Senad Softić Explains Importance of Deposit Law in Parliamentary Clubs: New Adoption Attempt Only on July 5

SARAJEVO, (Patria) - The Proposal for the Law on Deposit Insurance in Banks in BiH is once again on hold, after representatives of the House of Representatives failed to complete the session of the 62nd meeting in order to create conditions for the 63rd session, where the aforementioned proposal is on the agenda under an expedited procedure. This proposal may not be discussed until July 5.

The Finance and Budget Commission of the House of Representatives of BiH unanimously supported the principles of this law. However, Senad Softić, the Governor of the Central Bank of BiH, had his hands full discussing the importance of adopting this proposal in parliamentary clubs. He clearly told everyone that this law is extremely important for the financial stability of BiH.

The existence of the Deposit Insurance Agency has proven necessary, and that this is not about a transfer of competencies, but about harmonizing the existing law.

- The goal is for all banks to be insured and to ensure their financial stability - said Softić.

The Law on Deposit Insurance in Banks of BiH introduces a number of innovations, and one of the most interesting is that banks will no longer be able to send surplus money to their headquarters outside the country.

In Bosnia and Herzegovina, most banks are privatized and the owners are mainly banks with foreign addresses.

In order to preserve financial stability, the new banking laws provide for a resolution process that, through restructuring bank operations, helps create a self-sustaining bank, and one of the sources, under the new law, will be the Deposit Insurance Fund.

This law will enable businesses, as well as savers, in the event of financial problems and the "collapse" of a bank, to get a large portion of their money back. Among other things, this law defines the articles that determine the conditions for using the Fund, into which bank funds are deposited daily.

The Deposit Law is also listed as one of the conditions of the IMF, and in the supplementary Letter of Intent sent by representatives of institutions in BiH in January 2018, we committed to fulfilling 22 measures, including the adoption of the Law on Deposit Insurance in Banks of BiH.