However, the liquidity situation and the global crisis effects on the real sector of the economy have brought about underlined decline in lending paces and have reversely impacted the credit portfolio quality of the banking sector. Therefore, the financial result of the banking sector, though lower than that of 2008, continues to be positive. It is clear to all of us that the banking sector would face a difficult business climate and needs to adapt in the mid-term. As a matter of fact, a complex interdependence between the economic growth and banks’ financial soundness is noted. Decline of investments and partially of consumption in the economy has been reflected in decreased credit demand. On the other hand, increased premium risk has made banks more tightening in lending standards, showing greater attention to liquidity indicators. The Bank of Albania deems that we may enter into a vicious circle, where non-lending to the economy would result to a prolonged economic slowdown, due to damages in related interests of all stakeholders in the economy, including banks. We think that this situation requires countercyclic operations in a  BIS Review 129/2009  3  general level. In practice, the banking sector should exercise its role in promoting the development of the economic activity, naturally showing proper prudence. This system is the generator and controller of market economy. Provision of development impulses by acting jointly should be its primary task, while the positive synergies will bring mutual benefits to economic growth and financial stability.

From this viewpoint, it is deemed that actions to monitor the overall price performance of non-financial assets, the way of estimating them and recording them to bank balance sheets have been insufficient to pre-empt unjustified increases and to avert their procyclic moves. All these elements are regarded as conclusions that go beyond certain jurisdictions and require a global response in the context of increased financial integration and ongoing economic globalization. Emerging market economies are affected differently from this turmoil. The crisis shudder hit harder the countries with an economy damaged from macroeconomic and financial policies, with decreased competitiveness, reduced space for financial stimulation, with an unbalanced economic growth or an underlined dependence on foreign financing resources to stimulate an unrestrained economic and financial expansion. In the face of an extremely difficult financial situation, spread swiftly on the entire real sector of the global economy, public authorities of advanced economies took extraordinary actions to ensure financial market functioning and attenuate the financial distress. Through central bank actions, low-cost liquidity was injected into the markets, while governments took extraordinary actions to provide backup capital to financial institutions and to support domestic aggregate demand. Moreover, some emerging market economies, with robust economies and with an upward share to the global economy, have supported the domestic demand through their stimulating policies and have preserved their economic growth, playing an important role in mitigating the global crisis consequences.