rates applicable to credit cards by banks are announced on the bank ’ s web site. distinguished press members, the reduced credit costs in an environment of falling inflation has enhanced credit opportunities of firms in the corporate sector and has played an important role in the growth of investments expenditures. nevertheless, we consider the open foreign exchange position of firms that utilize foreign exchange credits, despite their lack of foreign currency revenues, as a significant risk factor. therefore, the effective use of risk aversion techniques, taking into consideration the izmir derivatives exchange facilities, is of vital importance. furthermore, considering the likely implications of basel ii, especially on the financial system, both the banking sector and firms should carry out the necessary studies relating to capital accord and accomplish the necessary initiatives and arrangements for the improvement of their corporate management structures. distinguished guests, in 2005, the most outstanding development pertaining to the banking sector, which constitutes 87 percent of the entire financial system, was the gradual acceleration of foreign capital inflows. according to the final figures for share transfers, the share of non - residents in total assets of the banking sector in 2005 was 12. 4 percent. including the portion of shares of non - residents in some banks, which have been agreed upon, although the legal permit process thereto has not been completed yet, the share of non - residents in total assets has reached over 16 percent. comparing the ratio of assets of the banking sector to the gnp in turkey to those of developed countries, it is seen that turkey ranks considerably lower on the list. as long as the favorable developments continue, the banking sector should grow in parallel or, even more. however, it is obvious that in a sector so capitalintense, achieving growth will not solely be domestically. i believe that foreign capital inflows to the banking sector should be handled within this framework. in 2005, while the balance sheet of the banking sector grew in size, the share of tl - denominated assets and liabilities increased. as the crowding - out effect of the public sector diminished, the share of credits in assets continued to increase. this indicates that the banking sector has come close to its fundamental function. despite the fact that the rapid upsurge in credit volume has increased the credit risk, the decline in the npl ratio and the high provisioning policy adopted by the sector during the same period are considered as favorable developments. meanwhile, the monitoring of credit risk, which may increase due to the policies on credit allocation that

injuries awards. the central bank has delivered on the various actions relating to our mandate arising from the cost of insurance working group. these actions include : providing greater transparency to policyholders at the point of renewal for certain non - life insurance products ; providing for the extension of the renewal period ; establishing the national claims information database ( ncid ), initially for private motor insurance ; and preparing to publish the first report on the data collected in the ncid in the second half of this year. given the concerns regarding the availability and cost of employers ’ liability ( el ) and public liability ( pl ) insurance, and the associated impact on small and medium - sized enterprises in particular, the central bank will report to the working group this year on the feasibility of including el and pl data in the ncid. 2 / 7 bis central bankers'speeches the courts system also plays a vital role in the functioning of the insurance market. it provides an independent, fair and impartial mechanism to settle more complex insurance claims. this process also sets precedents for settlement of other claims. however, as recognised by the honourable mr. justice frank clarke, chief justice, “ an overall set of judge made guidelines would contribute not only to consistency but also to the proper calibration of the overall level of awards ” 6. i also note the views expressed by many at the personal injuries assessment board ( piab ) conference of 10 april, that the judicial council bill 7 needs to be progressed. one of the tasks of the judicial council, once established, will be the compilation of guidelines for general damages for various types of personal injury. this is important as average premium rates over an insurance cycle are driven by the overall cost of claims. this includes a risk margin to deal with the potential uncertainty of the cost of settling the claim. the greater the uncertainty, the greater the risk margin and overall claims charge. policy actions, such as judicial guidelines, that lead to greater certainty and reduced volatility of claims and create a more stable reserving environment for insurance firms are needed. a more stable claims environment could contribute to an increase in the availability of insurance, and a reduction in premium levels, providing the insurance industry shares the benefits of the changes with their customers. key issues in considering future strategy, it is important to consider the current landscape, issues and risks as well as the desired future. in this context, i will cover seven issues relevant to all sectors and firms. a ) brexit to touch briefly on brex