meeting of budget and financial committees chairpersons “financial perspective after 2013, bank...

Meeting of Budget and Financial Committees Chairpersons

“Financial perspective after 2013, bank supervision & capital market protection“

PRAGUE, April 28th 2009

Jiří KunertPresident

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• established in 1991• member of the:

– European Banking Federation– European Payment Council

• represents banking sector (99% of the banking market assets)

• almost all member banks belong to international financial groups

• CBA positions reflect both international (European) and domestic experience and is able to compare

Czech Banking Association

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Czech Banking Experience

• Transformation process of the Czech banking sector (1990 - 2002)

• Market approach has proved as the only way• State (EU) should assure high standard quality of

legislation and regulation – respecting the principle of:– the level playing field and – equal treatment

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Financial Crises

• High level of liquidity in the markets over number of years

• A apparently benign risk environment led to mispricing of credit risk

• The speed with which problems spread, and the range of products and institutions which were affected, were phenomenal

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Regulation Issues

• CAPITAL

• LIQUIDITY

• FUNDING

• RISK

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Regulation Issues

Scope of Regulation

„Home“ „Host“ „Supervisory“ „Approach“• legal environment• level playing field• costs

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European Supervisory Structure

Please do not forget:• consolidate national supervisory structure (into one institution)• adopt evolutionary approach on the EU level

de Larosiere Group Report 25 February 2009

"Driving for European Recovery" (EC Communication)

4 March 2009

EU Spring Council 29 March 2009

decision to strengthen regulation and supervision of EU financial institutions

in June 2009

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Thank you for your attention.

http://www.czech-ba.cz