The banks solvency (shown through the capital adequacy ratio, which equaled 16.4% on June 30,2009) is evidently beyond the prescribed minimal level of 8%, which provides enough capacity to absorb the possible negative shocks from further increase in the risks in their operating. However, the banks in the Republic of Macedonia face with several challenges. The consequences of the global economic crisis, which was felt in the Republic of Macedonia through the real sector, had negative influence also on the banking system. First, the reduced economic activity and the enhanced psychological pressures arising from the uncertainty regarding the duration and the consequences of the international economic crisis, reflected on the banks' balance sheets. In the first half of 2009, the banks' total assets reduced by 0.9%, with the annual growth rate reducing to only 3%. The decrease in the assets was reflection of the deposit core contraction, which went down by 2.4% in the same period, because of which the annual rate of change obtained negative value and on June 30, 2009 it equaled 0.1%. Only the banks' credit activity continued to expand, although with very slower dynamics relative to the preceding years. In the first quarter of 2009, the credit growth equaled only 1.7%, while the annual growth rate on June 30, 2009 reduced to 14.4%. Parallel to the lower volume of activities, also the currency propensity of the banks' depositors was changed. They were apparent through their enhanced interest for saving in currency component.
Should this trend continue, Thailand will not be able to maintain its competitiveness and output level. Fortunately, many technological advancements available at much lower costs today hold huge promises for raising productivity. Cloud computing, robotics and automation have allowed businesses to save significant costs. Big data, artificial intelligence and machine learning capabilities can now offer insights that enable more targeted services. I urge you all to seize this opportunity and leverage on new technologies to improve the productivity of your firms, your industries, and eventually our country. Second, on immunity: for growth to be sustainable we must have sufficient immunity to withstand unexpected shocks. We are living in a time of great changes, where outcomes can be sudden, unpredictable, and volatile, bringing 3  with them new forms of risks. Not only will firms face risks related to strategy, finance, and operation, but they will also face risks associated with driving digital transformations. Managing the transformation process in the digital environment requires fostering an organizational culture that is agile and nimble—to gain flexibility and speed that drives productivity and innovation. But, at the same time, a strong culture on risk management must also be instilled to safeguard firms’ resilience. As industries increasingly rely on data and data-driven technologies, cyber security must be considered a top priority. Globally, the number of threat incidents have been rising, with increased frequency, sophistication and scale of their impacts.