pc
nid 92986
May 28, 2026
arahman@vixio.com
Bosnia and Herzegovina
Banking By Laws - Banking Agency of Fed
financial services
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1637 charsBosnia and Herzegovina Banking Agency Amends Interest Rate Risk Management Decision
On June 4, 2026, the Banking Agency of the Federation of Bosnia and Herzegovina (FBA) published amendments to its Decision on Interest Rate Risk Management in the Banking Book. The amendments were published in the Official Gazette of the Federation of Bosnia and Herzegovina, Issue 41/26.
The Decision on Interest Rate Risk Management in the Banking Book establishes requirements for banks operating in the Federation of Bosnia and Herzegovina to identify, measure, monitor, and manage interest rate risk exposure in their banking books. Interest rate risk in the banking book refers to the potential impact of adverse movements in interest rates on a bank's capital and earnings from non-trading activities.
The amendments modify the existing decision framework governing how banks must manage and report interest rate risk. The specific technical changes introduced by the amendments are not detailed in the source material; however, the revisions represent the FBA's ongoing regulatory refinement of interest rate risk management standards for the banking sector.
The amended Decision becomes effective on September 30, 2026. Banks operating in the Federation of Bosnia and Herzegovina must ensure compliance with the revised requirements by this date. The FBA will enforce the new provisions from the effective date forward.
REFERENCES:
Banking Agency of the Federation of Bosnia and Herzegovina. Decision on Amendments and Supplements to the Decision on Interest Rate Risk Management in the Banking Book. Official Gazette of the Federation of Bosnia and Herzegovina, Issue 41/26. June 4, 2026. Available at: https://www.fba.ba/
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1318 charsBosnia and Herzegovina Banking Agency Amends Decision on Interest Rate Risk Management
On May 28, 2026, the Banking Agency of the Federation of Bosnia and Herzegovina (FBA) adopted amendments to its Decision on Interest Rate Risk Management in the Banking Book (IRRBB).
Key amendments include:
For measuring IRRBB, a bank is required to use at least one measure based on net interest income after changes in the market value of instruments and at least one economic value measurement method, which together include all components of IRRBB.
A bank shall consistently apply one of the following approaches for identifying, measuring, monitoring and managing IRRBB: Internal Measurement Systems (IMS). The standardised approach. The simplified standard approach.
Internal Measurement Systems (IMS).
The standardised approach.
The simplified standard approach.
A bank shall regularly, and at least quarterly, calculate the effect of: Interest rate shocks on the measure of the economic value of capital. Parallel shocks to the net interest income measure, namely, one-year net interest income.
Interest rate shocks on the measure of the economic value of capital.
Parallel shocks to the net interest income measure, namely, one-year net interest income.
This decision shall enter into force on the eighth day following its publication in the official gazette and shall apply from September 30, 2026.