For Three Months of New Payments System Functioning There Were Performed 2,3 Million Transactions With the Value Of 3,4 Billion KM Through RTGS and Gyro Clearing

On April 5, 2001Governor of the Central Bank of Bosnia and Herzegovina Peter Nicholl with his associates held the press conference on the occasion of three months operation of new payments system in Bosnia and Herzegovina. Governor Peter Nicholl estimated that in the first three months of its existence, new payments system was functioning well, and that in question is a safe system operating smoothly.
"Commercial banks have the full control over the paymetns system: Banks should quickly execute the payments orders of their clients. If this is not the case then they should ask their banks and compare the services of different banks, " said Governor Nicholl in his introductory remarks.
When in question is the functioning of the clearing house in the Central Bank of BH, Governor Nicholl informed on the transactions in gyro clearing ad RTGS system in last three months, saying that in total 2,3 million transactions, with the value of 3,4 billion KM were performed. Out of that , through RTGS system (Real Time Gross Settlements ) 183.515 transactions with the value of 2.099.596.086,05 KM, and through gyro clearing 2.123.203 transactions in the value of 1.338.668.405,38 KM. "As it was expected the big number of transactions of small values was performed through gyro clearing, and settlements of the transactions of big values , off course less in number, were performed through RTGS system", concluded Governor Nicholl.
Governor Nicholl introduced to the media Vice Governor Dragan Kovacevic, who, in accord with the rules on the regular rotation in the Central Bank of BH, took over the Department for Research and Development and the Direction for Payments Systems, which were so far run by Vice Governor Kemal Kozaric. Mr. Kozaric will from now on perform the duty of Vice Governor in charge of administration and finances. Governor added that the mission of International Monetary Fund, recently visiting the Central Bank, was very complementary for the success of new payments system in Bosnia and Herzegovina.
The representatives of IMF said that unlike the other countries in the Region, Bosnia and Herzegovina now has payments system promoting competition and the development of the financial system giving the banks the opportunity to serve directly their clients in market based environment.
Governor Nicholl said that banks can be proud of their success in this payments system. "Although we have 43 banks the big number of transactions is concentrated to relatively small number of banks. In last three months only 12 banks performed even 75% of total number of transactions. The good thing is that those banks are reasonably spread around the whole country, I will not name them, but I will just say that those are banks from Sarajevo, Banja Luka, Tuzla and Mostar," says Governor Nicholl. Governor Nicholl reminded that the Central Bank of BH will install reserve system in one of its centers , that would take over the clearing operations in case of malfunction of the existing system in the Headquarter of Central Bank of BH in Sarajevo. Also, there will be considered the proposal of commercial banks on extension of the working hours for RTGS and Gyro clearing settlements. There will be considered again the commission of the Central Bank of BH charged for the transactions and settlements in the RTGS and Gyro clearing system.
Governor added that the Central Bank of BH will on July this year (six months after implementation of new payments system) consider the all aspects of the new payments system functioning , and that it will make some adjustments and modifications if necessary in order to improve the quality of the payments system services.
The Governor also mentioned the issue of the banks from one entity wishing to perform the payments transactions in another entity. Vice Governor Kozaric, elaborated on this issue, saying that according to the last year Law on Banks, the banks are allowed to open branch in other entity if registered in one, but this Law did not anticipate the technical issue of performance of the payments transactions in the other entity. Vice Governor Kozaric says that the Central Bank of BH started the initiative with the Ministry of Finances to regulate this issue as soon as possible.

Public Relations Office
Vildana Popovcevic