Central European Banking Industry Challenges
On 27th of May, the Hotel Bristol in Sarajevo hosted a conference organised by professional advisory and audit firm Deloitte and business magazine 'Banka' under the title 'Central Europe Banking Industry Challenges'. The conference gathered top management and executives of banks and other financial institutions, banking experts as well as representatives of the relevant institutions of the BiH Federation and its entities.
Alastair Teare, President of the Deloitte Central Europe Board, emphasised in his opening speech that the banking industry of Bosnia and Herzegovina does not differ much from the industry in other countries and that all of them are facing similar challenges, from non-performing loans to shareholders aversive to invest in the respective countries.
The Conference started with a panel discussion on banking regulatory shifts resulting from the requirements imposed by the European Central Bank and Basel III. Participants in the panel discussions were Tanja Pavlović from the FBiH Banking Agency, Kemal Kozarić from the Central Bank of Bosnia and Herzegovina, Ivan Vlaho from UniCredit Bank, and Alastair Teare from Deloitte.
Governor of the Central Bank of Bosnia and Herzegovina Kemal Kozarić said that the forming of a banking union in the EU would pose new challenges for the banking industry in Bosnia and Herzegovina, as the ECB would become directly involved in the supervision of systemic banks, with other banks remaining under the supervision of local supervisory authorities.
'Supervision of EU bank subsidiaries in Bosnia and Herzegovina will remain the responsibility of the banking agencies of the entities in the Federation. However, cooperation and information exchange with the ECB will be developed to enable us act preventively in case of a negative impact of parent banks located in the EU on the local subsidiaries', said Tanja Pavlović, Head of the Development Office of the FBiH Banking Agency.
The topic of the second panel discussion was the non-performing loan market in Central Europe, including the trends, key transactions, investor preferences and expectations. The panel participants were Sanela Pašić, Raiffeisen Bank d.d., Bosnia and Hercegovina, Manfred Gram, Heta d.o.o., Sarajevo, and Dragan Kovačević, Hypo Alpe-Adria-Bank d.d., Mostar.
Persons participating in the last panel discussion addressing bank restructuring, the related expectations, challenges and past experience were Mirza Hurem from Moja banka d.d. Sarajevo, Mirzet Ribić from Vakufska banka d.d. Sarajevo, Senad Redžić from NLB Banka d.d. Tuzla, consultant Slaviša Raković and Srđan Kondić from Nova banka AD, Banja Luka.
'I hope that our experience from the countries in the region will prove to be expedient in helping us overcome the challenges before us', concluded Sabina Softić, Partner at Deloitte d.o.o., Sarajevo.