Governor Softić Met with the representatives of Banks' Association of Bosnia and Herzegovina

On April 28, 2016, at the initiative of the Governor of the Central Bank of Bosnia and Herzegovina, Senad Softić, Ph.D., it was held the meeting with the representatives of the Banks' Associations of Bosnia and Herzegovina (BABH) in the premises of the CBBH. 

At the meeting, it was talked about the Decision of the CBBH Governing Board on Determining and Maintaining Required Reserves and Defining of the CBBH Remuneration Rate to the Banks on the Amount of the Reserves, that was passed on April 13, 2016 and which shall be applied since July 1, this year. Governor Softić explained to the representatives of banks the motives and reasons for passing such Decision. It was talked about the practical implementation of the mentioned Decision on the level of banking sector and its impact on the banking sector of Bosnia and Herzegovina as a whole, as well as, about the aspects of its implementation for certain commercial banks. It was emphasized that the liquidity of the banking sector is currently high, and that, after the new Decision is applied, the credit potential of banks shall still be at the high level, and this gives the space to banks to continue to support economic activity and finance quality projects. 

In the part of conversation related to the coordination of all stakeholders in financial and banking sector, bankers stressed the necessity and supported the strengthening ofthe coordination between the Entities Banking Agencies’ activities, being within the legal jurisdiction of the CBBH, with the aim of strengthening the financial stability, better functioning and delivery of more quality regulations and legal solutions. It was especially emphasized the importance of more quality control of the banking sector conducted by competent institutions. 

It was also talked about the draft Entities' Laws on Banks that must ensure respect for the competence of all institutions, to which the Law is referring, including the CBBH's jurisdiction as the only institution in charge of monetary policy and of the monetary policy instrument, i.e. required reserves. 

For transparency sake and in order to have a single functioning of the banking and financial system, representatives of the Banks’ Association, supported the Single Register of Transaction Accounts, and it was pointed out that it has been necessary for this Register to be integral one and to have the updated information.