that albania offers the banking sector solid premises for business and growth. but, growth and development do not materialise out of nothing. they reflect the commitment, the hard work and the dedication of all actors. let me now identify three challenges that we need to tackle together. first, the pace of economic growth needs to be supported by the dynamics of banking credit. we have discussed relevant reasons and factors in many forums and analyses. today, i would like to emphasise that the economy may not grow sustainably without bank credit recovery. your role becomes crucial in this regard. the banking sector safe - keeps the savings of albanian citizens. it is its duty, however, to make such savings available to the growth and development of albania. there is no growth without credit, and without growth, savings lose their value. therefore, it is imperative that short - term goals do not prevent the adoption of a strategic and longer - term vision. banks should invest with a view to developing functions related to financial consultancy services for their clients. they need to persistently seek to explore the market, to identify potential clients – especially households and small enterprises – and, most importantly, to help them design bankable proposals and projects. at this phase, the reduction of concentration and the diversification of credit portfolios are key elements. this requires that you design and set up relevant structures, processes and products, and plan for adequate financial resources. in parallel, you should continuously assess the surrounding environment, which certainly affects your activity. thus, if there are concrete proposals for additional legal amendments or supervisory practices, i invite you to formulate and submit them officially to us and other relevant public authorities, so that we can, together, make a swift decision on them. in 2 / 3 bis central bankers'speeches this process, the bank of albania will always support initiatives that lead to an eventual improvement of financial intermediation levels and safeguard the stability of the banking sector and of the financial system. second, our ambition should aim higher than the 3, 4 or 5 % annual growth rate. the country needs more optimism, which means higher growth rates and more structural reforms. the banking sector has both a direct and an indirect role to play in this regard. the direct role pertains to the further development of the banking market and products – in line with the best international experiences. likewise, insistent work on further reducing the level of non - performing loans should not be neglected, and should be considered by all of us as a key

njuguna ndung ’ u : islamic finance – the african experience remarks by prof njuguna ndung ’ u, governor of the central bank of kenya, at the 2nd gulf african bank annual east & central africa islamic conference, nairobi, 3 – 4 may 2010. * * * suleiman shahbal, chairman, gulf african bank ltd ; najmul hassan, chief executive officer, gulf african bank ltd ; board members ; distinguished guests ; ladies and gentlemen : i am delighted and honoured to be here this morning to preside over the opening ceremony of this important conference. to start with, let me extend a very warm welcome to all of you who are attending this 2nd gulf african bank annual east and central africa conference titled “ islamic finance : the african experience ”. allow me in particular to extend a special hand of welcome to the international participants “ karibuni kenya ”. i also wish to convey the apologies of the governor, professor njuguna ndung ’ u, who would have wished to personally preside over this occasion but had to attend to other engagements. i will make some remarks that reflect his strong views on islamic finance and extend his best wishes for fruitful deliberations at the conference. the conference is important as it offer opportunities for the banking and financial sector fraternity to meet and discuss emerging industry developments, to learn from their accomplishments and challenges and to share views on sound practices. islamic finance is so far the fastest growing segment in the global financial industry. despite the global financial crisis, islamic finance has demonstrated strong growth with new areas of business such as mutual funds and takaful industry attracting a lot of attention. we need to understand this business model that will support our relative comparative advantage in the eac region. kenya was the first country in the east and central african region to introduce islamic banking. in this regard, two banks were licensed in the last two years to exclusively offer shariah - compliant products with many other conventional banks establishing a window specifically for shariah - compliant products. with this, i am proud to inform this gathering that the concept of shariah complaint banking has emerged as an alternative vehicle for mobilisation and supply of finance. for example, the two banks have already contributed in development agenda of the country by participating in shariah - compliant ( sukuks ) components of infrastructure bonds issued by the central bank of kenya on behalf of the government of kenya. we are still waiting for “ structured sukuk