Democratic Republic of the Congo: Technical Help Report-Monetary Sector Stability Overview
September 1, 2022
In response to a request from the Central Financial institution of the Congo (BCC), the Financial and Capital Markets Division of the Worldwide Financial Fund (IMF) carried out a Monetary Sector Stability Overview (FSSR) mission nearly, throughout January 5–28, 2022. The FSSR carried out a diagnostic of the monetary system, reviewed progress in implementing earlier IMF technical help (TA) suggestions, and developed a draft Technical Help Roadmap to assist strengthen the BCC’s capability within the areas lined by the FSSR. The FSSR additionally for the first-time lined gender inclusion in monetary supervision. It recognized 5 macrofinancial vulnerabilities pertaining to: (i) the standard of the banking system’s capital base; (ii) the problem in evaluating nonperforming loans following the COVID 19 monetary assist measures; (iii) dangers associated to monetary dollarization; (iv) the impression on correspondent banking relationships of “de-risking”; and (v) intragroup exposures, as financial institution subsidiaries within the DRC place surplus funds with dad or mum firms overseas. The BCC’s adoption of COVID-19 exit measures in December 2021, together with particular reporting necessities, ought to present momentum for extra TA within the close to time period to assist the BCC analyze banks’ asset high quality going ahead.