Representatives of Intesa Sanpaolo Bank from Milan spoke CBBH Governeor

On 10 May, 2018, Governor of the Central Bank of Bosnia and Herzegovina (CBBH) Senad Softić, Ph.D. welcome in the Central Bank the senior representatives of Intesa Sanpaolo Bank from Milan, featuring the Chairman of the Board of Directors of this Bank, prof. Gian-Maria Gros-Pietro and Director of Intesa Sanpaolo International Banking Division Ignacio Jaquotot. Director of Intesa Sanpaolo Bank Bosnia and Herzegovina, Almir Krkalić and the CBBH Vice Governor, Ernadina Bajrović, M.A. attended the meeting, too.

The guests were interested in review and assessment of the Currency Board arrangement in BH, especially its role and influence on price stabilization mechanisms and monetary aggregates, in the current state of the International Monetary Fund (IMF) program in BH, and the trends in the compliance of the domestic financial and banking system with the European regulatory models and practices.

Governor Softić emphasized the fact that the Currency Board arrangement remains the most suitable solution for BH, which provides the basis for integration of the economic space in the monetary sphere and achieving of the macroeconomic stability. Since the introduction of the Currency Board until today, continuous positive developments of all relevant macroeconomic indicators and indicators, related to the banking sector in BH, have been recorded.

“The CBBH has completely fulfilled one of its basic functions – it has achieved and maintained the stability of the domestic currency, while the external stability is ensured by the successful maintenance of the fixed exchange rate and regular servicing of the external debt of BH, which the CBBH performs as a fiscal agent of the state,” said Governor Softić.

Regarding the compliance of financial and banking regulations with European regulatory models and practices, the Governor emphasized that the Laws on Banks in both BH Entities have been adopted over a year ago and that they have been harmonized, as much as possible, with the EU Directives and the Basel Principles. Current activities are focused on developing of the strategy for the implementation of Basel III.

The guests expressed their content with this meeting, stating that the presented information are useful for the planning of future activities.

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