Overview of the Framework for Crisis Management in the Financial Sector in B&H: Status Quo?

Abstract

The research findings presented in this article aim at explaining the framework of crisis management in the financial sector of Bosnia and Herzegovina (B&H). This framework is supposed to ensure financial stability even in the circumstances of business failure of institutions, which could cause systematic damage. Based on the critical analysis of market conditions and legal and institutional frameworks established in the B&H, and having in mind the supranational nature of the crisis in the financial sector, the authors argue that an adequate mechanism for a resolution of any crisis situation must be founded on the measures that ensure accountability, transparency, and integrity of all participants in the financial system. Recent legislative initiatives in the EU financial sector have resulted in an innovative framework of crisis management and tremendously comprehensive integration in the field of financial law. For that reason, this research includes also an evaluation of the extent to which elements of this modern European mechanism for dealing with crisis situations in the financial sector are included in the legislative implementation in the fragmented legal and institutional framework of B&H.

Keywords

• financial sector
• financial stability
• financial crisis
• crisis management in banking