In millions of KM
End of period

Revised data for August and September 2011.

In February 2011, one bank from the Federation BiH made the reclassification of approximately 80 million KM of deposits, from deposits of nonfinancial public enterprises to entity government deposits, in accordance with IMF recommendations.

Notes: By order of the Federal Banking Agency in June 2010 one bank has made a reclassification about 300 million claims based on securities of domestic institutional sector to the claims on nonresidents. In December 2010 the same bank was made retroactive this reclassification in the respective amounts for the period from August 2009 when the error occurred, until May 2010. The above reclassification reflects as increase in foreign assets and decrease in other items net.

One bank from the Federation has made a reclassification of financial instruments in the foreign assets for the period January -August 2010 amounting to about 40 million. Claims on loans to nonresidents reclassified in foreign securities of nonresidents, which resulted in changes in the short term and long term foreign assets.

By order of the Banking Agency of the Republic of Srpska one bank has made a reclassification of financial instruments on the liabilities side, for the period of September 2008 - November 2010, ie. decrease in time and savings deposits of non-bank financial institutions and government sector, and the increase in loans from the same sectors respectively in such amounts, per month, ranging from 50 - 150 million KM.

Accordance with new regulations of the RS Banking Agency, published in the Official Gazette. RS no.136/10, which provides a new way of carrying recording receivables classified in category "E", accounting and bookkeeping of recording interest on non-performing assets and calculation of provisions for loan loses, RS banks are in the data for December 2010 implemented mentioned regulations, the transfer of these items from off-balance records into balance sheet. The correction is reflected on the assets side, as increase of loans in the amount of about 144 millions of KM, and increase of accrued interest of approximately 36 milions of KM, and on the liabilities side, as increase in provision for loan losses amounting about 180 million KM inside the capital account.

Banks in Federation BiH should follow applying the same accounting standards in December 2011. According to data of FBA balance of loans classified in category "E" of 31 December 2010 amounts to 623 million KM and balance of suspended interest 72 million, provisions on this basis were 695 million. These amounts are currently recorded in off balance sheet of banks from the Federation BiH and should be transferred to the balance sheets of banks in December 2011, in accordance with the assessment of banks and the current legislation.

The currency outside monetary authorities is taken from the CBBH Analytical Accounts and it consists of currency in circulation outside the central bank (monetary authorities). Deposits and demand deposits with monetary authorities are deposits of commercial banks and other domestic institutional sectors (except for deposits of the central government) with the CBBH. The central government consists of BH Institutions, entity governments and Brčko Distrikt. The currency outside banks consists of currency in circulation that is outside the central bank as well as commercial banks. Demand deposits in the domestic currency are taken from the Monetary Survey (table 2). They consist of deposits of noncentral government (cantons, municipalities, social funds), deposits of non financial enterprises and private sector. Time and saving deposits in the domestic currency, demand deposits in foreign currency and time and saving deposits in foreign currency are taken over from the Monetary survey (table 2). They consist of deposits of noncentral government, deposits of non financial enterprises and private sector. Reserve money M0 (primary money or monetary base) is taken from the CBBH Analytical Accounts (table 4). It consists of cash outside monetary authorities, deposits of commercial banks and deposits of other domestic sectors (except for deposits of the central government) with monetary authorities. Monetary aggregate M1 comprises cash outside banks and demand deposits in domestic currency of all domestic institutional sectors (except for deposits of the central government). Monetary aggregate QM (quasi money) is defined in the same way as the corresponding item in the Monetary Survey (table 2). It consists of time and savings deposits in domestic currency, demand deposits in a foreign currency and time and savings deposits in a foreign currency of all domestic institutional sectors (except for deposits of the central government). Money supply M2 comprises monetary aggregates, M1 and QM.