Bosnia and Herzegovina: Decree on the Supervision of Microcredit Organization's Business Operations

This Decree stipulates in detail the main authorities of the Banking Agency of the Federation of Bosnia and Herzegovina (FBA) in conducting the supervision of business operations of microcredit organizations (MCOs).

The Decree aims to establish general criteria for the implementation of legal authorities of the FBA in carrying out the supervision, order issuance, measure pronunciation, as well as establishing deadlines for eliminating determined illegalities and irregularities in business operations of MCOs.

The Decree states that:

• The FBA supervises the work legality, compliance with regulations, and the maintenance of prescribed standards by the MCO;
• The application of the legality principles and maintenance of prescribed standards are the responsibility of the management and supervisory bodies of the MCO.

It specifies:

• The activities that the FBA supervises;
• The method by which it conducts this supervision;
• The preparation of the minutes of FBA findings;
• The process that the MCO can follow to lodge a complaint against FBA findings;
• The action that the FBA can take to help the MCO get over operational irregularities;
• Actions that the FBA can take after identifying illegalities and irregularities of MCO operations.

The Decree states that its provisions shall be applied to MCOs and shall come into effect on the eighth day after its publication in the Official Gazette of the federation of Bosnia and Herzegovina.

The Decree is signed by the President of the Management Board.