Banking Agency of the Federation of Bosnia and Herzegovina says current classification following Moneyval assessment should have limited impact on international banking services

The Banking Agency of the Federation of Bosnia and Herzegovina said the banking system remains stable, secure and under continuous supervision, and that the current classification linked to the Moneyval assessment should have only limited effects on the efficiency of banking services in international business. It said the assessment’s findings and recommendations do not point to shortcomings that would call the stability of the banking system into question. According to the agency, the reasons for the classification lie in broader legal and institutional framework issues that extend beyond the banking system and require reforms and improvements in line with international standards. It also noted that the Moneyval assessment rated the banking system as one of the most orderly in Bosnia and Herzegovina. The agency pointed to implementation of the Action Plan, coordination among the competent institutions and relevant entities, and technical support from international partners as the path to improving the overall assessment and limiting longer-term effects on the country’s international reputation and economic interests.