2015年-世界发展银行全球_Bosnia_and_Herzegovina_Financial_Sector_Assessment_45页_1mb

Summary of the Financial Sector Assessment of Bosnia and Herzegovina (June 2015)

Core Content

The Financial Sector Assessment Program (FSAP) conducted by the World Bank and International Monetary Fund (IMF) in 2014 evaluated the financial sector of Bosnia and Herzegovina (BiH) with a focus on financial sector risks, supervision, safety nets, financial inclusion, capital markets, and corporate financial reporting. The assessment identified several systemic challenges and provided key recommendations to enhance financial stability and sector development.

Main Views and Key Findings

Financial Sector Risks and Vulnerabilities

• Non-Performing Loans (NPLs): System-wide NPL ratios were 15.5 percent at end-June 2014, with significant variation across institutions. Some domestically-owned banks faced challenges in meeting capital requirements.
• Liquidity and Solvency Issues: Stress tests revealed concentration risks and low liquidity ratios for some banks. Banks have become more reliant on domestic funding due to a slowdown in foreign capital inflows.
• Financial System Structure: The banking sector dominates the financial system, accounting for 87% of assets, which are equivalent to 84% of GDP. The sector is moderately concentrated, with the five largest banks holding over half of the assets.
• Foreign Exposure: Banks are heavily exposed to Austria and Germany, representing nearly 50% of total foreign claims and a third of regulatory capital.

Financial Sector Oversight

• Supervision: Banking and insurance oversight has improved since the 2006 FSAP, but shortcomings remain. Supervisory agencies lack sufficient powers to sanction and fine members of the supervisory boards and significant owners.
• Cooperation: Coordination between agencies is complex and could have repercussions during times of stress. There is a need for more formalized and efficient information sharing.

Financial Safety Net

• Deposit Insurance: The deposit insurance system is largely compliant with international standards. However, the pay-out period should be shortened to align with EU directives.
• Resolution Framework: The financial safety net needs strengthening, including the creation of resolution authorities with comprehensive powers and appropriate tools. A credible and transparent public backstop may be necessary for systemic cases.
• Contingency Planning: Well-coordinated domestic and cross-border contingency plans are essential for an effective safety net.

Macroprudential Framework

• The macroprudential framework is in its infancy and requires development. It should be underpinned by improved cooperation among relevant agencies and include macroprudential analysis and policy.

Non-Performing Loan Resolution

• The resolution of NPLs is a critical issue. The current approach is inadequate, and a comprehensive strategy is needed to address the problem.

Insolvency and Creditor Rights Regime

• The legal framework is comprehensive, but execution procedures are not streamlined. There is a need for tools and incentives to facilitate corporate debt restructuring and the adoption of out-of-court restructuring guidelines.
• The institutional framework for insolvency could be improved by hiring more commercial court judges and enhancing the regulation of the insolvency profession.

Financial Inclusion and Consumer Protection

• Financial inclusion is constrained, especially for underserved segments like women and the bottom 40% of income earners. Increased transparency and disclosure could help.
• Leasing operations should be supported by removing tax disincentives, revisiting collateral requirements, and improving repossession mechanisms.
• The supervisory powers of the Federation Banking Agency (FBA) should be strengthened to allow intermediate corrective measures and improve the framework for appeals.

Capital Markets

• Capital markets are small but have potential. The legal and regulatory framework is sound, but cooperation between entities is needed.
• An EU-style 'passporting' framework, electronic links between exchanges, and an association to enhance coordination are recommended.
• A framework for government debt markets, including REPOs and OTC trading, should be developed.

Corporate Financial Reporting

• The financial reporting framework has improved and is aligned with the acquis communautaire. IFRS for SMEs has been successfully implemented in the RS.
• Current monitoring and enforcement arrangements are inadequate, and statutory auditor fees are under pressure. Auditors should be appointed before the closing date of financial statements and for a multi-year period.

Public Bank Governance

• Governance of state-owned banks is a concern. The selection process for supervisory board members needs improvement, and internal audit functions should be strengthened.
• The Development Bank of the Federation of BiH (DBFBiH) is only partially supervised by the FBA. A clear exit strategy for the RS government's support of the financial sector is needed.

Key Recommendations

Conclusion

The financial sector of BiH faces several challenges, including high NPL ratios, fragmented supervision, and limited financial inclusion. While the sector has shown some resilience, significant vulnerabilities remain. Immediate and medium-term actions are required to strengthen the financial safety net, improve governance, and enhance the effectiveness of the macroprudential and regulatory frameworks. These steps are essential for restoring financial stability and promoting sustainable growth.