market conditions. 2. the capital adequacy of each bank after potential adjustments from the asset quality review remains above the minimum regulatory requirements. indeed, the individual results vary across banks. follow - up plans have been developed in line with individual results and include measures aimed at maintaining existing capital buffers for some banks or increasing capital buffers and decreasing risk - weighted assets for others. the concrete follow - up measures and timeline for their implementation will be announced on saturday, 1 pm, as part of the published results. implementation of the measures will begin on monday, 15 august 2016. they will be incorporated in the individual bank ’ s capital management plans, as well as in the supervisory process conducted by the bnb. 3. the results do not necessitate any public support to the banks with state budget funds. the follow - up measures aimed at maintaining or strengthening the capital position of all banks are based entirely on available market solutions and funds from private sources. bis central bankers ’ speeches in closing, i would like to stress out that the asset quality review and the stress test were not an isolated event but an important step in the 18 - month reform plan for the institutional development of the bulgarian national bank, which i announced upon my election as a governor in july 2015. other key aspects of this plan include significant improvement of the bnb ’ s supervisory process and the development of an institutional framework that is effective in resolving issues in the banking system. the strict execution of the plan to date has strengthened our disciplined approach and contributed to improving financial results in the banking sector. the markedly high half - year results of the banks are a solid platform for implementing the follow - up measures identified as a result of the asset quality review and the stress test. i would like to assure the public, that we will be consistent in our disciplined approach and we will continue to follow our plan for reforms in the banking sector focusing not on the issues of the past but on addressing effectively the challenges of the future in order to maintain financial stability and integrate successfully in the european financial infrastructure. bis central bankers ’ speeches

the right on slide 13. 6. overall assessment having reviewed the developments in the key parts of the financial system, i will now turn to the overall assessment of risks to euro area financial stability. let me first remind you of the scope and the nature of our financial stability analysis. in particular, drawing attention to sources of risks and vulnerability to financial stability does not seek to identify the most probable outcome, but it rather entails highlighting potential and plausible sources of downside risks, even if the probability of their realisation is relatively low. let me now conclude by stressing that in june 2006, the financial stability outlook rests upon a delicate balance. on the one hand, the global economic activity is expected to remain robust and the shock - absorption capacity of euro area financial institutions has improved. but, on the other hand, risks and vulnerabilities remain and some have grown further. overall, while a positive outcome remains the most likely prospect, the possibilities that the risk - management systems and lossabsorption capacities of financial institutions may be severely tested, while still small, cannot be excluded. finally, i would like to remark that many of the risks discussed in my presentation today have already been identified some time ago. the fact that they have not materialised to any significant extent does not mean that these risks have diminished. therefore, we should not be complacent in the face of what might currently appear to be a reassuring stability in the euro area financial system. continuing vigilance is required to safeguard financial stability in the euro area. i am now at your disposal to answer questions on the review.