All the afore-mentioned factors have led to a sluggish labour market and elevated pressures on public finances. They have also increased vulnerabilities to many businesses and the non-performing loans in the banking system. In Bank of Albania’s opinion, this situation requires pursuit of stimulating macroeconomic policies. Economic theory and practice suggest that the maintenance of macroeconomic balances is a prerequisite to pursue these policies. I have reiterated that these balances do exist in the Albanian economy. They constitute a strong point for its future outlook. Inflationary pressures remain weak, external balances of the economy are improving and the Albanian financial system is healthy. But the macroeconomic balances should be maintained and further strengthened in the future. This objective is a preliminary filter and every macroeconomic incentive should pass through it. Every macroeconomic stimulus should also consider another vital equilibrium: that of financial stability in the country, otherwise it is at risk of becoming unproductive. The global crisis has significantly elevated a country’s exposure to risks related to financial stability. Therefore, this equilibrium should remain a constant priority and in concert with stimulating development policies. The healthier we are financially, the broader the spaces available to stimulate the development of the country. Having said the above and availing myself of the presence of the three main stakeholders responsible for designing and implementing the macroeconomic policies, let me now share with you Bank of Albania’s opinion about promoting the country’s development in the short term.

The new constituent law also incorporates a specific provision for the Bank to participate and provide appropriate resources in arrangements, schemes, programmes, or initiatives with any other central banks or international financial institutions or authorities to promote bilateral, regional and international monetary, financial or economic co-operation. Conclusion In conclusion, the supporting legal framework for central banking and the financial system is a key element to addressing the challenges faced by central banks. I have highlighted three areas which are currently very relevant in the current global financial system. Central banks in the advanced financial systems have resorted to unorthodox measures to prevent a systemic collapse of the global financial system. While action has been based on the sense of urgency and to avoid a total collapse of the system, in the aftermath of the crisis, an extensive review of the legislation needs to be made. The more challenging part is to effectively address cross-border issues facing national financial systems. Regardless of whether we are in a state of crisis, these challenges will continue to be relevant given that conditions will continue to be dynamic and the trend towards a more globalised world will not reverse. On this highly complex subject, this two day conference will likely generate highly engaging discussions. I wish the Banking and Financial Law School a highly productive outcome and hope that your stay in Malaysia will be enjoyable and memorable. 4  BIS Review 113/2009