Establishment, Objective and Tasks of the Central Bank

This paper is an official document presenting issues associated with functioning of the Central Bank in Bosnia and Herzegovina. The document is divided into ten chapters.

The first two chapters deals with specifics of the Central Bank, its:

• Objectives and establishment;
• Independence and activities;
• Association with international agencies;
• Constitution of the board;
• Functions and powers associated with the governing board;
• Composition of the management and board.

Chapters 3 and 4 discuss:

• Issues relating to capital, net profit/loss, and allocation of net profit/loss;
• Coverage in shortfalls in capital;
• Reserve requirements;
• Monetary operations of the bank.

Chapters 5 and 6 highlight:

• Monetary units and issues regarding withdrawal of currency;
• Accounting treatment of currency issued;
• Exchange rate policy and foreign exchange reserves.

Chapters 7 and 8 deal with the bank's:

• Dealings and relationship with other public agencies;
• Different roles played;
• Accounts handled.

The last two chapters discuss the following:

• Accounting policies and disclosure norms followed by the bank;
• Consultation with banks on legislative proposals;
• Central Bank regulations and guidelines on good administration;
• Effect of taxation on Central Bank.