International Monetary Fund. Monetary and Capital Markets Department
This paper discusses key findings of the Financial System Stability Assessment on Bosnia and Herzegovina (BiH). The financial system in BiH is still dealing with the aftershocks of the global financial crisis as well as deep-seated vulnerabilities. A high system-wide nonperforming loan ratio reflects the impact of the crisis, low growth since then, and a history of lax lending policies. Bank governance problems, weak supervision powers, and related-party loans are obstacles to addressing asset quality problems and re-establishing bank profitability. Banking and insurance oversight have improved since the 2006 Financial Sector Assessment Program, but supervisors’ corrective and enforcement powers are weak and identifying ultimate beneficial owners and related-party lending is problematic.
An introductory guide to the IMF’s technical assistance. Providing technical assistance to member countries-particularly developing countries and countries in transition-is at the core of the IMF’s mission. Technical assistance, which includes training for government and central banks officials, is one of the benefits of IMFmembership. It complements and enhances the IMF's other key forms of assistance, i.e., surveillance and lending. The IMF provides technical assistance mainly in its areas of expertise and responsibility: fiscal policy, monetary policy, and macroeconomic and financial statistics.
Technical assistance can improve lives in a variety of ways. In the next few pages we take a look at examples of how the IMF has helped governments build institutional capacity in Africa; meet internationally recognized standards for collecting and publishing financial data; combat money laundering and the financing of terrorism; and strengthen taxation systems and financial sectors. We also discuss how the IMF helps countries after an emergency or conflict; and the role of the IMF Institute in training government officials.
Managing an economy is a difficult business. Designing and implementing economic policy require know-how and effective institutions of government. Many developing countries, in particular, need help to build up expertise in economic management, and advice about what policies, reforms, and institutional arrangements are appropriate and have worked well elsewhere in the world. Help of this kind is provided by the International Monetary Fund (IMF) through technical assistance.