Many of them have referred to it as the "Switzerland of the Balkans" or as the "rock garden of southeastern Europe." On the other hand, the country's uncommon isolation from the world, arising generally from its rugged, mountainous terrain, has led foreigners to speak of it as "the Tibet of Europe" or as a country more mysterious than central Africa. The great eighteenth-century British historian, Edward Gibbon, speaking of Albania, said that it is "a country within sight of Italy, which is less known than the interior of America." BIS Review 119/2007  1  The remoteness and isolation of the country became practically legendary and all too frequently gave rise to reports and descriptions of the land and of the people – even in books and encyclopedias – that were closer to legends than to reality. Perhaps because of its romantic remoteness and other reasons, Albania has exerted a continuous fascination on artists, including poets, playwrights, composers, and more recently film makers and producers of television programs. Shakespeare set his comedy Twelfth Night in Illyria – the name by which Albania was known in ancient times. Lord Byron, who visited southern Albania in 1810, wrote some stirring lines about her landscape in his poem “Childe Harold”. Morn dawns: and with it stern Albania's hills... Robed half in mist, bedewed with snowy rills. In Mozart's comic opera “Cosi fan tutte” the principal male characters, Ferrando and Guglielmo, appear for the most part as two "Albanian noblemen" in clever scheme to test the love of their fiancés.

This rapid credit growth has become the challenge of the moment. However I believe that efficiency and soundness of financial system is a dynamic process and a continuous challenge. Frequently this challenge might generate from international financial markets too. Globalization of financial markets has increased the risk of contagion. The recent developments in the sub-prime mortgage loans, must serve as a excellent reminder of the never ending surprises, which make the trade off between monetary policy and financial stability a difficult balance. I want to make it clear that by financial stability I do not assume only the absence of a financial crisis, but a well functioning financial system that performs well its functions. I think too tight regulations that definitely minimize all the risks are not conducive to sustained growth. Therefore the real challenge for which we are working hard is to find an optimal balance between deregulation which promotes market forces and financial innovations and negative consequences of possible market failures and financial crisis. 4. Balkan region: trends and major characteristics  Dear students, The rest of my discussion will provide few remarks on the developments of the South East European region. I will briefly comment on the common problems and characteristics of the region and voice my opinion upon possible direction of progress and convergence in policies. Recently the Governors of the Region have been increasingly concerned regarding the issues related with banking system activity, market efficiency, financial stability, risk exposure and of course the role of central bank.