Meeting Of the Standing Committee For Financial Stability Held

On June 27, 2012, in Sarajevo, the regular meeting of the Standing Committee for Financial Stability was held, addressing the current risks in macroeconomic environment and their influences on the stability of the financial system.

It was estimated at the meeting that the banking sector as a whole is still well capitalized, although there are banks in which, mostly due to the deterioration of the macroeconomic conditions in the country and abroad, some needs for additional capitalization could appear in the coming periods. Weak economic activity in the country, and low growth projections for this year in the country and abroad, currently present the risks for the quality of the banking sector credit portfolio and for its profitability.

The members of the Standing Committee for Financial Stability stressed the necessity of passing the Law on Factoring and agencies for the repurchase of claims, which would legally regulate the transferring of a portion of the banks' loan portfolio in a separate legal entity and tax treatment of such transactions. Along with the other issues, it was concluded that future activities should be directed towards examining mechanism for the protection of sources of financing, as well as towards analysing the maturity adjustment of financial assets and liabilities of the banking sector.

Governor of the Central Bank of Bosnia and Herzegovina, Kemal Kozarić Ph.D. chaired this meeting and BH Minister of Finance and Treasury, Nikola Špirić, Minister of Finance of BH Federation, Ante Krajina, Director of the Banking Agency of RS, Slavica Injac, Director of the Banking Agency of BH Federation, Zlatko Barš and Director of BH Deposit Insurance Agency Josip Nevjestić attended the meeting.

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