The National Bank of Belgium said IMF stress tests found the country's banks and insurers capable of absorbing severe shocks.
The results of the tests, administered under the Financial Sector Assessment Program, reveal that the financial sector has strengthened in recent years and that banks have scaled down their balance sheets. The IMF recommended that banks strengthen their capital buffers to absorb any potential losses in their mortgage portfolios, noting that the debt levels of Belgian households are rising.
The National Bank and the European Central Bank collaborated with the IMF in conducting the tests. The Financial Sector Assessment Program is a five-yearly program carried out in countries with a systemic financial sector.
