Bosnia and Herzegovina: Financial Sector Assessment Program-Banking Sector Stress Testing

Bosnia and Herzegovina: Financial Sector Assessment Program-Banking Sector Stress Testing—Technical Note

August 3, 2015

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Bosnia and Herzegovina: Financial Sector Assessment Program-Banking Sector Stress Testing—Technical Note, (USA: International Monetary Fund, 2015) accessed December 22, 2024

Summary

This Technical Note discusses results of Banking Sector Stress Testing for Bosnia and Herzegovina (BiH). The stress tests focused on the banking system and covered all 27 banks operating in BiH. System-wide solvency and liquidity indicators appear broadly appropriate, but significant pockets of vulnerability remain. On the basis of the supervisory data used, stress tests suggest that aggregate stress losses, mainly related to increased provisions in the loan book, although non-negligible, remain broadly manageable. Similarly, system-wide liquidity ratios appear broadly adequate. Nevertheless, there are several banks within the system—mainly small domestically owned banks—with a wide range of significant vulnerabilities. These include, low liquidity ratios, large concentration risks, and round-trip cross-border exposures.

Subject: Banking, Commercial banks, Credit risk, Financial institutions, Financial regulation and supervision, Financial sector policy and analysis, Foreign banks, Loans, Stress testing

Keywords: Balance sheet, Bank risk manager, Banking sector, Banking system, BiH bank, Commercial banks, CR, Credit risk, Credit risk, Foreign banks, Global, Interest rate, ISCR, Loans, Net income, Private bank, Real GDP, Stress testing

Publication Details

Pages:

50
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2015/213
Stock No:

1BIHEA2015003
ISBN:

9781513554778
ISSN:

1934-7685

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