encourage an active approach to our common task. nbs - fx hedging ( http : / / www. nbs. rs / internet / english / 64 / index. html ). among others, the nbs has conducted recently two studies on this topic. exercise 1 ) deposits worth eur1000 in a ) dinars and b ) euros, are deposited on saving accounts in january 2001 and august 2006 for the period of year. every year at the end of the term, the deposits increased by interest are rolled over, until april 2010. exercise 2 ) between 2001 – 2010, eur1000 worth of deposits, in euros and dinars, are placed each month on saving accounts for a ) one year and b ) three - month periods. at the end of the term period, the yield on dinar saving deposits were compared to the yield on euro saving deposits ( without rollover, interest calculated at the end of the period ).

solvency positions and their underlying asset quality. banking union is a key part of restoring that trust. how governments intervene in systemic banking crises is critical. bank restructuring measures that provide banks with incentives to liquidate or restructure bad loans, while allowing for sufficient recapitalisation, significantly accelerate the recovery from recessions related to banking crises. 3 this suggests that banking union can help boost credit provision through two key channels. first, by increasing transparency over the quality of banks ’ assets, which is key to distinguish strong from weak banks and hence remove the concerns hanging over the whole banking sector. second, by ensuring that banks that are not in position to lend can be restructured or resolved without creating financial instability. these two channels correspond to the two main elements of banking union : the single supervisory mechanism ( ssm ) and the single resolution mechanism ( srm ). the ssm should be established later in 2013 and start operating twelve months later as a single system, with a common supervisory manual applying to all participating banks, and the see the ecb ’ s monthly bulletin of june 2013, “ box 4 : recent developments in spreads on corporate bonds issued by euro area non - financial corporations ”. rates on outstanding loans to non - financial corporations over 1 and up to 5 years. respectively from 3. 8 % to 3. 55 % and 5. 2 % to 5. 03 %. source : ecb. van wijnbergen, s., and homar, t. ( 2013 ), “ recessions after systemic banking crises : does it matter how governments intervene? ”, duisenberg school of finance - tinbergen institute discussion paper. according to this paper bank restructuring reduces expected recession duration by a half. bis central bankers ’ speeches ecb directly supervising larger banks. generally, the ssm should reduce concerns over hidden losses by creating common oversight of risks in the euro area banking sector and reducing regulatory forbearance. specifically, before the ecb takes over its tasks as single supervisor, it will undertake a rigorous balance sheet assessment of the banks it will directly supervise, including an asset quality review. the assessment will be undertaken together with national supervisory agencies and, as needed, with external consultants. in case it reveals capital shortfalls, it is the responsibility of the banks to raise capital themselves. as acknowledged by the european council, public backstops will ensure that any remaining shortfalls are filled. such backstops can be provided at national or, as last resort,