bostjan jazbec : the bail - in tool and the challenges to its smooth implementation address given by mr bostjan jazbec, governor of the bank of slovenia at the executive seminar on banking resolution, florence, on 14 july 2016. * * * it is a pleasure to be invited to talk on banking resolution to this distinguished gathering of bank regulators, supervisors, central bank officials, bankers, and academics. the timing could not be more opportune. banking resolution can be a messy business. last week, criminal police from the special prosecutor ’ s office raided the bank of slovenia and seized documents and information related to banking resolution measures undertaken by the bank of slovenia and the government in december 2013. the main focus of the investigation is the decision taken at that time to use bail - in of subordinated instruments as one of the tools of banking resolution. in 2014, the slovenian association of small shareholders filed several court cases against the bank of slovenia and local banks, claiming that the subordinated instruments in rescued banks should not have been erased. one of the cases has gone all the way to the european court of justice after slovenia ’ s constitutional court referred it to the eu tribunal for clarification. a ruling of the european court on this case is expected early next week. the court ruling may have serious ramifications for the efforts under way to establish an effective banking union in europe. considerable momentum has developed in favor of bail - in centered banking resolution. as andrew gracie of the bank of england has noted in a recent speech, a bail - in transaction is at the heart of all the resolution plans drawn up in the crisis management groups. in addition, the european banking authority ( eba ) has set standards on minimum requirement for own funds and eligible liabilities ( mrel ) that banks should have to ensure adequate loss absorbing capacity. the slovene experience brings out the sensitivity of the bail - in tool and the challenges to its smooth implementation. it would be important for the resolution authorities to address these challenges upfront and find answers for them. a key requirement would be to make bail - in legally enforceable by introducing all the necessary legislation, thereby minimizing the possibility of litigation. an important associated step is clear communication. investors and shareholders will need to understand the risks to which they are exposed by holding subordinated instruments, and holders should have clarity on the order in which they would incur losses. however, it is doubtful if the ambiguities in the

bostjan vasle : address - governing council meeting address by mr bostjan vasle, governor of bank of slovenia, at the final dinner as part of governing council meeting, ljubljana, 17 october 2024. * * * dear colleagues, dear friends, good evening and welcome to the concluding dinner of our monetary policy meeting in slovenia. the most important part is done. in the morning, we decided on our policy move, christine communicated it a few hours ago and the response was positive. organizing the second meeting – the ecb governing council first gathered in slovenia 12 years ago – is an opportunity to reflect on the changes that have taken place since then. besides different macroeconomic landscape, another notable change is the remarkable progress in digitalization, and how it has affected our operations. let me start where we left off a few hours ago – with our press conference. this year marks a decade of their livestreaming. replacing selective access to press conferences with real - time worldwide access has greatly broadened our reach and enhanced our transparency. markets now react immediately to our announcements and comments. by analyzing market developments during and shortly after a press conference, we can measure investors'interpretation of our policy decisions. furthermore, digitalization improves accessibility of data and speeds up its processing. the challenge now is on the other side : how to absorb such vast amount of information in various forms. this is a question where artificial intelligence proves increasingly beneficial. yet, the integration of ai across various economic sectors and its overall impact on the economy and prices add another layer of uncertainty to future developments. especially important from the financial stability point of view is the speed at which information spreads via internet and social media. this can lead to rapid reactions by consumers and market participants. algorithmic trading, along with generative ai, also introduces certain financial stability concerns. while the digital transformation brings significant benefits, it makes financial and other institutions more exposed to the fragility of technological infrastructure, as seen during latest events this year, and more vulnerable to fraud and cyber - attacks. this calls for a robust approach for monitoring and managing associated risks. with this year's cyber stress tests and related supervisory activities, we have taken important steps in this direction. finally, digital progress have and will continue to transform the landscape in which monetary policy operates and may affect its transmission. dear colleagues, digitization presents both opportunities and challenges, which we can best address by openly exchanging knowledge, tools, and experiences. each of us has some unique