economies, affecting spending on housing and related goods and services. there would be some spillovers to other regions and sectors of the economy. bank balance sheets would also be affected in this scenario, leading to tighter lending standards. the likelihood of this second scenario occurring is greater than the first. however, its impact would be less severe, and we don ’ t anticipate that a house price correction would trigger the widespread rise in unemployment assumed in the first scenario. given recent events, some people might naturally wonder if there is a connection between the two vulnerabilities we ’ ve described and the situation at home capital. while we don ’ t generally discuss individual financial institutions, i can say our assessment is that the situation reflected firm - specific factors. the regulatory and supervisory system worked as it is designed to do, and we are not seeing signs of broader stress. indeed, those recent events were a pretty clear indication of the resilience of canada ’ s financial system as a whole. let me close by pointing out that the fsr includes a section that describes how we measure the resilience of the canadian financial system. it shows that capital, leverage and liquidity ratios in the canadian financial system are all well above regulatory minimums and have improved over the past year. we are seeing early signs of a recovery in business investment. the process of adjustment to the oil price shock is mostly behind us, having been facilitated by the monetary policy actions we took in 2015. this improving economic backdrop will add to the resilience of canada ’ s financial system. and as such, we decided to drop the risk of prolonged weakness in commodity prices from our risk assessment. with that, senior deputy governor wilkins and i are happy to respond to your questions. 2 / 2 bis central bankers'speeches

ardian fullani : overview of albania ’ s latest economic and financial developments speech by mr ardian fullani, governor of the bank of albania, on the monetary policy decision - making of the bank of albania ’ s supervisory council, tirana, 26 september 2012. * * * today, on 26 september 2012, the supervisory council of the bank of albania reviewed and approved the monthly monetary policy report. based on the analysis of albania ’ s latest economic and monetary developments, and following discussions on their performance outlook, the supervisory council of the bank of albania decided to keep the key interest rate unchanged at 4. 0 %. the supervisory council deems that the monetary conditions are adequate to meet the inflation target in the medium term and provide the needed monetary incentive to support domestic demand and economic growth. let me now proceed with an overview of the economic and monetary developments and key issues discussed at today ’ s meeting. * * * annual inflation in august was 2. 8 %, increasing 0. 1 percentage points from july. inflation continues to be determined primarily by price rise of foods and oil. prices of other goods of the basket appeared relatively stable and provided low contribution to headline inflation. according to our estimates, inflation reflects mostly the temporary effect of supply factors related mainly to developments in global markets, as well as the possible structural movements in the internal market. against this setting, the inflationary pressures originating from the domestic economy appear contained. weak domestic demand and below - potential economic growth are reflected in slow increase in production costs, anchored inflation expectations and controlled monetary expansion. the bank of albania deems that, overall, these developments will continue to determine inflation ’ s performance in the period ahead. indirect data on economic performance in the second and third quarters of the year suggest positive - but - slow economic growth. the albanian economy has capitalised on the better performance of foreign demand and exports during this period, while domestic demand has remained weak. in the absence of stimulus by the public sector, indirect data point to weak dynamics of consumption and private investments. hence, consumers ’ higher prudence is reflected in lower consumption and higher savings by albanian households. as noted in earlier statements, this behaviour reflects to a large extent the correction of consumption levels noted in the economy until the end of 2008. all the same, in the context of the current situation in the economy and global financial markets, the consumers ’ reluctance to purchase durable goods reflects also their uncertainty about future developments. the bank of albania deems that the deceleration