Bosnia And Herzegovina and Montenegro Signed Memorandum on Understanding in the Area of Banking Supervision

Governor of the Central Bank of Bosnia and Herzegovina Kemal Kozarić and Directors of Banking Agencies of Federation BH and Republika Srpska, Zlatko Barš and Slavica Injac signed in Sarajevo today the Memorandum on Understanding and Cooperation in the Area of Banking Supervision with the Governor of the Central Bank of Montenegro Ljubiša Krgović.

Signatories of this Memorandum have expressed their readiness to cooperate in the area of supervision, i.e., control of operations of banks which operate on territory of Bosnia and Herzegovina and Republic of Montenegro.

The subject of this Memorandum on Understanding is cooperation of its signatories in supervision, i.e., control of operations of cross-border business units, organizational parts of banks with their headquarters in Bosnia and Herzegovina or in Republic of Montenegro in order to have efficient consolidated supervision of operations of banks which operate outside of territories of countries where their headquarters are placed.

Responsible signatories will exchange information on banks which operate on the territories of Bosnia and Herzegovina and Montenegro, and which are the subunits of companies of the same or the same group of owners with their headquarters in third countries.

The signatories agree that the cooperation is especially useful in providing help in the process of direct supervision of cross-border business units, i.e., of organizational units of banks. Direct supervision is performed by the signatory covering the territory where cross-border business unit operates, and that other signatory can participate in the supervision process. Signatories of the Memorandum will mutually inform each other on the plan of direct supervision of banks in timely manner.

So far, BH has signed the Memorandum on Understanding and Cooperation in the Domain of Banking Supervision with Slovenia, Croatia and Serbia, and negotiations on signing with the Austria and Macedonia are underway.

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