On November 5, 2026, the International Monetary Fund (IMF) concluded its annual mission under Article IV of its Articles of Agreement, aimed at periodically assessing the economic and financial performance of member countries.
The delegation, led by Mission Chief Trevor Lessard, met with San Marino authorities and representatives of key economic sectors. The Central Bank of the Republic of San Marino (BCSM), in its capacity as the sole supervisory authority over the financial system, coordinated the meetings and provided information on matters within its purview.
In the “Concluding Statement,” which previews the assessments in the “Staff Report,” the IMF acknowledges the country’s achievements but emphasizes the need to continue with structural reforms, including for the implementation of the Association Agreement with the European Union, signed on October 19, 2026.
Regarding the financial system, the IMF notes further improvement in banking indicators, particularly in the reduction of non-performing loans and the strengthening of liquidity. The Fund considers access to the EUREP liquidity facility granted by the European Central Bank, through the Bank of Italy—which significantly expands the Central Bank’s capacity to refinance the system—to be an important step, and also welcomes the continued cooperation with European supervisory authorities.
In terms of priorities for action in the financial system, the IMF identifies the following areas:
improving the quality of bank assets by further reducing non-performing loans, real estate held for debt recovery, and illiquid securities, and managing residual exposures on the mezzanine and junior tranches of systemic securitization;
strengthening banks’ capital adequacy and profitability, prioritizing private-sector solutions for any capital needs, containing operating costs, and developing IT collaboration among banks—to be extended to cybersecurity as well;
gradually introduce, starting in 2027, the Basel III liquidity standards (LCR and NSFR), following the roadmap already in place in the banking system in line with BCSM guidelines;
continue, following a properly phased approach, to prepare the financial system for the implementation of the Association Agreement.
The Central Bank welcomes the Fund’s assessments, which acknowledge the progress made and identify the priorities for the phase initiated by the Association Agreement. The BCSM will continue to work in close coordination with the Government on issues requiring regulatory action, both to safeguard financial stability and to support the system’s development and its preparation for integration into the European single market.
The IMF’s Concluding Statement is available at the following link: