Bosnia and Herzegovina: Financial Sector Assessment Program - Banking Sector Supervision Core Principles Implementation Update—Technical Note
IMF Staff Country Reports, August 3, 2015
Source details
- Canonical URL
- Bosnia and Herzegovina: Financial Sector Assessment Program - Banking Sector Supervision Core Principles Implementation Update—Technical Note
Other formats
Bibliographic details
- Published: August 3, 2015
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513551616.002
Summary and key findings
- This Technical Note presents an update on Banking Sector Supervision Core Principles Implementation in Bosnia and Herzegovina.
- The system of banking supervision oversight has significantly improved since the last review in 2006, but shortcomings remain.
- Both supervisory authorities have made progress in enhancing the regulatory framework and supervisory processes since the 2006 Financial Sector Assessment Program.
- The banking agencies are in the process of preparing a new Law on Banks that should address deficiencies in the supervisory powers, resolution tools, and consolidated supervision.
- Comprehensive regulations on risk management have been drafted that will address remaining deficiencies that are highlighted in this assessment.
Progress since 2006
- Supervisory oversight: Significant improvement noted compared with the 2006 review.
- Regulatory framework: Enhancements made by both supervisory authorities.
- Supervisory processes: Progress reported in supervisory processes since the 2006 FSAP.
Remaining deficiencies and planned reforms
- New Law on Banks:
- Being prepared by the banking agencies.
- Expected to address deficiencies in supervisory powers, resolution tools, and consolidated supervision.
- Risk management regulations:
- Comprehensive regulations have been drafted.
- Intended to address the remaining deficiencies highlighted in this assessment.
Subjects and keywords
- Subject: Bank legislation, Bank supervision, Banking, Commercial banks, External audit, Financial institutions, Financial regulation and supervision, Market risk, Public financial management (PFM)
- Keywords: bank entity, Bank legislation, bank performance, bank performance report, bank subsidiary, Bank supervision, bank's risk profile, Commercial banks, CR, External audit, financial condition, Global, ISCR, management body, Market risk, parent bank, parent bank support, problem bank, risk profile, use of stress testing