Support for the Amandment of the Law on Banks of the Federation BH

The Governor of the Central Bank of Bosnia and Herzegovina Peter Nicholl welcomed the decision by the High Representative, Wolfgang Petritsch, made on 6th November, to amend the Law on Banks of the Federation BH. This Decision will permit Provisional Administrators of the banks to make a payment out to so-called small depositors before a completed report on the bank has been sent the Banking Agency.
"This change in the Law on Banks will give a Provisional Administrator more flexibility. This should improve the speed and efficiency of the bank administration and allow a Provisional Administrator to reduce expenses by making a pay out to small depositors much earlier in the administration process, provided that bank has sufficient funds to permit this", Nicholl said.
Until now, such payments were possible only after the formal liquidation of the bank. This Decision will, while the bank is under Provisional Administration, allow payment of funds up to 5000 KM to all deposit holders, except of those that were excluded from Decision brought by the High Representative of the International Community on 6th November.

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Duška Jurišić