Many people are surprised to hear that the Fed directly supervises only 5 of the largest 25 banks -- the state members. Our window into banking is through our umbrella supervision of bank holding companies. Unfortunately, but understandably, the view that the Fed wants new activities to be in a bank holding company is often construed as a “turf” issue.
And also, a drop in inflation is an essential precondition to increasing trust in the domestic currency and its use. Serbia is on the right track to achieving both these objectives!