01831cas a2200241 a 4500 AALejournalIMF017250 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475555981 1934-7685 BD-DhAAL BD-DhAAL International Monetary Fund. African Dept. Republic of Equatorial Guinea : Selected Issues. Washington, D.C. : International Monetary Fund, 2016. 1 online resource (20 pages) IMF Staff Country Reports <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students 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. Mode of access: Internet IMF Staff Country Reports; Country Report ; No. 2016/358 Full text available on IMF http://elibrary.imf.org/view/journals/002/2016/358/002.2016.issue-358-en.xml IMF e-Library