Memorandum of Understanding Between the Banking Supervisory Authorities of Bosnia and Herzegovina and Turkey is Signed

Representatives of the Banking Regulations and Supervision Agency of Turkey, the Central Bank of Bosnia and Herzegovina (CBBH) and entities' Banking Agencies signed Memorandum of Understanding and Cooperation related to the supervision over the banks business operations, today, on 12 June 2009 in Sarajevo.

By signing this Memorandum of Understanding, the Banking Regulations and Supervision Agency of Turkey on one side and Central Bank of Bosnia and Herzegovina and Banking Agency of Federation BH and Republika Srpska on the other side express their willingness to cooperate in the area of supervision of the financial institutions operating on the territory of Turkey and BH.

Subject of the Memorandum of Understanding is cooperation between signatories of Memorandum in the supervision of the cross-border subsidiaries of the financial institutions, whose head offices are in Turkey, i. e. BH, in order to efficiently consolidate supervision over the financial institutions doing business outside the countries in which they have their own head offices. Signatories of Memorandum will try to cooperate in routine supervisory proceedings, as well as, to promptly provide information and deliver relevant information regarding important supervision issues related to cross-border subsidiaries.

Exchange of information implies contacts in process of authorizations issuing and licensing, during the supervision of current activities of the above-mentioned cross - border subsidiaries, opening of new branches, also in case of ownership change, which is subject to issuing of the approval by relevant authorities as well as in the case of the license revocation. 

Cooperation between the states - signatories of the Memorandum includes the exchange of written information, mutual meetings and enabling employees of one Memorandum signatory to conduct on-site controls over the territory of other Memorandum signatory in order to exchange information on supervision methods. Cooperation also includes arrangement of informal visits.

Memorandum of Understanding enters in force as of the date it is signed. 

Relevant BH institutions have signed the Memorandum of Understanding on the Banking Supervision, so far, with authorities for banking supervision of Slovenia and Croatia, as well as multilateral memorandum with the authorities for supervision in countries of the Southeast Europe (Albania, Bulgaria, Cyprus, Former Yugoslav Republic of Macedonia, Greece, Montenegro, Romania and Serbia).

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