This Selected Issues paper describes the developments and challenges in the financial sector of the Republic of San Marino. The study analyzes the structure of the financial sector, compares the performance of Sammarinese banks with those in other countries, reviews the legal and regulatory environment as well as supervisory practices, and discusses the challenges facing the banking system. The paper also provides the statistical appendix report for the country.
This Selected Issues paper for the Republic of San Marino analyzes options for managing systemic liquidity risk. The paper states that financial dollarization/euroization—as in the case of San Marino—or a currency board arrangement can complicate banking crisis management and increase the vulnerability of financial systems to liquidity shocks because they limit the ability of the monetary authority to act as a lender of last resort. The paper reviews the current pension system of San Marino, in comparison with other European pension systems, and analyzes its sustainability.