Memorandum of Understanding Between Croatian National Bank (CNB) and Competent Authorities for Banking Supervision in Bosnia and Herzegovina
On September 29th, 2020, a new Memorandum of Understanding was concluded between the Croatian National Bank (CNB) and the authorities that are competent for banking supervision in Bosnia and Herzegovina, the FBIH Banking Agency (FBA), the Banking Agency of the Republika Srpska (BARS) and the Central Bank of Bosnia and Herzegovina (CBBIH). With the entry of Croatia in the European Exchange Rate Mechanism (ERM II) and establishment of a close cooperation between the European Central Bank (ECB) and the CNB, and the accession of Croatia to the Banking Union and the Single Supervisory Mechanism (SSM) from October 1st, 2020, the need arose to update and upgrade the existing MoU from 2003 between the competent authorities in accordance with the new standards of the European Banking Authority (EBA). The new Memorandum has improved the supervisory cooperation, which is crucial for maintaining the integrity, stability and efficiency of the supervision of the entities and financial system. Also, timely sharing of supervisory information on the relevant issues in the field of supervision has been ensured for the exercise of the respective supervisory powers by the competent authorities over the entities under the supervision of the competent authorities of BIH on one hand and the CNB on the other.