Financial Stability Committee founded

Constitutive meeting of the Financial Stability Committee, founded by the Serbian Government, National Bank of Serbia (NBS), Deposit Insurance Agency (DIA) and Securities Commission, was held today at the National Bank of Serbia.

The Agreement on Financial Stability Committee, a coordination and advisory body which should promote and strengthen cooperation between the above institutions, was signed by NBS Governor Jorgovanka Tabakovic, Minister of Finance Lazar Krstic, Head of DIA Zoran Obradovic and President of the Securities Commission Zoran Cirovic.

Bearing in mind that financial stability is critical to economic development which creates preconditions for sustainable GDP growth and lowering of unemployment, as well as the fact that the global financial crisis continues to impact on the real economy, the establishment of this interinstitutional body is expected to contribute to the strengthening and maintaining of stability of the Serbian financial system at large.

The Committee will act as an advisory body tasked with reviewing and assessing all issues and measures to be taken with a view to preserving financial stability. It will also coordinate all key entities in this process. Harmonisation of policies and measures, including timely and more efficient exchange of data and information pertaining to financial stability, will contribute to enhancing the quality of monitoring and assessing of systemic risks, strengthening the resilience of the financial system in crisis situations, and taking of timely and adequate measures to preempt adverse effects in the financial sector and the economy.

Members of the Financial Stability Committee are NBS Governor, Minister of Finance, Head of DIA, President of the Securities Commission, Director of the Administration for Supervision of Financial Institutions, State Secretary at the Ministry of Finance, NBS Vice-Governor in charge of financial stability, and General Manager of the Banking Supervision Department. The Committee will meet at least once quarterly and will be chaired by Governor Jorgovanka Tabakovic.