Republic of Serbia: Financial Sector Assessment Program Update: Technical Note on Deposit Insurance

IMF Staff Country Reports, May 27, 2010

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Republic of Serbia: Financial Sector Assessment Program Update: Technical Note on Deposit Insurance

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Bibliographic details

• Published: May 27, 2010
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781455205677.002

Key findings

• The deposit insurance scheme is managed by the deposit insurance agency (DIA), which has a multi-faceted mandate.
• Few DIA staff are actively involved in the core mandate of deposit insurance fund (DIF) management.
• DIA revenue sources are volatile.
• DIF-related revenues are used to subsidize non-DIF related activities.
• To improve transparency and ensure sustainability of the DIF, the legal framework should be amended to clarify the use of DIF resources and cap the use for operating costs.

Issues identified

• Multi-faceted DIA mandate dilutes staff focus on core DIF management.
• Revenue volatility undermines predictability and sustainability of the DIF.
• Current legal framework permits DIF-related revenues to subsidize non-DIF activities, reducing transparency.

Policy recommendations

• Amend the legal framework to clarify permissible uses of DIF resources.
• Introduce a cap on the use of DIF resources for operating costs to protect fund sustainability and enhance transparency.

Content in this bundle

• This note focuses on the deposit insurance scheme
  • This note focuses on the deposit insurance scheme (Markdown version)
  • This note focuses on the deposit insurance scheme (PDF)