7 September 2010 Volume 18 BANKING JOURNAL NÁRODNÁ BANKA SLOVENSKA BIATEC Conference The Euro Area and the Financial Crisis The Euro Area and the Financial Crisis conference was opened by NBS Governor Mr. Jozef Makúch (first from left), who also chaired the first session. Governor of the Central Bank of Cyprus Mr. Athanasios Orphanides (in the middle) devoted the keynote lecture to regulation and supervision, and to the issue of crisis resolution. The same issue was also analysed by Mr. Thomas F. Huertas from Great Britain (first from left). Economic research in Slovakia witnessed from cial stability is undoubtedly an important concern the 6th to 8th of September hitherto the greatest of central banks. At the European level it is neces- event. Národná banka Slovenska together with sary to solve two aspects of financial stability: on the Heriot-Watt University from Edinburgh and the one hand regulation and supervision, on the the Comenius University in Bratislava organized other hand resolution of a manifested crisis. A sig- The Euro Area and the Financial Crisis conference. nificant progress was made in recent years in the As the name suggests, the conference was dedi- area of supervision and regulation – increasing cated to the issues of the financial crisis and its emphasis on macrofinancial stability, setting up aftermath, the implications of the crisis for the the European Systemic Risk Board, there is a sys- euro area and several of its members, open issues tem of communication and cooperation among of financial regulation, and the issue of how the national regulators, and the harmonisation of euro introduction influenced several EU member legislation among member states has intensified. countries and how viewpoints on the euro adop- On the other hand, in the area of crisis resolution tion developed in other new member countries. there are no systemic solutions yet. According The conference was opened by NBS Governor to Orphanides Europe needs clear and ex ante Mr. Jozef Makúch, who also chaired the first ses- defined rules for the division of responsibility in sion. Governor of the Central Bank of Cyprus Mr. crisis resolution. Even with the best supervision Athanasios Orphanides presented an inspiring keynote lecture. According to Orphanides finan- continued on page 32 Hitherto the greatest event of economic research in Slovakia – an international conference organized by the NBS together with two universities – Heriot-Watt University in Edinburgh and Comenius University in Bratislava impres- sed present guests. BIATEC C ONTENTS F INANCIAL MARKETS Would the integration of financial markets help Europe? . 2 (JUDr. Martina Janstová) BIATEC Concept of financial market regulation according to the Lamfalussy framework . 5 Banking journal (Ing. Mária Petianová) September 2010 L EGISLATION Publisher: Legal mechanisms of introduction and use of euro outside National Bank of Slovakia the euro area . 9 (JUDr. Peter Pénzeš, LL.M., PhD.) Editorial Board: doc. Ing. Jozef Makúch, PhD. (Chairman) Ing. Viliam Ostrožlík, MBA F INANCIAL ASSISTANCE Mgr. Júlia Čillíková FOR GREECE Ing. Juraj Jánošík Ing. Renáta Konečná Greek Rescue Package and European Financial Stabilisation PhDr. Jana Kováčová Mechanism . 11 Mgr. Martin Šuster, PhD. (Ing. Katarína Jevočinová, Mgr. Lucia Országhová) Editorial staff: C OMMEMORATIVE AND Ing. Alica Polónyiová COLLECTOR COINS tel.: +421/2/5787 2153 [email protected] Silver Collector Coin: Protection of Nature and Landscape PhDr. Dagmar Krištofičová tel.: +421/2/5787 2150 – Poloniny National Park . 17 dagmar.kristofi[email protected] (Ing. Dagmar Flaché) Address: D EPOSIT PROTECTION NBS, Editorial Office BIATEC Imricha Karvaša 1, 813 25 Bratislava Deposit protection after turbulence in the financial markets . 19 e-mail: [email protected] (Ing. Rudolf Šujan) Graphic design: Bedrich Schreiber C OMPANY COMPETITIVENESS Typo&lito: AEPress, s.r.o. Printing: Dolis, s.r.o. Euro: Perpetrator or witness?Development and factors of company competitiveness after euro introduction . 22 (Ing. Tibor Lalinský, PhD.) All rights reserved. Reproduction for educational and non-commercial purposes is permitted provided that the source is S ECURITIES acknowledged. Selected areas of evaluation and reporting on purchased Evidence number: EV 2817/08 securities in a commercial bank . 29 ISSN 1335 – 0900 (Ing. Mária Schwarzová) BIATEC volume 18, 7/2010 1 F INANCIAL MARKETS Would the integration of financial markets help Europe? JUDr. Martina Janstová Národná banka Slovenska Since September 2008 the independent Committee of European Securities Regulators (CESR) has been considering the idea of integrating financial markets – those of EU member states and of third countries. The potential integration of financial markets should concern the so-called trading venues, i.e. regulated markets and publicly organized markets (EU’s MTF systems or similar third countries’ systems). As for products, this potential integration should concern all securities accepted in respective markets for trading, as well as products connected with collective investment schemes (CIS). 1 http://www.cesr-eu.org/data/docu- A Working Group was created within CESR to deal (MRAs) among the respective regulators of an -ment/09_406b.pdf with this issue. Its aim is to identify the positive EU member state and a third country seem to be 2 http://www.asic.gov.au/asic/pdflib. nsf/LookupByFileName/rg190. and negative sides of financial market integration, suitable for the purposes of the financial market pdf/$file/rg190.pdf – 166k – [ pdf ] and to define potential conditions and criteria for integration of EU and third countries. such integration if financial market integration is supported by the European Commission. INSPIRATION The start of the financial crisis in the second CESR can draw some inspiration from interna- half of 2008 blocked the Working Group’s activity tional agreements concluded in order to release for a short time; then in 2009 CESR renewed the the rules of financial market regulation. Australia activity of the group with the aim to use financial was very active in this area, partly integrating its market integration as an economic stimulus for financial market with the financial markets of activating the economy that stagnated as a result New Zealand, Hong Kong, Singapore, and finally of the crisis. the USA on the basis of agreements. Currently it is Financial market integration should bring ben- making an effort to conclude a similar agreement efit for financial market participants; this is why with EU member states. the attitude of the EU’s financial market is most Regulators of Australia and New Zealand con- important for CESR, stressing strong and medium- cluded an agreement on loosening financial strong “players”. The Working Group elaborated market regulations in 2008. Subsequently in Jan- the call for evidence,1 the aim of which was to ob- uary 2009, the Australian Securities and Invest- tain market participants’ feedback regarding this ments Commission (ASIC) disclosed on its web- issue. On 8 June 2009, CESR disclosed this on its site Regulatory Guide No. 190 – a joint guideline website, and financial-market participants could of ASIC and (two) relevant New Zealand’s respond from 8 June 2009 to 1 September 2009. regulators2. This guideline was made for the is- The aim of this activity was to find out if they con- suers of securities, and those who are interested sidered financial market integration as benefit on in doing business in the area of collective invest- the economic level, and if yes, they should specify ment in both jurisdictions. It lays down obliga- the expected economic benefit in more detail. tions of respective financial market participants In the determined period, CESR received 21 in view of the trans-Tasman mutual recognition open and 5 confidential responses; the Working scheme of regulation regarding offers of securi- Group held bilateral talks with the authors of the ties (trading). The agreement applies to securi- interesting responses. It resulted from the activi- ties, debt securities, and collective investment. ties stated in the responses that the EU financial It lays down minimum requirements that have market would like to have a uniform license – with to be met, and enforceable in both respective selected countries in connection with selected fi- jurisdictions. Each participant of such integrated nancial products – similar to the one which brings market is supervised by its home regulator, while profit to participants in the financial markets in EU financial market participants are obliged to fulfil member states on the basis of the Directive of the selected information obligations towards their European Parliament and of Council No. 2004/39/ host regulator. ES (MiFID). On 7 July 2008 ASIC also concluded an agree- The approximation of legislation of the EU and ment on mutual recognition with the Hong Kong third countries in a similar way as in EU member regulator (Hong Kong Securities and Futures states is highly unlikely from the political point of Commission) which applies to collective invest- BIATEC view. Therefore Mutual Recognition Agreements ment. In the area of regulated markets, ASX (ASIC) 2 volume 18, 7/2010 F INANCIAL MARKETS concluded an agreement with the Singapore that it would not be necessary to register with 3 http://edgar.sec.gov/news/digest/ Stock Exchange. two regulators; it would be enough to receive 2008/dig082508.htm On 25 August 2008 an MRA was concluded a registration in the home country. This would among the SEC – the U.S. Securities and Exchange