FACT SHEET: Financial Sector Reform Activity (FINRA)

Project Snapshot

Total Funding:  $6 million

Project Duration: September 2017 - September 2022

Implementing Partner:  FMI (U.S.-based small business)

Policy makers, financial sector regulators and private sector stakeholders in Bosnia and Herzegovina agree that a well-regulated financial sector is critical for efficiently allocating capital in the economy and increasing access to credit. 

USAID ASSISTANCE

Through the Financial Sector Reform Activity (FINRA), launched in September 2017, USAID is helping Bosnia and Herzegovina bring financial supervision in line with EU standards. USAID’s program will coordinate with programs of the International Monetary Fund (IMF) and the World Bank, where applicable. This five-year $6 million project is implemented by Financial Markets International, a U.S.-based small business. The project has three broad components:

1. BANKING SUPERVISION AND DEPOSIT INSURANCE

• Activities leading to full implementation of banking laws and regulations in the Basel II/III bank supervision framework by both entity agencies according to new legislation and the IMF program. They include technical assistance and training for banking supervision regulators, and capacity building to the BiH Deposit Insurance Agency to fully implement core deposit insurance principles.

2. CENTRAL BANKING

• Demand-driven assistance to the Central Bank of BiH to strengthen its capacities to further cooperation in financial sector supervision and increase its efficiency.

3. AUDIT OF PUBLIC FINANCIAL RESOURCES AND THE QUALITY OF GOVERNMENT SPENDING*

• Assistance to improve the internal control environments at the state and entity levels by supporting systems that increase the effectiveness of auditors to conduct performance and financial reviews to improve funds management and prevent corruption.

*Optional; depending on availability of funds.

IMPLEMENTATION AND RESULTS

USAID’s FINRA project has established relationships with these key host country partners – the Central Bank of BiH, the BiH Deposit Insurance Agency, and the Bank Agencies of both entities (the Federation of BiH and Republika Srpska) – all of which are on-board with the project’s work plan.

Last updated: February 20, 2018

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