at the local economy, which became the destination of increased capital inflows – the flood i mentioned previously. granted, part of them were volatile in nature or directed towards the non - tradable 2 / 4 bis central bankers'speeches sector. still, some of these inflows were aimed to create or enhance production capacities or to set up businesses in tradable services, which were essential to securing welfare through job creation and increased income, the type of welfare that is more resilient when faced with worldwide volatility such as that seen during the crisis. these positive developments continued to produce effects in the aftermath of the crisis as well, when romania experienced an export - driven recovery, to which sectors on the receiving end of fdi inflows made a significant contribution, and which enabled progress in terms of income per capita. the indicator, expressed as a ratio to the eu28 average ( the uk still included ), currently stands at close to 57 percent ( after around 41 percent in 2007 and just over 25 percent in 2000 ). there is still very much room for progress. i say this having in mind the gdp per capita gap that is still substantial ( and larger than those of most regional peers ). in a scenario where romania experiences constant 5 percent growth each year, while the eu grows on average only by 2 percent, it will take us 20 years to achieve full convergence. under more pessimistic scenarios, i guess you don ’ t want to hear how long it would take to catch up. at this point, some of you may wonder why would anyone be pessimistic if local output currently grows at over 5 percent, at 6 percent in fact, in the second quarter of 2016, the highest rate in the eu? well, as the effects of the recent fiscal stimulus wear off, gdp dynamics will come down, while additional stimulus, if implemented, will put even more at risk the already weaker fiscal position. above all, growth needs to be achieved in a sustainable fashion, backed by productivity and while keeping fiscal and external deficits in check. the lessons taught by the most severe teacher of all, the economic crisis, should not be wasted … when i am talking about much room for progress, i am also referring to developments sometimes overlooked, especially if one has in mind only the aggregate figures. more specifically, i am referring to the fact that eu accession benefits were not evenly distributed across the economy, as reflected for instance by rising regional divergence.

we believe that financial digitalization accelerates income growth and democratizes access to more affordable financial products and services. we have also embraced digital transformation in our internal strategy, highlighting our commitment to being an agile, resilient, and proactive organization. we envision to be a digitally transformed organization driven by a strong digital leadership, an innovative and collaborative culture, a secure and resilient technology infrastructure, and optimized work processes that support data - driven decisions. while we recognize the promising benefits of digitalization, we are also cognizant of its attendant risks. thus, we also highlight that these efforts are underpinned by sound digital governance, adequate risk management practices, and robust internal controls. 1 / 2 bis central bankers'speeches given these developments, it is important for the internal audit function to reposition itself as a strategic partner in driving digital value. the independent view of internal audit continues to be crucial, as it plays a valuable role in complementing the first - and second - line functions by providing assurance and advice on governance, risk management, and controls. digital transformations are journeys without borders and the possibilities for digital innovation are endless. as central banks embrace change through digitalization, internal audit teams must forge the same trail ; reassess perspectives ; reimagine audit approaches and methodologies ; and tap on reliable technologies to add more value and provide assurance to the organization. i hope that this meeting will provide a meaningful platform for discussing internal audit ’ s rapidly evolving role in these areas. the shared views, practices and experiences during the sessions will certainly enrich our knowledge and inform our individual and collective digital transformation journey. thank you and i wish you all a meaningful discussion ahead. 2 / 2 bis central bankers'speeches