Meeting of Budget and Financial Committees Chairpersons “Financial perspective after 2013, bank supervision & capital market protection“ PRAGUE, April 28th 2009 Jiří Kunert President

2 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

3 Czech Banking Experience Transformation process of the Czech banking sector ( ) 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

4 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

5 Regulation Issues CAPITAL LIQUIDITY FUNDING RISK

6 Regulation Issues Scope of Regulation „Home“„Host“„Supervisory“„Approach“ legal environment level playing field costs

7 European Supervisory Structure Please do not forget: consolidate national supervisory structure (into one institution) adopt evolutionary approach on the EU level de Larosiere Group Report25 February 2009 "Driving for European Recovery" (EC Communication) 4 March 2009 EU Spring Council29 March 2009 decision to strengthen regulation and supervision of EU financial institutions in June 2009

8 Thank you for your attention.