assets resolution trust. the ncb was recapitalised and privatised in 2000. during 2004, the privatization process of the savings bank was finalized, being purchased by the raiffeisen international bank holding, thus recording the transfer of 94 % of the banking capital to private ownership. currently the albanian banking system is composed of 17 banks, 14 of which are of foreign capital. the capital source is from different places, such as greece, italy, austria, germany, united states of america, etc. after the privatization process of the former savings bank was over and a 100 % of its stock was transferred to the raiffeisen international bank holding ag in august, the capital ownership structure during that period underwent significant changes, having the share of “ domestic government capital ” estimated at 6 % from 32. 1 % at end of 2003, and the “ domestic capital ” at 12. 75 from 35. 15 % it was in the same period of the previous year. figure1 : banking system capital ownership structure in years 1 recently, the improved climate for the development of business and the economy, the savings bank ’ s privatization from the raiffeisen bank, the macroeconomic stability, and the low inflation, have all led to rapid development of the banking system. hence, we can highlight that : • during 2005 and onwards, considerable developments have occurred. the system was more oriented towards the lending activity. the latter one constituted 26 % of the portfolio, from 16 % in the same previous year period. in 2005, the outstanding credit of the banking system increased by all 57. 6 billion 2 or 82 %, from all 19. 3 billion or 38 % in the previous year. in the meantime, the significant growth rate of the outstanding credit compared to end of 2004 has been reflected even in the changed credit structure by terms. it comes out of the analysis that the short - term credit has maintained the same growth rate, while a shifting of the mid - term credit to long - term credit is noticed, particularly when the comparison is made with year - end 2004. banking system assets of the nine - month period of 2006 increased by all 71 billion or 14 % more than at year - end 2005, maintaining almost the same growth rate with the previous year. the downward trend of the large banks ’ contribution to the growth of the system indicates a reduction of the overall banking activity concentration. meanwhile, the banking system assets performance in years, but particularly in 2005, expressed as a share of gdp, shows

jean - pierre roth : are we still on the growth track? summary of a speech by mr jean - pierre roth, chairman of the governing board of the swiss national bank, at the general meeting of the schaffhausen regional association of industry and commerce, stein am rhein, 18 march 2005. the complete speech can be found in german on the swiss national banka€™s website ( www. snb. ch ). * * * after the economic downturn witnessed in the second half of 2004 and at the beginning of 2005, the question arises whether switzerland will remain on the growth track. jean - pierre roth believes it is and anticipates gdp growth to be in the range of 1. 5 % this year. owing to the favourable international economic situation, the economy in europe is likely to pick up again, which will also benefit the swiss export industry. at the same time, we can assume that domestic demand will continue to grow at a moderate pace. the decline in important economic data during the last few months, however, suggests that economic growth in the first half of 2005 will remain weak. this notwithstanding, involves the risk of declining corporate and consumer confidence, which in turn would jeopardise economic development. it is also doubtful whether the weak dollar and high oil prices have already had their full impact or whether it is yet to unfold. based on such considerations, the national bank decided to leave the three - month libor rate at 0. 75 % in mid - march. it was a relatively easy decision to make for the governing board in that inflation prospects over the entire three - year forecasting period have improved. consequently, an interest rate hike became less critical, and there was greater leeway to support economic recovery with an expansionary monetary policy. as soon as the recovery process is again under way, the national bank will continue the normalisation of monetary policy. this is the only way of ensuring price stability in the medium term and preventing the economy from overheating.