## Somalia: Technical Assistance Report-Prudential Classification and Provisioning of Credit Operations

_Technical Assistance Reports, March 27, 2026_

## Source details

**Canonical URL:** [Somalia: Technical Assistance Report-Prudential Classification and Provisioning of Credit Operations](https://www.imf.org/en/publications/technical-assistance-reports/issues/2026/03/27/somalia-technical-assistance-report-prudential-classification-and-provisioning-of-credit-574962)

## Other formats

- [Markdown version](/en/publications/technical-assistance-reports/issues/2026/03/27/somalia-technical-assistance-report-prudential-classification-and-provisioning-of-credit-574962/index.md)
- [Structured JSON version](/en/publications/technical-assistance-reports/issues/2026/03/27/somalia-technical-assistance-report-prudential-classification-and-provisioning-of-credit-574962/index.json)
- [Bundle manifest](/en/publications/technical-assistance-reports/issues/2026/03/27/somalia-technical-assistance-report-prudential-classification-and-provisioning-of-credit-574962/bundle-manifest.json)

## Bibliographic details
- Published: March 27, 2026
- Series: Technical Assistance Reports
- DOI: https://doi.org/10.5089/9798229042376.019

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### Overview
- The Technical Assistance (TA) assisted Somalia in reviewing its prudential regulation on classification and provisioning of credit operations aiming at aligning it with international standards and benchmarks and delivered a dedicated training on credit risk.
- The mission is part of a broad initiative to help the Central Bank of Somalia (CBS) improve the quality of data submitted by commercial banks, according to an action plan approved in July 2024.
- The effort covers reviewing prudential regulations, training supervisors, and updating data requirement templates.
- The prudential supervision framework under review includes capital requirements, liquidity requirements, related party transactions and assets classification and provisions.
- While capital and liquidity were addressed in earlier TAs, the current focus is on asset classification, provisioning, and broader credit risk issues.

### Technical findings and focus areas
- Asset classification and provisioning: primary focus of the mission.
- Credit risk: dedicated training was delivered on credit risk.
- Data quality: improving the quality of data submitted by commercial banks to CBS is a central objective.
- Prudential supervision framework components under review:
  - capital requirements
  - liquidity requirements
  - related party transactions
  - assets classification and provisions

### Activities delivered
- Review of prudential regulation on classification and provisioning of credit operations.
- Dedicated training on credit risk for supervisors.
- Work to update data requirement templates submitted by commercial banks.

### Subject tags and keywords (as supplied)
- Bank supervision
- Credit
- Credit risk
- Financial regulation and supervision
- Financial sector policy and analysis
- Financial sector stability
- Financial Sector Stability Review
- Money
- asset classification
- Cbs's Licensing and Supervision Department
- credit operations
- credit risk category
- credit risk management
- forbearance
- large exposures
- non-performing
- past-due
- provisioning
- risk management
- sanctions and penalties
- technical assistance provider
- Monetary and Capital Markets department
- IMF publication

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## Content in this bundle

- **tarea2026022-source-pdf - Preface**
  - [tarea2026022-source-pdf - Preface (Markdown version)](/-/media/files/publications/tar/2026/english/tarea2026022-source-pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [tarea2026022-source-pdf - Preface (PDF)](/-/media/files/publications/tar/2026/english/tarea2026022-source-pdf.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/technical-assistance-reports/issues/2026/03/27/somalia-technical-assistance-report-prudential-classification-and-provisioning-of-credit-574962_