Publication: Mozambique : Financial Sector Assessment
Date
2009-11
ISSN
Published
2009-11
Author(s)
World Bank
Abstract
Mozambique's overall macroeconomic
performance in recent years has been impressive.
Macroeconomic stability, a sustained structural reform
effort, substantial foreign aid flows and, until recently, a
benign international environment has generated an average
annual real gross domestic product (GDP) growth rate of 7½
percent for most of the past decade. While inflation has
been relatively high (around 10 percent annually) and
volatile in recent years, reflecting the predominance of
food (52 percent) and energy (23 percent) in the consumer
basket, underlying inflationary pressures appear to be
contained. As a result, the banking sector's soundness,
in particular asset quality, improved substantially. Between
end-2003 and 2008, non-performing loans (NPLs) for the
system as a whole declined dramatically (from 14.4 to 2.9
percent), largely reflecting the restructuring of problem
banks and assets and a supportive macroeconomic environment.
This Financial Sector Assessment (FSA) focuses on the key
developmental challenges still facing the Mozambican
financial sector. Section two provides an assessment of the
structure and performance of the banking sector and the main
impediments to financial deepening and outreach. Section
three presents the state of development and key challenges
in the pension and insurance sectors, respectively. Section
four assesses the payments system infrastructure.
Citation
“World Bank. 2009. Mozambique : Financial Sector Assessment. © Washington, DC. http://hdl.handle.net/10986/15920 License: CC BY 3.0 IGO.”