Director of the Federation of Bosnia and Herzegovina – FBiH Banking Agency (FBA) Jasmin Mahmuzic told agency Fena that the requirements for sustainable bank liquidity have been improved after earlier crises, and additional arrangements for quick support managed by leading central banks have been established.
After the turbulence in the banking sectors in the United States (U.S.) and Switzerland, Mahmuzic commented that predominantly, problems with bank liquidity can arise as a result of a lack or absence of trust. In such circumstances, according to him, subjective reasons or perception of possible future events dominate. The correct actions of the leading authorities can play a key role, but the role of the media and social networks must not be neglected.
”In past periods of crisis, the liquidity of the banking system in BiH was not threatened. Meanwhile, regulatory requirements have been further strengthened. Direct dependence or endangerment of our system due to events that may occur in other banking systems is now completely excluded. In order to avoid risks that relate only to BiH, the importance of complete and transparent information to citizens and the economy should be strengthened,” added Mahmuzic.
Taking into account the causes, character and scope of events in financial systems outside BiH and the European Union (EU), as he added, the direct effects of the resulting changes are limited.
”In BiH, traditional banking models dominate with a small share of the portfolio of equity and debt securities of issuers outside of BiH. In a broader context, any significant change in macroeconomic conditions in the leading economies can have economic effects on BiH and the countries of the region. It is important that in every opportunity that may arise, we take into account that our banking systems are largely autonomous and self-sustaining and that they operate in accordance with our regulatory framework,” said Mahmuzic.
He noted that there were no unexpected changes in banks’ liquidity, but that, as in periods of crisis in the past years, the possibility of creating unfounded pressures and feelings of uncertainty that have temporary effects on the work of banks cannot be ruled out.
According to FBA data, no significant business connections or the possibility of direct damages due to changes in Credit Suisse’s operations have been recorded.
”It should be taken into account that regulatory and supervisory bodies have already undertaken activities to rehabilitate and restructure the operations of banks whose operations were threatened, and that depositors’ funds are certainly not at risk,” added Mahmuzic.
