Law on Banks for the Federation of Bosnia and Herzegovina of 1998

Bosnia and Herzegovina

(amended through 2003)

The Law on Banks for the Federation of Bosnia and Herzegovina of 1998 governs the functions of banking entities in the Federation of Bosnia and Herzegovina.

The law presents eight different sections, each containing different articles discussing various provisions.

Sections I and II discuss:

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

Sections III and IV deal with:

  • Issues relating to ownership and administration;
  • Norms regarding:
    • 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; and
  • Activities banks can associate with.

Sections V and VI highlight:

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

Sections VII and VIII explain:

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