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Business and Economics > Banks and Banking

You are looking at 1 - 10 of 41 items for :

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  • Solomon Islands x
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Cover Technical Assistance Reports
Solomon Islands: Technical Assistance Report-Central Bank Risk Management
International Monetary Fund. Monetary and Capital Markets Department
This report provides an overview of the assistance provided by the IMF to the Central Bank of Solomon Islands on enhancing its risk management in line with international best practices for central banks.
Keywords:
Central banking; risk management; central bank governance; central bank independence; Solomon Islands.; TA mission team; Department mission; CBSI officer; MCM Department; CBSI documentation; IMF executive director; Operational risk; Auditing; Central bank risk management
Cover IMF Staff Country Reports
Solomon Islands: 2023 Article IV Consultation-Press Release; and Staff Report
International Monetary Fund. Asia and Pacific Dept
This 2023 Article IV Consultation highlights that the economy is recovering from multiple shocks in the past three years, but the recovery is still fragile in the Solomon Islands. Near-term fiscal policy should focus on prudent execution of the 2023 budget, followed by rebuilding of the government’s cash balance. Prudent management of public investment projects including their financing arrangements is an urgent priority. The current exchange rate regime remains appropriate, but a timely review of the currency basket is called for, given changes in trade patterns. Solomon Islands’ external position in 2022 is assessed to be substantially weaker than the level consistent with medium-term fundamentals and desirable policies. Developing new growth drivers, including by enhancing natural resource wealth management, market regulation, and addressing governance weaknesses and corruption vulnerabilities, is an urgent priority. The IMF continues to support capacity development of the authorities in collaboration with development partners.
Keywords:
CBSI staff; liability positions vis-à-vis nonresident; CBSI approval; CBSI assessment; BOP unit; External sector statistics; Commercial banks; Global; Pacific Islands
Cover IMF Staff Country Reports
Solomon Islands: Technical Assistance Report-Central Bank Risk Management
International Monetary Fund. Monetary and Capital Markets Department
At the request of the Central Bank of Solomon Islands (CBSI), a Monetary and Capital Markets Department (MCM) mission provided technical assistance on central bank risk management during the period August–September 2021. The mission comprised Mr. Paul Woods (Central Bank of Ireland) and Mr. Chris Aylmer (formerly with the Reserve Bank of Australia), under supervision of Mr. Ashraf Khan (MCM, Central Bank Operations Division) The purpose of the mission was to guide the CBSI on how to establish an Enterprise Risk Management (ERM) framework. The mission focused in particular on establishing a strengthened risk culture throughout the organization, and strengthening risk governance - including the role of the CBSI’s risk management unit.
Keywords:
CBSI risk governance; CBSI Risk Appetite Statement; sub Risk Management Unit; CBSI risk management framework; CBSI leadership team; Operational risk; Central bank risk management
Cover IMF Staff Country Reports
Solomon Islands: Requests for Purchase under the Rapid Financing Instrument and Disbursement under the Rapid Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for the Solomon Islands
International Monetary Fund. Asia and Pacific Dept
This paper presents Solomon Island’s Requests for Purchase Under the Rapid Financing Instrument and Disbursement Under the Rapid Credit Facility. In order to address the pandemic, the Solomon Islands’ authorities have taken measures to prevent the entry of coronavirus disease 2019 (COVID-19), to increase health and containment spending, and to provide targeted support for vulnerable households and businesses. IMF financing will help fill immediate financing needs and catalyze additional financing from its development partners to support the COVID-19 response. The authorities’ immediate policy response has focused on strong and timely containment measures to limit the risk of a local outbreak while reprioritizing spending toward health care. They have also adopted a fiscal stimulus package with measures targeted at providing social assistance, protecting jobs and incomes and stabilizing the domestic economy. Beyond the immediate response to the external shock, the authorities should remain committed to policies that promote inclusive growth and resilience while containing external pressures, protecting financial stability and preserving fiscal sustainability.
Keywords:
ISCR; CR; financing; Solomon Islands government; government; IMF lending tracker; IMF financial support; fund support; financing gap; COVID-19; Credit; Global
Cover Policy Papers
Poverty Reduction and Growth Trust-Review of Interest Rate Structure
International Monetary Fund. Finance Dept.
,
International Monetary Fund. Strategy, Policy, &amp
, and
Review Department
This paper reviews the Poverty Reduction and Growth Trust (PRGT) interest rate structure for the period July 2019–June 2021. Since the interest rate mechanism was first established in 2009, no interest has been charged on PRGT credit. In line with the package of reforms proposed in the parallel Review of LIC Facilities, this paper proposes to align interest rates on the SCF with those on the ECF. Based on the average SDR rate over the most recently observed 12-month period, the proposed revised interest rate mechanism would result in zero interest rates on both ECF and SCF credit for the period July 2019–June 2021.
Keywords:
PP; interest rate; PRGT interest rate mechanism; rate; PRGT interest rates; PRGT; PRGT financing; interest rate mechanism; SCF credit; Credit; Loans; SDR interest rate; Credit ratings; Poverty reduction strategy; Global
Cover Resilience and Growth in the Small States of the Pacific
Resilience and Growth in the Small States of the Pacific
Hoe Ee Khor
,
Mr. Roger P. Kronenberg
, and
Ms. Patrizia Tumbarello

Abstract

Pacific island countries face unique challenges to realizing their growth potential and raising living standards. This book discusses ongoing challenges facing Pacific island countries and policy options to address them. Regional cooperation and solutions tailored to their unique challenges, as well as further integration with the Asia and Pacific region will each play a role. With concerted efforts, Pacific island countries can boost potential growth, increase resilience, and improve the welfare of their citizens.

Keywords:
BOOK; GDP; GDP-weighted distance; financial crisis; market share; U.S. dollar; lending rate; real GDP; Natural disasters; Inflation; Income; Pacific Islands; Global; Asia and Pacific; Australia and New Zealand; Caribbean; IMF staff estimate; IMF staff calculation; business climate shortcoming; Climate change
Cover IMF Staff Country Reports
Solomon Islands: 2016 Article IV Consultation and Fifth and Sixth Reviews Under the Extended Credit Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Solomon Islands
International Monetary Fund. Asia and Pacific Dept
This paper presents an overview of Solomon Islands’ economy. Although Solomon Islands is a small island state, low-income country that is severely affected by external shocks, including commodity price declines, natural disasters, and climate change, it has achieved considerable gains in terms of macroeconomic stability under the Extended Credit Facility program. Despite the low access, the program has been effective in catalyzing donor support. Economic growth in 2015 is estimated at 3¼ percent. Near-term prospects remain favorable but new sources of growth are needed over the medium term. Key policy recommendations have been discussed in the paper to further strengthen the economy of Solomon Islands.
Keywords:
ISCR; CR; debt; government; ECF arrangement; deficit; IMF's Extended Credit Facility; basket peg regime; authorities' effort; reform agenda; Natural disasters; Pacific Islands; Asia and Pacific
Cover IMF Working Papers
The Journey to Inflation Targeting: Easier Said than Done The Case for Transitional Arrangements along the Road
Mr. Bernard J Laurens
,
Mr. Kelly Eckhold
,
Mr. Darryl King
,
Mr. Nils O Maehle
,
Abdul Naseer
, and
Alain Durré
Countries with evolving monetary regimes that decide to embark on “the Journey to inflation targeting” may not be able to adopt a full-fledged inflation targeting regime immediately. Those countries would be better off adopting transitional arrangements that take advantage of the informational content of monetary aggregates, developing an economic analysis capacity, and concentrating on monetay operations aimed at steering money market interest rates. This approach would allow the central bank to buy time for developing the building blocks for effective monetary policy, support transparent central bank communication, and limit the potential for undesirable outcomes along the road.
Keywords:
WP; regime; country; central bank; monetary policy; monetary regime; monetary policy transmission; MT regime; central bank communication; monetary policy implementation; balance sheet management; central bank Independence; transitional regime; a number of country; monetary policy framework; regime in place; country's authorities; Monetary base; Monetary aggregates; Inflation; Inflation targeting; Monetary policy frameworks; Africa; Global
Cover IMF Working Papers
What Drives Interest Rate Spreads in Pacific Island Countries? An Empirical Investigation
Mr. Fazurin Jamaludin
,
Mr. Vladimir Klyuev
, and
Anuk Serechetapongse
Growth has been sluggish in Pacific island countries (PICs). High cost of credit is likely one of the reasons. While the small scale, geographic dispersion, and vulnerability to shocks increase the cost and risk of credit in this country group, there is considerable variability in interest rate spreads both across countries and over time. This paper examines the determinants of lending rates and interest rate spreads in a panel of six PICs, extending the literature that was largely descriptive in nature or focused on a single country. Our results are in line with economic theory. We find that the size of the economy is negatively correlated with spreads, confirming the importance of scale. Inflation appears to have only marginal impact on spreads. High loan loss provisions and nonperforming loans increase the cost of credit. So does banking system concentration. Higher institutional quality is associated with lower spreads.
Keywords:
WP; loss provision; lending rate; deposit rate; market power; interest rates; banking systems; Pacific island countries; bank assets; interest income; PIC bank; capitalized bank; banks ANZ; lending activity; loan portfolio; loan market; bank taxation; market concentration; asset quality; Commercial banks; Loans; Deposit rates; Loan loss provisions; Income; Pacific Islands; Caribbean
Cover IMF Staff Country Reports
Solomon Islands: Fourth Review Under the Extended Credit Facility Arrangement
International Monetary Fund. Asia and Pacific Dept
KEY ISSUES Recent Developments and Outlook. Solomon Islands held its parliamentary elections on November 19, 2014 and elected a new government led by Prime Minister Manasseh Sogavare, representing the Democratic Coalition for Change. The country’s Gold Ridge mine, its only gold mine, remains closed and the chances of it re-opening are limited given current gold prices. At the same time, the logging industry is being adversely affected by the depletion of forestry resources. As a result, the near-term outlook has worsened. While lower oil prices constitute a windfall to consumers and producers, diversifying sources of growth and boosting the competitiveness of the economy are key to strengthening medium-term growth prospects. The risks to the outlook are to the downside. Program Performance. Performance under the Extended Credit Facility (ECF) arrangement has been broadly satisfactory. Performance criteria for end-June 2014 were met by large margins. Indicative targets (ITs) for end September 2014 were also met, except for those on health and education spending, which were both narrowly missed in June and September 2014. Despite delays, the authorities have made progress in implementing the structural reform agenda. Policy Recommendations ? In the medium term, recalibrate ambitious spending plans in line with implementation capacity, revenue envelope, financing availability, and the need to preserve fiscal buffers for resilience against shocks given the serious setback in mining prospects linked to the closure of the only gold mine. ? Strengthen the quality of public spending and fiscal management by advancing Public Financial Management (PFM) reform, including improving the transparency and accountability in the use of constituency funds. ? Maintain the current monetary stance but stand ready to tighten policy if credit growth and inflationary pressures surge. ? Strengthen financial regulation and supervision, including supervision of the National Provident Fund, and improve private sector access to credit.
Keywords:
ISCR; CR; ECF arrangement; government; vulnerabilities to shock; SDR; Solomon Islands government; reform effort; government value; Credit; Oil prices; Imports; Australia and New Zealand; Global; Caribbean; Asia and Pacific