02192cas a2200241 a 4500 AALejournalIMF019165 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498304887 1934-7685 BD-DhAAL BD-DhAAL International Monetary Fund. European Dept. Republic of San Marino : 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of San Marino. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (61 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 Article IV Consultation highlights that deep-rooted weaknesses in the banking system have undermined economic activity and are now threatening financial stability and fiscal sustainability. Significant deposit outflows have left the banking system with low liquidity, while persistent losses and high non-performing loans (NPLs) resulted in sizable recapitalization needs, particularly in the state-owned bank. Growth is projected to remain subdued in the coming years, reflecting continued banking sector deleveraging and a less favorable external environment, most notably in Italy. Slow progress in repairing the banking sector, and full and upfront recognition of the state's financial commitments to the banking system are the key risks. Urgent actions are needed to restore banking sector viability and credit supply, safeguard public finances, and promote sustained economic growth. It is recommended to strengthen labor supply by better targeting social benefits and further relaxing the hiring process of non-residents. Mode of access: Internet IMF Staff Country Reports; Country Report ; No. 2019/085 Full text available on IMF http://elibrary.imf.org/view/journals/002/2019/085/002.2019.issue-085-en.xml IMF e-Library