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

2. 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. 3 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

4. 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. 5 Regulation Issues CAPITAL LIQUIDITY FUNDING RISK

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

7. 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. 8 Thank you for your attention. http://www.czech-ba.cz