The Bank of Mozambique (BoM) guarantees that despite the risks of exposure to public debt, the banking sector ‘remains solid, capitalised and resilient’, with a solvency ratio in the first quarter of this year well above the regulatory minimum.
In the Economic Situation and Inflation Outlook report, published by Lusa, the central bank indicates that at the end of March the solvency ratio stood at 25.1%, ‘above the regulatory minimum of 12.0%, and the liquidity ratio was 50.2%, also above the regulatory level of 25.0%’.
‘The macroprudential solvency stress test, which consists of simulating shocks to assess the banking sector’s resilience, showed that this sector has sufficient capital reserves to absorb potential losses and remain solid and capitalised in the medium term,’ the document states.
According to the financial entity, the systemic risk, which assesses the potential contagion effect resulting from disturbances in the banking system, ‘is moderate’, a behaviour that ‘reflects the gradual recovery of economic activity, the stability of the metical and the recent evolution of inflation’.
‘Domestic public debt, excluding loan and lease contracts and outstanding liabilities, stands at 361.8 billion meticals, representing an increase of 49.5 billion meticals compared to December 2023,’ he adds.
According to data from the central bank, 15 commercial banks and 12 microbanks operate in Mozambique, as well as credit cooperatives and savings and credit organisations, among others.
