CBBH revenues

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1. The most significant revenues of the Central Bank of Bosnia and Herzegovina are the interest income on foreign exchange reserves, income from fees and commissions for services of the Central Bank of Bosnia and Herzegovina and income from negative fees on excess funds required reserves. Interest income on foreign exchange reserves is generated on investments in securities of euro area countries. Revenues from fees and commissions are generated on the basis of services provided by the Central Bank of Bosnia and Herzegovina to domestic commercial banks. Revenues from the negative fee on the excess of funds above the required reserve are collected from commercial banks if they hold funds above the required reserve on the accounts of the Central Bank of Bosnia and Herzegovina. In recent years, business conditions in the financial markets of the euro area have been extremely unfavourable for both central banks and other market stakeholders, given the fact that European Central Bank policy is increasing more and more the amount of negative interest rates on deposits and government securities of euro area countries. This makes it increasingly difficult to secure any income from investing foreign exchange reserves, so it is more difficult for central banks to operate in such conditions and make a profit. More at: https://cbbh.ba/Content/Read/14

2. Revenues are recorded when they are realized, not when they are collected, which is in accordance with International Financial Reporting Standards (IFRS), which the Central Bank of Bosnia and Herzegovina must apply in recording business transactions under the Law on the Central Bank of Bosnia and Herzegovina. Expenditures of the Central Bank of Bosnia and Herzegovina include interest expenses on foreign exchange reserves, expenses on fees and commissions abroad, staff costs, real estate amortisation costs, equipment and intangible assets costs and administrative and other operating expenses (maintenance costs, banknote and coin production costs and regular administrative and operational costs). The net profit of the Central Bank of Bosnia and Herzegovina represents the difference between the recorded income and expenses of the Central Bank. Net profit is distributed in accordance with the Law on the Central Bank of Bosnia and Herzegovina, according to which the Central Bank of Bosnia and Herzegovina directs 60% of current profit to the account of the institution in charge of the budget of Bosnia and Herzegovina, if it meets the criterion that initial capital and general reserves (retained earnings) are equal to or greater than 5.00% of the total amount of monetary liabilities. The remaining amount of 40% of current profit is directed, in accordance with the Law on the Central Bank of Bosnia and Herzegovina, to the general reserves of the Central Bank of Bosnia and Herzegovina. If the criterion of at least 5.00% is not met, then the net profit is allocated to the general reserves of the Central Bank of Bosnia and Herzegovina. More at: https://cbbh.ba/Content/Read/14 .