the financial system and establishing a european systemic risk board ( oj l 331, 15. 12. 2010, p. 1. 10 see, for example, ecb banking supervision ( 2017 ), “ guidance to banks on non - performing loans ”, march. 11 international financial reporting standard 9. 12 esrb ( 2017 ), “ financial stability implications of ifrs 9 ”, july 2017. 4 / 5 bis central bankers'speeches 13 eba ( 2017 ), “ report on results from the second eba impact assessment of ifrs 9 ”, july. 14 for a model - based assessment, see abad, j. and suarez, j. ( 2017 ), “ assessing the cyclical implications of ifrs 9 – a recursive model ”, esrb occasional paper, no 12. 15 european central bank ( 2016 ), “ report on financial structures ”, october. 16 european commission ( 2015 ), “ communication from the commission to the european parliament, the council, the european economic and social committee and the committee of the regions – action plan on building a capital markets union ”, september. 17 speech by m. draghi at the first annual conference of the esrb, frankfurt am main, 22 september 2016. 18 esrb ( 2017 ), “ eu shadow banking monitor ”, may. 19 abad, j., d ’ errico, m., killeen, n., luz, v., peltonen, t., portes, r. and urbano, t., “ mapping the interconnectedness between eu banks and shadow banking entities ”, esrb working paper no 40, 2017. 20 this analysis focuses on exposures to shadow banking entities that are equal to or above 0. 25 % of each institution ’ s eligible capital. 21 esrb ( 2017 ), “ opinion on a central counterparty recovery and resolution framework ”, july. 22 esrb ( 2017 ), “ recovery and resolution for the eu insurance sector : a macroprudential perspective ”, august. 23 esrb ( 2016 ), “ esrb response to the european commission ’ s consultation document on the review of the eu macro - prudential policy framework ”, october. 24 introductory statement by m. draghi at the hearing before the committee on economic and monetary affairs of the european parliament, may 2017. 25 esrb ( 2017 ), “ the macroprudential use of margins and haircuts ”, february

. many of the banks that operate here in bosnia and herzegovina are owned by banks from the european union. links between financial institutions and in particular ownership links have for years been considered to be a stabilising factor. the new phenomenon of banks from the old eu member states taking over or setting up banks in the new member states or in the western balkans was considered good for the transfer of know - how. the solid capital base of the parent institution and its ability to support the subsidiary in case of difficulties in the local market were highlighted as other advantages of such ownership. the current financial crisis has shown, however, that these links can create spillovers and that these spillovers between entities in a group can go both ways. in bosnia and herzegovina, we have seen a rather stable development with, so far, no apparent destabilising effects resulting from such ownerships. i believe that there are a number of reasons for the success in maintaining stability. first, i think we have to recognise that the authorities in the countries hosting subsidiaries of banks from the european union have applied and ensured compliance with adequate prudential rules that did not allow local banks to be highly leveraged. second, the so - called “ vienna initiative ” or european bank coordination initiative under the leadership of the imf, [ in which the ecb participates as an observer, ] has been an important instrument for continuing the support of subsidiaries, and maintaining the functioning of local markets. third, i believe that the good relationship between central banks and supervisory authorities has been instrumental in maintaining an open dialogue and in identifying solutions where such solutions were needed. overall, let me emphasize that we have to remain vigilant and attentive to financial stability. we must work together to find the best solutions. these have to be global and regional ; they certainly cannot be national in an integrated market. let me now say a few words about the programme of technical cooperation with governor kozaric and his team that we are announcing today. we are very pleased that you, mr governor, on behalf of your board and staff, have invited the eurosystem to work with you again on this technical cooperation programme. the aspirations of bosnia and herzegovina to join the european union and its status as a potential eu candidate country imply the need to adapt to eu rules and standards. once the overall conditions are met and bosnia and herzegovina joins the european union, the central bank of bosnia and herzegovina will join the european system of central banks, and it is therefore also