04033oam 22009974 450 991015501210332120230913112557.01-4755-5599-71-4755-5601-2(CKB)3710000000973044(BIP)077143737(BIP)077138650(IMF)1GNQEA2016002(EXLCZ)99371000000097304420020129d2016 uf 0engtxtrdacontentcrdamediacrrdacarrierRepublic of Equatorial Guinea : Selected IssuesWashington, D.C. :International Monetary Fund,2016.1 online resource (20 p.) IMF Staff Country Reports1-4755-5598-9 This Selected Issues paper analyzes macrofinancial linkages in Equatorial Guinea. Insufficient fiscal consolidation in response to falling oil prices and production has translated into arrears accumulation, leading to a sharp deterioration in commercial banks’ balance sheets. Although banks’ capital and liquidity ratio appear adequate, profitability has been shrinking, owing to weak economic activity and decelerating credit supply. Moreover, recent stress tests reveal a high sensitivity to negative liquidity and asset quality shocks. Financial development remains lackluster, which hurts economic development and effective structural transformation. Finally, strong macrofinancial linkages compounded by regional subsidiary-parent interlinkages call for increased scrutiny.IMF Staff Country Reports; Country Report ;No. 2016/358Banks and BankingimfFinance: GeneralimfMacroeconomicsimfMoney and Monetary PolicyimfBanksimfDepository InstitutionsimfMicro Finance InstitutionsimfMortgagesimfFinancial Markets and the MacroeconomyimfEnergy: Demand and SupplyimfPricesimfMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralimfGeneral Financial Markets: Government Policy and RegulationimfBankingimfFinanceimfMonetary economicsimfFinancial sector developmentimfOil pricesimfCommercial banksimfCreditimfFinancial marketsimfMoneyimfFinancial institutionsimfFinancial sector stabilityimfFinancial sector policy and analysisimfBanks and bankingimfFinancial services industryimfEquatorial Guinea, Republic ofimfBanks and BankingFinance: GeneralMacroeconomicsMoney and Monetary PolicyBanksDepository InstitutionsMicro Finance InstitutionsMortgagesFinancial Markets and the MacroeconomyEnergy: Demand and SupplyPricesMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralGeneral Financial Markets: Government Policy and RegulationBankingFinanceMonetary economicsFinancial sector developmentOil pricesCommercial banksCreditFinancial marketsMoneyFinancial institutionsFinancial sector stabilityFinancial sector policy and analysisBanks and bankingFinancial services industryDcWaIMFBOOK9910155012103321Republic of Equatorial Guinea3595100UNINA