Financial services

Accounting standards. Industry regulations. Ever-evolving tax rules. New legislation.

With experience of supporting the financial services community in key financial hubs, across the network, we help organisations navigate complex reporting, governance and regulatory issues to achieve their business objectives.

The financial system in Bosnia and Herzegovina is dominated by a moderately concentrated banking sector. The banking sector accounts for 87 percent of financial system assets, which are equivalent to 84 percent of GDP as of end-2013. There are twenty seven banks operating in the country (17 in FBiH and 10 in RS, respectively). The five largest banks (three in FBiH and two in RS) represent over half of banking sector assets. The banking system comprises mostly foreign subsidiaries—82 percent of the banking sector assets, while domestically-owned and public banks account for 16 and 2 percent.

As elsewhere in the region, the largest foreign banks operating in BiH are from Austria and Italy. Together with Slovenia another important player in BiH, these banks make up ¾ of banking sector assets in FBiH, and half in RS. In terms of direct exposure, BiH banking sector is mostly exposed to Austria and Germany, accounting for nearly 50 percent of banks’ total foreign claims and comprising ⅓ of banking sector regulatory capital. Most of these foreign exposures are domestic banks’ deposits at their correspondent accounts.

The rest of the non-banking financial system is small. It is distributed among insurance companies (5 percent of financial system assets), leasing companies (2 percent), investment funds, and MCOs (3 percent each) as of end-2013. There is one stock exchange in each entity

RSM’s financial services industry specialists provide comprehensive, integrated solutions to the banking & securities, insurance, and investment management sectors. RSM member firms’ breadth of services and industry knowledge allow us to understand each client’s unique business needs.