to borrow in foreign currency, the reduced efficiency of transmission mechanisms in the presence of central bank credibility, the potential role of informal and parallel markets and informal economic activity, are some examples of interesting traits of economic behaviour. several authors have been intrigued by such developments. hence, they have conducted extensive research on these phenomenon in similar emerging and developing economies, which have later seen the light of publication. good examples are found in the research work done by the national bank of austria ( oenb ) on the level of euroization in the region, with interesting results that have helped authorities but have also increased the interest of other institutions and academics in euroization issues. in addition, there are increased concerns about financial and foreign exchange market stability in the event of a sudden reversal of capital inflows to the regional banking system. recently dramatic changes are occurring in the global economic environment, including continuing monetary policy normalization by the u. s. federal reserve. these changes can potentially impact small, open economies and must be understood. research conducted by the central bank of italy ( bdi ) is another example of research work, focused on the region, providing an interesting regional perspective for euro area policymakers regarding their policy decisions and actions. this research has formally provided researched - based evidence on the implications of their policy making on the large group of countries in the periphery of the euro area. these are just a few examples of interesting, useful and publishable research. this year we have a couple of projects that involve cooperation and joint works between bank of albania researchers and those from other central banks or academia. this is another way to increase the potential for publication and i would encourage you to increase the amount and scope of cooperation in research with foreign researchers. to conclude, i would like to reemphasize that we must enhance the overall efficiency of the transmission mechanism, and the resilience of the banking and financial systems so that potential and unexpected shocks do not advance to economic or systemic risk. to this end, we must reinforce our capacities and our understanding of economic and financial developments and their relation to policy tools, in order to properly respond to potential risks. this may be done by improving our current knowledge of past shocks, development, and the implications of potential shocks. experience has shown that this knowledge is comprehensive only when it is the result of a rigorous and competent research process. last but not least, we have to continue our policy efforts to strengthen the relationship between researchers and policy makers. i believe that these efforts

ardian fullani : opening, extension and modernisation of the primary and secondary treasury bill market address by mr ardian fullani, governor of the bank of albania, at a meeting with the minister of finance and representatives of all banks in albania, tirana, 8 april 2005. * * * honored ladies and gentlemen! first of all i have the pleasure to thank you for your willingness in finding the time to take part in this work meeting. i would also thank your technical staff for the devotion shown in dealing with this issue, which constitutes one of our priorities at the bank of albania. at the bank of albania conference on “ central banking in the time of integration ” i launched, interalia, the idea of the need for qualitative developments in the banking and financial system and this as closely connected with the need for further increasing the intermediation role of this system in the economy. it is understandable that the implementation of this idea would simultaneously require the giving of more possibilities to the banking system, so that this system carries out its role better and more actively. the topic we are discussing today is in this line. i am strongly convinced that the treatment of this issue did not appear as something unexpected, but it is a logical result of the positive developments taking place so far and the banking system awareness to be more active in its role for raising public confidence in the system. in the line of this logic, the raising of confidence would bring about its positive effects even on increasing their banking activity, which will be in compliance with their objective to be in the market with as much dignity as possible. in this discussion i will not focus on the technical aspect of cause explanation and process implementation, which i consider as exhausted by discussions made between respective technical staff, but i will focus on what we intend to reach and on the shortest and safest way to complete this process successfully. also, i would like to clarify that the individuals will continue to participate in the primary market of securities and this market will continue to be organized by the bank of albania. what we intend to reach through this process is : 1. the realization of a smooth transition process, at the smallest cost possible, in terms of maintaining the participation of individuals in the primary market. 2. the reduction of the time which is needed for the realization of treasury bill primary market auction. 3. the increasing possibilities to apply into practice the principle “ delivery versus payment ” for operations that will be performed in the secondary and retail treasury bill market.