In addition, the structure of financial flows from abroad shows larger funding through FDI inflows, which mitigates the risks to external sustainability. However, debt financing is also mounting, attributed by both public and private sector. Although, according to most indicators of external indebtedness, Macedonia is still in the "safe zone", the growth of external debt is undoubtedly a signal for additional vigilance by policy-makers, which is especially true for developing countries. Bearing in mind that, despite the positive developments, the domestic savings rate in the Macedonian economy remains below the average and among the lower rates in the CESEE countries, an active contribution from all counterparties is necessary. For banks, this means continuous improvement of the offer of savings products, which will be price-competitive, but also adjusted to the needs of the "ordinary" depositor and keeping-up with the challenges of the modern life. In this context, I would also mention the savings that are still out of the official channels and whose attraction and channeling into official financial channels can significantly increase financial intermediation. Let's not forget the potential of the non-banking financial sector, which through a more active promotion and financial education of citizens on alternative forms of saving, can contribute to the mobilization of additional savings from the households. The development of the institutional investors creates a base for the development of the domestic capital market and increasing its importance as a financial intermediary in the economy. The role of the institutions is also important.

At the same time, solid domestic savings rates rationalize the needs of the economy for external funding, which means reduced exposure to sudden changes in the capital flows dynamics, i.e. reduced sensitivity to shocks from the external sector. The latest economic crisis clearly illustrates the risks of excessive indebtedness and excessive dependence on external financing, which further emphasizes the importance of domestic savings, which has proven to be a more stable source of funding. Having in mind all the benefits of saving, it is my pleasure to conclude that Macedonian citizens are cultivating a savings culture in the banking sector. In the last 10 years, total deposits have grown at a rate of around 8%, on average, on an annual basis, which contributed to an increase in savings1 by about 10 p.p. at the level of 55% of GDP in 2017. The fact that the deposit growth was registered in conditions of the global crisis and more economic and political shocks proves the high confidence of the citizens in the banking sector, which remained stable, sound, highly capitalized and liquid throughout the entire period, showing high capability for successful handling of shocks. Higher growth in the denar deposits and the acceleration of growth of the long-term savings is especially positive, which strengthens the banks' capacity for long-term placements and the support for investment projects. The deposit growth provided a solid basis for increase in the lending activity and deepening of financial intermediation2 by around 8 p.p.