for popolari banks to turn to the market for the funds they need to strengthen their capital and to finance business growth and innovation. in the past few years, the bank of italy has introduced a series of measures covering all smaller banks, in part to prevent the emergence of critical situations. action was taken to encourage new investors in banks ’ capital and, where necessary, mergers with other intermediaries. banks have been urged to reduce their credit risk and strengthen npl management and recovery. they have been asked to adopt appropriate measures to reduce operating costs and diversify income flows, for example by using consortium - based initiatives, reorganizing branch networks and containing staff costs. the most problematic situations have been managed through market solutions that safeguarded financial stability and protected depositors. until the first few months of last year, also thanks to greater confidence in the economic outlook for italy and the euro area, the involvement of qualified investors made it possible to relaunch a number of banks, whose business models were completely overhauled and adapted to the new competitive scenario. however, in the current market environment, investing in the capital of smaller banks is considerably less attractive. restructuring operations have become more difficult, partly due to the perception that their possible outcomes are much less certain. in this context, and given the limitations imposed by the european rules for managing crises at smaller banks, the less significant banks must work together to identify solutions to secure their business and relaunch their activities. on the one hand, links with their local area cannot be the only factor in their development ; knowledge of markets and operators must be accompanied by more intensive use of new technologies to increase operational efficiency and to make the supply of customer services more competitive. on the other hand, banks must reap the benefits that being larger can bring in terms of economies of scale and a strong capital position. we are mindful that consolidation is a complex process, but preparatory work must begin at once to move in that direction, defining projects of common interest in areas such as technological innovation, the pooling of auxiliary activities and their related costs, and the development of synergies in service provision. it is fundamental to establish balanced governance structures that avoid conflicts of interest and meet the objective of financing the real economy in conditions of full efficiency and adequate profitability. in the last few months, the two new mutual banking groups that are now classified as significant for supervisory purposes have started operations. most of the bccs ( 224 out of 263 ) have joined

studies. in our institution, they become part of the team. we, at the national bank, teach young people to remain human. to keep their personality and always know the difference between submissiveness and respect for the hierarchy. they are taught to accept orders, to carry them out, to be superior, to be subordinate, but also that no authority comes without responsibility. that being loyal to a profession, vocation, institution, individual is as important as having knowledge, that there is a hippocratic oath for each profession, known as professional ethics. that it is initiative and hard work that will make us valued and appreciated by our co - workers, and that no one is irreplaceable. the national bank of serbia has become a pillar of economic stability, our ideas have been successfully implemented and defended many times, and that is why we wish to share our knowledge and experience with our young colleagues. but the doors of our institution remain open for all ideas which create new possibilities, for new objectives that shift horizons. it is only in this way that we will be ready to tackle new challenges. the national bank of serbia continues to organize summer practice for students of the final year of first - and second - degree studies, and by signing this memorandum today, on this day of spirituality and education when we are celebrating saint sava, the enlightener of the serbian people, we are ensuring the continuity and quality of this practice and cooperation, while taking it to a higher level. one could say that the signing of the memorandum on this particular day is just a coincidence, but i say that this is a blessing and a destiny that we are shaping for ourselves. bis central bankers ’ speeches thank you for your attention. i now give the floor to professor boricic. bis central bankers ’ speeches