Central Banking

Serb payment reform to prompt new bank mergers

Yugoslavia will shift responsibility for payment systems in January 2003 to commercial banks and away from the state controlled central bank. The move towards a more competitive payment systems market is likely to prove a testing time for Serbia and Montenegro's banks.

Yugoslavia's central bank said Wednesday the upcoming reform of a communist-style payment system would prompt more bank mergers as some would find it hard to meet technical and liquidity requirements, Reuters reported.

Serbia, wh