countries should be to prevent a build - up of imbalances that could threaten financial and bis central bankers ’ speeches macroeconomic stability. the main tasks are to identify and implement on a timely basis measures to curb the boom and to build the capacity to cope with a possible bust. an advantage here is that, because of the differences in cyclical position, policy conflict between monetary policy and prudential policy is absent, unlike in the case of countries suffering from balance sheet recession. given the integration of cesee countries in the world financial markets, credit growth in these countries has acquired an international dimension. there is significant presence of foreign - owned banks and external funding is an important source of bank liquidity. while external bank funding for the region has been on a declining trend since the onset of the global crisis and sizeable deleveraging has already occurred, parent bank funding still represents a large share of bank funding in several cesee countries. thus, countries in the region are highly vulnerable to changes in the external environment. if parent banks come under pressure to deleverage and build up capital in the period ahead on account of the results of the just concluded euro area asset quality review and stress tests or because of tighter global financial conditions, the liquidity support for credit growth in the daughter banks may not be forthcoming. i would like to conclude by pointing out that central banks alone cannot succeed in reviving credit growth and economic growth. putting the economies in the region back on track will require an integrated national policy strategy to restore the health of the financial sector, restructure the corporate sector, reinforce the sustainability of the public finances, improve the flexibility of product and labor markets, and reform the business environment. because of the complementarity of the measures, coordination between government agencies and other stake holders is essential in policy implementation. successful and timely policy implementation will require political resolve and social consensus. if there is no determined follow through on policies, the fragile recovery that is underway will come to an end and economic problems will intensify. bis central bankers ’ speeches

wound down, and the privatization of one state - owned bank ( nkbm ) has already been initiated. the new european resolution mechanism is scheduled to take effect in 2016. banka slovenije is seeking to speed up the process. it intends to create in 2015 a deposit insurance fund and a resolution fund to facilitate the consolidation of weak banks. the banking sector is undergoing a necessary process of structural reforms, and the world of banks is changing. regulation and supervision is being strengthened to make the future of the banking system more stable and less crisis - prone. on 4 november, the european central bank assumed responsibility under the single supervisory mechanism for supervising 8 banks in slovenia accounting for more than two - thirds of the market share. the supervisory culture will change under the new regime. supervision will become more quantitative and the ecb will also inspect the business models of banks. for the 10 credit institutions not covered under the ssm, banka slovenia will align its supervisory approach with that of the ssm. the central credit registry is being upgraded to support banking supervision. banka slovenije has established, like other european central banks, an institutional framework for macroprudential oversight of the financial system that is in line with the recommendations of the european systemic risk board. the basic aim is to safeguard the stability of the financial system by identifying the emergence of systemic risks at an early stage and taking preventive measures to mitigate these risks. * * * * bank rehabilitation is only a necessary condition for unlocking credit growth to the slovene economy. successful corporate restructuring, which entails both financial and business restructuring, is also essential to lay the foundation for productive investment and strong employment creation. unless enterprise restructuring is undertaken decisively in a timely fashion, the capital buffer of banks created by their recent recapitalization will erode and further injections will be needed once again. the enabling legislative framework for enterprise restructuring is in place, but systematic restructuring is yet to begin. this should be given priority by the government. a decision must be made with regard to the most urgent restructuring cases a critical constraint that slovenia faces is the availability of funding for corporate restructuring and increasing investment activities. given that the feasibility of using state resources for these purposes is limited, privatization and entry of private investors should be the key vehicles for the required non - debt capital infusion foreign direct investment is a key source of potential equity. the business and political culture will need to adapt and embrace the realities of globalization and slovenia ’ s integration