tradition fostering public policy progress and development related to the monetary policy and the banking sector in romania, in partnership with the academia, shaping a solid foundation. 1 / 2 bis - central bankers'speeches today, as it was back in 2014, we convey encouragements to approach the specific economic issues of the romanian economy and society in your researches, to take stance in public debates on topics of high economic relevance, to include viewpoints from the local academic environment, as well as from the institutional policy makers, to have a holistic view and a wide angle on key aspects for economics and society overall. practical experience and economic expertise are gained only via a strenuous work, diligence and acumen on the relevance of research for public policy decision making. national bank of romania has always supported the endeavours for quality research as a credible source of economic policy advice. our economists have always contributed with valued results of their research, focused mainly on aspects that are particular to the romanian economy. the program of the conference is paramount to central banking. the papers on inflation drivers, on econometric modelling, on foreign exchange rates, on corporate finance and investments, on fiscal rules, on the economics of the green transition carbon neutral footprint, on central bank independence and implications for the fiscal - monetary interplay, as well as on new digital assets, among other topics on the agenda, open wide avenues for research. the conference is also a forum of exchanging ideas. the social networking and the side events will give you the opportunity to explore romania more closely, to discover, rediscover and connect with the romanian society. on this note, allow me to conclude by saying to our romanian fellows welcome home and to wish every future success for the ermas conference on the occasion of this anniversary and to you all, fruitful debates and a memorable time in romania! 2 / 2 bis - central bankers'speeches

exposure to international financial markets, increased attention is directed to further strengthening and preserving its soundness. in this regard, the required minimum capital for banks and financial institutions have recently been substantially increased to strengthen their resilience and increase their lending capacity. despite the structural nature of the excess liquidity since 2002, growth of credit to the economy has been relatively moderate ( 14 % in 2008 ). for a better contribution to the diversification of the economy, banks are expected to enhance their efforts in financing the development of smes while further improving credit and operational risk management. the role of banks in investment financing is crucial given the limited development of the financial markets. the 2009 government budget provides for appropriations to strengthen public banks ’ capital base. government financial support to the public banks ( bailing out of public banks ’ portfolios and strengthening of their capital assets ) averaged 2. 6 % of gdp for the period 1991 - 2002 and 1. 7 % for the period 2005 - 2006. the bank of algeria will continue to pay due attention to potential risks arising from the deepening international financial and economic crisis, particularly risks to the banking sector. in this respect, particular attention will be attached to the flexible use of available monetary policy instruments and to maintaining a flexible exchange rate policy to reflect the economy ’ s fundamentals. at the same time, banking supervision will continue to be strengthened, in accordance with the ongoing initiatives of the basel committee. following the modernization and consolidation of banks ’ reporting system and the recent increase in required minimum capital, sustained efforts are being devoted to strengthen the operational and regulatory frameworks of the banking sector over the first half of 2009 ( conformity of bank assets, liquidity and credit risks management, … ), in accordance with international standards. in this regard, a stress testing system, introduced in 2007, already contributes to better assessing banks ’ risk management and evaluating adequacy of capital assets to potential risks. in view of the large number of foreign banks presently operating in algeria, continued efforts are being made to develop bilateral cooperation on their supervision. in conclusion, prudent management of resources and continued strengthening of the financial and banking system stability allow algeria to consider its medium term economic objectives with a relative confidence. however, the deepening of the international financial crisis and its drastic spillover effects on the world economy is already affecting the country through a number of channels, notably : • a reduction in its savings capacity. the sharp decline in oil prices is drastically reducing hydrocarbon export receipts and