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Banking system in Bosnia stable, says central bank governor

SARAJEVO, March 10 (Hina) - The banking system in Bosnia and Herzegovina has preserved its stability despite a poor economic and financial situation in the country, the Bosnian Central Bank Governor, Kemal Kozaric, said on Thursday.

However, the global crisis has affected the performance of commercial banks in Bosnia, which saw a decline in their profits in 2010, the governor said.

According to him, Bosnia's foreign currency holdings are slightly over six billion convertible marks (approximately three billion euros).

The reduction of the rate in mandatory reserves on short-term deposits for banks has made an additional EUR 150 million available for loans to the economic sector.

The governor expects the beginning of Bosnia's economic recovery in 2012.

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