Bosnia and Herzegovina: Financial System Stability Assessment
IMF Staff Country Reports, July 9, 2015
Source details
- Canonical URL
- Bosnia and Herzegovina: Financial System Stability Assessment
Other formats
Bibliographic details
- Published: July 9, 2015
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513530611.002
Summary and context
- Economic and financial activity in Bosnia and Herzegovina (BiH) remains stuck in a low gear since the global financial crisis, reflecting weak external demand, tighter funding conditions, and deep-seated structural issues.
- Aggregate solvency and liquidity indicators appear broadly sound, but significant pockets of vulnerability exist.
- Decisive and timely actions to deal with weak banks are critical for preserving financial stability.
Banking system structure and indicators
- The banking system is more than 80 percent foreign-owned banks.
- The average regulatory capital adequacy ratio exceeded 16 percent as of end 2014.
Key risks and vulnerabilities
- Persistent weak external demand and tighter funding conditions constrain economic recovery.
- Deep-seated structural issues in the economy amplify financial sector fragilities.
- Significant pockets of vulnerability exist despite broadly sound aggregate solvency and liquidity indicators.
- Weak banks represent a systemic risk that requires decisive and timely resolution.
Policy implications and recommendations
- Take decisive and timely actions to deal with weak banks to preserve financial stability.
- Strengthen supervision and resolution frameworks to address identified pockets of vulnerability.
- Address structural impediments that contribute to prolonged low economic and financial activity.
Publication and document specifics
- Publication title: Bosnia and Herzegovina: Financial System Stability Assessment
- Publication type: IMF Staff Country Reports
- Date on landing page: July 9, 2015
- Pages: 70
- Volume: 2015
- Issue: 164
- Series: Country Report No. 2015/164
- DOI: https://doi.org/10.5089/9781513530611.002
- Stock No: 1BIHEA2015001
- ISBN: 9781513530611
- ISSN: 1934-7685
- Subjects: Bank resolution, Bank resolution framework, Banking, Commercial banks, Financial crises, Financial institutions, Financial sector policy and analysis, Insurance companies, Stress testing
- Keywords: a number of bank, bank audit, bank resolution, Bank resolution, Bank resolution framework, bank supervisor, banking sector assets, banking system, CBBH law, Commercial banks, CR, credit risk, excess reserves, financial crisis, Global, Insurance companies, ISCR, parent bank, risk management guidance, Stress testing, supervision agency
IMF Staff Country Report: Bosnia and Herzegovina: Financial System Stability Assessment (Country Report No. 2015/164).