Nonetheless, also thanks to your work, I find that the awareness of decision-making public authorities in this regard has improved significantly. I had the opportunity to communicate about these issues today to the parliamentary, Commission of Economy and Finance. I am confident that the work started by the Ministry of Justice for the revision and improvement of some important legal acts, including the Code of Civil Procedures, will be finalized, incorporating and approving some concrete proposals for amendments submitted by the banking industry and the Bank of Albania in order to enhance the process of collateral execution. In addition, upon the conclusion of legal processes, it is pivotal to proceed swiftly to write-off loss loans from the bank’s balance sheets, in accordance with the requirements of the regulatory framework. We would kindly ask you and your shareholders for dedication in this process, not only to find the necessary human and financial resources, but also the most appropriate forms for a quick, transparent, and consistent handling of non-performing loans. We need to bear in mind that lending carries along risks that are difficult to identify at the time of disbursement. These risks are determined not only by the quality of bank lending procedures, but also by significant external factors, including the performance of the economy. This uncertainty permeates the current phase our banking sector is going through. Therefore, it is indispensable that bank management structures and their shareholders commit the necessary financial resources to cope with the possible additional costs in the future.

The derivative market has also been developed with the introduction of Islamic currency swaps and profit rate swaps. There has also been significant growth in Islamic asset and wealth management following the development of diverse and innovative structures of Islamic investment funds, including Islamic hedge funds. There are now more than 250 Shariah-compliant mutual funds that are managing an estimated USD300 billion in assets. Other developments include the creation of benchmark indices such as the Dow Jones Islamic Market Indexes – covering more than USD10 trillion market capitalisation in over 40 countries, the Financial Times Stock Exchange Global Islamic Index Series, and the listing of Islamic financial instruments on international exchanges. These developments have enhanced the depth of the Islamic financial markets as an attractive asset class for investment. Another important development in Islamic finance during this period has been the strengthening of the international Islamic financial architecture. In 2002, a major structural enhancement was the establishment of the Islamic Financial Services Board (IFSB), which formulates the international regulatory and prudential standards for Islamic finance. It has since issued the standards for capital adequacy, risk management and corporate governance. Among the standards that are currently being formulated include market conduct and rules for financial disclosure, transparency, the Shariah governance framework and the supervisory review process. This is to ensure best practices and the soundness and stability of the Islamic financial system.