Banking and Financial Services

Banking and Financial Services

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CBBH’s mandate is to monitor the financial system stability and to be active in the development and implementation of Bosnia and Herzegovina’s policy on stability and sustainable economic growth, by ensuring stability of the domestic currency and of the overall financial and economic stability in the country.

Central Bank of Bosnia and Herzegovina maintains monetary stability by issuing domestic currency according to the Currency Board arrangement  with full coverage  in freely convertible foreign exchange funds under fixed exchange rate 1 KM: 0,51129 EUR. Central Bank defines and controls the implementation of monetary policy of Bosnia and Herzegovina. It also co-ordinates the activities of the BH Entity Banking Agencies which are in charge of bank licensing and supervision. 

Banking is one of the most stable sector in B&H. There are 23 commercial banks in B&H ensuring employment for more than 10 000 people.Only one bank is majority state-owned, while foreign banks own more than 80% of the banking sector. 

Addiko Bank AG (former Hypo  Group Alpe-Adria AG), Dubai Islamic Bank, Islamic Development Bank, Komercijalna banka, NLB Group (Nova Ljubljanska banka), Privredna banka Zagreb d.d. (former Intesa Sanpaolo Group), ProCredit Holding, Raiffeisen Bank International, Sberbank (former Volksbank), Steiermärkische Bank und Sparkassen, Ziraat Bankasi, Zagrebačka banka d.d. Zagreb (former Unicredit) are all present in the country. 

Bosnia Bank International is the only bank operating in BiH under Islamic banking principle. 

On April 30, 2020, the international rating agency Standard and Poor's published an extraordinary assessment of the credit rating (due to the crisis caused by the COVID-19 virus pandemic). In comparison with the regular assessment from the beginning of March, the rating "B" has remained unchanged, while the outlook has been revised from positive to stable.

The agency Moody's Investors Service has announced in February 2018 that the credit rating of Bosnia and Herzegovina remains „B3 with stable outlook".

 

For more info: www.cbbh.ba

 

Testimonials & Success Stories
 

Global Investment Promotion Best Practices 2012 of the World Bank has cited one example of support that FIPA provides to foreign investors who are running business in Bosnia and Herzegovina in order to contribute to increase the flow of foreign capital in the country.

The article said:  

„The Foreign Investment Promotion Agency (FIPA) of Bosnia and Herzegovina was an early convert to the idea of providing facilitation services to agribusiness investors as a way to maximize the positive impact of agriculture on the economy.

In 2007, for example, FIPA assisted a Dutch food processing company establish a US$1.6 million production facility to process unused milk ingredients into value-added products in Sarajevo to sell to markets in Eastern Europe and the Middle East.

As part of its aftercare program, FIPA assisted the company with its expansion plans. Among other things, the agency helped facilitate veterinary permissions, navigate various bureaucratic hurdles and played an important role in securing funding for the company’s expansion. It also helped develop a network of local suppliers and customers. As a result of these efforts, the Dutch investor developed stronger links with the Bosnian economy, thus increasing the positive spillover effects on the local economy.

Currently a new investment to establish a drying facility for milk powder is under way. This will further expand the processing facilities of unused milk ingredients. This additional planned investment is worth approximately US$2.8 million, thus nearly trebling the company’s original investment in the country“.

 

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