Banking system supervision In early 2010, the Bank of Albania changed its banking supervision organisational framework, orienting and relating it directly to risks associated with the financial activity. In parallel, the Bank of Albania re-conceptualised its supervision focus and strategy in accordance with risks posed to Albania’s banking and financial system. Transparency and publication of information on banking and financial products and services were in focus of supervision in 2010. Encouraging enhancement of private financial agents’ transparency is also reflected in amendments made to regulatory framework during the year. 4  BIS central bankers’ speeches  High commission fees on banking products and services were a sensitive issue that was addressed over the past year and will constitute a priority in the upcoming period. The Bank of Albania, through its analyses, played a key role in discussions about this matter, aiming to tackle it timely and duly. Also, issues related to anti-money laundering, transparency and compliance with prudential regulations were an important part of the supervisory process in 2010. In view of strengthening the supervisory process on banking institutions, the Bank of Albania has signed a number of cooperation agreements with central banks in the region and with European ones, where parent banks have their headquarters. Strengthening the supervisory regulatory framework In 2010, the Bank of Albania finalised drafting of several new regulations and amended some other regulations on banking supervision. This process aimed at compliance with Basel Committee standards and EU Directives, taking into account international best practices and Albanian banking system developments.

that is simple, transparent and standardised, to free banks’ balance sheet and thus encourage the issuance of new loans, while offering bond market exposure to borrowers which generally do not have access to such markets, such as SMEs. The potential for development is significant: in the euro area, ABS and MBS issuance is three times lower today than before the 2008 crisis1. 1/4  BIS central bankers' speeches  Other actions concern investment vehicles that enable companies to benefit from resources stemming from investors willing to take greater risks. For example, Euro Private Placements (EuroPP), for which a charter was drawn up in 2015, are now complementary to USPPs in the United States and Schuldscheine in Germany. Amounts issued by French companies totalled EUR 2.28 billion in 20182, but have been declining since the peak of 2015 (EUR 4.3 billion) because they do not offer sufficiently attractive interest rates. It is therefore important that market professionals pursue their efforts to promote this type of investment and step up their actions to standardise the market. Conversely, the growth of crowdfunding platforms, albeit modest, is rising in France, even if the economic model for these platforms has not yet reached its equilibrium, with EUR 402 million3 raised in 2018, up 20% on the previous year, and a growing number of funded projects. This development benefited from the regulatory framework for crowdfunding implemented in 2014 and updated in 2016. This French framework should be further relaxed with the PACTE Act.