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

International Monetary Fund

No 2015/216, IMF Staff Country Reports from International Monetary Fund

Abstract: 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.

Keywords: ISCR; CR; banking agency; parent bank; problem bank resolution process; accounts bank; bank subsidiary; capitalized bank; distress scenario; recipient bank; supervisory board; bridge bank; financial system; resolution power; banking system; Bank resolution framework; Liquidity; Bridge bank; Bank resolution; Deposit insurance; Global (search for similar items in EconPapers)
Pages: 44
Date: 2015-08-03
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=43150 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfscr:2015/216

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Staff Country Reports from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().