The banking sector in the Balkans is dominated by foreign-owned banks. In Albania, subsidiaries of foreign banks account for around 78% of banking sector assets, while those from European countries account for 48%. The Bank of Albania is the Resolution Authority for seven subsidiaries of EU based banking groups, of which four are classified as systemically important under the mandate of the Single Resolution Board (SRB). Due to this, the signing of cooperation agreements between the resolution authorities of the banking group and the local authorities where the subsidiary operates is very important for coordinating actions, exchanging data for planning and implementing the resolution, and coordinating crisis management. I have the pleasure to share with you the news that the Bank of Albania has signed an important cooperation agreement with the Single Resolution Board, i.e., the Resolution Authority of the Banking Union, on 3 October 2018. Dear ladies and gentlemen, This Conference is the culmination of our work over the past 18 months for developing a complete framework for bank recovery and resolution. For this reason, the presence of colleagues from supervisory and resolution authorities from various entities assumes special importance. We have representatives from the European Union at the central level, from individual countries of the European Union and representatives from countries of the region, national and foreign bankers as well as the representatives of the media. This presence means sharing experiences and opportunity to evaluate what has been done.

Natasha Ahmetaj: Recovery and resolution planning for the banking sector Opening remarks by Ms Natasha Ahmetaj, Second Deputy Governor of the Bank of Albania, at the Regional Conference on Recovery and Resolution Planning, Tirana, 15 November 2018. * * * Dear ladies and gentlemen, Welcome to this regional conference organized by the Bank of Albania in cooperation with FinSAC, a valued partner in our path towards development. The financial crisis of 2008 remains the starting point of a number of discussions, as many of our present efforts originate from this period. The 2008 crisis was a tough test for the capability of a state to manage national and cross-border crises. This test became even more relevant for its global capability, if we take into account that the crisis originated in advanced economies, but spilled over into emerging markets and developing economies. In order to safeguard core financial services for their citizens and firms, governments were forced to use public funds, by injecting money and issuing guarantees for distressed financial institutions at unprecedented levels. From October 2008 to October 2011, the European Commission approved EUR 4.5 billion from public funds to support financial institutions. Naturally, this support helped to curb, at least in the short-term, a massive bankruptcy of banks and the collapse of the real economy. On the other hand, it burdened taxpayers with deteriorated public finances. This forced situation strengthened the need to reflect on the protection of the taxpayers and public finances in times of crisis, without sacrificing the prevalence of public interest.