anita angelovska bezhoska : building trust - a foundation for stronger savings speech by ms anita angelovska bezhoska, governor of the national bank of the republic of north macedonia, at the celebration marking the world savings day " building trust - a foundation for stronger savings ", skopje, 30 october 2023. * * * dear attendees, ladies and gentlemen, it is my pleasure to address today's event marking the world savings day, which this year is celebrated under the motto " conquer your tomorrow through savings ", which clearly highlights the importance of savings, both for the personal well - being of each individual and for the overall economy. undoubtedly, saving is one of the key " engines " of economic growth, and an important driver of income convergence in the developing countries. the higher the domestic savings, the higher the opportunities for investment and increasing the volume of physical capital, which currently in our country ( similar to the entire western balkans ) amounts to merely about 30 % of the average eu capital, clearly highlighting the need for intensifying the investment cycle. usually, however, the level of domestic savings in less developed economies ( like ours ) is lower than the investment needs, and the gap is bridged over through the import of foreign savings, including in the form of foreign loans. this, in turn, implies growth of external borrowing and an increase in vulnerability of economies. in particular, in the current context of tight international financial markets as a result of the most synchronized and intensive monetary policy tightening in the past 50 years. hence, our efforts must be aimed at encouraging domestic savings, but also channeling it through the financial system. some surveys show that in the western balkans there is a significant amount kept in cash, outside the financial system and therefore cannot be seen as a contributor to the economic growth. thus, it is estimated that the household foreign currency savings in cash in the region average about euro 246 per capita, while, in the macedonian economy, this amount is higher, amounting to about euro 403 per capita in 20211. the level of savings in an economy is conditioned by several fundamental factors, such as income and consumption levels, demographic factors, the setting of tax system, the health and pension system, macroeconomic and political stability in the country, etc. yet, it is often determined by certain specific factors. such an exceptional episode was the pandemic, when in most of the countries household savings increased to unusually high levels, compared to some previous

financial stability. also, the implementation of the first national bank's medium - term climate risk management plan is expected to contribute to a better understanding and capacity building both of the central bank and of the banks to manage one of the most important modern challenges – the climate risks, and improving the banking system capacity to support the transition of economy towards green and sustainable development. the results of these efforts are visible - in the past five years, the banking system capital has doubled, the capital adequacy ratio has hit a record high in the past 15 years, the capital quality is the highest, and the share of non - performing loans is historically the lowest. dear all, we are living in uncertain times, when crises have become a commonplace, and uncertainty is the " new normal ". this new reality emphasizes even more the need for a long - term rather than a short - term standing, as well as strengthening the resilience to potential future shocks, including the strengthening of the domestic savings for a better and secure future. as aesop said, " it is thrifty to prepare today for wants of tomorrow ". i wish you a happy world savings day! thank you! 1 source : oenb euro survey. 2 the consumption impulse from pandemic savings – does the composition matter?, ecb economic bulletin, issue 4 / 2023. 3 oenb euro survey. 3 / 3 bis - central bankers'speeches