Banking Agency of Republika Srpska addresses consumer credit limit proposal

The Banking Agency of Republika Srpska has stated it has not received any formal proposal or initiative to increase consumer credit limits from 50,000 KM to 70,000 KM. While the agency notes a multi-year trend of rising consumer credit, it emphasized that such lending may stimulate short-term consumption but does not generate sustainable economic growth.

The Agency warned that rapid growth in consumer credit poses long-term risks to both citizens and the banking sector. It stressed that banks must strictly evaluate the real creditworthiness and debt sustainability of clients in accordance with existing laws. The Agency's primary mandate remains the preservation of the financial system's stability.

Meanwhile, the Association of Banks of Bosnia and Herzegovina clarified that the essence of the initiative to raise limits is not to encourage greater indebtedness, but rather to align regulations with changed economic circumstances and focus on a client's actual ability to repay debt.