orderly but resolute fashion, especially by smaller banks, whose npl ratios are higher and coverage ratios lower than those of the significant banking groups. the improvement in the quality of banks ’ assets was facilitated by the development of the market for npls : in the three years 2016 - 18, npl disposals amounted to more than €120 billion, gross of provisions ; so far this year they came to around €20 billion. this was due not just to the fact that banks can access the state guarantee scheme ( gacs ) for securitized bad loans, which was renewed in march of this year, but was also spurred by the early results of the reforms undertaken to reduce the length of credit recovery proceedings, which deters investors and affects disposal prices. the expected time needed to sell foreclosed property decreased from more than three years to around two years. the expected length of time needed to complete all preparatory procedures also declined, albeit by only three months, to just over two years. there is still room for further reductions, which can be accomplished in part by following the best organizational practices promoted by the high council for the judiciary, whose effects can already be seen in some areas of the country. progress can also be achieved by turning more frequently to corporate restructuring and turnaround specialists ( e. g. turnaround funds ). this could lead to some ‘ unlikely - to - pay ’ loans returning to performing status, benefiting both banks ’ balance sheets and the economy. the credit recovery sector has grown significantly in recent years. this development has contributed to the reduction in npls in banks ’ balance sheets, but it is not free of problems. inefficient recovery performance can erode value, reintroduce risks to banks ’ balance sheets and, in extreme cases, have repercussions on the guarantee provided by the state through the gacs. the bank of italy remains highly vigilant in supervising the intermediaries for which it is responsible. banks ’ profitability was helped by low funding costs and the drop in loan loss provisions ; excluding extraordinary items, in the first six months of 2019 the return on equity was about 7 per cent on an annual basis. net interest income remains under pressure, also due to increased competition in the market for loans to high - quality customers. banks, especially small ones, must continue to diversify their sources of revenue and to contain their costs ; less significant banks have reduced their operating expenses by just under 1 per cent

of you in the audience today are still in school or have recently graduated. your hard work demonstrates that you understand the value of a good education for yourself. with your efforts and the efforts of others, i hope we will one day achieve the children's defense fund's goal of a level educational playing field for all children. i wish you all the best in your conference and in your work. thank you. see lawrence j. schweinhart, jeanne montie, zongping xiang, w. steven barnett, clive r. belfield, and milagros nores ( 2005 ), lifetime effects : the high / scope perry preschool study through age 40 ( ypsilanti, mich. : highscope press ). see, respectively, leonard n. masse and w. steven barnett ( 2002 ), a benefit - cost analysis of the abecedarian early childhood intervention, report ( new brunswick, n. j. : national institute for early education research, september ) ; and lynn a. karoly, peter w. greenwood, susan s. everingham, jill hoube, m. rebecca kilburn, c. peter rydell, matthew sanders, and james chiesa ( 1998 ), investing in our children : what we know and don ’ t know about the costs and benefits of early childhood interventions, report ( santa monica, calif. : rand corporation ). see james j. heckman, seong hyeok moon, rodrigo pinto, peter a. savelyev, and adam yavitz ( 2010 ), “ the rate of return to the high / scope perry preschool program, ” journal of public economics, vol. 94 ( february ), pp. 114 – 28 ; and james j. heckman, rob grunewald, and arthur j. reynolds ( 2006 ), “ the dollars and cents of investing early : cost - benefit analysis in early care and education, ” zero to three, vol. 26 ( july ), pp. 10 – 17. see heckman and others, “ rate of return ” ; and heckman and others, “ dollars and cents, ” in note 6. bis central bankers ’ speeches