Financial Institution Risk Assessment in Gabon Uncovers Dominant Banking Sector, Heavy Dependence on Oil Exports

Gabon’s financial sector has been assessed to be dominated by a relatively sound but small banking sector that focuses primarily on the formal sector. The country’s operating environment is characterized by a fixed peg to the euro, heavy dependence on oil exports, and continued government presence in both the enterprise and financial sectors.

Key Findings

• The banking sector appears sound but is small and focused on the formal sector.
• The importance of monetary and financial policy transparency, banking supervision, and insurance regulation in maintaining financial stability was highlighted.

Risks and Challenges

• Internal controls and solvency issues pose a risk to Gabon’s financial institutions.
• Revenue administration poses a challenge for the government, which relies heavily on oil exports.

Recommendations

• Improve financial sector policy and analysis in Gabon, with implications for banking, commercial banks, financial institutions, insurance companies, revenue administration, and other stakeholders.
• Implement measures to promote stability and soundness in the global financial system.

Background

The Financial System Stability Assessment for Gabon was released on May 8, 2002. The assessment is part of the International Monetary Fund’s (IMF) Financial System Stability Assessment program, which aims to promote stability and soundness in the global financial system.

Accessing the Report

The full report can be downloaded free of charge from the IMF website.