Unless mergers are accompanied by other measures to improve corporate governance, we will merely create one large weak bank out of several small weak ones. Financial sector reforms also have to include strengthening of the supervisory system and institutions. Had supervision been adequate in the first place, the problems would not have become so grave. Professional and independent supervisory authorities will tighten standards of acceptable banking practices, and over time instil rigour and rectitude among all participants in the system. The supervisors have to set standards, penalise errant lenders, and remove implicit guarantees. Credit discipline will foster the emergence of stronger companies, and provide the basis for sustained growth. Political and social preconditions All these policies - accepting globalisation, fostering ASEAN economic cooperation, restructuring the corporate sector, and reforming the banking sector - are essential for countries to recover. But to be in a position to implement and make such economic policies work, countries must first create the right political and social preconditions. Investors, both domestic and foreign, will adopt a wait-and-see attitude until they know how political uncertainties are resolved. Their views are coloured by past experiences, and they will look for evidence of a clear break with the past. A stable political climate is essential to foster confidence, investment and growth. Governments must put their houses in order, bring corruption under control, and install men and women of integrity and competence to key positions within the top leadership.

Gent Sejko: Remittances from Albanians abroad positively influences the Albanian economy Speech by Mr Gent Sejko, Governor of the Bank of Albania, at the high-level meeting on the remittances from the Albanian diaspora, Tirana, 11 December 2017. * * * Dear Minister Majko, Dear guests, Welcome to the premises of the Bank of Albania! I would like first to thank the Minister of State for the Diaspora, Mr Pandeli Majko, for his initiative for higher attention to drawing in and effectively using the remittances sent by Albanians abroad. Today’s meeting is the first in a series of common steps to be taken by Albanian institutions, in an effort to give its due place to the financial contribution by Albanian emigrants to the welfare of their families at home. This contribution is also vital for the sustainable and long-term development of the Albanian economy. The Bank of Albania has always considered the remittances as a very important contributing factor for the economy of Albania and beyond. In this light, the Bank of Albania measures and analyses the available statistics, and conducts non-quantitative assessments related to the geographical distribution of the sources of remittances, at the national and international level. The assessment of factors contributing to the level of remittances and the cyclical volatility of their flows over the years remains at the focus of our work. For Albania, remittances represent a steady and considerable source of inflows, which surpass foreign direct investments, being thus a substantial source of financing economic growth in Albania.