not organized as shareholding companies for ensuring high - quality core capital comparable with the quality of the core capital of the shareholding companies. also, deductive items and prudential filters will be harmonized on an international level and will be applied at the level of a shareholding capital or its equivalent in the case of the legal entities which are not organized as shareholding companies. moreover, all components of the capital will be fully published. - introduction of a leverage ratio as an additional measure of the risk - based basel 2 framework, in order to include it in the treatment envisaged in the first pillar in the future, on the basis of an appropriate analysis. so as to provide comparability, the details about the leverage ratio will be harmonized on an international level, with full adjustment of the accounting differences. - introduction of a minimum global standard for providing liquidity for the financing needs which cover the compulsory rate of coverage of the liquidity in stressscenarios, backed by a long - term rate of structural liquidity. - establishing of counter - cyclical capital buffers above the minimum compulsory level. this framework will include measures for maintaining the capital, such as restrictions on the possibility for allocation of the capital elements. the basel committee will take into account an appropriate group of indicators, such as the indicators of profit and credits, as a way of ensuring the creation and utilization of the capital buffers. the committee will endorse a manner of determining the provisions which will be based on the future expected losses. - development of recommendations for reduction of the systemic risk related to rehabilitation of the internationally active banks. - the group of governors and responsible persons for the supervision, supported the below mentioned principles for directing the supervisors in the shift toward a higher level of capital in the banking system : - on the basis of the framework for counter - cyclical capital buffers, supervisors should require from the banks to strengthen their capital through a combination of the measures for maintaining the capital including activities for restricting the excessive payments of dividends, of purchase of own shares and compensations for the senior executives. - compensations for the senior executives should correspond with the reasonable undertaking of risks and long - term sustainable operations, based on the principles of granting compensations to the senior executives issued by the financial stability board. - the banks will be obliged to react promptly towards increasing the level and the quality of the capital in accordance with the new standards, in a way that will support the stability of the national

banking systems and broader economy. these changes are expected to strengthen significantly the stability of the financial system. this will increase the confidence in the financial system as a " conditio sine qua non " for the functioning of the financial markets. in the case of macedonia, which follows and will appropriately adjust to the changes in the world financial system, the crisis emphasized the existing weaknesses of the macroeconomic reality : the high import dependence of the economy, high export concentration, vulnerability of the sources of financing of the balance of payments deficit and currency risk, which can be easily transformed into a credit risk as a threat to the financial stability. therefore, in a short run, we have to maintain the appropriate level of foreign reserves, as a precondition for maintaining the confidence in the stability of the domestic currency. in a medium run, more serious structural adjustments are needed, which will lead to narrowing of the trade deficit, primarily through increased export, which will enable higher growth rates of the economy and containing of the significance of the vulnerable sources of financing of the current account deficit. as a conclusion, macedonia has succeeded in maintaining the confidence in the financial system, i. e. in the banking system. that was possible due to the prudential macroeconomic policies and sound supervision of banks. however, the struggle for maintaining the confidence is a constant effort. risk management is never a completed process. we should always have in mind that the costs for regaining the lost confidence are always and everywhere incomparably higher than the investment in its maintaining. thank you for your attention and i wish you a successful work in the forthcoming period.