system continued to expand its activity. financial soundness improved, while capitalisation and liquidity stand at optimal parameters, at 16 % and 4 %, respectively. according to the latest data, as at november 2015, the performance of deposits was positive, increasing over eur 130 million, thus confirming the public trust in the banking system. bis central bankers ’ speeches after long - standing efforts, having increased for seven years, we provided for the reduction of non - performing loans below 20 %. the lowering of the non - performing loans ratio, as financing costs in the financial market stand at minimum historical levels, allows for a reliable recovery of credit to economy in the period ahead. we believe that, as a result of the joint action plan with the government, the non - performing loans ratio will continue to fall in the year ahead. also, in 2015, a new investor, the american bank of investments, entered the banking market, being the first one after 2009. we consider the new investment as a very positive development for the promotion of competition within the system. the bank of albania will continue to promote banking system consolidation and adhere to rigorous requirements for a responsible and proactive management of each bank. in 2015, the most delicate developments coincided with the complex political and financial situation in greece. the banking sector in general and individual banks in particular weathered with success all the difficulties. the bank of albania, in addition to the constant monitoring of developments in albanian banks with greek capital, intensified the communication with the respective authorities in greece and in the euro area. the above - stated situation served to test the efficiency of the measures on securing liquidity. on the other hand, they promoted the spirit of solidarity and fair competition among banks. another important aspect of our work was the contribution in the framework of albania ’ s approximation to the european union. in 2015, we intensified the cooperation with the european central bank, escb central banks, and other european bodies dealing with financial regulations of the union, notably the cooperation agreement with the european supervisory authority. we strengthened, at the same intensity, the cooperation with the international monetary fund, world bank and bank for international settlements, and regional central banks. the bank of albania has also undertaken concrete steps about the development of payment systems. the national committee on payment systems was established in october 2015. this is an inter - institutional committee that will contribute to enhancing the security, stability and efficiency of the national payment systems in albania. the law on savings and loan associations ( slas )

inflation rate, instead of the global standard of 2 percent, as japan's potential growth rate is lower than that of other economies. however, i believe that the logic should work in the opposite direction. in theory, the interest rate that is neutral to economic activity is the sum of the potential growth rate and medium - to long - term inflation rate. in order to secure room for monetary easing, a low potential growth rate should be the reason for aiming at a higher inflation rate. it can never be the reason for being satisfied with a lower inflation rate. the lower the potential growth rate, the greater the risk of falling into deflation, necessitating a larger buffer for monetary policy. let me reiterate that the bank's 2 percent target is the global standard and that the inflation - overshooting commitment is designed to clarify the bank's stance that it certainly will achieve this target. 2016 has been a tough year, both for businesses and the bank. fortunately, the headwind is turning into a tailwind. i am convinced that the coming new year will be one in which japan's economy will take a big step forward toward overcoming deflation. i would like to close by expressing my hope that your business initiatives will make this happen. thank you very much for your attention. a new phase of the global economy and challenges facing japan's economy speech at the meeting of councillors of nippon keidanren ( japan business federation ) in tokyo december 26, 2016 haruhiko kuroda governor of the bank of japan chart 1 world economic growth rate s. a., ann., q / q % chg. - 2 world economy - 4 advanced economies - 6 emerging and commodity - exporting economies - 8 - 10 cy07 note : figures are calculated as the weighted averages of real gdp growth rates using ppp - adjusted gdp shares of world total gdp released by the imf. sources : imf ; national statistics offices ; haver ; thomson reuters datastream ; ceic. chart 2 imf world economic outlook world real gdp growth rate projections for major economies ( as of october 2016 ) y / y % chg. 3. 4 3. 2 advanced economies 1. 9 2. 1 united states 2. 4 2. 6 euro area 1. 1 2. 0 japan 0. 0 0. 5 4. 6 4. 0 china 7. 3 6. 9 asean5 4. 6 4. 8 world emerging market and developing economies projections