We are seeking participants from beyond payments and financial services but also from the companies who initiate and receive payments, and software providers and others who may want to take an active role in shaping the technical standards which will underpin elements of that project. Conclusion The Bank is committed to strengthening the UK’s payments services, and we will continue to work closely with the industry to ensure we create services not just for existing users but for prospective participants too, including those with innovative business models such as Distributed Ledger Technology. Our vision is to develop an RTGS service which is fit for the future, increasing resilience and access, and offering wider interoperability, improved user functionality and strengthened end-to-end risk management. Our changes will help to increase competition and innovation in the wider banking and payments markets. The upcoming enhancements will benefit from a two-way dialogue between the Bank and the payments industry. As we continue this exciting journey I look forward to working with all of you as we innovate and strengthen the UK’s payment services for the future. 11  https://www.wearepay.uk/ https://www.bankofengland.co.uk/news/2018/june/iso-20022-consultation-paper-a-global-standard-to-modernise-uk-payments 13 https://www.bankofengland.co.uk/-/media/boe/files/payments/sap-terms-ofreference.pdf?la=en&hash=104B67B7AF846BF7837BF6762BDB7000C6B06A6F 12  7  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  7

Our point of view is that this process belongs equally to the Bank of Albania as the Resolution Authority and to the banks, 4/5  BIS central bankers' speeches  which must include its results into their daily business. During the first cycle of this work in 2018, we have highlighted a number of issues that require particular attention in planning, as well as in their following up by the banks: The Bank of Albania must have access to qualitative data produced by banks, in order to select the appropriate resolution strategy. The exact identification of the bank’s operational system interconnected with the critical functions is important. The proper understanding of contractual agreements and their respective treatment is imperative, and, in particular The provision of resolution funding sources constitutes a challenge. Complying with the Minimum Requirement for Own funds and Eligible Liabilities (MREL), which underpins the application of the new essential resolution instrument, the bail-in instrument, remain the key challenge for the medium-term period. Complying with MREL is a challenge for countries like Albania, due to the capacity of the domestic market to absorb (acquire and maintain) the subordinate debt that may serve to fulfil the Minimum Requirement as well as due to the capacity of the banks to restructure funding resources, which currently consist largely of deposits. Consequently, to fulfil this obligation an interim period should be designed, without prejudice, in any case, to the main objective of resolution implementation. Finally, resolution is quite a challenging process for emerging and advanced economies.