Central Bank of San Marino highlights IMF Article IV call for faster bank restructuring and more resources for supervision

The Central Bank of San Marino (CBSM) has summarised the International Monetary Fund’s concluding statement from the 2025 Article IV mission, which assessed San Marino’s economy and financial system. The concluding statement points to solid economic growth and reduced vulnerabilities supported by prudent fiscal policy, while urging faster structural reforms including those linked to implementing the Association Agreement. For the financial sector, the IMF noted progress in restoring confidence, improved banking-sector liquidity and better asset quality following reforms including a system-wide securitisation, and it acknowledged CBSM’s actions to strengthen capitalisation including via the retention of undistributed profits. It also highlighted the need to accelerate bank asset restructuring, further strengthen capital endowment, and support profitability through cost-reduction policies, while aligning institutions’ technical profiles with European regulatory requirements. Taking account of the expected benefits of the Association Agreement for the financial sector, the IMF recommended providing CBSM with additional resources to reinforce its financial autonomy and build the technical and professional capacity needed for European integration. CBSM framed these recommendations as consistent with its ongoing consolidation work, including plans for full integration into the European market, and said it will publish a dedicated position paper setting out its system-wide reform agenda by the end of 2025. The IMF noted that its assessments will be reflected in a final staff report to be published in the near future.