Bosnia and Herzegovina Banking Sector Faces New Regulatory Requirements
Introduction
The banking sector in Bosnia and Herzegovina (BiH) has undergone significant changes in recent years. In response to the 2007-2009 financial crisis, new regulations have been introduced to ensure financial stability and protect institutions from similar disturbances in the future.
Aligning with International Standards
As a country in transition, BiH is committed to aligning with European Union (EU) and North Atlantic Treaty Organization (NATO) standards. This has resulted in additional regulatory requirements for banks to provide stable economies, secure markets, and enforce law and order.
Regulatory Compliance at Sparkasse Bank dd BiH
For one bank in particular, Sparkasse Bank dd BiH, regulatory compliance has become a top priority. Mujo Vilašević, Regulatory Compliance Associate at the bank, explains that the new framework established by the Federal Banking Act and the Banking Act of Republic of Srpska has formalized the Compliance function more than ever before.
Key Responsibilities of the Compliance Function
- Following compliance with banking regulations
- Identifying oversights and risk assessments
- Advising management on regulatory matters
- Assessing the effects of changes to relevant regulations
Emphasis on Business Ethics and Good Practices
While regulatory compliance is at the forefront of the Compliance function, Vilašević notes that there is also a growing emphasis on business ethics and good practices. According to the bank’s bylaws, employees in the Compliance function must “know the rules of the profession, good business practices, and business ethics.”
Conclusion
As BiH continues to navigate its transition towards EU and NATO standards, it remains to be seen how the banking sector will adapt to these new regulatory requirements. However, for Sparkasse Bank dd BiH, one thing is clear: compliance will be at the forefront of their business strategy going forward.
“We are committed to meeting the highest standards of regulatory compliance and business ethics, and we look forward to serving the community with integrity and transparency.” - Mujo Vilašević, Regulatory Compliance Associate at Sparkasse Bank dd BiH