However, credit to low-income people does not come from banks, where they are not eligible. They resort to non-financial institutions instead, where looser credit standards come at the cost of higher interest rates.  Adequate economic policies will help increase the credit worthiness level of low-income citizens, which then can apply for sustainable loans.  Also, good economic policies means an increase in the quality and complexity of manufactured products within an inclusive economic growth. It means higher research and development expenditures that will determine an increase in the supply of medium and high tech goods.  The global economy is still in a favorable position, albeit decelerating, while the uncertainty is rising. New opportunities, but also new risks and new challenges emerge, such as Brexit, the trade and currency war, the cold war of technology, the debt crisis, money laundering, climate changes, higher inequality. All these aspects must be addressed as complementary to current policies.  Besides the discussions that took place here, related to the soundness of the financial sector and the need to have financial services widely accessible, I would like to underline two main points, in which I strongly believe. 2/4  The first one is that “There is no financial inclusion without social inclusion”  As we look at the development indicators, we can notice, on the one hand, that significant quantitative progress have been achieved in reducing the worldwide poverty across countries.

In the presence of temporary shocks from the supply side, these factors were translated into negative economic growth for the first quarter. According to our estimations, the following months have recorded improved aggregate demand and economic activity, yielding economic growth for 2012. This growth, however, remains relatively low and inadequate to ensure full production capacity utilisation. It has led to low inflationary pressures during 2012 and is reflected in improved external position of the Albanian economy. The banking and financial system remains sound. Banks that operate in Albania are characterised by satisfactory liquidity and capital levels, and fit for financial intermediation. Transaction and risk indicators are also improving, as perceived in the financial markets and, following fluctuation in the first half of the year, interest rates have trended down. Given the above-mentioned circumstances, the monetary policy of the Bank of Albania has been increasingly stimulating. During the past year, we have sequentially eased the monetary conditions; after five consecutive key interest rate cuts, the cost of money in the economy reached its record low. Moreover, through our monetary operations, we have supplied the banking system with the liquidity it needs for smooth operation. Finally, through the review of regulatory norms and application of a prudent supervision of the banking system, we have managed to establish a stable financial environment for the country’s long-term development. Boosted confidence of the public in the banking system was followed by rapid increase of bank deposits, thus reducing reliance on foreign short-term financing.