Publication: Financial Sector Assessment : Serbia
Date
2005-11
ISSN
Published
2005-11
Author(s)
World Bank
Abstract
This Financial Sector Assessment
presents the Bank's policy recommendations following an
analysis of Albania's financial system, currently
broadly stable, but with systemic risks which could come to
the fore if the rapid pace of credit growth continues.
Policies to support financial stability, and development
should focus mostly on bank supervision, and the legal
framework, while policies to remove impediments to the
development of the nascent insurance sector are underway.
Not surprisingly, the creation of a supporting legal
framework is currently the main issue for capital markets.
But monetary policy effectiveness should be strengthened by
adjustments to the monetary operation framework, and the
establishment of an interest rate bureau. Regarding
corporate governance, much remains to be done. The
authorities should eliminate discrepancies between the
general-purpose financial reporting under the International
Financial Reporting Standards (IFRS) and the regulatory
reporting. Moreover, macroeconomic imbalances are rooted in
structural problems in state- and socially-owned enterprises
which account for 50 percent of GDP. Regarding prudential
supervision issues, the NBS Bank Supervision Department
(BSD) has made progress in enhancing effectiveness; however,
the Basel Core Principles assessment of bank supervision was unfavorable.
Link to Data Set
Citation
“World Bank. 2005. Financial Sector Assessment : Serbia. © Washington, DC. http://hdl.handle.net/10986/15955 License: CC BY 3.0 IGO.”