BANK PANIC IS OVER,BOSNIAN CENTRAL BANK CONFIRMS

SARAJEVO, Bosnia (October 24,2008) - The panic in the Bosnian banking market is over.In the past two days there have been more of those clients who were making deposits than those making withdrawals, the Governor of the Bosnian Central Bank confirmed yesterday.

Kemal Kozaric was unable to say, however, what the total amount of withdrawals is. Kozaric said this returned trust is good for commercial banks, as well as that it needs to be mutual, urging banks not to raise their rates and fees.

The governor said the solvency of banks is satisfactory, and that there is more than 1 billion Bosnian Marks surplus in required reserves. He announced a proposal would be made on October 30 to cancel the reserve requirement for foreign loans.
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