The CBBH Governor Talked With the IMF Representatives

On May 12, 2010, the Governor of the Central Bank of Bosnia and Herzegovina (CBBH) Kemal Kozarić, Ph.D., Directors of the Entities Banking Agencies and BH Deposit Insurance Agency talked with the Mission of the International Monetary Fund (IMF), led by the Head of the Mission, Costas Christou.

While talking on the banking sector, the Governor Kozarić and the representatives of the banking institutions pointed out the banks liquidity in BH as the positive side of the banking sector. At the same time, they pointed out the potential challenges related to the banks capitalization and the credit risk, i.e. increased number of non-performing loans. They concluded that, if there is the economic recovery in this year, this will bring to the stabilisation and therefore to the decrease of non-performing loans.

The IMF representatives were interested in the preliminary results of stress tests for the commercial banks in BH. The recommendations were given to supervisors to monitor more carefully the capital adequacy of the commercial banks in line with the legal regulations.

The IMF official are also informed on the last Decision of the Governing Board of BH Deposit Insurance Agency on the increase of the insured deposit rate from KM 20 000 to KM 35 000, and that the further process of the increase of deposit insured rate shall go on step by step.

It was concluded jointly that the CBBH and the Entities Banking Agencies have reacted in adequate way, with their measures, in order to preserve the stability of the banking sector, and they pointed out that they will continue to act for the well being of everybody.