Savings and Investments in Bosnia and Herzegovina
BiH offers savings opportunities through the banking system and government securities. The regulatory framework differs between entities, and deposit protection is organised at BiH level through the Deposit Insurance Agency (AOD).
Bank savings and deposit protection
The BiH Deposit Insurance Agency (AOD) guarantees deposit protection up to 50,000 KM (approx. 25,000 EUR) per person per bank. Both entities have their own regulatory agencies: the Banking Agency of FBiH (FBA) and the Banking Agency of RS (ABRS). Interest rates on term deposits depend on market conditions and the Central Bank of BiH (CBBiH) policy. For larger amounts, distributing savings across multiple banks maximises coverage.
BiH bonds and investment funds
BiH issues treasury bills and bonds at entity level (FBiH and RS), available to institutional and individual investors through Ministry of Finance auctions and the secondary market. Investment funds are regulated by the FBiH Securities Commission and RS Securities Commission. Income from interest and dividends is taxed at 10% in both entities. The BiH capital market is less developed than European standards but offers conservative investment opportunities.
Stock market and alternative investments
Shares are available on the Sarajevo Stock Exchange (SASE) and the Banja Luka Stock Exchange (BLSE). Market capitalisation is relatively small with a limited number of active issuers. Investment real estate and gold are popular alternative investment forms. Many BiH residents hold savings in EUR or invest in foreign equity funds available through banks.
Frequently Asked Questions
What is the deposit protection level in BiH banks?
The BiH Deposit Insurance Agency (AOD) guarantees protection up to 50,000 KM (approx. 25,000 EUR) per person per bank. Distributing funds across multiple banks can increase total coverage.
Where can I buy BiH government bonds as an individual?
Treasury bills and entity bonds can be followed through Ministry of Finance auctions. Individuals can buy them through banks acting as intermediaries, or on the secondary market (SASE/BLSE).
Are there tax benefits for savings in BiH?
Voluntary pension funds in FBiH and RS may provide certain tax benefits. Consult a tax advisor for current regulations as rules change.