strong accommodative monetary policy stance has brought interest rates in financial markets to historic minimum levels. the bank of albania deems that these rates will remain below the historical average level, over the next two years. in the light of achieving our inflation target and of economic growth approaching its potential, based on the available information, the bank of albania will not reduce the intensity of the monetary stimulus throughout 2016 and the monetary conditions will remain stimulating in the next two years. second, the issue of the euro bond led to the reduction of public borrowing in domestic financial markets. this has brought interest rates further down - even beyond signals given by the monetary policy - thus increasing the monetary stimulus in the economy. furthermore, the pullback of public sector from domestic borrowing provided for the liquidity " pie " to be made entirely available to the private sector. in accordance with the medium - term budget plan, the bank of albania deems that the effect of this factor will be also present over the next two years. third, liquidity situation and financial soundness of banking system is rather promising to credit economy. during 2015, the banking system expanded the activity, improved the financial performance, and remained well - capitalised and had ample liquidity. the profit of the banking system amounted to around all 15. 7 billion. the financial result improved attributable to lower financing costs and lower credit risk provisions. the return on assets and return on equity were further improved. the number of banks making profits increased. albeit at a slower pace, public deposits expanded in 2015, maintaining their share of around 82 %. the measures implemented in the last three years to tackle non - performing loans have started to yield results. the credit quality improved and the ratio of non - performing loans fell from 25 % to 18 %, mainly as a result of restructuring and write off of loss loans from banks'balance sheets. fourth, the implementation of the plan of measures for reducing non - performing loans will free the banking system from the stress and the nervousness accumulated over time. this bis central bankers ’ speeches will drive to easing of credit standards and increase of banking credit supply by the banking system. fifth, the expectations are more optimistic even in the overall international context, including the approach of supervisory and regulatory institutions, and at the level of large banking groups. all these reasons have led us to believe that there is a great potential to credit economy. in fact, we believe that lending to the economy in 2016 will grow at higher rates

as many people live a life worrying about money. financial literacy skills such as managing personal finances are essential life skills in the modern world. in this regard, i would like to thank all the organizers of this festival. in a special way, i thank the ministry of education and sports who agreed that this year ’ s annual festival should focus on financial literacy. i also would like extend our gratitude to the commercial banks, the german society for international cooperation ( giz ) and other stakeholders for the efforts invested in this project. the financial literacy strategy launched in august 2013 recommended the incorporation of financial literacy into the secondary school curriculum as part of the overall reform of the curriculum. curriculum reform is currently underway at the national curriculum development centre and this process involves consultations with stakeholders such as giz and bis central bankers ’ speeches commercial banks. one of the teaching tools that has been developed in the financial literacy strategy ’ s short term life span of eleven months is the “ simplify money magnify life ” website. the website is a teaching aid targeted at financial services and products consumers as well as suppliers by providing factual data that can be a basis of financial decision making. i thank you all and wish you a pleasant 2014 annual national secondary schools ’ performing arts festival. bis central bankers ’ speeches