considerable increase of assets and capital ; – increase of credit potential ; – introduction of new products and services ; – deposit insurance ; – increase of the volume of payment transactions. the privatization of the banking sector is in its final stage. the share of the state capital in the banking sector is around 10 %. consolidation of banking sector is obvious. out of 55 banks in 2000, 40 banks are currently operating in bih. share capital in 2002 amounted to km 745 million and was higher by 19 % compared to 2001. the balance sheet assets of banks reached km 5. 535 million in the end of 2002, and compared to the end of 2001, they were higher by 22 % or by km 995 million. within the structure of assets, the most important is the share of loans amounting to 55 %. in the total liabilities, deposits take 75 %, and capital takes 15 %. financial sector in bih is estimated to have accomplished satisfactory results and that the situation in this sector is much healthier than in the previous period. new initiatives initiative has been started in bih for the establishment of capital market, as one of the segments of the total financial system. in this respect, guidelines for work have been set up. accordingly, capital market council has been recently established and its work scope defined. the council will have an advisory role and discuss the issues related to securities and capital market, guided by the international standards and principles in this field. finally, the independent monetary policy in bih, legislation and supervision of the banking sector represent a good base for further improvements in this field and the base for preparations for joining the european union. adherence to the international standards, principles of the basle committee and the norms of the european union are necessary for further progress and strengthening of financial stability. thank you for your attention.

. interestingly, during the period of sustained low inflation before the pandemic, the market - based and michigan measures declined, and their current levels are similar to those seen prior to that decline. assessment of the uncertainty criterion for well - anchored inflation expectations is more challenging given data limitations. in theory, prices on inflation options contracts could be used to infer investors ’ distributions of beliefs about future inflation. 9 however, there have been virtually no trades recorded in the u. s. market for inflation caps and floors since 2015. over that time, the “ prices ” reported for these options were based on models — not transaction prices — and cannot be used to measure investors ’ inflation uncertainty during the current episode. instead, i will turn to the sce, which asks about consumers ’ uncertainty of by continuing to use our site, you agree to our terms of use and privacy statement. you can learn more about how we use cookies by reviewing our privacy statement. inflation expectations, as well as options on future interest rates, which provide some indirect insights into markets ’ uncertainty of future inflation. over the past year and a half, two aspects of increased inflation uncertainty are evident in the sce : an increase in disagreement in mean expectations across respondents and an increase in the width of respondents ’ reported inflation distributions. although disagreement does not directly correspond to uncertainty, research has identified it as a useful indirect indicator. 10 figure 2 and figure 3 illustrate the increase in disagreement across sce respondents over the past several years. figure 2 shows the share of respondents who have deflation expectations — that is, they expect inflation to be at or below zero percent — either one, three, or five years in the future. 11 as discussed in research with my colleagues at the new york fed, 12 there has been a striking increase over the past year in the share of respondents who expect deflation three and five years in the future. 13 at the same time, as shown in figure 3, the share expecting inflation above 4 percent grew, but part of the increase has since reversed. based on the most recent reading in september 2022, about a quarter of respondents have deflation expectations five years in the future, nearly as large as the share expecting inflation above 4 percent at the five - year horizon. following the onset of the pandemic, aggregate uncertainty — which combines disagreement and individual uncertainty — increased but has also become more symmetric. figure 4 shows the aggregate distributions of inflation three years in the future based on the sce