20240307-IMF-Suriname_Technical_Assistance_Report-Monetary_and_Financial_Statistics_Mission_May_8–19,_2023_17页_714kb

Technical Assistance Report Summary: Suriname Monetary and Financial Statistics Mission (May 8-19, 2023)

Core Content

This report summarizes the findings and recommendations of a technical assistance (TA) mission conducted by the International Monetary Fund (IMF) in Suriname from May 8 to May 19, 2023. The mission aimed to improve the compilation and dissemination of Monetary and Financial Statistics (MFS) in line with the 2016 Monetary and Financial Statistics Manual and Compilation Guide (MFSMCG 2016), with a focus on integrating insurance corporations and pension funds into the MFS framework.

Main Outcomes and Recommendations

1. Mission Overview

• The mission, supported by the IMF’s Western Hemisphere Department (WHD), collaborated with the Monetary Division of the Statistics Department (MDSD) of the Central Bank of Suriname (CBS) to review the current compilation framework of monetary statistics and establish a roadmap for incorporating insurance corporations and pension funds.
• The mission developed a temporary mapping for SRF 4SR, which will be used to guide the integration of these entities into the MFS reporting system.
• The CBS is responsible for compiling and disseminating MFS, and the MDSD manages the reporting process.

2. Financial Sector Overview

• Commercial banks dominate the financial system, accounting for 78% of financial sector assets and 99.5% of ODC assets.
• Credit unions and deposit-taking microfinance institutions are minor contributors, with credit unions now excluded from the 2SR due to low asset share.
• Other Financial Corporations (OFCs), including insurance companies and pension funds, hold 22% of the financial sector’s assets, with insurance companies (58%) being the largest subsector.
• The CBS is responsible for regulating and supervising all financial institutions, including banks, credit unions, insurance corporations, pension funds, and the stock exchange.

3. Current Data Reporting and Challenges

• The CBS reports SRF 1SR (central bank) and SRF 2SR (ODCs) to the IMF on a monthly basis, with a lag of 15 days.
• Insurance corporations and pension funds report data quarterly, with some lags.
• The current reporting forms lack detailed breakdowns of currency and counterpart sectors, particularly for accrued interest, financial derivatives, and other receivables/payables.
• The mission recommended improvements in data reporting, including more detailed classifications and the introduction of new forms for insurance and pension data.

4. Balance Sheet Approach (BSA)

• The BSA matrix is a key tool for analyzing intersectoral financial positions and linkages.
• The mission provided an Excel tool to generate an annual BSA matrix using SRF 1SR, 2SR, and 4SR data, as well as external financial data.
• The BSA approach helps identify vulnerabilities and imbalances in the financial system, and the MDSD expressed interest in using it for future policy analysis.

5. Action Plan and Milestones

6. Data Integration and Database Development

• The mission recommended introducing data for insurance corporations and pension funds into a database to enable the automatic generation of full balance sheets with currency and counterpart breakdowns.
• The authorities are developing a Data Warehouse Project to automate data collection and processing.
• The mission provided guidance on mapping pension and insurance data to the SRF 4SR, with the understanding that the final mapping will be done once more detailed data are available.

7. Training and Capacity Building

• The mission conducted training sessions on the MFS framework, including the CB, ODC, and DC modules, as well as the 4SR form.
• Hands-on training was provided on mapping and classification, as well as on breaking down changes in stocks into valuation changes and other changes.
• A tool was developed to monitor changes in the valuation of foreign exchange assets, distinguishing between exchange rate movements and other factors.
• The mission emphasized the need for ongoing training to enhance staff understanding of MFS concepts and improve data quality.

Key Information

• Target sectors for integration into MFS: Insurance corporations and pension funds.
• Current data sources include the CBS general ledger for SRF 1SR and monthly reports from banks for SRF 2SR.
• Challenges include lack of detailed currency and counterpart breakdowns in current reporting forms, which need to be addressed to fully comply with MFSMCG 2016.
• Next steps include the regular quarterly submission of SRF 4SR data, the development of a data warehouse, and the revision of IFS country notes for Suriname.
• Collaboration between MDSD and FSD is essential for successful implementation of the action plan.
• The BSA matrix is a recommended tool for analyzing financial linkages and vulnerabilities, with the mission providing an Excel-based template.

Conclusion

The mission has identified key areas for improvement in the compilation and dissemination of MFS in Suriname. The focus is on integrating insurance corporations and pension funds into the reporting framework, enhancing data quality, and improving staff capacity through training. The recommended action plan outlines specific steps to be completed by the end of 2023 and early 2024, with the goal of producing more accurate and comprehensive financial statistics for the CBS and the broader financial sector.