The Banking Agency of the Federation of Bosnia and Herzegovina (FBiH), related to the mitigation of risks caused by the significant growth of reference interest rates, inflation, and other disturbances that may have negative effects on the market of the FBiH, adopted new by-laws.
It is a decision on temporary measures to limit the bank’s exposure and a decision to supplement the decision on temporary measures to mitigate the risk of the interest rate growth, which comes into force on the day of adoption.
The Banking Agency continuously monitors risks and changes that may affect economic conditions and the state of the banking system, and above all risks related to a significant increase in interest rates, because these risks are still present in 2023.
In accordance with the competencies of the Agency, the decisions made, as well as the continuation of the Agency’s activities in 2023, are additionally focused on preserving the economy and avoiding the transmission of negative effects from other markets.
With the aim of preserving the stability of the market and the banking system, the Agency made decisions in 2022 that sought to limit the risks and consequences of macroeconomic measures and disruptions in external markets.
In the period of the first six months of the application of the Decision on temporary measures to mitigate the risk of the interest rate growth, from October 2022, the general level of interest rates on the market was maintained, with the dominant avoidance of interest rate increases by banks.
In the conditions of possible significant disruptions in external markets, preservation, and strengthening of the stability of the banking system are achieved by additional and temporary risk management guidance and through the management of the structure of potentially significant and large exposures of banks on markets outside BiH.
The decisions will also have favorable effects on credit activity and strengthen competition in the domestic market, Biznis Info reports.
E.Dz.
