Financial Sector Assessment : Burundi

The financial sector, dominated by the banks, is vulnerable to external shocks. The country is exposed to terms of trade shocks mainly from coffee and oil prices, which could impact banks through real sector effects. The banking system is also vulnerable to a decline in external assistance which funds nearly half of the government on which a large share of the economy depends. Burundi has not been directly affected by the international crisis, but second round effects are likely to impact growth and foreign aid prospects The Bank of the Republic of Burundi (BRB) is making major efforts to improve the regulation and supervision of the financial institutions under its responsibility, but it continues to face significant obstacles The microfinance sector is facing major challenges, and its supervision reflects the constraints affecting the BRB. All the on-site inspections organized by the BRB revealed serious problems and violations of prudential rules, in particular in the areas of accounting, governance, or the absence of reliable internal controls. In order to put the industry on a sound footing, it is essential to: (i) update the regulatory framework to facilitate the growth of a sound industry and introduce a specific chart of accounts; (ii) develop supervision that is capable of preserving the health of the sector, and of deposits in particular; and (iii) promote the professionalization of the industry itself, with improved human capacities, appropriate management tools, modern methodologies, and good governance.

Bibliographic Details

Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2009-12
Subjects:	ACCESS TO FINANCING, ACCESS TO INSURANCE, ACCOUNTING, ACCOUNTING FRAMEWORK, AMOUNT OF LOANS, ARBITRAGE, ARBITRATION, ARREARS, ASSET QUALITY, AUCTION, AUCTIONS, BALANCE OF PAYMENTS, BANK ACCOUNTS, BANK BRANCHES, BANK CREDIT, BANK CREDITS, BANK LENDING, BANK LIQUIDITY, BANK PORTFOLIOS, BANKING LAW, BANKING SECTOR, BANKING SYSTEM, BID, BROKERAGE, BROKERAGE ACTIVITIES, BROKERS, BUDGETING, CADASTRE, CAPITAL ACCOUNT, CAPITAL ACCOUNT LIBERALIZATION, CAPITAL ADEQUACY, CAPITAL STRUCTURE, CASH BALANCE, CASH FLOW, CASH TRANSACTIONS, CENTRAL BANK, CENTRAL BANKS, CHECKING ACCOUNT, CHECKS, COLLATERAL, COMMERCIAL BANK, COMMERCIAL BANKS, COMMERCIAL REGISTRY, CONFLICTS OF INTEREST, CREDIT BUREAUS, CREDIT COOPERATIVE, CREDIT GROWTH, CREDIT LINES, CREDIT RISK, CREDITORS, CURRENCY, CURRENT ACCOUNT DEFICIT, DEBT, DEBT LEVEL, DEBT MANAGEMENT, DEBTORS, DECENTRALIZATION, DEPOSIT, DEPOSIT INSURANCE, DEPOSITORS, DEPOSITS, DEVELOPMENT BANK, DURABLE, ECONOMIC DEVELOPMENT, EQUIPMENT, EQUITY CAPITAL, EXCHANGE RATE, EXTERNAL DEBT, EXTERNAL FINANCE, EXTERNAL INDEBTEDNESS, FINANCIAL HEALTH, FINANCIAL INFORMATION, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL MANAGEMENT, FINANCIAL MARKET, FINANCIAL MARKETS, FINANCIAL MARKETS DEVELOPMENT, FINANCIAL PERFORMANCE, FINANCIAL SECTOR DEVELOPMENT, FINANCIAL STABILITY, FINANCIAL STATEMENTS, FINANCIAL SYSTEM, FOREIGN BANKS, FOREIGN EXCHANGE, FOREIGN EXCHANGE RESERVES, FRAUD, GOVERNMENT BUDGET, GOVERNMENT POLICY, GOVERNMENT SECURITIES, GOVERNMENT SECURITIES MARKET, GROSS DOMESTIC PRODUCT, GROSS SETTLEMENT SYSTEM, GUARANTEE FUNDS, HOLDING, HOST COUNTRY, HOUSING FINANCE, HUMAN CAPITAL, HUMAN RESOURCES, INFLATION, INFLATION RATE, INFORMATION ON BORROWERS, INFORMATION SYSTEM, INFORMATION TECHNOLOGY, INFRASTRUCTURE DEVELOPMENT, INSTRUMENT, INSURANCE, INSURANCE COMPANIES, INSURANCE COMPANY, INSURANCE MARKET, INSURANCE PRODUCTS, INTEREST RATE, INTEREST RATE CAPS, INTEREST RATE RISK, INTEREST RATE RISKS, INTEREST RATES, INTERNAL AUDIT, INTERNATIONAL FINANCE, INTERNATIONAL STANDARDS, INVESTMENT BANK, INVESTMENT CLIMATE, ISSUANCE, ISSUANCES, JUDICIAL SYSTEM, LAND REFORM, LAND TITLE, LEGAL FRAMEWORK, LEGAL PROVISIONS, LENDER, LIFE INSURANCE, LINES OF CREDIT, LIQUIDATION, LIQUIDITY, LIQUIDITY MANAGEMENT, LIQUIDITY PROBLEMS, LIQUIDITY RATIO, LIQUIDITY RATIOS, LIQUIDITY RISK, LOAN, LOAN AMOUNT, LOAN COOPERATIVES, LOAN PORTFOLIO, LONG-TERM RESOURCES, MACROECONOMIC CONDITIONS, MACROECONOMIC MANAGEMENT, MACROECONOMIC STABILITY, MACROECONOMIC UNCERTAINTY, MARKET FOR GOVERNMENT SECURITIES, MARKET FOR TREASURY SECURITIES, MARKET RISKS, MARKET SHARES, MATURITY, MICRO-INSURANCE, MICROCREDIT, MICROENTERPRISES, MICROFINANCE, MICROFINANCE INSTITUTION, MICROFINANCE INSTITUTIONS, MICROFINANCE SECTOR, MONETARY FUND, MONETARY POLICY, MORTGAGE, MORTGAGE LOANS, MORTGAGE MARKET, MORTGAGES, NONPERFORMING LOANS, OIL PRICES, OPPORTUNITY COST, OUTSTANDING CREDIT, OUTSTANDING LOANS, OWNERSHIP STRUCTURES, PARTIAL GUARANTEE, PAYMENT SERVICES, PAYMENT SYSTEM, PAYMENT SYSTEMS, PENSION, PENSION SYSTEM, PENSION SYSTEMS, PENSIONS, PLEDGES, POLITICAL STABILITY, PORTFOLIO QUALITY, PRICE STABILITY, PRIMARY MARKET, PRIVATE BANKS, PRIVATE CAPITAL, PRIVATE INVESTORS, PROPERTY RIGHTS, PRUDENTIAL REGULATIONS, PRUDENTIAL STANDARD, PUBLIC DEBT, PUBLIC DEBT MANAGEMENT, REAL INTEREST, REAL INTEREST RATES, REAL PROPERTY, REGISTRATION PROCESS, REGULATORY AUTHORITIES, REGULATORY CONSTRAINTS, REGULATORY FRAMEWORK, REPAYMENT, REPAYMENTS, RESERVES, RETURN, RETURN ON ASSETS, RISK FACTOR, RISK MANAGEMENT, RURAL FINANCING, SAVINGS DEPOSITS, SAVINGS SERVICE, SETTLEMENT, SETTLEMENT INFRASTRUCTURE, SHAREHOLDER, SHAREHOLDERS, SHORT-TERM LIQUIDITY, SMALL BORROWERS, SOLVENCY, STOCKS, SUPERVISORY AUTHORITY, TELECOMMUNICATIONS, TRADE SECTOR, TRANSPARENCY, TREASURY, TREATY, WARRANTS,
Online Access:	http://documents.worldbank.org/curated/en/2009/12/11575473/burundi-financial-sector-assessment https://hdl.handle.net/10986/15919
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