in conditions of a pandemic, there is an increasing propensity of households to invest in real estate. actually, in conditions of low interest rates, relatively stable disposable income, reduced possibilities and needs for consumption, change in the models of work, globally there is an increase in the demand for real estate and in the real estate prices. unlike most economic indicators, which collapsed during the pandemic, real estate prices are increasing. in the eu countries, in the first half of this year, real estate prices registered an average growth of nearly 7 %, compared with the growth of around 4 % in the past few years. in our country, the price growth is more moderate of about 4. 4 % during this year, but with signs of acceleration. in the entire region and in our country, housing lending is accelerating and the growth rates are more dynamic compared to the growth of consumer loans. it appears that currently in our country the real estate market developments are in accordance with the shifts in the supply and demand, and the price pressure exists, but it is not that pronounced, as it is in the european union countries. however, this " pandemic syndrome " should be carefully monitored, given that the exposure of the banking system to the real estate market is increasing more and more. hence, there is a need for enhanced monitoring also of this part of the portfolio and keeping of the banks'capacity to deal with the possible future shocks. 2 / 3 bis - central bankers'speeches the banking systems in both the region and in our country are passing the test imposed by the pandemic crisis well, and the challenge for maintaining the capacity for credit support and also maintaining stability will remain in the next period. the indicators of solvency, liquidity, profitability of banks and the quality of the credit portfolio remain stable, and some of them further improved. but, the crisis is getting a prolonged dimension and may have lasting consequences and impose a need for restructuring in some of the sectors of the economy. at the moment, the disruption of the global value chains globally and the growth of costs are creating interruptions in certain industries and are one of the major risks to the expected economic recovery. hence, timely monitoring of all risks and their timely identification is a current priority, in order to reduce the burden on the banks'balance sheets. according to the latest eib survey, some of the banks in the wider cesee region expect a certain increase in nonperforming

loans in the period ahead. upward shifts are also possible in our country, but for the time being the stress tests show sufficient resilience of the banking system, in conditions of a strong regulatory framework, cautious behavior of banks and signs of economic recovery. the central bank's policy is currently relaxed, thereby contributing to favorable conditions of financing and economic recovery, in circumstances when we have enough comfort in the foreign reserves to respond to possible shocks. of course, given the uncertain environment, we constantly and carefully follow the trends of all indicators, relevant to the monetary policy. at the moment, almost in all countries, the growth of savings increases the sources of funding for banks and their capacity to support the economy, especially at the points that will meet the new post - pandemic requirements and will increase the growth potential. the transition to a green economy is undoubtedly one of the issues that with the pandemic has moved from the margins to the core of priorities. the preferences of both consumers and investors are changing globally and the " appetite " for the so - called green technologies and business models is growing. amid such fundamental, global structural changes, our competitiveness as an economy will also depend on the ability for rapid transition to infrastructure that will provide " green stamp " products. on the contrary, the possibility to be competitive in both the product markets and in the access to financing will be small, and the costs high. the financial support from the banking system can significantly accelerate this transition and help in increasing the competitiveness of the domestic economy. probably faster than expected, the world found itself at crossroads when it should accelerate the structural changes, accelerate the transition to a digital and green economy, enable sustainable, post - pandemic global recovery. the role of the financial sector in this respect is great, since the capacity of the entire economy to deal with the new challenges will largely depend on its stability and readiness for financial support. finally, on behalf of the national bank, allow me to congratulate the savings day, and to send special congratulations to this year's plaque winners - recognitions for achieved special results in the performance of the work tasks. thank you! 3 / 3 bis - central bankers'speeches