Financial performance has been good, recording average levels of return on equity and on assets, respectively over 20 per cent and 1.5 per cent. Over the years, the banking system has chosen to capitalise the majority of its profit in order to best support its activity with liquidity and capital. During this period of a rapid and qualitatively better expansion of the banking activity, the Bank of Albania found it necessary to revise the supervision philosophy. The main ambition was its orientation towards sources of risk, in other words to strengthen control over banking activity. For that reason, at the end of 2006 a new law “On Banks” was adopted. This law imposed, on the banking industry, more contemporary standards as regards realisation, direction, and control of the banking activity. The main concerns consisted in high crediting levels, significant concentration of crediting in foreign currency, and the absence of sectorial diversification. Consequently, at the end of 2006, the Bank of Albania introduced a number of regulatory amendments aiming at slowing down crediting growth levels, through imposing higher capital requirements on more aggressive banks. These measures were further supplemented in 2008, targeting more directly cases when borrowers had no income in foreign currency. Another strategic move during this period was integration of banking supervision and financial stability with monetary policy decision-making. This action is as bold as it is innovative in establishing more optimum equilibriums between our function of drafting and implementing the monetary policy and that of maintaining the system’s financial stability.

London has more foreign banking institutions than any other financial centre, and it is the largest financial centre for cross-border bank lending. London is the world’s leading centre for foreign exchange business, with average daily net turnover six times that of Frankfurt. More foreign exchange business in dollars, Deutsche Mark and French francs takes place in London than in each currency’s country of origin. London is the principal centre for the international bond markets, with 60% of primary international bond syndication and 75% of secondary market trading. The London Stock Exchange is the world’s largest centre for the listing and trading of foreign equities, and LIFFE is the largest financial futures exchange in the world outside Chicago. London is also one of the largest centres for the fund management of institutional equities, and one of the largest centres for insurance business. London’s position derives from the critical mass of markets and financial services available, and the concentration of the strongest financial businesses from all over the world. London’s strengths include a long track record of innovation and capitalising on new opportunities. The most well-known example is the creation of the Eurodollar markets, which US firms in London did so much to promote. London is the home of the English language. It is in a convenient time-zone between Asia in the morning and New York in the afternoon. It has an abundance of trading and other financial skills and professional support services - in law, accountancy, tax, property and communications.