Meeting of Representatives of the CBBH and BH Association of Banks Held

Representatives of the Central Bank of Bosnia and Herzegovina (CBBH) and BH Association of Banks have held a meeting today, November 21, 2005, in Sarajevo, during which they discussed the objections of BH Association of Banks on the new CBBH's Decision concerning the Required Reserve, especially on the requirement to have cash of commercial banks also included into total Required Reserve funds.

During the meeting it was stressed that the analysis of effects of the implementation of the decision on the new Required Reserve rate and its influence on commercial banks will be possible after the end of the first quarter of 2006 and the CBBH and BH Association of Banks will discuss them together.

At the end of the last month, the Governing Board of the CBBH decided that the Required Reserve rate to the commercial banks will increase from 10% to 15% from December 1, 2005. The policy of remunerations which the CBBH pays to commercial banks for Required Reserve and for funds above the Required Reserve will be changed as well.

Public Relations Section