Meeting of the Standing Committee on Financial Stability: Banking Sector is Safe

SARAJevo, (Patria) - An analysis of the financial sector's condition in Bosnia and Herzegovina and the impact of the situation caused by the coronavirus pandemic (Covid 19) was the topic of an extraordinary meeting of the Standing Committee on Financial Stability of Bosnia and Herzegovina (SOFS) held today, March 18, 2020, at the Central Bank of Bosnia and Herzegovina.

SOFS members exchanged available information on the functioning of the BiH financial sector. The safety, liquidity, and capitalization of the banking sector in Bosnia and Herzegovina have been confirmed. Banks can meet all demands of their depositors, including cash withdrawal requests, and considering the circumstances under which business is currently conducted, they will maintain business continuity in line with the needs of citizens and the economy.

In implementing the general measures recommended by competent institutions for preserving citizens' health, it is suggested that, wherever possible, available electronic payment services be used via mobile devices or computers (e-banking and m-banking).

At the meeting, measures that SOFS member institutions can take within their competencies and the existing legislative framework were also discussed, aiming for coordinated action to preserve financial stability in the country. The Central Bank of BiH has the option to reduce the mandatory reserve rate if the need arises. It will also ensure the smooth functioning of the payment system in the country and foreign transactions, by supplying cash to all commercial banks in BiH.

We remind you that the Deposit Insurance Agency of BiH guarantees deposits in commercial bank accounts up to 50,000 KM.

Entity banking agencies are preparing sub-legal acts that will specifically adapt risk management and provide benefits to citizens and legal entities in servicing their obligations to banks. Furthermore, banks are prepared to introduce a moratorium on loan repayments for individuals and legal entities with the adoption of relevant regulations.

Each individual institution will promptly inform the public about the specific measures it undertakes.

Today's meeting, held in Sarajevo, was attended by the Governor of the Central Bank of BiH, Dr. Senad Softić, who chaired the meeting, the Minister of Finance and Treasury of BiH, Vjekoslav Bevanda, the Minister of Finance of FBiH, Jelka Milićević, the Minister of Finance of RS, Zora Vidović, the Director of the Banking Agency of RS, Rade Rastoka, the Deputy Director of the Banking Agency of FBiH, Dubravka Bošnjak, the Director of the Deposit Insurance Agency of Bosnia and Herzegovina, Krešimir Šoljić, and the Director of the Banking Association of Bosnia and Herzegovina, Berislav Kutle.