Official title of the project

Strengthening of the institutional capacities of the National Bank of Serbia (NBS)

Sectors

Project information

Region / City
Cities
Belgrade
Total budget of programme / project

EUR 2,500,000

Implementation period
2011. Feb - 2013. Dec
Expected results

Result 1 - Financial sector supervision: Improved financial sector supervision, fully based on the enhanced risk assessment and risk management.

Result 2 – Legislatio: Selected and identified legislation under the competence of the NBS aligned with acquis communautaire

Result 3 - Liberalisation of capital movements: Fully defined medium-term strategy for full liberalisation of capital movements.

Result 4 - Foreign exchange reserves management: Enhanced foreign exchange reserves management in the field of foreign exchange reserves investment, risk management and risk control process.

Result 5 - Monetary policy operations: Prepared strategy for more efficient long-term execution of inter-bank transactions on domestic and FX money market and reduced operational and financial risks

Result 6 - Financial services consumer protection: Strategy prepared for increasing the awareness of beneficiaries of financial services and strengthened transparency of financial services conditions.

Result 7 - EU accession support: Developed expertise in the area of EU accession issues, strengthened institutional links with central banks in the region and EU.

Result 8 - Economic analysis and research: Capacities for economic analysis and research enhanced.

Result 9 - Statistics: Statistics further aligned with EU requirements.

Result 10 - Payment systems: Payment systems legislation, oversight and statistics further aligned with EU standards.

Result 11  - Financial stability: Financial stability analysis and reporting further aligned with EU practice

Result 12 - Information technology: Information technology further aligned with international practices and ESCB procedures

Result 13 - Accounting and financial reporting: Accounting and financial reporting further aligned with ESCB standards and requirements

Beneficiary

National Bank of Serbia

Target Groups

Banks, Insurance companies, Leasing companies, Pension fund, Financial institutions,  Consumers of financial services, Foreign Exchange Inspectorate, The Securities Commission, Association of Serbian Banks, Association of Accounts and Auditor

Summary of the project

The strategic commitment of the Republic of Serbia toward European integration entails transition from a centralized state economy to a functional market economy. The keystone of every market economy is sound and developed banking and financial sector. The restructuring of the financial sector and its role in sustaining macroeconomic stability represents one of the priorities of successful integration of the Republic of Serbia in the EU. In such environment, a reliable and functionally efficient central bank, as one of the pillars of macroeconomic stability of a country, plays a key role in the process of country’s accession to the European Union.

The National Bank of Serbia (NBS) is the central bank of the Republic of Serbia. The primary objective of the NBS is achieving and maintaining price stability, and in addition to that, maintaining financial stability. Without prejudice to its primary objective, the NBS shall support the pursuance of economic policy of the Government of the Republic of Serbia, operating in accordance with the principles of a market economy.

Through the institutional building activities, NBS would strengthen the efficacy and effectiveness of its activities with a view to the successful harmonization of NBS operations with European standards and requirements of the European System of Central Banks. The project should enable the full integration of the entire financial and banking sector of the Republic of Serbia in the financial system of the EU. 

 This project will cover the main areas under the competence of NBS, identified as strategic priorities that need to be fulfilled towards the maintenance of a stable and sustainable financial sector.

 

Excellent work done and good co operation established during the needs analysis phase ensures successful implementation of this very technical and demanding project.

 

Prepared strategies, acquired exper

Programme/Project objectives

Overall objective of the project is maintenance of sustainable macroeconomic and financial system stability by bringing the National Bank of Serbia core functions and activities in line with best international practice. 

The purpose is to strengthen institutional capacities, activities and efficiency of the NBS by aligning the NBS’s core functions with EU regulations and internationally accepted standards, and the NBS standards with the central banking standards of the European System of Central Banks. The support will be provided it in the drafting of new strategies, project and action plans, methodologies, rules, policies and practices and training of staff in the Action’s areas of activity: Financial sector supervision, Legislation, Liberalisation of capital movements, Foreign exchange reserve management, Monetary policy operations, Financial services consumer protection, EU accession support, Economic analysis and research, Statistics, Payment systems, Financial stability, Information technology andAccounting and financial reporting.