The CBBH Met With the IMF Delegation

Governor of the Central Bank of Bosnia and Herzegovina (CBBH) Kemal Kozarić Ph.D., and his associates, met on 27 May 2011, with the International Monetary Fund (IMF) Delegation led by the Head of the IMF Delegation to BH Costas Christou.

During the discussion, it was emphasized that the stability of the financial sector is on satisfactory level, given the real sector situation. However, potential risks in the financial sector are reflected in the weak domestic demand and the potential reduction of trade with major trading partners.

According to the results of stress tests, the banking sector is adequately capitalized, but it was recommended to have the permanent monitoring of the commercial banks capital adequacy.

At the meeting, it was stated that during the first three months of 2011, strengthening of the credit activity of the banks was noticed, especially towards the private companies, as well as that the credit policies of banks and the availability of liquid assets are not limiting factor for further credit growth.

The CBBH representatives and the IMF Delegation also discussed the next steps which should be taken within the Vienna Initiative.

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