KREDITNA POLITIKA BANAKA U BOSNI I HERCEGOVINI
CREDIT POLICY OF BANKS IN BOSNIA AND HERZEGOVINA

Summary/Abstract: The credit policy of banks represents a key segment of the operations of financial institutions in Bosnia and Herzegovina, with a significant impact on economic growth, the stability of the banking sector, and overall financial sustainability. This paper analyzes the credit indebtedness of households and legal entities in BiH, trends in the structure of the credit portfolio, as well as the impact of inflation and interest rates on the credit activity of banks. Special attention is given to the challenges banks face, such as the increase in non-performing loans (NPLs), the need for alignment with international standards, and regulatory framework requirements. The results of the analysis indicate a continuous increase in credit indebtedness in both sectors, with consumer and housing loans dominating among households, while legal entities show modest but stable growth. Recommendations include greater investment in corporate lending, adapting risk management strategies, and strengthening the secondary market for securities to diversify the credit portfolio.

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