Crediting should be supported better through a solid growth of funding sources, especially deposits. In crediting, it is necessary to have a better sectorial distribution and a more reasonable balance among public and private investment projects, Albanian Lek or foreign currency denominated credits, therefore orienting crediting towards supporting the national economy. BIS central bankers’ speeches  3  In this context, there is sufficient room for banks to support more crediting to small and medium enterprises and provide more opportunities in Lek crediting. In any case, the process of analysis, assessment, follow up and evidencing the credit quality should be pivotal to relevant structures in banks and should be carried out with maximum seriousness and commitment, conform to supervisory requirements. In this process, cooperation is needed with clients that are facing temporary difficulties. However, in the case of non-performing loans, it is necessary to undertake envisaged and timely actions to execute the guarantees and other forms of collateral, in order to recover maximum values. These actions are important while the Bank of Albania deems that the crediting activity of the banking sector will continue to face a challenging environment and targeted improvements for the credit quality will require more time to be realised. In conclusion, let me underline that, movement in the above-mentioned directions make a complex process which requires a two-way commitment and cooperation. It is with pleasure that I find that cooperation between us and the banking sector is seeing progress, both in field of supervision and monetary policy implementation.

Captives could metaphorsise from perceived brass plates models into legitimate commercial vehicles that serve a real economic purpose. Perception management is pivotal for the future existence of captives. Captives must be seen as supporting and contributing to the broader economic transformation and growth. These three developments; the emergence of more diverse captive models serving a broader spectrum of companies, technological advancements and more considered regulations, are likely to foster a greater convergence between the intended economic outcomes of captives, and the required and appropriate regulatory framework. I hope that this forum will seize the window of opportunity to bring together mutual interests that have long been somewhat at odds. As a collective, all of us here today, have a common interest in ensuring that captives demonstrate genuine value and valuable economic purpose. Achieving this calls for strong corporate governance practices, greater transparency and sound financial management that commensurate with underwritten risks. Ultimately, a new reality needs to be embraced by captives. In the long term, investing in technology, technical expertise, better and stronger compliance frameworks are worthwhile endeavors. It’s no more a choice. At stake is the viability of individual captives and an enduring captive industry that will add breadth and depth to insurance markets. Conclusion The captive industry may well be at a turning point. In moving forward, how we start matters. Efforts to develop the captive industry should be focused on better risk management, promoting macro-economic stability and encouraging new growth rather purely concentrated on tax planning.