Bosnia's payment system for the new millennium

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On January 5, 2001 at 8 a.m. sharp,new payments system in the CentralBank of BH started operating accordingto plan. In that very momentthe dilemmas disappeared (if theyexisted at all) about the extension ofthe payments bureaus work for thedefinite period of time. The first official transaction wasexpected eagerly and it followed by ABS Bank Sarajevothrough the RTGS System. On that occasion the firstchampagne was opened for all employees in CBBHPayments System Divison. The first day passed withoutproblems, with reasonably small number of transactions.

Next days, already, the number of the transactions and theirvalue were growing rapidly. There were certain problems atthe relation client - payments bureau - commercial bank, butthey were mostly solved. Process of the opening of transactionaccounts in commercial banks slowered down to certainextent payments system operations, but the banks with theadditional engagements minimized this problem, too. Since,in so far practice, the beginning of new financial year ischaracterized by a small stoppage due to the settlements ofprevious year balances and holidays, achievement of fullvolume of the payments system is to expect by the end of thefirst quartile of this year.

At the beginning 34 banks from BH had the access to thesystem. The relevant Banking Agency licensed them for themiddle risk transactions, but they met certain demands givento them by the Central Bank, too. By January 20, 2001 thisnumber increased to 40. The most of the banks are includedin both RTGS System (Real Time Gross Settlement System)and Gyro Clearing. There are several banks operating in theRTGS system, but the technical preparations for their operationin gyro clearing are still not created. The final activitiesfor their complete capacity building are underway.

As a bad effect noticed at the very beginning of the work, wecan point out the high price lists of the commercial banks,out of which some are over passing the same provided in thepayments bureaus. The fees that the CBBH is charging to thecommercial banks are minimal and their attitude is notunderstandable having in mind that, beside the quality ofservice, the prices, too, should attract the clients, as much aspossible. The CBBH made the additional effort and in accordwith the decision of the Governing Board, issued on Jan.16, 2001 it will not charge from the commercial banks fees forservices in the RTGS and Gyro Clearing System for January,2001. Working hours for acceptance of the orders in theRTGS System are from 8 a.m. to 4 p.m., and in gyro clearingthere are two cycles of settlements at 10 a.m. and at 3 a.m. Inthis way there has been extended the time for acceptance ofthe payments orders in comparison to the previous practice.

There should be said that all Main Units and the CBBHBranches provided adequate duty shifts which enablesunhindered work to the commercial banks, namely the transferbetween banks.