The financial system appears to be broadly resilient, has strong capital and liquidity buffers but remains relatively small and dominated by banks, especially few state-owned banks. Household and corporate indebtedness and public debt are low. The macroprudential policy framework features both financial stability and development objectives. The recently passed Financial Sector Omnibus Law (FSOL) will make notable reforms to the financial sector.
- Format
- Paper
- Frequency
- regular
- ISBN
- 9798400286438
- ISSN
- 1934-7685
- Pages
- 63
- Published in
- United States of America
- Series
- Country Report No. 2024/272
- StockNumber
- 1IDNEA2024003
Table of Contents
- International Monetary Fund 1
- Washington D.C. 1
- KEY ISSUES 2
- Glossary 6
- EXECUTIVE SUMMARY 8
- MACROFINANCIAL SETTING 13
- A. Macrofinancial Developments 13
- B. Financial Sector Structure Interconnectedness and Development 16
- ASSESSMENT OF VULNERABILITIES 22
- A. Financial Sector Vulnerabilities and Risks 22
- B. Risk Analysis Framework and Macrofinancial Scenarios 28
- C. Results of Risk Analysis 30
- Banking Sector Risk Analysis 30
- Corporate Vulnerability Analysis 35
- System-Wide FX Liquidity Analysis 36
- Climate-Related Risk Analysis 37
- FINANCIAL SECTOR OVERSIGHT 40
- A. Systemic Risk Oversight and Macroprudential Framework 40
- B. Banking Sector Supervision and Regulation 42
- Conventional Banks 42
- Islamic Banks 43
- C. Financial Integrity AMLCFT 44
- SYSTEMIC LIQUIDITY FINANCIAL CRISIS MANAGEMENT AND RESOLUTION 44
- A. Systemic Liquidity Management 44
- B. Crisis Management and Financial Safety Net 45
- FINANCIAL SECTOR DEVELOPMENT 46
- AUTHORITIES VIEWS 48
- Appendix I. Implementation Status of 2017 FSAP 56
- Recommendations 56
- Appendix II. Banking Sector Stress Testing Matrix 62
