At its 11th session, held on 27 November 2013, the Management Board of the Deposit Insurance Agency of Bosnia and Herzegovina was discussing among other things, a proposal to increase the amount of insured deposit. The Management Board decided to have the deposit insurance limit increased from the current KM 35,000 to KM 50,000 becoming effective as of 1 January 2014.
This decision is made on the basis of an anlysis for the assesment of insurance limit which is being carried out in the Agency on a regular basis. This confirms a conservative and cautious approach of the Agency in terms of financial parameters and capabilities of the Deposit Insurance Fund, which further contributes to the financial stability of the banking system in BiH.
Based on the Decision of the District Court in Banja Luka, no. 057-0-Reg-13-001998 of 20 November 2013 the name of Balkan Investment Bank a.d. Banja Luka was changed. This Bank will operate under the name Banka Srpske a.d. Banja Luka.
On the July 23rd, 2013 in the “Official Gazette of BiH”, no. 58/13 there was published a Law on Changes and Amendments to the Law on Deposit Insurance in Bank of Bosnia and Herzegovina, by which the procedure of Law enactment is finalized.
This Law shall enter into force on the eight day from the date of publication.
As the most important changes, highlighted are the following:
– Coverage of legal entities deposits (such solution already existed in the initial text of the Law and is fully in line with the EU Directive);
– Continued participation of deposit insurance Member Banks in which the Provisional Administration is introduced (previous solution required the termination of membership of such banks);
– Erasing the possibility for participation of representatives of banks and banking associations in the work of Management Board (the idea was to facilitate participation of a wider range of the financial network participants in order to find the best solution, but it is also incompatible that in the work of the management of the regulatory body participate representatives of the banks which are the subject of given regulation).
Mentioned changes represent the Law harmonization with the EU standards from the deposit insurance field, and are at the same time part of obligation of Bosnia and Herzegovina from the Letter of Intent signed with IMF.
As for other proposed changes, two of them are essentially important for deposit insurance scheme and financing of the Agency:
– Introduction of extraordinary premium (represents the possibility that in the event of payment of insured deposits the Board with its decision and in the manner determined by it, obliges the banks to pay an extraordinary premium in order to restore the Deposit Insurance Fund as soon as possible to be able to continue to guarantee further the payment of insured deposits);
– Introduction of fee as another source of financing the operational costs of the Agency ( the previous legislative solution provided two sources: a fee for the issued membership certificate and income from investment of the Deposit Insurance Fund, so since the first source is a one-time fee, and the second one is volatile, with proposed solution there was found a consistent and reliable manner of financing the Agency with a modality that is not making additional cost burdening for the banks).
Remaining changes to the Law relate to regulation of the information of depositors and technical corrections.
Retail deposits continued to grow also in 2013 and by 31 March 2013 they increased by 3% compared to the end of 2012 when the whole year recorded a growth of 9%. Private clients saving deposits in the amount of nearly KM 8 billion and share of 51% in the total deposits remained to be the largest source of BiH banks’ funding. Monitoring these deposit categories is still done on a weekly basis and there is evident permanent increase per Member Banks.
There is present also a continued growth and positive trends in the part of savings, which is the best way to confirm the maintenance of citizens’ confidence in the banking system.
Preserving and strengthening the public confidence in the safety and stability of the banking system in Bosnia and Herzegovina is a permanent task of the Agency as a guarantor of the insured deposits reimbursement and it is being recognized by the BiH citizens.
Na osnovu Rješenja Općinskog suda u Sarajevu, broj: 065-0-Reg-13-000623 od 27.02.2013. godine izvršena je promjena naziva kod Turkish Ziraat Bank Bosnia d.d. Sarajevo. Ista će poslovati pod nazivom ZiraatBank BH d.d.
In the month of February this year, there has been a change in the name of one Member Bank.
Based on the Decision of the Municipal Court in Sarajevo No. 065-0-Reg-13-000271 of 15 February 2013 the name of Volksbank BH d.d. was changed. It will be operating in future under the name Sberbank BH d.d.
From 1 January 2013 there was a change in the composition of the Management Board of the Deposit Insurance Agency of Bosnia and Herzegovina in a way that previous Management Board member appointed by the Governing Board of the Central Bank of Bosnia and Herzegovina is replaced by Mr. Žarković, also a member of the Governing Board of the Central Bank of Bosnia and Herzegovina. Mr. Krajišnik was dismissed from the duty upon his own request.
