In concrete terms, we have worked on the following: -  Implementation of the risk-based supervisory policy;  -  Implementation of the risk assessment manual and of the new bank assessment system;  -  Implementation of the new regulation for calculating the capital adequacy ratio in compliance with Pillar I of Basel II. The implementation of these contemporary methodologies guarantees a high degree of compliance with international best standards, rendering our approach able to identify the risks in due time and dictate taking corrective measures for preventing the occurrence. Another achievement in terms of the approximation with the standards of EU homologous institutions was the positive assessment of the confidentiality regime of the Bank of Albania by the European Banking Authority (EBA). In October 2015, through a Memorandum of Cooperation, this Authority certified this regime as in full compliance with the relevant EU standard, including the Bank of Albania in the list of non-EU supervisory authorities that may take part in the work of EU colleges of supervisors. In the framework of the system’s supervision, during 2015, a considerable number of on-site examinations were carried out. Upon completion, the examined institutions were left relevant recommendations to make the necessary improvements and to draft a plan of measures, whose implementation will be rigorously monitored. In the past year, the process of licencing continued for new financial institutions such as microcredit and electronic money institutions and a considerable number of foreign exchange bureaus. 5. Other activities of the Bank of Albania  i.

From the sectorial perspective, the sources of growth are broader than in the previous year. With a few exceptions, all the sectors have contributed positively to the expansion of economic activity. From the demand perspective, economic growth was driven mainly by the expansion of private investments and improvement of the balance of trade exchanges with partner countries. Private consumption showed volatility, but its contribution was positive during the third quarter. Fiscal policy continued the consolidating stance. In line with previous statements, fiscal consolidation is the right approach for preserving the macroeconomic foundations. Consolidation creates more space for the expansion of the private sector and produces long-term benefits for the Albanian economy, for its capacity to withstand various shocks. However, while associated with higher employment and utilisation of production capacities, the growth of aggregate demand has not been adequate to absorb all the spare capacities in the economy. Unemployment averaged 17.5% in 2015, reflecting the unused capacities in the labour market. Thus, pressures on the rise of wages, productions costs and profit margins were weak. Annual inflation averaged 1.9% for 2015, up 0.3 percentage point from a year earlier. To address low inflationary pressures, the Bank of Albania continued to implement an accommodative monetary policy. It lowered the key interest rate, increased the liquidity injection in the banking system and engaged publicly in maintaining the accommodative monetary policy stance in the medium-term period. The key interest rate fell to the new historic level of 1.75% at the end of 2015.