Bhutan: Technical Assistance Report-Financial Sector Stability Review

Technical Assistance Reports, May 20, 2026

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Bhutan: Technical Assistance Report-Financial Sector Stability Review

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Bibliographic details

• Published: May 20, 2026
• Series: Technical Assistance Reports
• DOI: https://doi.org/10.5089/9798229046787.019

Mission and scope

• An IMF Financial Sector Stability Review (FSSR) mission visited Thimphu at the request of the Royal Monetary Authority of Bhutan (RMA).
• The mission conducted a diagnostic review of the financial sector and proposed a Technical Assistance Roadmap (TARM) to support the authorities’ efforts to strengthen identification, analysis, and mitigation of risks to financial stability in Bhutan.
• Publication metadata:
  • Pages: 58
  • Volume: 2026
  • Issue: 039
  • Series: Technical Assistance Report No. 2026/039
  • DOI: https://doi.org/10.5089/9798229046787.019
  • Stock No: TAREA2026039
  • ISBN: 9798229046787
  • ISSN: 3005-4575

Diagnostic findings

• Banking sector:
  • The RMA has rapidly progressed prudential regulation for the banking sector.
  • The priority must shift to strengthening supervisory capacity.
• Non-bank financial institutions (NBFIs) and digital innovation:
  • Non-bank financial institutions play an important role in the financial sector.
  • With growing digital innovation, authorities should develop tailored regulation for the insurance sector and crypto markets, while refining the approach to e-money.
  • Keyword signals in the source include: Bhutan, Bitcoin, Financial Sector, Insurance, NBFI, Payments.
• Payment systems:
  • Domestic payment systems are advanced with significant progress in modernization.
  • Cross-border payments can be improved.
• Financial sector statistics:
  • More granular collection of financial sector statistics can support more dynamic tools for analyzing and monitoring systemic risks.

Main recommendations and Technical Assistance Roadmap (TARM)

• The mission’s diagnostic review supports a TA plan; the report summarizes main recommendations and provides a comprehensive TARM.
• High-level recommended priorities:
  • Strengthen supervisory capacity for the banking sector.
  • Develop tailored regulatory frameworks for:
  • Insurance sector
  • Crypto markets
  • E-money (refine approach)
  • Enhance cross-border payments infrastructure and processes.
  • Improve granularity and frequency of financial sector statistical collection to enable dynamic systemic risk analysis.

Thematic subjects covered

• Financial markets
• Financial regulation and supervision
• Financial sector policy and analysis
• Financial sector stability
• Financial soundness indicators
• Payment systems

International Monetary Fund — https://www.imf.org/en/publications/technical-assistance-reports/issues/2026/05/19/bhutan-technical-assistance-report-financial-sector-stability-review-576171

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