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Law on Banking Agency in Bosnia and Herzegovina

Preamble

The Law on Banking Agency establishes the Banking Agency as an independent agency responsible for supervising banks and micro-credit organizations in Bosnia and Herzegovina.

Structure

Agency Composition

  • The Agency has a Board, Director, Deputy Director, staff, and representatives.
  • The Board is composed of 7 members appointed by the Parliament for a term of 4 years.
  • The Director and Deputy Director are appointed by the Board for a term of 4 years.

Objectives

The Agency’s objectives include:

  • Supervising banks and micro-credit organizations to ensure their stability and soundness.
  • Protecting depositors’ interests.
  • Promoting fair competition in the banking sector.
  • Ensuring compliance with laws and regulations.

Business Secrets

Members of the Board, Director, Deputy Director, staff, and representatives are required to keep business secrets confidential.

Statute

The Agency has its own Statute, which establishes:

  • The organization and procedures for its operations.
  • Operational procedures of the Board.
  • Authorization for representing the Agency and signing documents.
  • Rights and obligations of individuals with special authorization and responsibilities.
  • Other organizational issues related to its operations.

Financing

The Agency’s resources come from:

  • Compensations for issuing banking licenses.
  • Supervision fees from banks and micro-credit organizations.
  • Other compensations. Any surplus funds will be transferred to the next year.

Reports and Audits

Banks are required to submit reports and other information to the Central Bank and the Agency. Micro-credit organizations must submit an annual financial report with an audit report. The Agency prescribes requirements for the format, content, and extent of these reports. If a bank or micro-credit organization fails to pay fees, the Agency can revoke its license.

General Acts

The Agency is authorized to pass general acts necessary for successful banking operations. These acts are published in the Official Gazette of the Federation of Bosnia and Herzegovina.

Examinations and Supervision

The Agency has the authority to perform examinations, supervise banks and micro-credit organizations, and obtain copies of business books and documents. It can also issue directives to ensure compliance with laws and regulations.

Transitional Provisions

  • On the date this law comes into force, institutions with banking licenses will continue to operate in accordance with their existing authorizations.
  • The law enters into force on the date of its publication in the Official Gazette of the Federation of Bosnia and Herzegovina.