In June 2011, the Executive Board of the NBS adopted a set of six decisions introducing Basel II standards and with the new Decision on the Classification of Bank Balance Sheet Assets and Off-Balance Sheet Items of December 2011, the framework for Basel II implementation was fully set.
The last NBS by-law was also a first step towards dynamic (countercyclical) provisioning that we want to develop more in the future. As we saw in September 2011, ESRB recommended to the regulatory authorities to consider applying additional capital requirements (within pillar 2 of Basel II standards) for banks not capitalized enough to cover the specific risks arising from excessive FX lending.