Governor of the National Bank of Serbia in Visit to the Central Bank of Bosnia and Herzegovina

The Governor of the National Bank of Serbia Radovan Jelašić will visit the Central Bank of Bosnia and Herzegovina (CBBH) on July 21, 2004. On that occasion, Governor Jelašić will meet with the Governor of the CBBH Peter Nicholl, Director of the Banking Agency of BH Federation Zlatko Barš and the Acting Director of the Banking Agency of Republika Srpska Dušanka Novaković and will sign the Memorandum on Understanding and Cooperation in the field of banking supervision. This visit is also the opportunity to start discussions and activities on the establishing of the regional cooperation between the central banks. The visit of the Governor of the National Bank of Serbia and signing of the Memorandum were agreed in mid-July in Belgrade, where Governor Nicholl and the Member of the Governing Board of the CBBH Manojlo Ćorić attended the Ceremony of celebration of the 120th Anniversary of the National Bank of Serbia. By signing the Memorandum of understanding and cooperation in the field of the banking supervision, the signers want to express their willingness to cooperate in the field of supervision, that is, control of operations of banks operating on the territory of BH and Republic of Serbia. The subject of this Memorandum of understanding and cooperation is the cooperation of the signers in the supervision, i.e., control of operations of the business units of banks located in other country, with their headquarters in BH or in Republic of Serbia. Signers of this Memorandum will exchange the information which will make easier consolidated supervision, that is, control of the operations of banks that have their headquarters on the territory of one state-signatory to this Memorandum, but operating also in the territory of the another state-signatory of this Memorandum. This is especially related to the information on the significant changes of the management and ownership structure, policies and procedures, amount of capital, level of capital adequacy, assets' quality, profitability, level of liquidity maintenance, as well as the information on harmonization of banks' operations and of their business units located in other country with the regulations and on the implementation of measures and recommendations of the Supervisory Board of the bank and the business units located in other country. The CBBH and banking agencies from both entities have already signed similar Memorandum with the National Bank of Croatia and the Bank of Slovenia and the signing of this Memorandum is planned with Austria's, Turkey's and Italia's relevant supervisory authorities.