabwe-technical-assistance-report-financial-sector-stability-report-follow-up-technical-555087_