SOUDAN

The banking system has been constrained by the breakdown of correspondent bank relations since mid-2014. Large penalties imposed on international banks in 2014–15 found in breach of U.S. sanctions contributed to a sharp decline in correspondent banking lines with sudanese banks. While aggregate financial stability indicators have since improved (with significant capital buffers, declining nonperforming loans and increased (profitability), several banks remain weak. Equity injections resulted in the authorities fully or partly owning 14 of the 37 banks, but the authorities have since sold their stake in one bank to private investors, and intend to do the same for the others. Bank balance sheets indicate an overall long net foreign exchange open position, but adding off-balance-sheet items (which include contingent credit lines) would cause their position to be short. Banks operate under Islamic finance principles.

Extrait de l'Article IV du FMI de décembre 2017