##operability brings to participants as well as to ccps themselves. i can think of several potential explanations for this state of affairs. first, clearing members may not yet have fully grasped the potential benefits they would reap from widespread ccp interoperability : as i mentioned in the introduction, interoperability is a relatively new phenomenon in the ccp landscape, and it may take some years for market participants to seize all that emir has to offer in terms of incentivising interoperability. another possible explanation could be that eu ccps are still “ processing ” the implementation of emir : over the last two years, they have been required to go through a comprehensive authorisation phase, and have had to adapt to a demanding new regulatory environment. we may see an uptake in the establishment of interoperability arrangements now that these regulatory hurdles have been cleared. i hope that the feedback received from market participants today will help us answer this question. one final question which comes to mind is whether systemic risk is adequately addressed in the current regulatory framework regarding interoperability. as i mentioned above, the collegial process established under emir ensures that multiple regulatory perspectives are captured within the cooperative supervisory framework. some of the authorities involved in the supervision of interoperability arrangements bring a clear systemic risk perspective – this is namely the case for the central banks of issue of the most significant currencies cleared. therefore, systemic risk concerns are by no means overlooked in the supervisory process, as it now stands. however, on certain specific aspects, the role of macro - prudential authorities could be further enhanced. the esrb ’ s forthcoming report to the commission on the systemic risk implications of interoperability arrangements will certainly make some relevant proposals in this regard. to inform this work, data availability will be of the essence. besides the transparency provided by the new cpmiiosco public quantitative disclosure standards, the joint analytical work recently started by bis central bankers ’ speeches the fsb, bcbs and cpmi - iosco on ccp interdependency will shed more light on crossexposures and contagion channels between ccps and their clearing members, including potentially through interoperability. understanding the multiple interdependencies between ccps and their participants will be an important factor in designing appropriate crisis management and resolution mechanisms, including for interoperability. going forward, trade repository data collected under emir may be another important source of information for authorities, and may help shed light

peter nicholl : recent banking sector developments in bosnia and herzegovina speech by mr peter nicholl, governor of the central bank of bosnia and herzegovina, at the ceremony of the taking over of hrvatska postanska bank by raiffeisen bank, mostar, 5 may 2001. * * * i want to congratulate the two banks, raiffeisen and hrvatska postanska, on the step they are taking today. they are taking part in a process the central bank of bh has been promoting for some time now – the consolidation and strengthening of the commercial banking sector in bh. this process is very important. an efficient banking system is a crucial part of market economy. it encourages savings and it promotes investment and employment by lending those savings for business development, housing and other purposes. the year 2000 will be seen as the year in which the banking sector in bh finally began to change for the better. i will mention just a few of the highlights. first, the payments system underwent fundamental reform. bh now has a modern european - type payments system. second, minimum capital requirements for banks were increased and will increase further. third, it become possible for a bank registered in one entity to operate branches in the other entity. five banks are already doing so, and more will follow. fourth, a limited deposit insurance scheme has started which should help return citizens confidence to the banks that qualify. so far, only four banks have been admitted to the scheme and it is only operating in the federation. last, but not least, more foreign banks commenced operations in bh in 2000, either by applying for licenses directly or by purchasing an existing bh bank. increased foreign competition will be very good for the bh economy. it will give depositors more choice and will force the local banks to improve the range and quality of the services they provide if they want to survive. one can already see these effects occurring. there is still a long way to go before bh has a banking sector that can play the major role the banking sector plays in most other countries in europe. but 2000 will be seen as the year in which the bh banking sector finally began to move in the right direction. it is certain that the speed of change in the banking sector will accelerate even more in 2001. the overall winners from the improvement in the banking sector will be the customers of banks and the economy of bh. today ’ s event is part of the acceleration of