*  *  *  Dear Governor Kozarić, Dear Ambassador Kourkoulas, Ladies and gentlemen, It is a pleasure for me to be back in Sarajevo. My last visit was in 2007, when I attended a conference hosted by Governor Kozarić in celebration of the tenth anniversary of the Central Bank of Bosnia and Herzegovina.
In some cases, supervisors’ perspectives will differ from those of bank management, and supervisors clearly face different incentives from bank management. Where they reach different judgements they need to be prepared to use their discretionary supervisory tools to buttress the rules that are in place. In the end, ensuring financial stability requires as much attention to supervision as it does to regulation.