Banking sector vulnerabilities remain elevated in the region, including in Angola, CEMAC countries, the Democratic Republic of Congo, and Nigeria. Foreign exchange restrictions, policy uncertainty, and weak growth have affected the soundness of the banking sector. Non-performing loans have increased, and profitability and capital buffers have decreased. Several proactive measures have been introduced to contain risks to financial stability, including through increased provisioning and by intensifying the monitoring and supervision of banks. While banking system resilience needs to be strengthened, steps by banks to limit credit risks, by tightening lending standards and reducing credit to the private sector while continuing to invest in government securities, are contributing to the slow recovery in economic activity.