Bosnia and Herzegovina: Financial Sector Assessment Program-Detailed Assessment of Observance of the CPMI-IOSCO Principles for Financial Market Infrastructures
IMF Staff Country Reports, August 3, 2015
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- Bosnia and Herzegovina: Financial Sector Assessment Program-Detailed Assessment of Observance of the CPMI-IOSCO Principles for Financial Market Infrastructures
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Bibliographic details
- Published: August 3, 2015
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513549002.002
Overview
- Assessment covers observance of the CPMI–IOSCO (Committee on Payments and Market Infrastructures–International Organization of Securities Commissions) Principles for Financial Market Infrastructures in Bosnia and Herzegovina.
- Major achievements in modernizing the payment system are reported.
- The interbank payment system demonstrated resiliency during the severe floods of May 2014.
- The currency board arrangement has helped protect the payment system from credit risks.
- The formal assessment of the real-time gross settlement system (RTGS) suggests that many of the standards are observed.
- The legal basis is described as relatively sound; however, finality and netting arrangements require greater legal certainty and protection at the law level.
Key findings
- Modernization: Significant progress made in modernizing the payment system.
- Operational resilience: Interbank payment system resilient during May 2014 floods.
- Credit risk protection: Currency board arrangement contributed to protection from credit risks.
- RTGS observance: The formal assessment indicates many CPMI–IOSCO standards are observed by the RTGS system.
- Legal framework gaps: Finality and netting arrangements lack sufficient legal certainty and protection at the law level.
Policy recommendations and implications
- Strengthen legal certainty for finality and netting arrangements to ensure protection at the law level.
- Continue modernization efforts to maintain and enhance RTGS adherence to CPMI–IOSCO Principles.
- Preserve and reinforce arrangements that mitigate credit risks, including features of the currency board that support payment system stability.
- Maintain operational resilience measures informed by the demonstrated performance during the May 2014 floods.
Technical observations and scope
- Subject matters covered include: Banking, Commercial banks, Financial institutions, Financial markets, Financial regulation and supervision, Operational risk, Payment systems, Principles for Financial Market Infrastructures, Real time gross settlement systems.
- Keywords include: CBBH instruction, CBBH Management, CBBH RTGS, CBBH website, central bank, Commercial banks, CR, Global, ISCR, Operational risk, Payment systems, Principles for Financial Market Infrastructures, Real time gross settlement systems, reserve account, RTGS participant, RTGS system.
- Publication date on the landing page: August 3, 2015.
- Length reported: 75 pages.
International Monetary Fund. Monetary and Capital Markets Department “Bosnia and Herzegovina: Financial Sector Assessment Program-Detailed Assessment of Observance of the CPMI-IOSCO Principles for Financial Market Infrastructures”, IMF Staff Country Reports 2015, 217 (2015).