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

negara malaysia. at this juncture, let me take this opportunity to share with you some of the recent economic and financial developments and the major policy initiatives by bank negara malaysia. the global economic performance for 2006 has so far been favourable with a more balanced growth among the major economies, including in japan and europe. the world economy is however, facing an extended period of high energy prices and its consequent effects on inflation. following these developments, interest rates have been raised in most economies. while risks are now emerging for a slower growth in a number of the major economies, growth in the asian economies have continued to remain robust and resilient. this trend has not only increased asia's relative significance in the world economy but it has also contributed to a more balanced global growth. the malaysian economy has benefited from this favourable external environment. growth has been supported by both the strengthening exports performance that has be reinforced by strong domestic demand. domestic demand also continues to be driven by the private sector as private consumption and investment have been an important source of growth. the continued expansion in private investment is particularly important in ensuring the long - term sustainability of the growth. the focus of the monetary policy in this environment continues to be towards achieving macroeconomic stability. more recently, the higher energy costs have resulted in an increase in consumer prices. in this environment, interest rates have been raised three times. in may this year, a pause in this increase was announced. with limited evidence of demand induced inflation, the assessment is for inflation to moderate in the second half of this year. in addition, the extent to which the external environment will be affected by the higher energy prices and rising interest rates, and its implications on our domestic economy, will be important considerations in the future direction of interest rates. the risk to higher inflation and to the growth prospects will be carefully balanced. monetary policy will continue to promote sustainable growth in an environment of price stability. since the dialogue a year ago, the financial landscape continues to be transformed. the domestic financial industry has seen further rationalisation and consolidation in the banking groups in retail banking and investment banking. while the rationalization in the retail banking industry would benefit from the economies of scale, reduce duplication of resources and promote cost efficiency, the new investment bank framework is expected to bring about the emergence of more effective, efficient and resilient capital market intermediaries. it will essentially result in the consolidation of 32 entities into 16 investment banks by the end of this year.