Governor Nicholl Supports the Recommendation of Toby Robinson

The Governor of the Central Bank of Bosnia and Herzegovina (CBBH) Peter Nicholl supported the recommendation of the Provisional Administrator Toby Robinson to remove the banking license of Privredna Banka Srpsko Sarajevo.

Governor Nicholl said that it is a normal step to withdraw the banking license of insolvent banks or banks that seriously breach the banking regulations in other ways in order to remove them from the banking system. In fact, Governor Nicholl said this step should probably be done more frequently in BiH.

By taking this action, the banking system will actually be strengthened in two ways. First, it avoids problems in this bank being transmitted to other banks through their banking transactions. Second, it ensures that weak banks are removed from the banking system thus increasing the overall strength of the system.