This is the reason why the central bank places its focus on these markets and on their proper functioning. Based on these specific reasons, the Bank of Albania has initiated, time ago, a series of actions for creating a more dynamic financial market. The macro-prudential measures taken with regard to liquidity and capitalisation; limitations placed on positions with non-resident banks, provisions and collateral; and the package of measures for reducing non-performing loans are steps to remedy problems related to the shallowness and narrowness of the market, the low financial inclusion, and the inadequate financial education. Studies and analyses of the Bank of Albania support the logical conclusion that the development of the financial market is an important factor for boosting economic activity and enhancing welfare in general. At the Bank of Albania, we believe that the current structure of the banking market promotes competition in relation to banking products and services. However, the further 3/4  BIS central bankers' speeches  expansion and deepening of the market is a present challenge for all the relevant actors involved. The banking industry, the Bank of Albania, other segments of the financial market as both as actors and as regulators, the government, the academia and experts of the field, should be all involved in this effort. Our ambitions should aim at having a dynamic and liquid financial market, with upward trading volumes, and a widening spectrum of instruments, including a prolongation of maturity horizons and prudent risk management.

Compared to other sectors of the economy, fintech is progressing at a slower pace, especially in Europe, as new companies need to gain the confidence and trust of consumers and investors, which traditional financial institutions have gained over long periods of time having been anchored by strong financial regulation and supervision.  For regulators the challenge of fintech affects both prudential and consumer protection. -  Prudential perspective: supervisors have to strike the right balance between catalysing the innovation and efficiency that fintech can bring, while preserving at the same time the regulatory level playing field and a safe and sound framework. We should seek to apply the same regulation to the same services. As fintech steps up its presence, it might be useful to place increasing emphasis on regulating services rather than institutions. -  Consumer and investor protection: it is key that financial investors and consumers fully understand the implications of the fintech services, including credit risk, cybersecurity and protection of privacy risks. We have to strengthen our policies of information and financial education regarding fintech services. 4.  International cooperation   Need for coordination. Given the context of highly interconnected and cross-border financial markets, it is of paramount importance that we sustain the efforts to strengthen international financial coordination. We need to avoid the risks of regulatory arbitrage or a regulatory race to the bottom among jurisdictions. International fora such as the G20, the Financial Stability Board, the Basel Committee and or the IMF are key in this task.