the highest levels of trust. a good institutional framework is generally synonymous with a transparent and impartial legal environment, which protects ownership rights, with low corruption levels and public services providing equitable conditions for all, while individuals participate in the activities that best suit their skills and abilities. thus, the introduction of improvements to the legal and judicial systems, in executing contracts or adopting laws that establish compulsory education are examples of areas in which significant gains in terms of growth potential can be achieved. a recent banco de portugal study ( julio, alves e tavares, 2013 ) 5 suggests that improvements in institutional performance in portugal, involving convergence to european best practice, could increase fdi into portugal by around 60 per cent. 4. demand - led national innovation system the success of the portuguese economy ’ s tradable goods and services sector depends greatly on its ability to absorb and take advantage of innovation. but taking advantage of innovation depends on the endogenous entrepreneurial capacity and the fdi that we are able to attract, which in turn, depend on the framework of values, attitudes and behaviours and the quality of the national innovation system ’ s governance and performance. the national innovation system comprises the centres producing knowledge, education and professional training. this system conditions the economy ’ s specialisation level and, in particular, productivity and innovation, both incremental and radical. that is why it has to be designed and channelled according to the productive system ’ s present and future needs and has to be able to detect those needs and collaborate with the corporate base. portugal has to change the national innovation system to a demand - led approach, responding to the needs of the national productive system. a competitive economy ’ s national innovation system must be governed by the present and future needs of its productive base. to conclude, it is worth looking at the result of an analysis conducted by banco de portugal on the relative performance of the companies investing in r & d in portugal. irrespective of the causality relationship, it is clear that the companies investing in r & d perform better in terms of exports, profitability and risk perception on the part of the banking system ( figure 4 ). julio, p., alves, r. and tavares, j. ( 2013 ), “ foreign direct investment and institutional reform : evidence and an application to portugal ”, banco de portugal working papers 06 | 2013. bis central bankers ’ speeches figure 4 companies with r & d in portugal source : banco

general framework is provided by the national strategy for financial inclusion. 2. we shall continue to communicate information to our general public on key economic and financial developments, to guide them properly in making financial decisions. bis central bankers ’ speeches 3. we shall continue to broaden the access of low income households to financial services. 4. we shall continue to address the financial needs of small businesses by allowing them access to bank credit without collateral. 5. we shall continue to ensure that our financial consumers are well - protected against financial fraud. finally, the bsp will continue to push for legislative proposals and issuances that further enhance its implementation of appropriate monetary and credit policies and strengthen its oversight functions in fostering safe, efficient, and reliable financial system. the chart shows the legislative measures by bsp. we are prepared to discuss these with appropriate committees. madam chair and honorable members of the committee on finance, we would like to underscore that our country has achieved significant economic strides in recent years and has shown notable resilience amid global challenges. despite the potential obstacles in the road ahead, we remain optimistic that our country will continue to push forward with appropriate reforms and policies. consistent with the 10 - point economic agenda of the government, we shall continue to build on the progress we have achieved so far while implementing structural changes critical to attain sustained and inclusive growth. thank you very much. bis central bankers ’ speeches