Banking Agency of the Federation BiH presented Business Results of the Banking System Entities in the Federation BiH for 2018
Sarajevo, 23 April 2019 – A business presentation entitled "Business Results of the Banking System Entities in the Federation of BiH in 2018" was held on April 23 2019 in Sarajevo, organized by the Banking Agency of the Federation of Bosnia and Herzegovina (FBA).
In order to inform the public about the situation, stability, challenges, expectations in the field of supervision and operations of the banking system entities, the FBA has organized this event for the second year in a row.
In his speech, Jasmin Mahmuzić Director of the Banking Agency of the FBiH pointed out the following: "According to data presented, the banking system entities of the FBiH had a successful business year. We may confirm that at this moment, the banking system is a healthy and safe pillar of economy.
Credits for the business results are attributable to the governance structures of the banking system entities, at the level of the FBiH and at the level of banking groups whose members are established in BiH. We have a mixture of domestic and foreign capital, and practices, experiences, business models cross national borders so that the banking system connects us with other markets. The banking system entities of the FBiH operate in a complex environment burdened with the specificities of BiH. In such an environment, our banks contribute to a better image of the economic environment. By appreciating the profile of our economy, we believe that banks must focus their attention on structuring risk exposures for the purpose of long-term development and stability. The banking system entities are expected to take an active approach and consistent application of the regulatory requirements. Also, an update of regulatory framework for microcredit and leasing sector is in front of us. Constantly, we work on assessments, self-assessments, planning and cooperation. We are continuously developing capacities for the new concept of supervision, but still support from our international partners is of great importance to us. We are ready for new challenges and I believe that this year will be successful as well “.
In 2018, the FBA regularly performed its supervision tasks, undertake measures and activities through its regulatory and supervisory function. Within its legally prescribed competencies, the FBA is focused on preserving the stability of banking, microcredit, leasing and factoring systems, protection of depositors, protection of the rights and interests of users of financial services, and improvement of the safe and legitimate operation of the banking system entities
In 2018, the activities were continued on a reform of the regulatory framework for banking operations and supervision, establishment of new framework for supervisory reporting, as well as a new framework for bank resolution. In the segment of supervision of non-deposit financial institutions, the existing regulatory framework for operations and supervision was improved.
In 2018, there was an increase in assets, loans, cash and deposits, as well as improvement of the profitability of the banking system entities. The banking system is regulated, stable and safe, but there is a constant need to continue the activities to comply with the relevant regulatory requirements and strengthening in order to achieve a long-term development, support to the economy and resilience to the negative effects of economic cycles and possible crises transferred from other markets.
In the capacity of the Chairman of the Vienna Initiative Steering Committee, Mr. Boris Vujčić, Governor of the Croatian National Bank addressed to the audience. Mr. Davide Stroppa, Senior Bank Expert spoke on behalf of the European Banking Authority (EBA), the institution, which, through its regulatory and supervisory role, works to preserve the integrity and efficiency of the banking sector in the EU and to maintain financial stability in the EU.
The presentation was attended by Mr. Senad Softić, Governor of the Central Bank of BiH, together with Vice Governors, Jelka Miličević, Minister of Finance of the FBiH, representatives of the management of the banking system entities, representatives of the audit companies engaged on external audits of the entities, as well as representatives of the academic community, embassies, domestic and international institutions, and representatives of media.
