of responsibilities and powers between the single resolution board and the bnb as the national authority for resolution of credit institutions. bulgaria ’ s legal framework for joining the single resolution mechanism is already in place. the preparation for joining the single resolution fund, including for calculating banks ’ contributions to the fund, and the preparation of the bank resolution planning process after joining the single resolution mechanism are very advanced. the banks in bulgaria have an important year ahead, which we expect to be overall successful for the sector. banks ’ operations continue to take place in an environment of rather optimistic attitudes of enterprises and households amidst a relatively high growth of the bulgarian economy. at the same time, the external environment holds risks and insecurity that, due to the openness and international integration of our economy, could potentially affect the economic 1 / 2 bis central bankers'speeches situation in bulgaria. some adverse scenarios could exacerbate aspects of the risk profile of the banking sector. therefore, it is essential that in their behaviour banks continue to take into account the main risks, including profitability risks and asset quality risks. 2 / 2 bis central bankers'speeches

francois groepe : game changers in financial markets – regulation, innovation and cybersecurity keynote address by mr francois groepe, deputy governor of the south african reserve bank, at the strate, pasa and gibs conference, johannesburg, 29 september 2015. * * * introduction good day, ladies and gentlemen. i would like to thank the organisers of the strate, pasa and gibs conference for inviting me to give this keynote address. i look forward to sharing my views on the developments that can be considered game changers that may affect financial markets and shall focus primarily on regulation, innovation and cybersecurity in this context. a game changer can be defined as “ a newly introduced element or factor that changes an existing situation or activity in a significant way ”. 1 another way of thinking about game changers may be in terms of what the well - known austrian - born economist, joseph schumpeter, called “ creative destruction ”. schumpeter, writing on economic and social evolution in his work capitalism, socialism and democracy in 1942, wrote : the opening up of new markets, foreign or domestic, and the organisational development from the craft shop to such concerns as us steel illustrate the same process of industrial mutation – if i may use that biological term – that incessantly revolutionises the economic structure from within, incessantly destroying the old one, incessantly creating a new one. this process of creative destruction is the essential fact about capitalism. inventive economists have since adopted this term to describe the disorderly manner in which the free market delivers progress. the disruptive nature of innovation is essential for both progress and prosperity, and the theory of “ creative destruction ” gives us some insights into understanding this phenomenon and the evolutionary changes that follow in its aftermath. disruptive innovation brings opportunity in the form of productivity gains, for example, but it also brings challenges such as increased cyber - threats and vulnerabilities stemming from the greater degree of interconnectedness and, in the latter case, increased risks of contagion. regulation, by necessity, has to keep pace and respond to the changing environment. unfortunately, regulators often play catch - up due to the speed of technological change and innovation as well as their lagging ability to fully understand the technology and the risks that it may give rise to. despite this, regulators should promote an environment that is conducive to technological change and at the very least not become