Value of loans to individuals and legal entities in 2014 exceeds 11 billion BAM

The FBiH Government today accepted the Report on the work of the FBiH Banking Agency for 2014 with Information on the banking and microcredit system, and the leasing sector in FBiH. Also, the Report on last year's work of the independent department of the Ombudsman for the banking system was accepted, reports the Bosnian news agency Patria.

As of December 31, 2014, 17 banks held banking licenses in the Federation of BiH, the same as at the end of 2013. In 2014, the trend of a slight decline in the number of employees in banks in FBiH continued - there were 6,960, which is 91 fewer compared to the end of 2013.

The balance sheet total of the banking sector as of December 31, 2014 amounted to 16.2 billion convertible marks and was 719 million BAM or 4.7 percent higher than a year earlier. This is primarily the result of growth in deposits and total capital, while the trend of reducing loan obligations continued in 2014. The asset structure had minor changes in two key asset items: a decrease in the share of loans from 70.3 percent to 69.1 percent and cash from 28.6 percent to 28.2 percent.

Loans, as the largest item of bank assets, recorded growth of 2.9 percent or 318 million BAM in 2014 and amounted to 11.2 billion BAM at the end of the year. Loans to households amount to 5.4 billion BAM and were five percent or 253 million BAM higher, with a share of 48.8 percent in total loans. Loans to legal entities amount to 5.8 billion BAM and are at the same level as at the end of 2013.

Last year, 13 microcredit organizations had operating licenses in FBiH, 12 of which were non-profit. The microcredit sector employed 1,308 workers, which is 95 fewer compared to December 31, 2013. This decline in employment was mostly influenced by the layoff of 102 employees at one MCO.

The balance sheet total as of December 31, 2014 amounted to 452.3 million BAM, and was 23.6 million lower compared to the previous year. Total gross loans of MCOs, as the most significant asset item, amounted to 381.3 million BAM.

The balance sheet total of leasing companies in FBiH as of December 31, 2014 amounted to 498,432,000 BAM, which is 13.78 percent less compared to December 31, 2013. One leasing company recorded an increase in balance sheet total of 2,814,000 BAM, while others recorded a decrease in the total amount of 82,483,000 BAM. In 2014, the leasing activity incurred a loss in the amount of 12,996,000 BAM. The total capital of leasing companies amounted to 34,756,000 and was lower by 1,206,000 BAM.