Banking and financial sector

CBBH’s mandate is to monitor the financial system stability and to be active in the development and implementation of Bosnia and Herzegovina’s policy on stability and sustainable economic growth, by ensuring stability of the domestic currency and of the overall financial and economic stability in the country.

Central Bank of Bosnia and Herzegovina maintains monetary stability by issuing domestic currency according to the Currency Board arrangement  with full coverage  in freely convertible foreign exchange funds under fixed exchange rate 1 KM: 0,51129 EUR. Central Bank defines and controls the implementation of monetary policy of Bosnia and Herzegovina. It also co-ordinates the activities of the BH Entity Banking Agencies which are in charge of bank licensing and supervision. 

Banking is one of the most stable sectors in B&H. 

The number of commercial banks in BiH is 23 (April 2018.) with approximately 10.000 employees. Only one bank is majority state-owned, while foreign banks own more than 82% of the banking sector. 

Addiko Bank AG (former Hypo  Group Alpe-Adria AG), Dubai Islamic Bank, Islamic Development Bank, Komercijalna banka, NLB Group (Nova Ljubljanska banka), Privredna banka Zagreb d.d. (former Intesa Sanpaolo Group), ProCredit Holding, Raiffeisen Bank International, Sberbank (former Volksbank), Steiermärkische Bank und Sparkassen, Ziraat Bankasi, Zagrebačka banka d.d. Zagreb (former Unicredit) are all present in the country. Currently, according to the Central Bank of BiH, foreign banks own 86% of the banking sector, ensuring employment for 10.270 people.

Bosnia Bank International is the only bank operating in BiH under Islamic banking principle. 

Based on their analysis, in March  2018  the Agency Standard Poor's has confirmed sovereign credit rating on Bosnia and Herzegovina at „B with stable outlook". The international rating agency Moody's Investors Service has announced in February 2018 that the credit rating of Bosnia and Herzegovina remains „B3 with stable outlook".