Praia, Sept. 25, 2026 (Lusa) - Cabo Verde's financial system remained resilient in 2025, reflecting economic growth and the banking sector's performance, according to the central bank's Financial Stability Report, published on Friday.
«The national financial system remained resilient in 2025, benefiting from continued robust economic growth and the strengthening of the banking sector's financial position,» the Bank of Cabo Verde (BCV) said in the report's executive summary.
The solvency ratio «rose from 23.9% to 25.2%, remaining well above the regulatory minimum of 12%» and non-performing loans «fell by 32.4%» with the corresponding ratio decreasing «from 7.9% to 5.2%, whilst coverage of non-performing exposures was strengthened».
However, according to the BCV, «significant structural vulnerabilities persisted in the banking sector».
«Concentration in the credit and deposit markets remained high, as did reliance on institutional sources of funding», whilst «exposure to the property sector remained substantial and interlinkages between the banking sector and the public sector remained significant, despite their reduction in relative terms».
According to the BCV, the interconnections between institutions and sectors «constitute potential channels for the transmission and amplification of shocks, justifying their continuous monitoring».
Regarding other risks, the high dependence on technological infrastructure and the interconnection between institutions «increase the potential for disruption to financial activity and the spread of cyber incidents».
«At the same time, the country's significant exposure to physical climate risks remains, with the extreme weather events that occurred in 2025 highlighting their potential to affect economic activity, the incomes and assets of households and businesses, and, consequently, the financial system,» it concluded.
In the context of prudential policy, and based on 2025 data, the BCV classified two banks as institutions of high systemic importance, three as institutions of low systemic importance, and two as institutions of no systemic importance.
LFO/ADB // ADB.
Lusa
