PRESS RELEASE
Enhancing co-operation among the Banking Supervisory Authorities of South Eastern Europe

At the invitation of Mr. Mugur Isãrescu, Governor of the National Bank of Romania, Governors and representatives of the Bank of Albania, the Bulgarian National Bank, the Central Bank of Bosnia and Herzegovina, the Central Bank of Cyprus, the Bank of Greece, the National Bank of the Republic of Macedonia, the Central Bank of Montenegro, as well as the Heads of the Banking Authorities in Bosnia and Herzegovina and Republika Srpska, met in Sinaia on 19 February 2010.

(From left) Mr. Ioannis Gousios - Director of Supervision Department, Bank of Greece, Mr. Florin Georgescu - First Deputy Governor, National Bank of Romania, Mr. Ivan Iskrov - Governor, Bulgarian National Bank, Mr. Mugur Constantin Isarescu - Governor, National Bank of Romania, Mr. Athanasios Orphanides - Governor, Central Bank of Cyprus, Mr. Radomir Bozic - Vice Governor, Central Bank of Bosnia and Herzegovina, Mr. Fatos Ibrahimi - First Deputy Governor, Bank of Albania, Mr. Dimitar Bogov - Vice Governor, National Bank of the Republic of Macedonia.

The meeting is the fourth gathering under the framework of the multilateral Memorandum of Understanding agreed in Athens in July 2007, aimed at further advancing cooperation in the area of banking supervision in South Eastern Europe (SEE) and safeguarding financial stability in the region.

During the meeting, talks focused on recent macroeconomic and financial market developments, conditions and outlook of the banks as well as changes of the regulatory framework in the region. Participants concluded that, despite the global financial distress, the banking system of each country in SEE remains sound and well capitalized. Participants also highlighted the great importance of cooperation and coordination of central banks and supervision authorities in the region in order to limit the direct and indirect effects of the global financial distress and to restore confidence and ensure continued financial stability.

The meeting was a good opportunity to enhance the supportive role of EU Member States within the region in sharing valuable experience in the supervision area with EU candidates and potential EU candidate countries. Participants also underlined the key role of the recently created Colleges of supervisors, operating under the framework provided by CEBS Guidelines, in assessing and dealing with the risks faced by cross border banking groups, as well as in promoting a permanent platform for more efficient and effective supervision. This platform would also facilitate the joint assessment of the capital needs of all institutions operating in the region, taking into account their risk profiles and safeguarding the interests of both home and host countries.

It was agreed that the next meeting of the Governors of South Eastern Europe will take place in Cyprus next year.