Bosnia and Herzegovina Financial Sector Assessment

Bosnia and Herzegovina (BiH) is still dealing with the aftershocks of the global financial crisis that have weakened financial sector asset quality and profitability. System-wide solvency and liquidity indicators appear broadly sound, but significant pockets of vulnerability exist among domestically-owned banks. Banking and insurance oversight have improved since the 2006 financial sector assessment program (FSAP), but a number of important shortcomings in some segments remain. Decisive and immediate actions to deal with weak banks are critical for preserving financial stability. The legal framework governing creditor and debtor relationships is comprehensive, however neither debt resolution, businesses reorganization, nor bankruptcy liquidation work effectively. The financial reporting framework has improved recently and is substantially aligned with the acquis communautaire and harmonized between the two entities. Governance processes of state-owned banks reveal a number of concerns. There is a need to further strengthen the supervisory board selection process and internal audit functions of state banks. The Development Bank of the Federation of BiH is only partially supervised by the Banking Agency of the Federation of BiH (FBA). Specific strategies and exit plans for the Republika Srpska (RS) government’s support of the financial sector are undefined.

Bibliographic Details

Main Authors:	World Bank, International Monetary Fund
Format:	Report biblioteca
Language:	English en_US
Published:	Washington, DC 2015-06
Subjects:	CONSOLIDATED SUPERVISION, INTERNATIONAL ACCOUNTING STANDARDS, EXTERNAL AUDITORS, CAPITAL MARKETS, FINANCIAL SERVICES, REGULATORY FRAMEWORK, HOLDING COMPANIES, INTEREST INCOME, ACCOUNTING, DEPOSITS, COLLECTION AGENCIES, SMALL BANKS, LIQUIDATION, CREDIT APPROVAL, RETURN ON EQUITY, BANKING INDUSTRY, INTEREST, FACTORING, LAWS, GUARANTEES, PRIVATIZATION, INDUSTRY, BANKING SYSTEM, STRATEGIES, CURRENT EXPENDITURES, RESERVE REQUIREMENTS, SERVICES, ACCOUNTING FRAMEWORK, HOUSING, CREDIT RISK MANAGEMENT, CAPITAL ADEQUACY, REORGANIZATION, LOAN CLASSIFICATION, ASSET MANAGEMENT, SAVING, CENTRAL BANKS, BANKRUPTCY, LEVEL PLAYING FIELD, AUDITS, STATE BANKS, EQUITY CAPITAL, SETTLEMENT SYSTEMS, MORAL HAZARD, PRIVATE BANKS, TRANSFERS, CRITERIA, FINANCIAL INSTITUTIONS, DEBT, MARKETS, BANK RESTRUCTURING, CAPITAL REQUIREMENTS, LEGISLATION, DEPOSIT INSURANCE, DEPOSIT INSURANCE COVERAGE, LABOR, LOANS, ENTERPRISES, STATE BANKING, ENFORCEMENT POWERS, RESERVE REQUIREMENT, LEGAL FRAMEWORK, FINANCE, INFRASTRUCTURE, TAXES, BANKING SECTOR, BANKS, SUPERVISORY AUTHORITIES, EMERGING MARKETS, EQUITY, INSURED DEPOSITS, ACCOUNTABILITY, CAPITAL, WAGES, AUDITORS, FINANCIAL STABILITY, SUBSIDIARIES, LOAN LOSS PROVISIONS, VALUE, TAX LAWS, PENSIONS, DEVELOPMENT BANKS, BANK, EUROPEAN CENTRAL BANK, CREDIT, LENDER OF LAST RESORT, BANKING LAWS, WORKING CAPITAL, CENTRAL BANK OF BOSNIA AND HERZEGOVINA, FINANCIAL PERFORMANCE, INTERNAL CONTROLS, MANDATES, SUBORDINATED DEBT, MARKET DISCIPLINE, FOREIGN BANKS, REGULATORY FORBEARANCE, SUPERVISORY AGENCIES, FOREIGN EXCHANGE, ASSET MANAGEMENT COMPANIES, TIER 1 CAPITAL, MARKET VALUE, CONSOLIDATED FINANCIAL STATEMENTS, VOUCHER PRIVATIZATION, PROFITABILITY, CREDIT RISK, GOVERNANCE, INSURANCE, INSURANCE PREMIUMS, TAXATION, MICROFINANCE, PRUDENTIAL REQUIREMENTS, ACCOUNTING STANDARDS, RISK, LEGAL PROTECTION, COMMERCIAL BANKS, DEBT RESTRUCTURING, MINISTRIES OF FINANCE, CAPITAL REQUIREMENT, RISK MEASUREMENT, BANKING, BANK MERGERS, RISK MANAGEMENT, LENDING, LIQUIDITY RATIO, BANKING SUPERVISION, PROBLEM BANKS, BANKING LAW, KEY PERFORMANCE INDICATORS, GOVERNMENTS, PAYMENT SYSTEMS, LIQUID ASSETS, NONPERFORMING LOANS, AUDITING,
Online Access:	http://documents.worldbank.org/curated/en/2015/07/24782201/bosnia-herzegovina-financial-sector-assessment https://hdl.handle.net/10986/22260
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