The approval of this draft-law would provide the preconditions for promoting innovative technological solutions, and introduction of more efficient and less-costly instruments. At the same time, it contributes to enhancing the security of payment services by addressing risks related to the implementation of innovative technological developments in these services. In the period ahead, we will continue to improve payment services; an important initiative in this regard is the preparation of a draft-law “On payments account” which transposes another EU Directive. It seeks to underpin the objectives for increasing financial inclusion of the population, which is currently at relatively low levels. I am confident that the expansion of financial inclusion, notwithstanding its short-term costs, will contribute significantly to bolstering your intermediation activity in the long run. In addition to regulatory improvements, we are engaged in a series of projects on infrastructure improvements. Such as: Creating a national platform for real-time processing of payments. Such platforms have proven to be very effective, as they realise a payment within seconds and may replace or supplement areas where the activity of card payments have not been effective. 4/5  BIS central bankers' speeches  Creating a national SWITCH, which implies processing a cad payment through a domestic platform, avoiding prolonged cycles via international card processors. Creating a system for the settlement of euro payments domestically in order to lower the existing very high commissions resulting from the use of correspondent banks, which are very costly.

Enriching the array of financial products and payment instruments In addition to its primary function, intermediation of funds, the banking sector has an essential role to play in providing payment services to the economy. The scale and efficiency of accomplishing this role is in proportionate correlation to the scale of financial inclusion of the population, the overall efficiency of the economy, and – why not – the level of its formalisation. In the framework of its role as overseer of payment systems, the Bank of Albania has undertaken a series of measures to further improve legal and regulatory frameworks. These improvements aim to accommodate innovative technological developments in the field of payments, enhance effectiveness by promoting competition and ensure transparency and consumer protection. Acknowledging the role of other institutions, the Bank of Albania, together with the National Payment Systems Committee, have drafted for the first time the National Retail Payments Strategy, which identified market needs and relevant measures for intervention. The goal of the Strategy is to improve the retail payment market by providing Albanian citizens with more choices for their daily transactions, in an easy-to-use cost-effective way, as well as to increase financial inclusion. The Strategy has a detailed action plan; the Bank of Albania is fully committed to its implementation. In this framework, I would like to emphasise a notable achievement, the finalisation of the draft law on “Payment services”, which transposes the Revised EU Directive on Payment Services (PSD2). The draft is currently subject to public consultations.