Financial Stability Report No.14 (2)/2017 Liviu Voinea, Deputy Governor Press conference, Bucharest, 4 December 2017  Your Excellences, Dear colleagues, Dear guests,  Thank you for your presence at the launch of the December 2017 issue of the Financial Stability Report, No. 14(2)/2017. Right beside me are three NBR directors who are ready to answer your questions: Mr Eugen Rădulescu, director of the Financial Stability Department, which prepared the Report – I wish to thank all the colleagues involved; Mr Emil Vonvea, director of the Bank Resolution Department – an area having the role to strengthen confidence in the banking sector – the Report also includes a section dedicated to resolution strategies; and Mr Tudor Grosu, director of the Macroeconomic Modelling and Forecasting Department, as part of the analyses in the Report are based on scenarios and econometric models to the development of which his department also contributed. I would like to thank the other departments which cooperated in the preparation of the Report, particularly the Economic Studies Department for the translation. This is the 14th financial stability report launched by the National Bank of Romania. I would like to point out that the Report we are releasing today has been discussed in two meetings of the NBR Board and was unanimously approved by the NBR Board in its meeting of 27 November 2017. The Report presents the risks to financial stability, in close correlation with domestic and international economic developments.
The clarity of the objectives and the reporting system provided a stronger collective confidence that individual firms would be held to similar standards independent of their principal supervisor. And we have made a more systematic effort to share concerns with the SEC, the FSA and other supervisors and identify areas where we can work in parallel to highlight issues we see in the major markets and encourage change among the major institutions. We are in the process, for example, of consulting with these and other authorities on the use of stress testing and scenario analysis in the largest institutions. These efforts of course complement a substantial amount of cooperation in other contexts in the U.S. and internationally in the Financial Stability Forum, the Joint Forum and the Basel Committees on Banking Supervision and Payment and Settlement Systems. These initiatives help keep the supervisors closer to developments in markets, more informed of differences in approaches across the functional and geographic lines of supervision, somewhat more nimble in responding to potential problems and closer to creating a more integrated supervisory framework. The evidence to date suggests that dramatic growth in new instruments for risk transfer and the greater role of nonbank financial institutions have contributed to a more stable and more efficient financial system. But these changes present continuing challenges for the discipline of risk management.