The Central Bank (CB)’s latest ‘Systemic Risk Survey (SRS) shows that while confidence in the financial system in the short term remained positive, there was a decline in confidence in the medium term.
The latest survey of the SRS capturing market participants’ perceptions of the financial system was conducted between December 19, 2025 and January 16, 2026, in the immediate aftermath of the Ditwah cyclone, the CB said in a statement on Friday.
On perceptions of overall confidence in the financial system, it said: “Perceptions of survey respondents indicate that market participants’ confidence in the financial system remained positive in the short term, whereas confidence in the medium term declined, possibly shaped by uncertainties related to natural hazards and geopolitical tensions that prevailed during the survey period.”
On risks that would have an impact on the financial system if they were to materialise, the CB said: “Perceptions of survey respondents were broadly dispersed across multiple risk categories, indicating the absence of a single dominant source of risk to the financial system.”
On perceived probability of a high impact negative event, it said: ”Among respondents, the perceived probability of materialising a high impact negative event showed an uptick in both the short and medium term.”
The updated survey sample includes risk officers of Licenced Banks, Licenced Finance Companies (FCs), Specialised Leasing Company (SLC), Insurance Companies, Unit-Trust Managing Companies, Margin Providers & Underwriters, Stock Brokerage Firms, Licenced Microfinance Companies, Rating Agencies, financial infrastructure providers and mobile money service providers.
The classification of risks used for the survey included sevev major risk categories with 46 sub-risks. These major risk categories were, a. Global Macroeconomic Risks b. Fiscal and Sovereign Related Risks c. General Domestic Macroeconomic Risks d. Risks related to Financial Infrastructure e. Financial Market Risks f. Risks related to Financial Institutions g. General Risks.
The results of the survey are based on the perception of respondents and should not be interpreted as the views of the CB.
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