Sound financial and banking sectors could in general serve as engine for economic growth. Furthermore, health of the banking system is increasingly important when bank financing represents a substantial source of crediting of other sectors. With the recent financial crisis, increasingly more emphasis has been put on financial stability and banking supervision. In addition, stress testing exercises have been put in place as an instrument for determining exposures to risks, identifying potential threats, and assessing the stability of banks.

Provided such banking supervision exercises show overexposure to certain risks, inadequate liquidity, or other gaps in stability of a bank, a plan for recovery is normally introduced. In case banks are unable to recover without additional measures, an intervention for bank resolution mechanism is needed as alternative to bankruptcy. It shows Non-performing loans (NPLs) remain a big challenge for the SEE region. NPLs need to be resolved in order to strengthen the credit channel, which could then potentially provide financing to the real sector.

February 22-24,we are organizing a new workshop on Bank Recovery, Resolution of NPLs, and Stress Testing. The workshop is of high relevance and will be devoted to exchange knowledge and good practices, resulting in high interactivity of the event. It is designed and organized in collaboration with the European Bank for Reconstruction and Development (EBRD), Financial Sector Advisory Center (FinSAC) from the World Bank, and the Bank of Slovenia.