Publication: Serbia : Financial Sector Assessment
Date
2010-06-08
ISSN
Published
2010-06-08
Author(s)
World Bank
International Monetary Fund
Abstract
The Financial Sector Assessment Program
(FSAP) update team found that the authorities have
progressed in implementing the key recommendations from the
initial assessment. The 2005 FSAP team revealed a number of
vulnerabilities, including (i) high credit growth, largely
financed by foreign banks, which resulted in rising
nonperforming loans (NPLs), and (ii) poor management and low
capital of several systematically important state-controlled
banks. The Basel Core Principle on Banking Supervision (BCP)
assessment identified a number of deficiencies in banking
supervision. The update team found that the authorities took
action to address the issues highlighted by the 2005 FSAP.
In particular, they adopted prudential measures to slow
credit growth, including higher risk weights for foreign
currency loans to un-hedged borrowers, and exposure limits
to households. Two systemic state-controlled banks were
privatized. Finally, a new banking law was enacted that
significantly strengthened supervision on consolidated basis
and improved corporate governance and transparency.
Citation
“World Bank; International Monetary Fund. 2010. Serbia : Financial Sector Assessment. © World Bank, Washington, DC. http://openknowledge.worldbank.org/handle/10986/15914 License: CC BY 3.0 IGO.”