IMF Staff Country Reports

Bosnia and Herzegovina: Financial System Stability Assessment, including Reports on the Observance of Standards and Codes on the following topics: Banking Supervision and Corporate Governance

November 17, 2006

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International Monetary Fund. Monetary and Capital Markets Department "Bosnia and Herzegovina: Financial System Stability Assessment, including Reports on the Observance of Standards and Codes on the following topics: Banking Supervision and Corporate Governance", IMF Staff Country Reports 2006, 403 (2006), accessed November 21, 2024, https://doi.org/10.5089/9781451804928.002

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Summary

Economic growth in Bosnia and Herzegovina (BiH) has been impressive with GDP. The dominance of foreign-owned bank subsidiaries has transformed the financial sector and altered the risks to financial stability. Reforms should focus on strengthening banking supervision and adapting it to the transformation of the financial system in line with recommendations in the Basel Core Principles (BCP) assessment. Although the insurance sector is too small to be systemically important, the unsettled conditions in the sector could weaken confidence in the financial system.

Subject: Balance of payments, Banking, Capital inflows, Credit, Credit risk, Financial institutions, Financial regulation and supervision, Foreign exchange, Loans, Money

Keywords: Bank, Bank group, Bank subsidiary, BiH, BiH authorities capacity, Capital inflows, CR, Credit, Credit growth, Credit risk, Eastern Europe, Excess reserves, FX, FX reserve, ISCR, Loan, Loans, Parent bank ROE projection

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