channels for interaction with global financial markets would broaden and become more efficient. over the past decade or so, as china rose to become the second largest economy, we have all seen the changes to world economic relationships brought about by china ’ s integration into the global economic system. we are now beginning to see china ’ s integration into the global financial system in a more prominent way. 6. until now, the channels for cross - border flows are only open to current account items such as trade, and to direct investments under the capital account. portfolio investments under the capital account into and out of china are mainly confined to designated channels and are subject to quotas, for example, the qualified foreign institutional investor ( qfii ) scheme with quotas totalling us $ 150 billion, and the qualified domestic institutional investor ( qdii ) scheme with quotas of us $ 87 billion. it can be reasonably expected that a further opening of the capital account would entail liberalisation of these channels and the addition of new avenues. these would result in an increase in cross - border capital flows. bis central bankers ’ speeches 7. although it may not be easy to provide a precise estimate of the magnitude of the flows, given that china ’ s economy is the second largest in the world, and taking into account the size of both its domestic savings and its capital markets, one can probably say that the size of capital flows resulting from china ’ s capital account liberalisation would likely be felt in the global financial system. 8. from the perspective of chinese savers, given their high level of savings and the fact that their investment options are mostly limited to domestic markets at present, there would be a desire on their part for investment diversification into international markets. the resulting investment flows, as they are liberalised, could be substantial for individual markets where these funds flow into. 9. in the other direction, with china being a dynamic and sizable economy, the world ’ s investors would be increasingly keen about participating in china ’ s capital markets, thereby gaining exposure to new investment opportunities. the experience of many other economies also suggests that capital - account liberalisation brings along with it a deepening of financial markets, making them even more attractive to investors. 10. in all of this, the role of the rmb will be crucial. notwithstanding the current, only partial convertibility of the rmb, it is already the ninth most actively traded currency according to the latest bank for international settlements triennial survey. and

in conditions of a pandemic, there is an increasing propensity of households to invest in real estate. actually, in conditions of low interest rates, relatively stable disposable income, reduced possibilities and needs for consumption, change in the models of work, globally there is an increase in the demand for real estate and in the real estate prices. unlike most economic indicators, which collapsed during the pandemic, real estate prices are increasing. in the eu countries, in the first half of this year, real estate prices registered an average growth of nearly 7 %, compared with the growth of around 4 % in the past few years. in our country, the price growth is more moderate of about 4. 4 % during this year, but with signs of acceleration. in the entire region and in our country, housing lending is accelerating and the growth rates are more dynamic compared to the growth of consumer loans. it appears that currently in our country the real estate market developments are in accordance with the shifts in the supply and demand, and the price pressure exists, but it is not that pronounced, as it is in the european union countries. however, this " pandemic syndrome " should be carefully monitored, given that the exposure of the banking system to the real estate market is increasing more and more. hence, there is a need for enhanced monitoring also of this part of the portfolio and keeping of the banks'capacity to deal with the possible future shocks. 2 / 3 bis - central bankers'speeches the banking systems in both the region and in our country are passing the test imposed by the pandemic crisis well, and the challenge for maintaining the capacity for credit support and also maintaining stability will remain in the next period. the indicators of solvency, liquidity, profitability of banks and the quality of the credit portfolio remain stable, and some of them further improved. but, the crisis is getting a prolonged dimension and may have lasting consequences and impose a need for restructuring in some of the sectors of the economy. at the moment, the disruption of the global value chains globally and the growth of costs are creating interruptions in certain industries and are one of the major risks to the expected economic recovery. hence, timely monitoring of all risks and their timely identification is a current priority, in order to reduce the burden on the banks'balance sheets. according to the latest eib survey, some of the banks in the wider cesee region expect a certain increase in nonperforming