LIKVIDNOST BANKARSKOG SUSTAVA U UVJETIMA VALUTNOG ODBORA U BiH
LIQUIDITY OF THE BANKING SYSTEM IN THE CONDITIONS OF THE CURRENCY BOARD IN BiH

Summary/Abstract: The article analyses system luquidity of banking systemin in BH in condition of Currency Board Arrangement (CBA) in which the domestic currency in circulation as cash must be fully covered by foreign one. The analyse concentrate on level of required reserve which the comercial banks held on their accounts in CBBH and which CBBH use as a unique instrument to leadership the CBA monetary policy and the level of surplus of reserve and how it influence level of liquidity and level of cash which banks use i daily transacions and how it influence the level of capital of banks. The text also analize posibilities to introduse other monetary instruments (lender of last resort, issue of securities and keeping the government deposits) which use the Central Banks in developed countries. The object of the analysis is set out level of the BH banking system liquidity and effects of implementation of required reseve in the Currency Board Arrangement system as a monetary instrument and valuable of surplus of reseve to provide adequate liquidity of the BH bankig sector from one side and posibilities of introducing the other instuments of monetary police which can provide additional liquidity from other side in condition of present monetary CBA.

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