Director of the Association of Banks of Bosnia and Herzegovina (BiH) Berislav Kutle stated that, given all the political circumstances, no interest rate behavior is expected in BiH in line with inflation – on the credit and deposit side.
He added that record inflation will bring many problems, especially for BiH citizens, because it directly affects the reduction of their standard of living.
”It should lead to an increase in interest rates on loans, as well as deposits on the other hand. I say it should, but it still won’t because the definition of money and reality are almost on opposite sides,” Kutle stressed.
Further, he stated that the banking sector in BiH continues its successful work this year as well.
”This means that it fulfills all its obligations to clients, employees, the community, and partly to investors and capital owners,” Kutle explained.
Kutle emphasized that lending activities are continued at last year’s level, without significant increases.
”These increases could not have been expected in such global circumstances, but also in the case of political instability in BiH itself,” Kutle believes.
