Decision Enacting The Law On Banks Of The Republika Srpska

Recalling paragraph XI.2 of the Conclusions of the Peace Implementation Conference held in Bonn on 9 and 10 December 1997, in which the Peace Implementation Council welcomed the High Representative’s intention to use his final authority in theatre regarding interpretation of the Agreement on the Civilian Implementation of the Peace Settlement in order to facilitate the resolution of any difficulties as aforesaid “by making binding decisions, as he judges necessary” on certain issues including (under sub-paragraph (c) thereof) “measures to ensure implementation of the Peace Agreement throughout Bosnia and Herzegovina and its Entities”;

Considering that the business environment requires a sound and reliable banking system where banks are subject to strict rules inter alia with respect to paid in share capital, investments in legal entities, governance, security of public revenue funds, fighting against money laundering and liabilities of bank owners and managers;

Further noting that a consolidated Law on Banks was approved in first reading by the National Assembly of the Republika Srpska;

Bearing in mind the necessity to harmonize the Laws on Banks of the Entities and thus to strengthen public confidence and that of investors in the credibility of the banking system and in the will to avoid bankruptcy or provisional administration of banks because of deficiencies of regulatory provisions.

Having considered the totality of the matters aforesaid, the High Representative hereby issues the following

DECISION