Meeting of Banking Supervision Coordination held 6/30/2023 Tweet On June 29, 2023, a regular meeting of the Coordination of banking supervision was held in Sarajevo, at which the adoption of the Methodology for calculating the reference rate of the average cost of bank financing in BH (RRFC) was supported. The goal of this Methodology is to determine reference values of the average cost of financing banks operating in the territory of Bosnia and Herzegovina, and to offer domestic banks the choice of using these rates as reference values in loan agreements with a variable interest rate. By using these rates in the case where financing is mainly from domestic sources, banks would be able to better manage the interest-induced credit risk, and the risks to the overall financial stability would be mitigated, the conditions for the functioning of the internal market would be improved, and a higher level of protection for the users of financial services would be ensured, as well as of investors. The meeting was chaired by the Governor of the Central Bank of Bosnia and Herzegovina Senad Softić, Ph.D., and the Director of the Banking Agency of the Republika Srpska Srđan Šuput, the Director of the Banking Agency of the Federation of Bosnia and Herzegovina Jasmin Mahmuzić, M.Sc., and Director of the Sarajevo Branch of the Deposit Insurance Agency of Bosnia and Herzegovina, Alma Kešo, M.Sc.
