Memo of Cooperation and Exchange of Information Signed

The Governor of the Central Bank of BH (CBBH) Peter Nicholl, Director of the Banking Agency of BH Federation Zlatko Barš and Acting Director of the Banking Agency of RS Dušanka Novaković signed today, May 22, 2003 a Memo of Cooperation and Exchange of Information.

Co-operation from above paragraph includes procedures and authorities of the Central Bank and Banking Agencies related to situation in banking sector, maintenance of reserve requirements and measures to be taken in case of failure in fulfilment of reserve requirements as well as obligations in case of certain banks withholding payment orders.

According to the Memo that was signed today, Banking Agencies shall submit to the Central Bank the information on status changes of banks, immediately upon the change; on introduction of measures of provisional administration, on bodies of a bank, management and changes occurred, on submitted applications for banking licence, immediately upon submission of application, quarterly and annual information on banking sector operations.

Banking Agencies shall submit certain data on operations of an individual bank, if the data are needed to the Central Bank for purpose of removing negative consequences in entire financial system, under condition that those data are not business secret of an individual bank.

The Central Bank of BiH shall submit to Banking Agencies the data on maintenance of reserve requirements of individual banks - for each calculation period, immediately after the ending of the period, banks' monthly balance sheet according to IMF methodology, monthly reports on the volume of payment transactions in banks each and total, the CBBH publications, other data as requested by Banking Agencies, under condition that such data are not business secret.

The Central Bank shall inform banking agencies on steps and measures taken due to failure in fulfilment of reserve requirements. In respect to payment system operations, the Central Bank and Banking Agencies are required to exchange information about banks which are withholding payment orders and they will also co-operate on the issues arising from the Law on Banks of Brčko District of Bosnia and Herzegovina.

The Memorandum shall take effect as of today.