For a commercial sector, including the banking sector, to be able to take business decisions and invest with confidence, it must have recourse to a legal and court system that resolves contract disputes quickly and fairly. A recent World Bank study covering 126 countries concluded that a poorly-functioning court system may add as much as 2-2.5% to all interest rates in the country.
It is therefore very significant. If there is one single area that can have a large impact on getting the cost of capital in BiH down it is improving the legal and court system. The introduction of specialist commercial courts is aimed at improving this situation.