Bosnia and Herzegovina’s Banking Security Measures Under Scrutiny

Notable Progress, Persistent Gaps in Banking Sector Security

The banking sector in Bosnia and Herzegovina has made significant strides in enhancing its security measures over the past decade. However, a recent report by the International Monetary Fund (IMF) and the World Bank highlights that substantial gaps persist, casting concerns about the sector’s resilience to potential risks and challenges.

FSAP Review Reveals Progress and Shortcomings

A comprehensive assessment conducted as part of the Financial Sector Assessment Program (FSAP) reveals that:

• Substantial progress has been achieved since the last review in 2006.
• Significant gaps persist, despite improvements made to supervisory practices.

Key Findings from the Review

The review of supervisory practices, aimed at evaluating compliance with the Basel Committee Core Principles for Effective Banking Supervision, uncovered:

• Improved system of banking supervision oversight.
• Several areas require attention from regulatory authorities.

Experts’ Concerns and Recommendations

Experts note that addressing these shortcomings is crucial to bolstering investor confidence and ensuring the stability of the financial system. The report serves as a timely reminder of the need for continued vigilance and cooperation among all stakeholders in Bosnia and Herzegovina’s banking sector.

Call to Action

To address the identified gaps and ensure a stable financial system, regulatory authorities must take immediate action to:

• Enhance supervisory practices.
• Strengthen investor confidence.
• Promote cooperation among stakeholders.