The solvency ratio of Cape Verde’s banking system reached 24.82% in December 2025, marking the highest level since the statistical series began in 2010, according to data released by the Bank of Cape Verde (BCV), as reported by Lusa.
According to sector indicators, solvency showed a positive trend compared to the 23.77% recorded in 2023 and the 23.93% in 2024, reflecting a consistent strengthening of financial institutions’ ability to absorb losses and withstand adverse shocks.
At the same time, the quality of the loan portfolio showed significant improvements. The non-performing loan ratio fell to 5.11% of the total, one of the lowest levels in the past 15 years, compared to 7.27% in 2023 and 7.91% in 2024. Past-due loans also decreased, standing at 5.17%, compared to 8.18% and 5.5% in the two previous years, respectively.
Despite these indicators of strength, the banking sector’s profitability slowed in 2025, with return on equity (ROE) settling at 18.08%. Nevertheless, this is the second-best performance recorded since 2010, highlighting the sector’s resilience.
On the other hand, the banking system’s liquidity increased to 28.30%, also reaching an all-time high, which reinforces the institutions’ ability to meet short-term obligations.
Despite the favorable performance of key indicators, international institutions such as the International Monetary Fund (IMF), the World Bank (WB), and the Budget Support Group have been warning of structural vulnerabilities in the Cape Verdean economy, notably exposure to state-owned enterprises and the high concentration in sectors such as tourism, construction, and trade, which are particularly sensitive to external shocks.
According to the BCV, Cape Verde currently has eight banks in operation, four of which are classified as systemically important and are subject to additional capital requirements to mitigate risks and ensure the stability of the financial system.
