Memorandum on the Principles of Coordination of Banking Supervision Signed

Governor of the Central Bank of Bosnia and Herzegovina (CBBH) Kemal Kozarić and Directors of the Banking Agencies of Federation BH (FBH) and Republika Srpska (RS) Zlatko Barš and Slavica Injac signed on 12 June, 2008 in Sarajevo, Memorandum on the principles of coordination on banking supervision and cooperation and exchange of data and information.

Purpose of this Memorandum is establishing of stronger coordination of banking supervision, which is based on principles of mutual cooperation, mutual trust and respecting independence in work. Stronger coordination means informing the CBBH on activities and issues of banking supervision, on one hand, and delivering of data to the banking agencies regarding strengthening monetary and financial stability, on the other hand.

Cooperation, according to this Memorandum includes exchange of data and timely informing on important issues regarding operations of individual banks and stability of the banking system. 

Aim of the data and information exchange means recognizing of vulnerabilities in the banks, more efficient identifying of potential risks and timely recognizing of crises situation, discussion about causes, taking appropriate positions and proposing of measures for solving of such like situations.

Cooperation includes publishing of data from own competencies, building of the mutual trust, cooperation in area of implementation of Main Basle Principles and Directives of the European Union for the efficient supervision, work in common expert groups, participation in common education, as well as, cooperation with other supervisors. 

The CBBH and Banking Agencies can exchange also other data and information from own competencies, which are necessary for removing of negative consequences in the complete financial system.

Data and information will be discussed at the coordinating meetings of the banking supervision.

Public Relations Section