This technical assistance report focuses on Assessment of Financial Stability Report (FSR) in Colombia. The FSR of the Banco de la República of Colombia (BR) provides broad coverage of macroeconomic environment and the assessment of risks in the financial system. The current structure of the...

This paper presents Colombia's Review under the Flexible Credit Line (FCL) Arrangement. Colombia has very strong economic fundamentals and policy frameworks anchored by a credible inflation targeting regime, a solid medium-term fiscal framework, a flexible exchange rate, and effective financial...

The first mission of the Colombia FSAP was conducted virtually during June 1-21, 2021. This technical note focuses on the developments in the crisis management framework for the banking sector. The assessment examines the Colombian financial safety net and crisis management arrangements in light...

The Financial Sector Assessment Program (FSAP) risk analysis work was conducted in the aftermath of the initial COVID shock and subsequent lockdowns, and while a strong economic recovery was underway in Colombia during 2021. Given the persistent uncertainty around the evolution of the COVID-19...

There has been little change in the institutional framework for macroprudential policy oversight since the last FSAP. Macroprudential policy for the banking sector is a shared competency of the Financial Superintendency of Colombia (SFC), the Banco de la República (BR), and the Ministry of...

There have been significant improvements to the legal framework and the supervisory process since the last Basel Core Principles (BCP) review; some additional recommended enhancements are highlighted in this assessment. The Superintendency of Financial Institutions (SFC) is an integrated...

Colombia's very strong policy frameworks and comprehensive policy response to the pandemic have supported the economy's resilience. With stronger-than-expected growth last year, fiscal deficits and public debt are declining faster than anticipated, and the fiscal framework has been reactivated...

The pandemic led to Colombia's largest recession on record, but the economy bounced back strongly in 2021. The banking system has so far weathered the shock well, with the help of a strong policy and support response and strong initial position. Colombia is exposed to elevated external financing...

Colombia's economy rebounded strongly in 2021 with 10.6 percent growth led by pent-up domestic demand, notably private consumption. Around 66 percent of the population is fully vaccinated against Covid-19 as of end-February and the economy continues to reopen more fully. While GDP has already...

Colombia's very strong policies and policy frameworks have helped to significantly reduce domestic and external imbalances and brought the economy to more sustainable levels of activity and demand. Market confidence has improved, but risk premia remain high compared to peers. The authorities...