From a broader perspective, the financial industry, both in our region and globally, is under pressure from four powerful currents: Rapid development of information technology, which has created opportunities for financial innovation and has challenged classical banking models. New payment and credit instruments, new financial market actors, and new business models, such as digital and electronic banking and payments, boost the penetration of financial services. Conversely, they challenge not only classical actors of the financial sector but also its regulators. Globalisation, which has expanded the scope of market actors and regulators. This phenomenon significantly exposes emerging economies to volatility in the regulatory framework or in the risk appetite in advanced economies. Re-regulation, currently underway in the financial system in Europe and globally. This process is aimed at enhancing security in the banking sector, lowering the probability of systemic crisis, and enhancing the capacities of authorities for managing them. However, it imposes additional costs on the banking sector and places it under less favourable conditions vis-à-vis other market participants. Very low interest rates that characterise many segments of the global financial market. 3/4  BIS central bankers' speeches  These rates reflect the accommodative monetary policy stance adopted by major central banks, the decline in global productivity and unfavourable demographic developments in advanced economies. These have a toll on the balance sheets of broader segments of the financial market such as banking sector, pension funds and insurance companies. From a nearer-term perspective, Albania needs to improve financial literacy, across the board.

Gent Sejko: A brave new world? The future of banking in emerging Europe Welcome address by Mr Gent Sejko, Governor of the Bank of Albania, to the Annual Conference of the Bank of Albania 2019, Tirana, 10 October 2019. * * *  Your Excellency Mr President, Honourable Madam Minister and Chairman of the Parliamentary Committee, Dear representatives of the banking system, ladies and gentlemen, dear guests, It gives me great pleasure to welcome you on behalf of the Bank of Albania to our Annual Conference. This year the conference is co-organised again with the London School of Economics and Political Science (LSE), namely its Institute of Global Affairs – internationally renowned for its leading expertise across the social sciences. The Conference this year will seek to address the latest trends in the banking industry in Albania, in the region and the rest of the world, focusing on challenges and opportunities that lie ahead of us. Naturally, these issues are of great interest not only to actors in the banking market but also to central banks and other regulators of the financial market. As we share experiences and engage in open discussions, we will be able to identify far-reaching approaches that are best fitted to meet the challenges ahead. We have invited distinguished speakers and experts from renowned international institutions as well as other actors and regulators from Albania and the region. I am confident the conference will live up to its reputation.