Serbia Financial Sector Assessment Program Update : Crisis Management Framework
In light of the outflow of deposits in Serbia in late 2008 and early 2009, a series of measures were introduced to urgently address stability concerns. These measures included increased deposit insurance coverage, shortened payout periods, introduc...
| Main Authors: | , |
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| Format: | Report |
| Language: | English en_US |
| Published: |
Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/513651468116045498/Serbia-Crisis-management-framework-technical-note http://hdl.handle.net/10986/28084 |
| Summary: | In light of the outflow of deposits in
Serbia in late 2008 and early 2009, a series of measures
were introduced to urgently address stability concerns.
These measures included increased deposit insurance
coverage, shortened payout periods, introduction of
regulations on lenders of last report (LoLR) and new
liquidity lines, and the possibility for the Deposit
Insurance Agency (DIA) to purchase shares of insolvent banks
under instruction from the Government of Serbia (GoS). At
the time, it was understood that, once stability returned,
it will be prudent to have a crisis management framework in
place to address systemic financial crises at all times,
much like some countries have a framework to deal with
natural disasters. The new framework will seek to minimize
the need for ad hoc measures during crises and limit the
need for the authorities to take measures that are
technically illegal. Because of the lack of such crisis
provisions, in several past crises, ministers and governors
were forced by deteriorating events to take measures for
which they had no authority, leaving the passage of
appropriate regulation or laws to the aftermath of the
crisis. This technical note has been prepared in the context
of the initiative, primarily spearheaded by the National
Bank of Serbia (NBS), to develop a contingency management
framework. In particular, the note discusses the key
elements of such a framework, explores how the NBS and other
countries are tackling such contingency planning. |
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