IMF published reports under the 2019 Article IV consultations with Ghana, Hong Kong Special Administrative Region (HK SAR), India, and Turkey. These IMF reports assess, among other areas, the soundness of financial sectors in these countries.
The following are the key highlights of the IMF assessment:
- Staff and selected issues reports on Ghana. Directors welcomed the progress in the clean-up of the financial sector and recent improvements in banking sector performance. However, they urged the authorities to complete the financial sector restructuring while mitigating its fiscal costs. This requires implementing upfront reimbursement caps, addressing weaknesses in a state-owned bank, accelerating measures to reduce the nonperforming loan overhang, completing regulatory reforms, and stepping up recovery of funds from complicit directors and shareholders of failed institutions.
- Staff report on HK SAR. Directors underscored the importance of safeguarding financial stability amid rising global volatility. They commended the authorities for the progress in implementing the 2014 FSAP recommendations. Directors supported the authorities’ three-pronged approach to contain housing market risks and improve housing affordability, with priority given to increasing land allocation for residential housing. Continued efforts would be needed to monitor vulnerabilities in the corporate sector, further strengthen the regulatory and supervisory framework, and facilitate innovation while managing risks.
- Staff Report on India. Directors welcomed the steps taken to tackle the twin bank and corporate balance-sheet problem but noted the continued challenges of the financial sector. They recommended that the recently announced public sector bank merger plan be accompanied by deep operational restructuring and far-reaching governance reforms to improve efficiency, risk management, and credit allocation. Directors welcomed the strengthened monitoring and regulation of non-bank financial companies and recommended enhancing the availability of timely and granular data to help restore confidence in the sector.
- Staff and selected issues reports on Turkey. Directors emphasized that vigilance is needed in view of the rapid credit growth of state-owned banks. They encouraged taking steps to rein in credit growth and clean up bank and corporate balance sheets to support financial stability and stronger, more resilient growth. Directors generally agreed that a third-party asset quality review and new stress tests are needed to better understand underlying bank health. Additional reforms to improve the insolvency regime and out-of-court restructuring would also help release resources and restart productive lending.
- Staff Report on Ghana
- Selected Issues Report on Ghana
- Staff Report on HK SAR
- Staff Report on India
- Staff Report on Turkey
- Selected Issues Report on Turkey
Keywords: International, Middle East and Africa, Europe, Asia Pacific, Ghana, Turkey, Hong Kong, India, Banking, Article IV, FSAP, IMF
Previous ArticleIFSB Publishes Working Papers on Islamic Finance
The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks
The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations
The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.
The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.