elisabeta gjoni : modernisation of retail payment systems in albania opening address by ms elisabeta gjoni, first deputy governor of the bank of albania, at the conference on the " modernisation of retail payment systems in albania ", tirana, 21 june 2018. * * * good morning! it is my great pleasure to welcome you to the conference on the “ modernisation of retail payment systems in albania ”. the bank of albania is honoured to have today representatives from the european central bank, the world bank, and central banks of italy, kosovo, and serbia. also, i would like to welcome the operators and providers of well - known payment services in international markets, representatives of the domestic banking and payments industry, public authorities and, the governor of the bank of albania and the deputy prime minister of albania, mrs senida mesi. this conference takes place only one day after the meeting of the national payment system committee ( npsc ). the members of this committee undertook important commitments related to the development of payment systems and financial inclusion. the approval of the national retail payments strategy ( 2018 – 2023 ) is the main product of this meeting. the retail payments system is a vital component of : financial markets ; the overall economy ; and every citizen as the end user. in this framework, the bank of albania prioritises the modernisation of retail payments system. banks have provided a significant contribution for the development of payments, so far. they have invested in : many new technological platforms ; modern payment instruments ; cards by the renowned international brands. in recent years, non - bank financial institutions are also playing an important role in this regard, by implementing innovative solutions. public authorities have initiated and developed electronic platforms for the public payment services, such as taxes. the progress is notable – if compared with 10 – 20 years ago. but, our benchmarks are visionary : alignment with the standards of the countries we aspire to integrate with and the development of a society with a broad base of financial inclusion, where the use of electronic payment instruments are part of everyday life. the bank of albania, based on this vision, has placed at its focus the modernisation of retail payments system to bring about a tangible change. in collaboration with all market stakeholders, and with the valuable expertise of the world bank, funded by seco, the bank of albania finalised a set of analyses and studies on the situation of payments in albania. i would like to mention here three main reports,

of law - enforcement in terms of business relations development ; as well as a better protection of creditors ’ and consumers ’ rights of financial institutions and products. in practical terms, these measures would expand financing resources for economic development, thus relatively decreasing its dependence on the banking sector. also, public authorities should, through a close cooperation among them, review and improve the framework of measures for efficiently withstanding the extraordinary financial situations, being ready to engage the necessary financial, human and technological resources and carry out necessary legal and regulatory changes. dear heads of the albanian banking system, the events we have experienced in these 12 months make us believe that prior - to - crisis economic and financial balances are likely to shift to a new equilibrium. i think that what i just said constitutes the essence of our contribution to the future : let us do our best to make the economy move naturally towards a new equilibrium. all the institutions, policy - makers, administrators should be committed seriously to setting - up this new hotbed for our economy, so that as the years go by, it becomes attractive, competitive and profitable for every economic agent, either domestic or foreign. getting away from the pressure exercised by the crisis whirlpool requires much optimism, energy and financial resources. at national level, ensuring steady foreign currency inflows, particularly in the form of foreign direct investments, remains a major priority. i think that the banking system has a prior role to play in this regard. it should be active in identification, promotion and financial backup. thus the multiplier effect of foreign investments would gain a new dimension. bailing the country out of the crisis spillovers requires not only energies, but also joint efforts. the irreversible path towards a democratic system of market economy requires financial architecture perfection and the country ’ s steady economic development in the long run. to this end, the drafting and implementation of wise development policies should be a constant, real and forward - looking priority, in full accordance with the european convergence framework. only in this way we will harvest all comparative advantages that our country and the region and beyond provide to foreign investors. let me finally emphasise once more that a well - capitalised banking system is a long - awaited development. however, considering only the regulatory capital is insufficient, i think. what i really think poses an ongoing challenge is the capital of public trust. the latter one is not an output of regulations or banking supervisory practices. it is an output of all actors ’ sacrifices. enhancement of