This Technical Note evaluates state bank corporate governance practices in Bosnia andHerzegovina. The analysis was completed during October 27-November 18, 2014. This TN is not a formal assessment against the Basel Committee’s Principles for Enhancing Governance; rather, it assesses key issues and provides a set of recommendations to the authorities with the view to strengthen state bank governance and the State’s ownership structures in Bosnia and Herzegovina. The governments of the Federation of Bosnia and Herzegovina (FBiH) and the Republic of Srpska (RS) are involved in their domestic banking systems through equity stakes and subordinated debt investments in certain banking institutions. Banks’ supervisory boards are not performing their intended leadership role.