philip lowe : remarks - launch of asic's national financial capability strategy 2018 remarks by mr philip lowe, governor of the reserve bank of australia, at the breakfast event to launch asic's national financial capability strategy 2018, canberra, 21 august 2018. * * * i am very pleased to be here to participate in the launch of the national financial capability strategy. all of us have to make choices about money every day. do i spend, or save? if i spend, what do i buy and how do i pay for it? if i save, where should i invest ; how much risk should i take? if i borrow, how much should i borrow and how quickly should i pay it back? in many ways these choices have become more complicated over time. we have more options than ever before – which is good – but these options can be bewildering. it is fair to say that many people find it hard to navigate their way through the myriad of possibilities out there. but we all do need to find a way to navigate through these choices. we all need to plan. for our own sake, and that of our families, we need to do this as well as we can. if we go in the wrong direction, it can have a major effect on our families and our welfare, perhaps for years. so it is really important we make well - informed financial decisions. and, we can all do with a bit of help to make sure we are going in the right direction. the strategy that is being launched today can provide that help by providing education, information and support for australians as they manage and make decisions about their money, and plan and save for the future. i would like to congratulate the government and asic for the work they have done in putting this strategy together. at the reserve bank of australia, we are also trying to play our part. as australia ’ s central bank, the rba has a very strong interest in people being in control of their financial lives and making well - informed choices. i say this from the perspective of the individual and the economy as a whole. at the individual level, each of us will be better placed in our lives if we make good financial choices. and at the collective level, the financial choices that the 25 million of us make about how much we spend, save and borrow can have a major bearing on the health of the overall economy. if enough of us make risky or bad choices, the whole

terms of products, and more competitive in terms of cost. from a broader perspective, the bank of albania has worked on improving the regulatory architecture of the financial system in albania and strengthening financial safety nets. together with other public agencies, we have, established the financial stability advisory group ; improved the legal framework for the functioning of the deposit insurance agency ; approved the resolution law ; drafted a sub - legal and regulatory framework ; and, established the necessary structures for them to function. in parallel, we have adopted a modern framework for formulating and implementing the monetary policy, and steadily maintained an accommodative stance. monetary stimulus has enabled the financial environment in albania to be transparent, and have low interest rates, ample liquidity and moderate exchange rate fluctuations. this has boosted consumption and private investments, reduced credit price, and eased debt servicing costs for all segments of the economy. reflecting these actions, the albanian economy has made notable progress towards steady and long - term growth. the progress has been characterised by gradual acceleration of the pace of growth, expansion of employment and decline in unemployment, as well as improvement of private sector balance sheets. in particular, the banking sector appears liquid, well capitalised, with good profitability indicators. regulatory capital hovers around 18 %, notably above the minimum requirement, whereas the ratio of non - performing loans has dropped to 11 % against the 25 % maximum level recorded in 2014. dear ladies and gentlemen, 2 / 4 bis central bankers'speeches the ultimate objective of our work has been and remains promoting sustainable development for the country. the philosophy of our work is built on four main pillars : professionalism, responsibility, accountability, and transparency. this philosophy has been tested and enriched with some valuable lessons learned during the last decade : first, monetary, supervisory and regulatory authorities should adopt a proactive approach to the country ’ s monetary and financial stability. this requires adequate institutional capacities and adopting a counter - cyclical approach, both toward monetary policy and macroprudential policy. it also requires constantly identifying current and potential challenges in order to address them in due time. second, long - term economic growth should be anchored in continuous structural reforms. public authorities may find it virtually impossible to predict or avoid shocks completely ; however, both public authorities and the private sector may minimise the effects of these shocks through structural reforms aimed at creating productive and flexible structures, and preserving balance sheet stability. public authorities and the private sector should be aware of the fact that long - term benefits from reforms