parcel of our longer - term plan to facilitate thai companies to diversify their investments abroad, especially in neighboring countries. this would encourage private companies to operate their businesses more efficiently by expanding their markets and production bases. in turn, such diversification will help strengthen their competitiveness and absorptive capacity. at the other end of the spectrum, limiting leverage in the banking system would add more cushions to the economy against external shocks. last but not least, developing fundamental economic strengths to enhance countries ’ resiliency to external shocks can work through well - diversified export items focusing on high value - added products. this would lead to more bargaining power, and hence less bis central bankers ’ speeches sensitive to exchange rate fluctuations. stronger domestic consumer base would also help lessen the dependence on external demand. all reforms i mentioned require concerted efforts from all public and private stakeholders. policymakers should provide economic environment and infrastructure conducive to reforms. particularly, financial literacy and risk management awareness should be fostered at all levels and sectors. financial institutions also play a crucial role in developing financial products to facilitate transactions and risk managements. businesses should upgrade productivity to enhance industry ’ s resilience to shocks. advanced preparations will surely pay off. lessons learned, challenges ahead, and policy implications ladies and gentlemen, as we are approaching the end of my talk, let me now share some final thoughts on lessons learned and challenges ahead. first, for countries that want to maintain autonomy on interest rate policy, exchange rate flexibility is a pre - requisite to living with capital flows. nevertheless, extreme exchange rate fluctuations may cause misalignments. a trade - off between flexibility and stability thus requires policymakers to identify the exchange rate framework suitable for the economy. this can be a daunting task in practice, as the target is often country - specific and subject to dynamic economic developments. keep in mind that monetary policy can do little to influence real exchange rates in the long term. attempts to give the exchange rate more weight in monetary policy deliberations will also reduce the autonomy in controlling interest rate, leading to more interest rate volatility. in any case, policymakers need to be more practical and innovative in detecting and assessing impacts of the exchange rate on real economy. an ability to monitor adjustments at the micro or firm levels is also a helpful guide on when and how to manage currency risk. second, amidst an increasing global interconnectedness, policymakers should also be mindful of policy externalities on other

than in the previous year. this is reflected also in the business plans of the banking system for 2016, where particular banks with a considerable share in crediting, have planned ambitious growth compared to 2015. i hope, and i will insist, seeing this objective materialise in the economy. as i mentioned at the beginning of my address, i would like to invite you to discuss for a new beginning. the conditions are already ripe. the economy is growing, business opportunities are in place, liquidity is ample, and prices are convenient. i urge the banking system to leave behind a relatively passive approach. one should understand that it is time to turn back to the traditional activity of the commercial bank, that is, crediting to economy. this is the mission of commercial banks in the economy and i invite you to fulfil this goal successfully. be no longer hostage of some old practices of failed loans! draw the right lessons and increase the communication with your head offices! explain the albanian reality to them and the opportunities for investment! convince them that there are a lot of activities with guaranteed return, hence they should be credited. i would like to let you know that the management chain of the bank of albania is not satisfied with the current situation. in the meantime, the many reasons or claims that may have risen cannot justify that apathy or lack of risk appetite for investment. we will be increasing our pressure in this regard. i invite you to swiftly take corrective measures to better credit the economy. on the other hand, i urge the business community to raise the level of professionalism in drafting and implementing the projects they submit for crediting. the business should pay great attention to the genuine financial and legal assistance, prior, during and after the signing of the contracts. you should adopt a contemporary management philosophy. the governance of your enterprises should be responsible ; meanwhile it is to your benefit to build realistic projects, in terms of size, location and resources. keep in mind that productivity guarantees high return. do not neglect the research and invest in qualified human resources!. although, they appear as simple pieces of advice, allow me to clarify that the underlying reasons for many unsuccessful practices are exactly the elements i mentioned. i would like to guarantee you that the bank of albania will be a reliable, open and serious partner, in compliance with its mandate, implying its supervisory function. we will continue to improve the legal and sublegal framework to reflect the relevant best standards and european directives regarding the micro and