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Ernst & Young: “Banking and Insurance CFOs Concerned About Supervision and Regulatory Complexity”

Ernst & Young: “Banking and Insurance CFOs Concerned About Supervision and Regulatory Complexity”

A study by consultants Ernst & Young (EY) concluded that 75 per cent of the financial directors of banks and insurance companies operating in Mozambique are “concerned about the increase in regulatory complexity and scrutiny by the supervisor”.

According to the study “CFO Survey Mozambique 2024”, presented this Wednesday, 24 January, in Maputo, the “impact of volatility” in the financial markets (67%), the “rapid pace” of change brought about by technology (46%) and “ESG” factors, which are environmental, social and corporate governance indicators (33%), are other of the main concerns of the financial directors of the banks, microbanks, cooperatives and insurance companies surveyed.

a d v e r t i s e m e n t

According to Lusa, this is a study aimed at leaders and employees in the financial function of banking and insurance institutions in Mozambique, with the aim of gathering their views on current and future challenges, particularly with regard to their strategy, technological capacity and team skills.

Among other conclusions, 60 per cent of the respondents to the EY study admitted that they plan to invest in the future in implementing technological accelerators and in the quality of their information systems, but 69 per cent pointed to plans to reduce investment in the operational model in order to “achieve short-term financial results”.

In addition, 67 per cent foresee “significant” changes in the structure of the finance function and 87 per cent identify the team’s knowledge of sustainable finance as inadequate.

The questionnaire was carried out anonymously between August and October 2023, with the participation of directors, managers and coordinators in the financial area of 22 Mozambican banks and 15 insurance companies.

See Also

The report recalls that a total of 32 credit institutions operated in Mozambique in 2021, with total assets of 814.4 billion meticais (11.7 billion euros) and profits of 24.5 billion meticais (352 million euros). The following year, there were 31 institutions, but total assets grew to 856.2 billion meticais (12.3 billion euros) and profits to 28.5 billion meticais (409.6 million euros).

In the insurance sector, there were 21 insurers operating in Mozambique in 2021, with gross premiums written totalling 20.2 billion meticais (209.7 million euros) and a profit of 174.3 million meticais (2.5 million euros). A year later, the total number of insurers fell to 16, in life, non-life and mixed insurance, but gross premiums written grew to 21 billion meticais (301.8 million euros) and profit to almost 2.1 billion meticais (30.8 million euros).

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