, there is a lot of work to be done to resolve issues from the past financial crisis. at more than 11 percent of total loans, npls continue to burden the balance sheets of banks. in this respect, adoption of new bankruptcy legislation at the entity level and clarification of tax - treatment of npl sales will help address this issue in the period ahead. 3. third, we should redouble our efforts to improve our institutions and address governance shortcomings. foreign direct investment is stuck at around two percent of gdp per year. this is too low to support higher growth rates that will reduce unemployment and emigration. improvements in regulatory quality, fair and transparent ‘ rules of the game ’, and transparent and accountable institutions will help attract higher levels of foreign investment. therefore, we have to send clear message about positive outcomes of our reforms, increase reputation of bosnia and herzegovina, improve our competitiveness to increase investments and growth, and at the same time strengthen the single economic space to finally pave the way to our european future. thank you very much for your time, and i hope that you have a wonderful event.

system in the future that will serve our economy in the best possible way. fintech, innovations and in general disruptive technologies in this area are something that will keep us busy for a long time to come. thirdly, we are learning to use „ the latest ” monetary policy instrument i. e. communication policies, as well. fourthly, the cbbh research function, including financial stability report and our annual report is a significant contribution to better understanding of economic trends in bh and contribution to the financial system ’ s 3 of 7 development in bh. in addition, coordination of the banking supervision agencies in bh and chairing of the scfs ( standing committee for financial stability ) are part of the cbbh mandate. during the „ collateral damage “, done to bh in the aftermath of the gfc, we used very actively those coordinating mechanisms and reserve requirement. we intend to intensify coordination to be ready for the future crisis. nobody knows when or how the next crisis will hit us, but there is no doubt there will be one before we join the eu and we want to be ready for it. finally, if the exchange rate is nominally linked to the euro, i. e. we cannot use nominal exchange rate as a policy tool, this does not mean that we cannot influence competitiveness of the bh economy. i am referring to the real exchange rate. first by maintaining price stability ( by adhering to the currency board arrangement ) and second, we try to use our public appearances and publications to advocate quicker and deeper structural reforms. for the region, monetary history is important and one must not forget ours, the hyperinflation and misuse of permanent devaluation in the former state. that is why we want a different step forward. having in mind constant political pressures for the currency board to be " weakened " or to be abandoned, it is very important for the cbbh to maintain the existing policy independence and thus, maintain and strengthen the credibility of the currency board. so we do not think about the proper moment to exit the currency board and have „ independent policy “, because we consider that we should enter the eu with the currency board and then the euro area, too, in the same or similar way as baltic states successfully did, not long time ago. 3. what do we expect from „ normalization " of the policy and when do we expect it to happen? first, will interest rates increase? for our central bank, it