It is important for the banking sector to utilise and support this valuable attribute of economic agents, both private and public, offering them a constant satisfaction of their needs for funding and other services. This action should rely not only on the insofar-successful experience, but also on an economic logic, while only a few countries in the region have retained their positive economic growth rates. Nevertheless, the economic environment will remain a challenging one and it should be assessed pragmatically. Various actions that may be taken should be oriented by the concept of prudence and in respect of regulatory and supervisory framework requirements. I would like to underline that a responsible bank management during this period will be recognised by its ability to control and administer operational risks in general and your swiftness to develop institution’s capacities to test the resilience and performance in various scenarios of potential future developments in particular. International standards require that the focus be not placed on planning highly probable events, but on the assessing the institutions’ resilience to relatively extreme and unfavourable developments. 2  BIS central bankers’ speeches  Moreover, this process should be part of a broader and constant analysis that you need to conduct with a view to assess your needs for stable operational capitalisation and define safeguarding measures. These requirements are actually present in the regulatory and supervisory framework and the Bank of Albania stands ready to share with you its experience for effective development.

Dear bank executives, More than three years on from the crisis start, global economy’s perspective to leave this crisis behind remains unclear. Nonetheless, this is about a gradual and long process. Overall, financial institutions, in Europe and beyond, continue to face with the following:   High uncertainties as regards exposure value in sovereign debt securities;    Difficulties to ensure liquidity in wholesale markets;    Reduction of crediting volume and tightening of its terms to fund the domestic economy;    Higher capital requirements arising mainly from new regulatory rules by supervisory authorities. The need to reduce investment risk in sovereign debt is accompanied by huge efforts on fiscal consolidation in many countries, especially in Europe. Hence, EU economic growth expectations, including those for countries that had, insofar, posted above-average economic growth, were markedly down. It appears that the best solution for this situation will come only as a result of various countries’ ability to undertake, at this point, vital social and economic reforms as well as to provide financial support so that, on the one hand, financial stability is maintained and, on the other hand, private enterprises are provided with some relief, thus affecting their future economic development expectations. Albania’s economy maintained its positive growth rates during this period, to absorb external shocks. This flexibility is a precious characteristic that will continue to support the country’s economic development and buffer effects from various shocks, even in the future.