Publication:
Colombia - Financial Sector Assessment

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dc.contributor.authorIMF
dc.contributor.authorWorld Bank
dc.date.accessioned2022-04-18T16:55:27Z
dc.date.available2022-04-18T16:55:27Z
dc.date.issued2022-03
dc.description.abstractState-owned financial institutions (SOFIs) and broader interventions by the state need to play a more prominent role in supporting financial inclusion, green activities and fostering competition among private financial providers. While SOFIs have been generally perceived as complementary to the private sector, their recent incursion into direct lending and commercial activities could raise competitive neutrality considerations, if subsidies are involved. Improving product design, incorporating best practices, strengthening governance, and continuing to improve risk management would support expansion of SOFIs activities in a non-distortionary way. Interventions could be better coordinated to improve efficiency, avoid duplication, and ensure alignment with policy objectives. The formalization of Grupo Bicentenario should contribute to these objectives. Monitoring and evaluation (M&E) of public credit support policies and programs could be strengthened. Finally, interest rate controls and mandatory investment requirements to fund the agricultural sector should be reviewed to limit distortions. Colombia has a well-developed market for NPL management, while the insolvency framework is in a stage of transition and with areas for improvement. Strong and efficient NPL resolution and insolvency frameworks are key for financial sector stability and development. There is an active and competitive market for sales of written-off loans, mainly in unsecured segments, with an extensive availability of investors and market infrastructure. Active resolution of NPLs should continue to be encouraged by the SFC, particularly for commercial NPLs, for which NPL management by third-party providers is scarce. Several recent regulations related to the insolvency framework have been introduced, including temporary emergency decrees that make considerable modifications to the corporate insolvency system. This transitory situation creates uncertainty in the users of the insolvency system, in particular large corporations, and creditors. The incorporation of some of the provisions from these temporary decrees into the bankruptcy law would be advisable. The ultimate judge of corporate insolvency is an administrative entity (the Superintendency of Companies) which is specialized and enjoys good reputation, but the rotation of its authorities and the executive’s capacity to remove them poses severe challenges for the predictability of its criteria. Finally, the personal insolvency system requires urgent attention.en
dc.identifierhttp://documents.worldbank.org/curated/en/099010004112241518/P17314204e921c0430aacb0c320cb7f9e13
dc.identifier.doi10.1596/37312
dc.identifier.urihttps://hdl.handle.net/10986/37312
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectSTATE-OWNED FINANCIAL INSTITUTIONS (SOFIS) 
dc.subjectSTATE LENDING
dc.subjectPUBLIC CREDIT SUPPORT POLICIES
dc.subjectINTEREST RATE CONTROLS
dc.subjectFINANCIAL SECTOR ASSESSMENT
dc.subjectFINANCIAL INCLUSION
dc.subjectGOVERNANCE OF STATE-OWNED FINANCIAL INSTITUTIONS
dc.subjectFINANCIAL TRANSPARENCY
dc.subjectCOMMERCIAL LENDING
dc.subjectCOMMERCIAL BANKING
dc.subjectINSOLVENCY FRAMEWORK
dc.titleColombia - Financial Sector Assessmenten
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleColombia - Financial Sector Assessment
okr.date.disclosure2022-04-12
okr.date.doiregistration2025-05-07T12:09:34.756757Z
okr.date.lastmodified2022-04-12T00:00:00Zen
okr.doctypeReport
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099010004112241518/P17314204e921c0430aacb0c320cb7f9e13
okr.guid099010004112241518
okr.identifier.externaldocumentum33784001
okr.identifier.internaldocumentum33784001
okr.identifier.report170349
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099010004112241518/pdf/P17314204e921c0430aacb0c320cb7f9e13.pdfen
okr.region.administrativeLatin America & Caribbean
okr.region.countryColombia
okr.topicFinance and Financial Sector Development::Banks & Banking Reform
okr.topicFinance and Financial Sector Development::Financial Crisis Management & Restructuring
okr.topicFinance and Financial Sector Development::Financial Regulation & Supervision
okr.topicFinance and Financial Sector Development::Financial Sector and Social Assistance
okr.topicPrivate Sector Development::Competitiveness and Competition Policy
okr.unitEFNFP
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