Bosnia and Herzegovina: Financial Sector Assessment Program-Banking Sector Stress Testing—Technical Note
IMF Staff Country Reports, August 3, 2015
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- Bosnia and Herzegovina: Financial Sector Assessment Program-Banking Sector Stress Testing—Technical Note
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Bibliographic details
- Published: August 3, 2015
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513554778.002
Overview
- The Technical Note reports results of Banking Sector Stress Testing for Bosnia and Herzegovina (BiH).
- The stress tests covered all 27 banks operating in BiH.
- Focus: banking system solvency and liquidity under stress scenarios based on supervisory data.
Main findings
- System-wide solvency and liquidity indicators appear broadly appropriate.
- Aggregate stress losses, mainly related to increased provisions in the loan book, are non-negligible but remain broadly manageable on the basis of the supervisory data used.
- System-wide liquidity ratios appear broadly adequate.
Identified pockets of vulnerability
- Several banks—mainly small domestically owned banks—exhibit significant vulnerabilities, including:
- Low liquidity ratios.
- Large concentration risks.
- Round-trip cross-border exposures.
Stress testing results and interpretation
- Aggregate stress losses are primarily driven by increased provisions in the loan book.
- Despite manageable aggregate outcomes, heterogeneity across institutions implies that system-level adequacy masks material risks at the individual bank level.
- Liquidity analysis indicates overall adequacy but again conceals weak positions at specific banks.
Policy implications and recommendations (implicit from findings)
- Monitoring and supervisory focus should prioritize:
- Small domestically owned banks with low liquidity ratios.
- Concentration risk exposure limits and mitigation.
- Cross-border exposure monitoring, including round-trip exposures.
- Strengthening provisioning practices and loan-book quality assessment to address stress-loss drivers.
- Targeted liquidity contingency planning for vulnerable institutions.
Key statistics and publication metadata
- Number of banks covered: 27 banks.
- Pages: 50.
- Volume: 2015.
- Issue: 213.
- Series: Country Report No. 2015/213.
- DOI: https://doi.org/10.5089/9781513554778.002
- ISBN: 9781513554778
- ISSN: 1934-7685
International Monetary Fund. Monetary and Capital Markets Department "Bosnia and Herzegovina: Financial Sector Assessment Program-Banking Sector Stress Testing—Technical Note", IMF Staff Country Reports 2015, 213 (2015).
Content in this bundle
- _cr15213 - Executive Summary