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

, average annual consumer price inflation was 3. 5 %, remaining close to the previous year ’ s average inflation rate. the performance of inflation was featured by a high volatility in the past year. over the first and second quarters, annual inflation rate approached the upper limit of the targeted band, mainly driven by rapid and sharp price rise for food and primary commodities in international markets. these pressures were short - term and soon moderated ; over the second half of the year, inflation started to fall gradually, marking 1. 7 % in december. besides the mitigation of imported inflation, the cancelling out of the effect of regulated price increases in the previous year and the lack of any further increase in them are factors impacting on the downward trend of the annual inflation rate. from the viewpoint of macroeconomic factors, the annual inflation volatility was induced by supply - side factors, while the demand - side inflationary pressures remained low. anchored inflation expectations prevented transmission of supply shocks to the cost structure of the albanian economy, dwarfing the effect of the supply shocks only on the first round effects. on the other hand, below - potential growth of the albanian economy led to an incomplete utilization of production capacities, generating moderate pressures on wages and production costs in the economy. also, the sluggish aggregate demand reduced businesses ’ ability to dictate prices in the economy and hence their profit margins remained at historically low levels. these developments were also reflected in the performance of core inflation, which fluctuated around the lower half of the bank of albania ’ s target band. finally, the bank of albania prudentially supplied the economy with liquidity and monetary expansion was in line with the economy ’ s needs for monetary assets, thus preventing the generation of inflationary monetary impulses. bank of albania ’ s monetary policy maintained its expansionary nature in 2011, responding to the performance of inflationary pressures balance and taking into account the contained fiscal stimulus. the sharp price increase in international markets and its rapid pass - through to domestic consumer prices in early 2011, led to key interest rate rise by 0. 25 percentage points in march. such a move aimed at anchoring inflationary expectations and preventing second - round effects on inflation, against the setting of projections for further international price increases. over the second half of the year, upon moderation of inflationary pressures and inflation ’ s falling back within the target, as well as upon the shifting of expected inflationary pressures balance downward, the monetary policy