That, however, was to prove a big drawback for the banks once the financial crisis hit for real in 2007 and 2008, as the sell-off of structured products pulled Icelandic bank shares with it and sent CDS spreads through the ceiling. The fact that the Icelandic banking system was based on EU legislation was conducive to cross-border expansion. However, in spite of all its merits, there were fatal flaws in this system. The basic problem was that, although banking and regulation was European, both supervision and the safety net of deposit insurance and lender of last resort were national. The same applied to a significant degree to crisis management. There was an inherent vulnerability and risk associated with this setup, especially for small countries outside the euro area. This proved fatal for Iceland, in part because it made the mistake of taking European regulatory directives as mostly binding, but not as a minimum. However, the biggest design failure was in the case of deposit insurance, because not only did it violate the principle of matching international private action with international public measures, but it also violated the insurance principle of pooling. European banks need European deposit insurance. That is how it is. Crisis management and resolution Let me say a few words about crisis management and resolution in the case of the Icelandic banks. During the height of the crisis, its management left a great deal to be desired, especially the cross-border part: •  There was lack of information sharing and co-operation across affected jurisdictions.

In periods of wars and conflicts – history shows that, albeit relatively small, Albania has experienced many wars and conflicts – people have turned to the currency and precious metals. Hence, about 100 years ago, at the beginning of the World War I, Europe dived into one of the worst financial crises of the past century and many people and businesses rushed to convert their bank accounts and assets into cash and gold coins. Meanwhile, in Albania, these events triggered a chaotic monetary circulation. In the absence of a national currency and due to the political-military and economic developments during the War, diverse foreign currencies circulated across the country, mainly those of European and neighbouring countries, as well as American and Turkish ones. You may see this conglomerate of denominations in the showcases of the Museum dedicated to the period of Independence and the World War I. Also, the showcases on the monetary circulation in Albania during World War II, in addition to the ones of Antiquity and Medieval periods, exhibit denominations that speak of the important and complicated relationships between money and war. I am sure these important moments to the economic and monetary history of Albania, and beyond, will be discussed at length during the Conference. Dear participants, The Conference is not the only activity the Museum has organised about numismatics, economic, monetary and financial history. We have also organised for the general public a cycle of lectures called “Museum nights”, with lectures delivered by experts in the field of numismatics, history and economy.