Law on Banks

Publication Date: 2000
Document Type: Other (PDF)

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Laws governing the functions of banking entities in Bosnia and Herzegovina

This is an official document of the Government of Bosnia and Herzegovina stating the laws that regulate the banking entities in the country. It presents nine different sections, each containing different articles discussing various laws.

Sections I and II discuss:

• General provisions governing the establishment and organizations operational aspects;
• Eligibility norms for operations and opening up new branches;
• Issues relating to licensing and its revocation.

Sections III and IV deal with:

• Issues relating to ownership and administration;
• Norms regarding the:
  • voting rights,
  • ownership of bank in any other legal entity,
  • operational requirements of the bank and maintenance of various financial ratios;
• Governing body of the bank and its responsibilities;
• Activities the banks can get associated with.

Sections V and VI highlight:

• Maintenance of the books of accounts;
• Auditing and reporting aspects;
• Processes and issues relating to bankruptcy and liquidation.

Sections VII, VIII and IX explain:

• Provisions and sanctions imposed on a bank in case of any violation;
• Procedures indicating the violations done by the banks;
• Issues relating to time frames for the applicability of these laws.