The digitalisation of services and resilient payment systems that result in lower transaction costs and higher levels of money supply have had a profound impact on Bosnia-Herzegovina’s economy, says central bank governor Senad Softić.
In the aftermath of the global financial crisis, populist politicians in central and eastern Europe realised that struggling homeowners could be their new powerbase. Lenders are facing a potential onslaught of unwelcome government intervention in the banking sector, though there could be a silver lining. Stefanie Linhardt reports.
For years, Austrian lenders Erste Bank and Raiffeisen Bank have enjoyed strong profits at their central and eastern European operations, but with growth in these economies slowing, more recent results suggest that they may need to rethink their strategies in the region.
The complicated geographical and political make-up of Bosnia-Herzegovina, combined with its struggling economy and low purchasing power, makes life difficult for its overcrowded banking market. However, hope is on the horizon as economic growth picks up and looming elections bring promise of a more investor-friendly financial system.