Because those mechanics are governed by national accounting standards, global markets face significant hurdles in exercising discipline across jurisdictions. Business practices differ. Legal systems may be unfamiliar. Deciphering balance sheets prepared under national accounting systems can be an extremely taxing undertaking. Considering those burdens alone, it is easy to agree that market discipline would be more effective under more harmonious - if not completely harmonised - accounting rules. But the task is formidable: a reporter from the Wall Street Journal questioned recently how accounting rules could be harmonised  BIS Review 29/2004  3  when, for example, Europeans and Americans do not even agree on which set of measures should be used in the kitchen. In our efforts to strengthen financial stability, central banks and supervisors have a legitimate interest in the quality of accounting standards and their effective implementation. We believe that in order to contribute to strengthening the banking system, accounting standards should support - or at least be consistent with - sound risk management and control practices in banks. In addition, they should facilitate market discipline by promoting transparent financial reporting of banks’ financial position and performance, risk exposures and risk management activities. Finally, accounting standards should facilitate the effective supervision of banks. This is why, as you know, the Committee has attached great importance to taking an active role in the international debates on accounting and promoting the supervisory perspective on key accounting issues, and we very much support the work towards convergence in international accounting.

During 2018, the focus of scientific research was on issues related to monetary policy, safeguarding financial stability, and coordinating these two objectives. The results of the research are shared with national and international experts in scientific panels and are published in discussion papers. An important part of Bank of Albania’s development strategy is the establishment of transparent and long-standing relations with the public. The Bank of Albania has fostered its communication with the public to provide its opinion on economic and financial developments, as well as on the Bank’s role in keeping macro-financial balances. Also, it complied with the obligations under the law “On the right to information” duly informing the public, as requested. During the year several national and international conferences and forums were organized, discussing topics that are at the centre of the current debates and of interest for the country’s development. Notably, the annual conference organized in cooperation with the London School of Economics and Political Science this year was dedicated to new approaches in the framework of monetary policy and the challenges to economic integration. This conference brought together distinguished personalities of central banking from advanced economies and regional countries, central bank governors, academics and representatives of international regulatory authorities. Conferences and discussion forums served to foster cooperation with our key partners such as the Albanian financial system, central banks of European countries and international financial institutions. Fostering co-operation was rendered more concrete with several agreements concluded, notably with the European Central Bank and the Single Resolution Board.