Somalia

The Technical Assistance (TA) assisted Somalia in reviewing its prudential regulation on classification and provisioning of credit operations aiming at aligning it with international standards and benchmarks and delivered a dedicated training on credit risk. This mission is part of a broad initiative to help the Central Bank of Somalia (CBS) improve the quality of data submitted by commercial banks, according to an action plan approved in July 2024. The effort covers reviewing prudential regulations, training supervisors, and updating data requirement templates. The prudential supervision framework under review includes capital requirements, liquidity requirements, related party transactions and assets classification and provisions. While capital and liquidity were addressed in earlier TAs, the current focus is on asset classification, provisioning, and broader credit risk issues.