Governor of CBBiH at the "Trade Facilitation Program" meeting

SARAJEVO, (Patria) - Governor of the Central Bank of Bosnia and Herzegovina (CBBiH) Senad Softić, on May 7, 2019, delivered an opening speech at the "Trade Facilitation Program" (TFP) meeting, held as part of the Annual Meeting of the Board of Governors of the European Bank for Reconstruction and Development (EBRD), hosted by Bosnia and Herzegovina this year.

Speaking about the TFP itself, the Governor of CBBiH emphasized that during its 20-year existence, it has achieved great accomplishments, and its concept has been positively received by representatives of the financial industry and end-users. Exceptional results have been achieved in the fields of education, policy dialogue, networking opportunities, and in the area of trade transactions supported by the program – specifically, over 23,000 transactions worth EUR 19 billion. The program supports trade in 28 countries where the EBRD operates, and in Bosnia and Herzegovina, it has supported nearly 800 transactions with a total value of over EUR 71 million. Currently, the EBRD has three partner banks for this program in Bosnia and Herzegovina.

The Governor pointed out that there is significant room for progress in trade between Bosnia and Herzegovina and the regions in the focus of this program, and that it is particularly important to focus on greater trade integration of the Central and Eastern European region, especially in light of global trade disputes.

Presenting data on the financial market in Bosnia and Herzegovina, Governor Softić highlighted that the financial system in Bosnia and Herzegovina, dominated by the banking sector, has continuously developed over the past decade, with positive indicators related to stability and profitability. 

Although most indicators and trends related to the financial sector are positive, the CBBiH and other relevant institutions in Bosnia and Herzegovina must constantly monitor developments and trends to have ready responses to potential challenges posed by financial innovations, such as fintech, growing cyber risks, the use of artificial intelligence in financial intermediation, and the emergence of cryptocurrencies.

"The biggest challenge ahead of us will be achieving a balance between caution towards the risks that financial innovations entail on the one hand, and on the other hand, providing adequate space for the potentials of these innovations to develop unimpeded for the benefit of society as a whole," emphasized Governor Softić, adding that continuous activities on aligning regulations and practices with those applied in the European Union (EU) must not be neglected, which is one of the obligations on Bosnia and Herzegovina's path to full membership in the EU. 

This year's meeting, which represents the largest meeting on trade finance held in Bosnia and Herzegovina to date, focused on discussing the latest global trends and developments in trade finance, and brought together over 200 representatives of financial institutions and organizations, 150 of them from 51 countries. At the end of the meeting, awards will be presented to financial institutions that have been most active in the TFP program.