that we went through in those years spread well beyond the boundaries of the banking sector. how did this transformation happen, from the state in which this sector was in 2015 to the state in which it is today. the answer is a€ “ extensive and determined reforms leading up to full integration into the nucleus of the eu, what essentially the euro area is. i think this is a completely valid response to the challenges facing the country today. let me finish on a more prosaic note. what is the bnb doing on this matter now? as you are probably well aware, no formal criteria and requirements apply to the bnb. and how so? because the bnb and the banking sector have succeeded in fulfilling all these criteria and requirements by 2020. it is precisely the compliance with these formal criteria and requirements that allowed bulgaria to join the european banking union in 2020, one of the key euro area institutions, and the exchange rate mechanism. from this position, what the bnb is focused on today are two groups of tasks : the legal framework and the technical preparations. we have been working on these two topics methodically and consistently. as regards the law on the bnb, we have two key dates. by the end of december we had to put forward amendments, ensuing from the convergence reports issued in recent years. i am talking about only a few amendments, but very complicated from a legal point of view, including the judicial protection of governing council members other than the governor. we drafted these amendments, consulted the european central bank about them in accordance with the established practice, and submitted them, through the government, to the national assembly which approved them in december by a law amending and supplementing the law on the bnb. the second key date is 31 march 2023. by then we will have to draw up an entirely new draft of the law on the bnb, which will incorporate the latest amendments and will govern all other issues relating to the bank's operation within the euro area. significant progress has been made on this draft. the first draft will be ready by the end of this month. we are going to devote the whole month of march to finalising the draft. the approach that we have adopted is to place the work on this draft on the broadest possible institutional basis, with the involvement of the management and of all key directorates and units of the bnb. we are doing so with the firm conviction that this will be the new statutes of the bnb in

in the securitisation market. these initiatives were mainly aimed at addressing the concerns on conflicts of interest created by misaligned incentives and compensation systems for securitisers or originators within the securitisation chain, address information asymmetry within the securitisation process by increasing transparency of the securitisation structure, introduce risk retention or “ skin in game ” requirements and more stringent disclosure requirements, enhance oversight of credit rating agencies governance and reduce regulator reliance on ratings, better align the incentives of mortgage originators with those of investors in mortgage loans, standardization of disclosure documentation, etc. the foremost among these are the basel iii standards and enhancements to the basel ii norms by bcbs, the dodd frank wall street reforms and consumer protection act in usa, capital requirements directive ( crd ii ) and a proposal for a directive on alternative investment fund managers directive ( aifmd ) in the european union, issue of disclosure principles for public offerings and listings by iosco, and other such directives / guidelines by g20, fsb, etc. bis central bankers ’ speeches 7. as part of the enhancement to the basel ii norms in july 2009, the bcbs strengthened the treatment for certain securitisation exposures under pillar 1 ( minimum capital requirements ) and introduced higher risk weights for re - securitisation exposures to better reflect the risk inherent in these products. it also required the banks to conduct more rigorous credit analyses of externally rated securitisation exposures. the supplemental pillar 2 ( supervisory review process ) guidance addressed several notable weaknesses that were revealed in banks ’ risk management processes during the gfc. the areas addressed include : i. firm - wide governance and risk management ; ii. capturing the risk of off - balance sheet exposures and securitisation activities ; iii. managing risk concentrations ; iv. providing incentives for banks to better manage risk and returns over the long term ; and v. sound compensation practices. 8. the pillar 3 ( market discipline ) requirements have been strengthened in several key areas, including securitisation exposures in the trading book ; sponsorship of off - balance sheet vehicles ; re - securitisation exposures ; and pipeline and warehousing risks with regard to securitisation exposures. 9. carrying forward, the bcbs has in december 2014, published revisions to address the shortcomings in the basel ii securitisation framework and to strengthen the capital standards for securitis