Governor Kozaric Attending the Vienna Initiative Meeting

The Governor of the Central Bank of Bosnia and Herzegovina (CBBH) Kemal Kozarić Ph.D. and Director of the Federal Banking Agency Mr. Zlatko Barš attended the meeting of Vienna Initiative, in Austria.

The meeting brought together representatives of supervisors, central banks and Ministries of Finance from host and home countries of major cross border banks that are present in the markets of Central and Eastern Europe.

One of this meeting's conclusions was that parent banks should continue to give financial support to their daughter banks, but also that all institutions of government in countries should ensure conditions for banks to mobilize local sources of financing. It is recommended for supervisors from home and host countries to improve the cooperation and exchange of the information on banks and on potential problems in their subsidiaries.

International financial institutions should be ready to continue the financial support to banks in host countries within their mandates and capacities.

It is emphasized that the Vienna Initiative, launched in 2009, met its aims, and these are that banks have remained well capitalized and active in lending funds. It was assessed that this Initiative helped financial sectors of Central and Southeastern Europe countries to preserve their stability during the global financial crisis.

The meeting in Vienna was a preparatory meeting for so called Vienna Initiative 2, which should be held with the commercial banks, and where the banks should accept certain obligations.

Governor Kozarić and Mr. Barš met with the representatives of the banks' owners, whose daughter banks operate in BH - Raiffeisen Bank, Hypo Alpe Adria Bank and Spaarkase Bank, who expressed their readiness to continue funding the economy and citizens in BH in future, too.

Public Relations Section