On 7 May 2019, the Governor of the Central Bank of Bosnia and Herzegovina (CBBH) Senad Softić, Ph.D, held the introductory speech at the Trade Facilitation Program (TFP) acitivity held within the Annual Meeting of the Board of Governors of the European Bank for Reconstruction and Development (EBRD), hosted by Bosnia and Herzegovina, this year.
Speaking about the TFP itself, the Governor of the CBBH pointed out that during its 20 years of existency the program reached many achievements, and that its concept met the positive feedback of financial industry representatives and end users. The exceptional results have been achieved in fields of education, policy dialogue, networking opportunities and in the field of trade transactions supported by the program – specifically, over 23,000 transactions in the total value of EUR 19 billion. The TFP supports trade in 28 EBRD countries of operations, and has supported almost 800 transactions in Bosnia & Herzegovina in total value of over EUR 71 million. There are currently three active partner banks in Bosnia & Herzegovina under the program.
The Governor stressed that there is large space for improvement in trade between Bosnia and Herzegovina and the regions, being in the TFP focus, and that it is especially important to pay attention on larger trade integration of the Central and Easter European region, especially in the light of global trade disputes.
Presenting data on the financial market in Bosnia and Herzegovina, Governor Softić pointed out that the financial system in Bosnia and Herzegovina, bank-centric, in the past decade continually evolved with positive indicators related to its stability and profitability.
Although most indicators and trends related to the financial sector are positive, the CBBH and other relevant institutions in Bosnia and Herzegovina must constantly monitor developments and trends, in order to have prepared responses on eventual challenges brought by the financial innovations, such as fintech, growing cyber risks, use of artificial intelligence in financial intermediation, and the appearance of cryptocurrencies. “The biggest challenge ahead will be to achieve the balance between the risks brought by financial innovations on one hand, and the provision of adequate space for the potentials of these innovations to develop, on the other hand, in order to achieve the general welfare of society“, stressed Governor Softić, emphasizing that continuous activities on the harmonization of regulations and practices with those applied in the European Union (EU) should not be left out, which is one of the commitments of Bosnia and Herzegovina on the path toward full EU membership.
This year’s gathering, which represents the largest trade finance event held in Bosnia and Herzegovina so far, focused on the latest global trends and the development in trade finance, bringing together over 200 representatives of financial institutions and organizations, 150 of them from 51 countries. At the end of the gathering, the prizes would be awarded for financial institutions that were the most active ones in the TFP.
