Meeting of the Governor With Bankers

The Central Bank of Bosnia and Herzegovina organized the meeting with the repesentatives of the commercial banks in the eve of start of payments system through giro clearing and RTGS system. In the last 6 weeks of testing it has been found out that each of the segments of the system functions well individually. On January 3, 2001, there was done the testing of the whole system, and it was found out that the system functions without difficulties.
"This is tremendously important step for the financial system of Bosnia and Herzegovina and the economy in general. It is extremely important for the commercial banks, too, in order to establish more qualitative relations with clients", pointed out Governor Peter Nicholl adding that new clearing system will be equivalent to the systems in modern European countries.
37 commercial banks will directly participate in the RTGS System (RTGS-Real Time Gross Settlements), and 30 commercial banks, that will be direct participants in gyro clearing centers. Having in mind that some banks obtained the payments system license late, it wasn't possible to include them directly in giro clearing centers. However, these banks will have the possibility to get included in the payments system through RTGS system, for which they will get certain advantages. "Although the tests passed well, we cannot guarantee that everything will go smoothly on January 5. After all, there is no one system in the world that is functioning perfectly on the very first day. One of the reasons we start on Friday is that there comes the weekend during which we can solve the potential problems, " says Governor of the CBBH Peter Nicholl to the representatives of the commercial bank.
Governor Nicholl pointed out that he was surprised by the level of services' fees quoted by some commercial banks. The good thing is the range of prices. We find out that the prices of the services, charged by commercial banks, for the payments transactions through the RTGS system, will be from 3 to 12 KM. In comparison to the fee the CBBH quotes for the commercial banks for use of the RTGS, which is 1,20KM, the fee of 12 KM is extremely high. The prices of the services that will go through the giro clearing are also very high having in mind that the CBBH charges only 5 feinigs for the transactions from the commercial banks. What is good is the variation of prices for those transactions, which proves that the competition exists. Governor Nicholl said that the Central Bank of BH will not intervene for the time being, but it will do something if the fees for the commercial banks are concentrated at the upper level of this range.
It was pointed out that new payments clearing system has significant advantages, it gives the possibility for everyone to have benefits, and it enables the commercial banks to be the centers of profit, not the centers of the cost. In the same time the costs of the clients will be decreased in relation to the costs that individuals and legal entities had earlier for the payments transactions . Last month the CBBH get the letter from the PTT Sarajevo, agreeing to start negotiating on the lowering of fees for renting of the telecommunication lines.
"We are quite confident that other PTT centers will follow this example", pointed out Governor Nicholl. When in question is the cash handling, so far we used the network of he payments bureaus. Last week the Central Bank of BH signed the contracts with three servicing institutions that will develop from the payments bureaus. In question are the contract related to the cash distribution in 16-location countrywide. In the beginning the contracts were signed only for two months, having in mind that these new agencies have to be registered. "15 individual treasuries covering all seats of the commercial banks will be open since January 5", says among other things Vice Governor of the CBBH Ljubiša Vladušic at the meeting with he representatives of the commercial banks. Vice Governor Vladušic pointed out that in this two months transitory period the Central Bank will analyze whether the job with cash will continue in that or in some other way, since the CBBH received several offers from the commercial banks to take these jobs, too. All commercial banks, on the buying -selling basis, will continue to go through Main Units and Branches of the CBBH and they will get the cash in the following centers:
- Main Unit Sarajevo: Sarajevo, Tuzla, Zenica, Bihac, Gorazde,
- Main Unit Mostar: Mostar, Široki Brijeg, Livno, Novi Travnik
- RS Main Bank : Banja Luka., Trebinje, Bijeljna, Doboj, Sokolac and Prijedor
- Brcko is in the negotiating phase.

Vice Governor of the CBBH Kemal Kozaric pointed out that commercial banks are ready to take over new payments system together with the CBBH. "Considering that in case is a radical variant, and the one is, in principle, that from January 5, 2001 all clients will go into commercial banks, having the open account or not, they have to report to the commercial bank to which they are connected by the Contract on Deposit signed earlier during opening of the account with the ZPP. In the following 14 days the problem of opening accounts to all clients will be solved, therefore I ask the Directors of the commercial banks to assist the clients and extend the working hours in order that everybody's account is open. This refers only to the clients whose account are not blocked in the ZPP", said Vice Governor Kemal Kozaric. More problems is to expect in small places where there is no enough number of commercial banks' branches. "This transformation should be used to widen the network in order to meet demands of all clients.", said Vice Governor Kozaric. Once more he appeals to commercial banks' General Directors to analyze the established prices for the services of payments system. "There is no limit, but unreal competition should not be created, specially because of the attackers of this reform and this way of business operation", pointed out Kozaric. Once more the gratitude is expressed to the commercial banks for their co-operation and efforts made in the reform of the payments system.

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