BANKING REGULATIONS TIGHTEN IN BOSNIA AND HERZEGOVINA

Progress in Banking Supervision Oversight

A recent technical note released by the International Monetary Fund (IMF) and World Bank (WB) highlights significant progress made in banking supervision oversight in Bosnia and Herzegovina. The review, conducted as part of the Financial Sector Assessment Program, aimed to assess compliance with the Basel Committee Core Principles for Effective Banking Supervision.

Key Findings

• The system of banking supervision oversight has undergone substantial improvements since the last review in 2006.
• Despite progress, several shortcomings remain, indicating a need for continued efforts towards better implementation.

Technical Note Prepared by IMF and WB Staff

The technical note was prepared by IMF and WB staff under the guidance of the Monetary and Capital Markets Department at the IMF and the Financial and Private Sector Development Vice Presidency at the World Bank. The document contains detailed analysis and information that supports the findings and recommendations made in the FSAP.

Recommendations for Continued Improvement

The assessment highlights several areas where further improvement is needed, including:

• Strengthening supervisory oversight of banks
• Enhancing risk management practices
• Improving regulatory frameworks

By addressing these shortcomings, Bosnia and Herzegovina can continue to strengthen its banking system and promote financial stability in the region.