At ceremony for signing cooperation agreement between International Financial Corporation (IFC) and the Banks Association of Bosnia and Herzegovina the first activity in BiH under the project “Strengthening Financial Sector in Europe and Central Asia” was announced today in Sarajevo. The project is supported by the Government of Switzerland through the State Secretariat for Economic Affairs (SECO) and implemented by IFC.
In BiH, the IFC, a member of the World Bank Group, and the Bank’s Association will support the local banking sector to strengthen the relevant risk management systems, assist in improving management of non-performing loans, and improve small and medium enterprise (SME) banking. The support will mainly be provided through trainings and workshops for bank representatives from BiH.
“Swiss Government and IFC have excellent cooperation in supporting private sector development and creating better business enabling environment in BiH. We are glad to see that this larger regional project is working with the Bank Association of BiH in addressing non-performing loans and better access to finance for SME sector”, said Almir Tanovic, Programme Officer for Economic development at the Swiss Embassy in BiH.
“SMEs are the key generator of employment and income in developing world but are often neglected by financial institutions,” said Lada Busevac, IFC Country Officer for BiH. “Our global experience shows that with proper design and implementation, banks can substantially expand SME lending to the benefit of their shareholders, customers and local communities.”
Until June 2017, IFC and the Banks Association will roll out a series of trainings and workshops on the following topics: risk governance, operational risk, liquidity, distressed assets resolution, and SME banking.
“We have great plans to bring international expertise and help strengthen the foundation of the financial sector by increasing their resilience to the financial crisis and in parallel supporting growth of the SME banking in the country,” said Milan Radovic, President of Banks Association of BiH.
