New Role of the BH Payment Council

The National Payment Council of Bosnia and Herzegovina (NPC) held its 14th session on Thursday, 5.07.2001. in the Central Bank of Bosnia and Herzegovina in Sarajevo. The NPC confirmed the need to continue its work even though the new payment system was now in operation. The NPC roles will be to monitor the operation of the new system and discuss future improvements.

The membership of the Council includes senior officials of all relevant institutions and participants in the new system. The Governor of the Central Bank, Mr. Peter Nicholl will remain as the chairman, and other members consist of Vice Governors of the CBBH, Ministers of Finance and Directors of Banking Agencies of entities, and directors of some biggest commercial banks in Bosnia and Herzegovina.

The NPC at its session discussed all current issues related to payment system in BiH.

It was concluded that the payment system in last six month worked without major problems. Currently 43 banks in BH are included in the system.

The Central Bank of Bosnia and Herzegovina advised the NPC that it would not raise the fees they charge to commercial banks for Giro Clearing and RTGS services. The NPC concluded that fees charged by commercial banks to their customers are now, after six month of their work, generally satisfying. Citizens can choose between reasonable range of fees that varies in Federation, between 4 and 10 KM, and in RS, between 5 and 10 KM per transactions for RTGS, wile for Giro Clearing transactions in Federation is between 1 and 5 KM, while the range in RS is from 0,5 to 10 KM per transactions. There are a few banks charging percentage fees and high fees but they are exceptions.

The Council agreed to create a working group that will review existing regulation related to the payment system in order to adjust laws and procedures to current practice. Therefore it will be worked on simplification of the Decision on minimum criteria that banks needs to fulfill to perform internal payment system. The Council also agreed also on the initiative to change Laws on internal payment system of entities to enable banks having license from the Banking Agency of one entity, to perform payment system service on the territory of the other entity.

Smaller working group of Central Bank representatives and Banking Agencies will work on standardization and introduction of unified system of reporting by commercial banks, and a set of rules and sanctions for participants in the payment system in BH.

The Council also discussed the need to simplify the system of tax payment and asked the Governor to pass this view on to the Governments.