IMF Staff Country Reports

Bosnia and Herzegovina: Financial Sector Assessment Program Technical Note—Systemic Liquidity Management, Financial Safety Net, Insolvency Framework, and Macroprudential Policy

August 3, 2015

Download PDF

Preview Citation

Format: Chicago

Bosnia and Herzegovina: Financial Sector Assessment Program Technical Note—Systemic Liquidity Management, Financial Safety Net, Insolvency Framework, and Macroprudential Policy, (USA: International Monetary Fund, 2015) accessed November 8, 2024

Summary

This Technical Note discusses key findings and recommendations of the assessment on Systemic Liquidity Management, Financial Safety Net, Insolvency Framework, and Macroprudential Policy on Bosnia and Herzegovina. It is observed that there are constraints on the ability of both banks and the Central Bank of Bosnia and Herzegovina to manage liquidity. The system lacks a central bank liquidity window, and the secondary market for government securities is also small and illiquid. Liquidity regulations should be streamlined and the adoption of the liquidity coverage ratio would strengthen liquidity management. The deposit insurance framework is a relatively well-developed paybox scheme, but further enhancements of the deposit insurance arrangements would be beneficial.

Subject: Asset and liability management, Bank resolution, Bank resolution framework, Banking, Bridge bank, Deposit insurance, Financial crises, Liquidity

Keywords: Accounts bank, Bank resolution, Bank resolution framework, Bank subsidiary, Banking agency, Banking system, Bridge bank, Bridge bank, Capitalized bank, CR, Deposit insurance, Distress scenario, Financial system, Global, ISCR, Liquidity, Parent bank, Problem bank resolution process, Recipient bank, Resolution power, Supervisory board

Publication Details

  • Pages:

    44

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Country Report No. 2015/216

  • Stock No:

    1BIHEA2015006

  • ISBN:

    9781513580210

  • ISSN:

    1934-7685