The first Regional Conference on Risk Management New Regulatory Framework in Banking – Stability of the Financial Sector, Credit Rating and Economic Development of BiH held in Sarajevo
The first Regional Conference on Risk Management New Regulatory Framework in Banking – Stability of the Financial Sector, Credit Rating and Economic Development of BiH was organised on Tuesday 02.10.2018 by the Professional Risk Managers’ Association at Novotel Hotel Sarajevo.
In an opening speech Mr. Jasmin Mahmuzić, Director of the Banking Agency of the Federation of Bosnia and Herzegovina, addressed to the participants, expressing a particular satisfaction with the fact that this type of conference is organised in Sarajevo, and stating that the Banking Agency of the FBiH appreciate the efforts of the Professional Risk Managers’ Association in Bosnia and Herzegovina, on strengthening the professional cooperation in the specific fields of risks management, at the level of Bosnia and Herzegovina and region.
„We are living in the period of very dynamic changes for the banking system. If we analyse the circumstances preceding the adverse events in the past, we can note the global trends indicating to the forthcoming financial crises. In parallel, the considerable efforts on the global level should be recognised, which are related to the establishment of the improved regulatory frameworks which may minimise the effects of the future adverse events. Besides a number of regulatory requirements, of particular importance is the strengthening of the control functions in the financial sector. Especially, the function of the risks management become increasingly important and indispensable. The exchange of knowledge, discussions focused on addressing the concrete issues, like this one today, have an exceptional importance. For this eason, we must support the work of the Association and take the participation at events like these. “- said Mahmuzić.
According to the words of Mahmuzić, the 2018 brought substantial changes for the banks in Bosnia and Herzegovina. Since the beginning of the year, the new legal regulations are in use, by which the supervision and the operations of the sector are complied with the requirements of the relevant acts of the European Union (EU). Since the beginning of the year, new bylaws are in use, thus supervision and operations of the sector comply with the requirements of the relevant acts of the European Union (EU). An appropriate level of compliance was achieved, enabling the continuation of the EU approximation process. Also, this is the year of initial application of IFRS 9. The changes did not reflect negatively to the business result of the sector in the first semester, and we can expect the key parameters will continue to grow.
„A favourable period should be used for strengthening of the regulatory framework and functions within the banks. The regulators and the supervisors have a legal role to maintain stability of the system, but the key role and direct responsibilities should be taken by the control functions and the risk management functions in the banks. We all have to take the responsibility, work on the implementation of standards and relevant requirements, take all needed measures to maintain stability and further economic development of the BiH. We must be aware of the advantages that come with the well-arranged and the strong banking system, and for the benefit of the people and the economy. “– said mister Mahmuzić.
„The Banking Agency of the FBiH, same as the Banking Agency of RS continue to play the key role in harmonisation of the regulatory requirements, that will be adjusted and ready for the process of the integration. The support from our international partners is beyond a doubt and we need to use the opportunities for further development“. – concluded Mahmuzić.