From CFO By Vincent Ryan September 23, 2014 In July, small business and middle market lender...
Decree on the Supervision of Microcredit Organization Business Operations
(enacted in 2007)
Decree on the Supervision of Microcredit Organization Business Operations of 2007 stipulates in detail the main authorities of the Banking Agency of the Federation of Bosnia and Herzegovina (FBA) in conducting the supervision of business operations of microcredit organizations (MCOs).
The decree aims to establish general criteria for the implementation of legal authorities of the FBA in carrying out the supervision, order issuance, measure pronunciation, as well as establishing deadlines for eliminating determined illegalities and irregularities in business operations of MCOs.
The decree states that:
- FBA supervises the work legality, compliance with regulations, and the maintenance of prescribed standards by the MCO; and
- Application of the legality principles and maintenance of prescribed standards are the responsibility of the management and supervisory bodies of the MCO.
The decree specifies the following:
- Activities that the FBA supervises;
- Method by which it conducts this supervision;
- Preparation of the minutes of FBA findings;
- Process that the MCO can follow to lodge a complaint against FBA findings;
- Actions that the FBA can take to help the MCO get over operational irregularities; and
- Actions that the FBA can take after identifying illegalities and irregularities of MCO operations.