Conclusion of the RS Government is Not in Interest of Citizens and Depositors

Conclusion of the Government of Republika Srpska (RS) which refusing the transfer of banking supervision to the Central Bank of Bosnia and Herzegovina (CBBH) is not in interest of citizens and depositors, said today CBBH Governor Kemal Kozarić.

The CBBH is disappointed with the Conclusion delivered at the Session of the RS Government which was held today, October 6, 2005, where the RS Government discussed the Information on initiative of the CBBH to transfer jurisdiction over the banking supervision, and marked as unacceptable transfer of jurisdiction and unification of supervision under the CBBH.

Governor Kozarić considers that such Conclusion shows that the politics does not want to look at this issue as the professional issue.

The CBBH is the central part of the banking system in the country and the state-level institution through which all commercial banks in the country perform transactions. Also, all local non-cash payments which companies and citizens perform in commercial banks throughout the country are cleared and settled through the payments system owned and operated by the CBBH. Therefore it would be logical to have also the banking supervision transferred to the CBBH.

Existence of the Agency for Deposit Insurance of BH is the example of the successful transfer of the banking activity from the entity to the state level, which was performed without problems and political restraints.

The process of enlargement of the banking sector cannot be stopped; banking sector at present is unified, since commercial banks are operating in both BH entities. Governor concludes that entity level agencies for banking in time will ending in position where they will not be able to support the process of enlargement of the banking sector.

He added that the CBBH is not giving up on idea to have the banking supervision under its authority, which is the case in the large number of European countries.

Public Relations Section
Coordinator
Zijada Kovač