Session of BH Standing Committee for Financial Stability (SCFS) Held Today

The analysis of the situation of the financial sector 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 for Financial Stability of Bosnia and Herzegovina (SCFS) held at the Central Bank of Bosnia and Herzegovina, today, on 18 March 2020.

SCFS members exchanged available information on the functioning of the BH financial sector. The safety, liquidity and capitalization of the banking sector in Bosnia and Herzegovina have been confirmed. Banks can meet all the requirements of their depositors, including cash withdrawal requirements, and, taking into account the circumstances in which the business is currently conducted, will maintain business continuity in accordance with the needs of citizens and the economy.

In order to implement recommended measures for the safeguarding of general public’s health, adopted by responsible institutions, it is suggested – when possible – not to withdraw large amounts of cash for payments, and citizens are advised to use, wherever possible, available electronic payment services via mobile devices or via computers (e-banking and m-banking ).

The meeting also discussed the measures that institutions, members of the SCFS, can take within their respective competences and within the existing legislative framework in order to coordinate their efforts to maintain financial stability in the country.

The CBBH has at its disposal the possibility of reducing the required reserve rate, if the need arises. It will also ensure the smooth functioning of the payment transactions in the country and in foreign trade, supplying cash to all commercial banks in BH.

We remind that the Deposit Insurance Agency of Bosnia and Herzegovina guarantees deposits with commercial banks up to KM 50,000.

The Entity Banking Agencies are preparing by-laws that will specifically adapt the management of emerging risks and of providing benefits to citizens and legal entities in servicing their liabilities to banks. Also, banks are ready to introduce a moratorium on the repayment of loans to individuals and legal entities, with the adoption of relevant regulations.

Each individual institution will inform the public, in a timely manner, of the specific measures taken.

Today's meeting, held in Sarajevo, in addition to CBBH Governor Senad Softić, Ph.D., who chaired the meeting, was attended by BH Finance and Treasury Minister Vjekoslav Bevanda, FBH Finance Minister Jelka Miličević, RS Finance Minister Zora Vidović, RS Banking Agency Director Rade Rastoka, Deputy Director of the FBH Banking Agency Dubravka Bošnjak, Director of the Deposit Insurance Agency of Bosnia and Herzegovina Krešimir Šoljić and Director of the Bans Association of Bosnia and Herzegovina Berislav Kutle.

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