In turn, the existence of an effective legal and regulatory framework for the financial sector and the conduct of financial supervision in accordance with international best practices plays an important role in promoting financial stability. To this end, considerable efforts have already been made to strengthen the legal and regulatory frameworks of the financial sector in SEE countries and to improve supervisory practice.
In what follows, I will briefly discuss the various channels through which external assistance towards regulatory and supervisory reform in South-Eastern Europe has been provided, identify some areas where further reform and expertise appears necessary, and suggest some cooperative arrangements that could contribute to this objective.