2014-04-25
V. Vasiliauskas: financial sector reforms — an essential precondition for financial stability and sustainable economic growth
Financial sector regulation, oriented towards the changing market conditions, crisis prevention and management, an efficiently functioning banking union and structural transformation are essential preconditions for the strengthening of both Lithuania’s and the whole European Union’s economy and for fostering convergence, i.e. the economic convergence of the member states, claims Vitas Vasiliauskas, Chairman of the Board of the Bank of Lithuania.
“As Lithuania prepares to take the first big step towards closer euro-integration — by adopting the euro in 2015 — joint effort is particularly important in implementing the proposed single market financial sector reforms and ensure sustainable economic growth, as well as the convergence of the members of the Economic and Monetary Union,” said Vitas Vasiliauskas, Chairman of the Board of the Bank of Lithuania, this Friday at the conference “Convergence Dynamics in the EU after the Economic Crisis”, organised by the Bank of Lithuania.
According to him, the recent crisis brought to light the flaws of the financial system and now it is absolutely clear that a well-functioning single market needs an integrated financial regulation and management system. Even though the crisis was overcome by the broad arsenal of measures at the European Union and member states level, the real economic growth potential still hasn’t been restored. Among the major challenges in strengthening the European Union’s economic and financial basis is the creation of a banking union, which would cover independent supervision, efficient bank restructuring and a reliable deposit insurance scheme.
Vitas Vasiliauskas. Photo by Gediminas Savickis (ELTA)
At the conference organised by the Bank of Lithuania it was also stressed that the success of the Economic and Monetary Union also depends in large part on the economic convergence level of its members. Therefore, differences in economic expansion, which do not foster such convergence, could be a sign of future tensions.
Other guests who shared their insights on the macroeconomic and financial challenges that the EU will face were Ardo Hansson, Governor of Eesti Pank, Ewald Nowotny, Governor of Oesterreichische Nationalbank, Alan Alhearne, Member of the Commission of the Central Bank of Ireland, Mejra Festić, Vice-governor of Banka Slovenije and representatives of the European Commission, International Monetary Fund and the academic community. The participants of the conference were welcomed by Prime Minister Algirdas Butkevičius.
Algirdas Butkevičius.
