Republic of Serbia: Financial Sector Assessment Program Update: Technical Note on Banking Sector Soundness and Stress Testing

May 27, 2010

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Format: Chicago

Republic of Serbia: Financial Sector Assessment Program Update: Technical Note on Banking Sector Soundness and Stress Testing, (USA: International Monetary Fund, 2010) accessed December 22, 2024

Summary

This Technical Note reviews banking sector soundness and stress testing in Serbia. Serbia’s banking sector is well capitalized and liquid, but the corporate sector’s weak performance is a source of concern because of its adverse impact on nonperforming loans. Stress tests indicate that banks are quite resilient to further adverse shocks, but they remain vulnerable to credit risk. The results highlight that the banking system is most vulnerable to further exchange rate depreciation, through foreign currency induced credit risk, and a prolonged economic downturn.

Subject: Banking, Commercial banks, Corporate sector, Economic sectors, Financial institutions, Financial sector policy and analysis, Loans, Nonperforming loans, Stress testing

Keywords: Asset quality, Balance sheet, Bank assets, Bank concentration, Bank ownership, Banking system, Banks' assets, Commercial banks, Corporate sector, Coverage ratio, CR, Credit growth, Eastern Europe, Exchange rate, Global, Holdings of T-bills, ISCR, Loans, Market share, Nonperforming loans, Operating income, Parent bank, Return on equity, Southern Europe, Stress testing

Publication Details

Pages:

28
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2010/149
Stock No:

1SRBEA2010005
ISBN:

9781455205653
ISSN:

1934-7685

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