of recommendations on lending in foreign currencies, since foreign currency lending to unhedged borrowers has recently also increased in a number of eu member states. we were pleased to see that our dinarization measures so far, and plans in our strategy for the future, fully coincide with esrb recommendations. as stated in the document, excessive foreign currency lending may produce significant systemic risks in individual countries and may create conditions inducing negative cross - border spillover effects. the new set of esrb recommendations deals with consumer protection issues, borrowers ’ creditworthiness, credit growth fuelled by fx lending, internal risk management of banks, additional capital requirements, liquidity and funding as well as reciprocity and cooperation among supervisors. dinarization strategy in serbia rests on three inter - connected pillars. the first pillar relies on delivering low and stable inflation and strengthening the stability of the overall macroeconomic environment. this is, perhaps, the most general, but also the most important goal and it focuses on countering the history of macroeconomic instability experienced in serbia during the 1990 ’ s. this prior instability is believed to be one of the main reasons for the high level of euroization of the serbian economy. in this respect, the nbs will continue to implement and further reinforce its inflation targeting regime. the second pillar consists of measures geared at promoting dinar - denominated financial instruments and markets, with special emphasis on the development of the dinar bond market. in this respect, government, corporates, banks and the ifis ( both as issuers and guarantors ) can play an important role. development of an actively traded dinar yield curve is an important milestone of this pillar. the third pillar aims to promote hedging of the existing foreign currency risks. the nbs has been leading the efforts in this field, working together with the banking sector on introducing and developing basic hedging instruments in both the interbank market and in client transactions. the national bank introduced regular foreign exchange swap auctions for banks. in addition, the nbs has organized a series of seminars and conferences on foreign exchange hedging in the country and launched a foreign exchange hedging webpage. throughout 2011, the nbs continued to implement measures geared at a greater use of the dinar and a gradual reduction of the fx risk in the domestic financial system. bis central bankers ’ speeches 1. in early 2011, in the area of monetary policy instruments, the nbs adopted the new decision on banks

to announce that over 100, 000 mobile payments of top up fees for prepaid mobile telephony use is registered through the dina card system on a monthly basis. our target, of course, is a manifold increase of this number during this year. on this occasion i would also like to announce another new project to be soon realized in cooperation with the telekom that will enable our citizens to request issuance of and mobile payment for excerpts of various personal documents kept on records with the state institutions. finally, allow me to remind you of another topical issue in the european environment that we are striving to join, which can be used to exemplify how technology can bring on a change even to the regulatory systems within our region. i am referring here to the initiation of the system of interbank payments in accordance with the sepa ( single european payment area ) and the ecb initiative. what is it that sepa will bring about? here is an example : an internet user from belgium pays electricity bill for his daughter studying in france from his account opened with a spanish bank and is charged fees for banking services as if all these transactions were taking place in one and the same country. this example is the best illustration of the encouraging impact of high technology not only in respect of the development of the financial services market but also in respect of encouraging market regulators and finding innovative solutions. the nbs hopes that application of similar technologies in serbia will enable faster development of the financial industry. one thing is for sure, the existing multitude of fees charged for banking services would certainly have remained if it were not for the decisiveness of the european central bank and other regulators who insisted on treating all payments within the euro zone as strictly domestic – and only seven years after they began using the same currency. i wish much success to all of you present in this meeting, and hope that we shall all come up with new ideas and initiatives to enable application of the 21st century technologies in the financial market of serbia.