, which are not receding. quite to the contrary. the events that amplify volatility in the commodity and financial markets reinforce the importance of natural risks to which humans have been contributing to. these are all shared risks, and, to the extent that each of us individually successfully conducts our economy through all this turbulence, we as neighbours will be better off as well. of course, it is best when we preserve the stability that is given to us by law together. i believe that we succeeded in that, and i want us to continue doing so. 1 / 4 bis - central bankers'speeches where are we now in serbia? we keep the exchange rate of the dinar against the euro at a relatively stable level despite all the challenges. i start with that because the stability of the dinar exchange rate is one of the key pillars of the overall macroeconomic and financial stability of the country. this is the conclusion of rating agencies, the international monetary fund, european officials, and investors in serbia. but, for me, its contribution to the growth and development of serbia is of key importance. a stable exchange rate of the dinar against the euro is a pillar of trust of our citizens and corporates in the policy makers in serbia. in us. and no one has the right to take that pillar away from them by doing or not doing. thanks to the strong regulatory and macroprudential framework for banks, as well as the fact that we implemented the tightening of monetary conditions in a gradual and well - calibrated way – our banking sector has remained stable, highly liquid and profitable. the key indicators of banks'operations are well above regulatory values, while the share of npls in total loans is close to a historical low. however, the conditions are such that we have to choose between price stability, economic growth and financial stability. i claim that we can do everything, with well - measured policies! an example of this is our measure to cap interest rates on variable - rate housing loans. the effect of this measure on the financial results of the banking sector does not in any way threaten the banking sector's operations, and it contributes to the preservation of financial stability by preventing the growth of npls. so, financial stability. this measure helps increase the disposable household income, but to the extent which does not threaten the strong downward trajectory of inflation, as it makes up around 0. 3 % of the total household consumption in serbia in one year.

therefore, the inflation target has not been jeopardised. finally, this measure can contribute to the recovery of consumption, which is necessary for us to achieve the desired economic growth. and that is the third goal – economic growth! dear colleagues, all of us here today know that our job never ends, just like no policy can work on its own! hence, the preserved business confidence and a stable banking sector resulted from the overall economic policy, and this ensured a significant rise in employment amid such circumstances, as well as an increase in real wages in both the private and public sector. only this synergy of the real and financial sector can ensure the lasting success of both! an illustration is the assets of commercial banks operating in serbia of around eur 50 bn, over 80 % higher than in 2012. the synergy as well as trust effect. that there is confidence in our system is illustrated by the fact that fx savings of households rose by over 70 % in the last ten years, while dinar savings increased around seven times. up until ten years ago, the only two sources of investment financing in serbia were a modest inflow of fdis and modest capital investments of the government of around 2 % of gdp. in the meantime, both sources of financing increased fourfold, and we gained two more, maybe even more important pillars of investment financing – profitability of domestic companies and investment loans of banks. for example, in 2014, domestic companies recorded a loss of around eur 2 bn, and investments could not be financed from own sources. since then the serbian economy's net financial result has been improving every year, by around one billion euros on average annually, and in 2022 corporate profitability reached around eur 5 bn. this broadens the base of good 2 / 4 bis - central bankers'speeches clients of the banking sector and credit risk is reduced. thus, macroeconomic stability and structural reforms are both our key challenge and potential, and our crucial heritage for the coming generations. heritage is also a unique technological revolution in which we can be the leaders or followers and which brings changes particularly to the financial sector. we decided to be at the forefront of this process, without ever losing sight of system security and stability. i can freely say that today we are at the edge of the revolution that is taking place by means of bits and bytes. the fact is that our payment methods, loan applications, signing of contracts with financial institutions, transactions time, technologies used – are changing