This report examines the performance of the Sudanese banking system. Building on STPT’s wartime analysis, “The Banking System During and After the War: Challenges and Policy Recommendations,” it offers a comprehensive analysis of the sector, including an overview of recent developments, an assessment of existing challenges and vulnerabilities, and a focus on critical areas such as the supervisory framework, capitalization levels, corporate governance practices, and the prevalence of corruption. The report highlights the mounting challenges faced by banks, including low levels of financial intermediation as measured by credit to GDP ratio, limited innovation in products and services, inadequate adoption of technology, and the breakdown of correspondent banking relationships.
This report evaluates the actions taken by the government of Sudan and the policies implemented by
the Central Bank of Sudan (CBoS) during the short-lived transition (September 2019-October 2021). It specifically focuses on the measures adopted to reform the banking sector. The report utilizes the implementation status of the recommendations outlined in the Staff Monitored Program (SMP) and Extended Credit Facility (ECF) negotiated between the Sudanese government and the International Monetary Fund (IMF) as a valuable benchmark for assessment.
In the same vein, the report reviews the consequences of the war on Sudan’s banking system highlighted in the prior report. Building on this, the paper emphasizes the importance of post-war reforms in rebuilding and revitalizing the banking sector. This involves addressing the damage caused by the conflict, restoring infrastructure, resolving non-performing loans, and ensuring the stability and reliability of the banking system.
Read the full paper here.