1. Our strategic plan is to adapt our product and service offerings to the changing environment. An important change will be adjustment to the EU. This will allow Andorra’s economy to base its main business (tourism, leisure and distribution) not only on its local offering to international clients but also on cross-border offerings. We have begun to participate in leader companies in the main economic sectors, increasing our market penetration in commercial banking. In our private banking business, growth will be based more on expertise and added value of product and service offerings and risk management, rather than on the absence of taxation, because we need to compete in a global market.
2. Regulations derived from the Basel II Accord and EU directives, and the measures taken to adapt our procedures and risk control to this new frame, in which Crčdit Andorrŕ has been working, will have an impact not only on human resources and IT but on strategy too. The capital adequacy requirements will have no impact on us, given the high level of resources we have acquired through our traditional profit capitalisation over the years. We have already started an internal credit ratings system, and an operations risk monitoring and management system is ready to be implemented. We believe these improvements will allow us to optimise the risk/return relationship while maintaining our low risk profile.