## Burundi: Technical Assistance Report-Financial Sector Stability Review

_Technical Assistance Reports, March 19, 2025_

## Source details

**Canonical URL:** [Burundi: Technical Assistance Report-Financial Sector Stability Review](https://www.imf.org/en/publications/technical-assistance-reports/issues/2025/03/19/burundi-technical-assistance-report-financial-sector-stability-review-565321)

## Other formats

- [Markdown version](/en/publications/technical-assistance-reports/issues/2025/03/19/burundi-technical-assistance-report-financial-sector-stability-review-565321/index.md)
- [Structured JSON version](/en/publications/technical-assistance-reports/issues/2025/03/19/burundi-technical-assistance-report-financial-sector-stability-review-565321/index.json)
- [Bundle manifest](/en/publications/technical-assistance-reports/issues/2025/03/19/burundi-technical-assistance-report-financial-sector-stability-review-565321/bundle-manifest.json)

## Bibliographic details
- Published: March 19, 2025
- Series: Technical Assistance Reports
- DOI: https://doi.org/10.5089/9798229004213.019

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### Summary of the engagement
- Mission and timing:
  - The Monetary and Capital Markets Department (MCM) of the International Monetary Fund (IMF) carried out a Financial Sector Stability Review (FSSR) mission from January 31 through February 13, 2024.
  - The FSSR responded to a request from the Bank of the Republic of Burundi (BRB).
- Objectives:
  - Performed a diagnostic assessment of the financial system oversight framework.
  - Reviewed progress in implementing technical assistance (TA) recommendations of 2019–2024.
  - Developed a draft Technical Assistance Roadmap (TARM) to improve financial system stability by strengthening the BRB’s capacity.
- Expected outcome:
  - Implementing the report’s recommendations will bolster financial stability and support economic growth.

### Main macro-financial vulnerabilities identified
- Difficulty of assessing credit quality:
  - Linked to the boom in lending in 2021–2022.
  - Worsened by non-adherence to the International Financial Reporting Standard 9 (IFRS9) and to the rules on credit risk from the Basel Committee on Banking Supervision (BCBS).
- Exchange rate risk:
  - Risk related to exchange rate depreciation.
- Sovereign-banks nexus:
  - Risks arising from interactions between public finances and the banking sector.
- Concentration risks:
  - Concentration of assets (large exposures) and liabilities (deposits) noted.
  - Recommendation that prudential rules and regulations should be more rigorously applied and that concentration should be given greater consideration in supervision and stress tests.

### Key recommendations and supervisory priorities
- Strengthen the BRB’s supervisory capacity before enhancing prudential regulations.
- Address systemic risks through:
  - Improved stress testing.
  - A strengthened crisis management framework.
- Give greater consideration to asset and liability concentration in:
  - Supervision.
  - Stress testing exercises.
- Implement the draft Technical Assistance Roadmap (TARM) to strengthen BRB capacity and improve financial system stability.

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## Content in this bundle

- **tarea2025029-print-pdf**
  - [tarea2025029-print-pdf (Markdown version)](/-/media/files/publications/tar/2025/english/tarea2025029-print-pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [tarea2025029-print-pdf (PDF)](/-/media/files/publications/tar/2025/english/tarea2025029-print-pdf.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/technical-assistance-reports/issues/2025/03/19/burundi-technical-assistance-report-financial-sector-stability-review-565321_