The New Law: Foreign Banks will not be able to take Money from BiH anymore

April 4, 2017 8:30 AM

Diaspora Money magazin.baThe Law on Bank Deposits Insurance in BiH will bring a number of novelties, and one of the most interesting ones is that the banks will no longer be able to send excess money to their headquarters outside our country.

“In BiH, 97 % of the banking sector is privatized, and most of the banks in BiH forward their ‘surplus’ to their parent banks in Austria, Italy, and other countries. With this law, they will no longer be able to do this, since they will all have to deposit their surplus to the Fund of Deposit Insurance BiH, which will be established,” said Mirsad Isakovic, the member of SBB in the House of Representatives of the Parliamentary Assembly of BiH. Besides being a deputy, Isakovic is also a financial expert who noted that this is a very important law because it will further protect businessmen as well as citizens.

In order to preserve the financial stability, new banking laws are foreseeing the resolution process through which will be helped to the creation of self-sustainable banks, and one of the sources, according to the new law, will be the Fund for Insurance of Deposits.

In the Council of Ministers of BiH claim that the above-mentioned solutions are in accordance with EU directives. It is important to note that with this law is established the Agency for Deposit Insurance BiH. The Agency will have its headquarters in Banja Luka and branch offices in Sarajevo and Banja Luka. Moreover, the agency may open additional branches if they are fiscally sustainable. Branch offices have no legal status or authority independent from the Agency.

Asim Fazlic (SDA), a member of the Commission for finance and budget of the House of Representatives of BiH, stated that the Law on Deposit Insurance in banks of BiH is a very important law, and it will provide protection of banking, as well as the economic sector in BiH.

Zoran Pavlovic, the economic analyst, noted that the experts of World Bank worked on the Law on Deposit Insurance in banks of BiH and that he believes that the law is designed to protect the banking sector, as well as their users.

(Source: fokus.ba)

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