Dnevni avaz: The Council for Administration of the Central Bank (CB) of BiH has yesterday adopted a decision on reduction of rate of obligatory reserve which the commercial banks in BiH hold with the Central Bank of BiH from 18 to 14%.
Better business
Although the liquidity of banks in BiH is not endangered, by decision on reduction of rate of the obligatory reserve by four per cent the additional liquidity of 727 million KM will be ensured to the banks. Such decision of the CB BiH has been supported by commercial banks, because the actual situation on the world’s financial market, the influx of liquid funds from abroad into BiH is limited, and possibilities of going into debts of BiH banks abroad are also limited.
Director of the Raiffeisen Bank of BiH, Michael Mueller for "Dnevni avaz" says that this decision of the CB BiH on reduction of rate of obligatory reserve in such situation is welcome, because it will ensure additional liquidity and better business to the whole banking system in BiH.
"On the other side, because of the negative news on the world’s financial crisis which is transferred to our public, it has come to the fast reactions of individuals, on what this decision will need to react calmly. What is of a big importance to us, is that decision of the CB BiH shows that the institutions in BiH, and the governments and institutions of other European countries, are ready to help the banking system in the country" says Mueller.
Reduction of burden
The president of administration of the Hypo Alpe-Adria Bank, Petar Jurčić says that this move of the CB BiH has come as an answer to the whole financial situation in Europe.
This will, anyway, ease the job to the commercial banks. Regulatory changes in direction of the increase of the sums of ensured deposits, and reduction of burden of the obligatory reserve for banks, mean a lot, because in that way a positive signal is being sent to the public as a proof that the state is conclusive that the financial crisis in BiH is less obvious, says Jurčić.