20231018-IMF-Zimbabwe_Technical_Assistance_Report—Financial_Soundness_Indicators_Statistics_Mission_27页_438kb

Summary of Zimbabwe Financial Soundness Indicators Technical Assistance Mission

This summary outlines the key findings and priority recommendations from a technical assistance mission conducted by the IMF's Statistics Department in collaboration with the Reserve Bank of Zimbabwe (RBZ) in April 2023. The mission assessed the compilation of Financial Soundness Indicators (FSIs) based on the 2019 FSI Compilation Guide, focusing on data quality, institutional frameworks, and recommendations for improvement.

Key Findings

• Institutional and Data Framework: The RBZ has a functional framework for FSI data collection and dissemination, but mapping of source data to FSI standards requires enhancements. Key areas include ensuring consistency with the 2019 FSI Guide, addressing data gaps, and improving metadata for better interpretation.

• Accounting and Regulatory Alignment: The accounting principles and regulatory frameworks are broadly consistent with international standards (e.g., IFRS9 and Basel II/III), but adjustments are needed for full alignment, such as clarifying fair value treatments for non-performing loans and implementing Basel III requirements.

• FSI Coverage: Current FSIs are compiled for deposit takers, but opportunities exist to expand coverage to include insurance corporations, pension funds, and other financial corporations to support comprehensive financial stability analysis.

Priority Recommendations

• Metadata and Institutional Coverage: Finalize and implement new metadata templates (FSM and FSIC) to provide detailed information on data compilation processes and institutional structures, enhancing data transparency and usability.

• Data Migration and Compilation: Use bridge tables developed during the mission to facilitate the migration of source data to the 2019 FSI Standard Reports (FSI-SRs). Link these tables to RBZ's internal databases for automated compilation to improve efficiency.

• Training and Implementation: Enhance staff training on FSI compilation, focusing on the 2019 Guide, and encourage participation in IMF-offered courses to build capacity.

• Timeline for Actions: Critical deadlines require finalizing FSI compilation for the period March 2018 to date by September 2023, including metadata review and reporting to the IMF STA. This should be completed using bridge tables for data migration and consistency.

Target Actions and Deadlines

• Due by September 2023:
  • Finalize compilation of revised FSI-SRs, including metadata and FSIC.
  • Report data to IMF STA for dissemination.
  • Begin expanded FSI coverage for insurance and pension funds, with IPEC assisting in data collection.

Conclusion

The mission supports progress toward standardized FSI compilation in Zimbabwe, emphasizing improved data quality, expanded coverage, and ongoing capacity development to align with global best practices and support evidence-based policy decisions.