Mugur Isărescu: International Financial Reporting Standards – international experience and implementation by the banking sector in Romania in 2012 Opening speech by Mr Mugur Isărescu, Governor of the National Bank of Romania, at the IFRS conference “International experience and implementation by the Romanian banking sector in 2012”, Bucharest, 20 June 2011. *  *  *  Ladies and Gentlemen, Distinguished audience, It is an honour to have the opportunity to open the proceedings of the Conference titled “International Financial Reporting Standards: International Experience and Implementation by the Banking Sector in Romania in 2012”. This is a topical and, at the same time, a hotly-debated issue that we are going to discuss together with the Institute of Chartered Accountants in England and Wales (ICAEW). Economic and financial developments tending towards internationalisation of banking operations in the context of globalisation of financial markets have highlighted the importance of financial information provided by companies, especially in terms of assessing and presenting the results and risks attached to their activity. Moreover, in the aftermath of the past years’ financial crisis, stronger pressures for harmonising accounting rules worldwide as a basis for the published financial information have emerged. Under the circumstances, the National Bank of Romania, in its capacity as the regulatory and supervisory authority of the Romanian banking system has steadily sought to harmonise its rules and practices with the best practices in the field so as to increase transparency and ensure comparability of information across the entire banking sector.

In 2010, the National Bank of Romania adopted the Strategy for IFRS Implementation by credit institutions starting with the 2012 financial year. For its implementation, the updating of the accounting regulatory framework was completed and steps were taken to ensure  BIS central bankers’ speeches  1  transition towards the new standards. Thus, credit institutions will prepare and present action plans whose implementation will be monitored by the central bank throughout the remainder of this year. Also in the first half of 2011, the financial reporting framework suiting the needs of the supervisory authority was updated. The National Bank of Romania, in its capacity as an authority responsible for prudential supervision of the banking system, has recently prepared and sent for public consultation the bills needed to elicit accounting figures reported by banks so that they match the banks’ prudential objectives. I trust this endeavour aimed at broadening the scope of applicability of such standards, serving as the basis for accounting and for preparing individual financial statements by credit institutions in Romania, should be seen as a sine qua non condition to secure effective supervision of the Romanian banking system. Let me stress that the importance of implementing the International Financial Reporting Standards by credit institutions in Romania is also reflected by the new financing agreements signed with international institutions (the European Commission, the International Monetary Fund, the World Bank).