Banking Agency: Banking System in the Federation is a Healthy and Secure Pillar of the Economy

SARAJEVO, (Patria) - Organized by the Banking Agency of the Federation of Bosnia and Herzegovina (FBA), a business presentation titled "Business Results of the Banking System Entities in the Federation of BiH in 2018" was held in Sarajevo.

Director of the FBA Banking Agency, Jasmin Mahmuzić, emphasized the following in his address to the attendees: "According to the presented data, the entities of the banking system in the FBiH had a successful business year. We can confirm that the banking system is currently a healthy and secure pillar of the economy. The credit for the business results goes to the management structures of the banking system entities, at the level of the FBiH and at the level of groups whose members are headquartered in BiH. We have a mix of domestic and foreign capital, and practices, experiences, and business models cross national borders, thus connecting our banking system with other markets. The entities of the FBiH banking system operate in a complex environment burdened by the specifics of BiH. In such an environment, our banks contribute to a better image of the economic environment. Considering the profile of our economy, we believe that banks must focus their attention on structuring risk exposures for long-term development and stability. We expect an active approach and consistent application of regulatory requirements from our banking system entities. We also expect an update of the sub-legal framework for the microcredit and leasing sector. We are committed to continuous assessments, self-assessments, planning, and cooperation. We are continuously developing capacities for a new supervision concept, but the support we receive from our international partners remains of great importance. We are ready for new challenges and I believe that this year will also be successful."

It was highlighted that in 2018, growth in assets, loans, funds, and deposits was recorded, as well as an improvement in the profitability of the banking system entities. The banking system is regulated, stable, and secure, but there is a constant need to continue activities on harmonization with relevant regulatory requirements and strengthening for long-term development, support for the economy, and resilience to negative effects of economic cycles and possible crises transmitted from other markets.

In his capacity as President of the Vienna Initiative Steering Committee, the Governor of the Croatian National Bank, Boris Vujčić, addressed the gathering. Davide Stroppa, Senior Bank Expert, also spoke on behalf of the European Banking Authority (EBA), an institution that, through its regulatory and supervisory role, works to preserve the integrity and effectiveness of the banking sector in the EU and maintain financial stability in the EU.

The presentation was also attended by Senad Softić, Governor of the Central Bank of BiH, along with his vice-governors.