Bosnia and Herzegovina is divided into 3 federal entities that form the highest level of subnational administration in the country's three-tier structure. These entities possess significant autonomy and handle major governmental functions including education, healthcare, law enforcement, and economic policy within their respective territories. The two largest entities are the Federation of Bosnia and Herzegovina and Republika Srpska, while the Brčko District operates as a self-governing administrative unit under the sovereignty of the state. Each entity maintains its own constitution, government institutions, and legislative assembly, reflecting the complex power-sharing arrangement established by the Dayton Agreement that ended the Bosnian War in 1995. This administrative framework allows the entities to manage their internal affairs while coordinating with the central state government on matters such as foreign policy, monetary policy, and inter-entity transportation.