bank of albania have provided the necessary monetary stimulus to support the normal functioning of the financial markets and to ensure the flow of credit in the economy. interest rates for households and businesses are low and liquidity pressures are under control, while the exchange rate appears stable. the albanian banking sector remains sound, despite the challenges posed by the pandemic. the immediate operational measures taken by banks, as well as the macro and micro prudential measures taken by the bank of albania, ensured not only a continuation of the operation of the critical functions of the banks, but also satisfactory financial intermediation despite the great shock suffered by the economy. credit to economy is growing ( it grew by 6. 3 % in the third quarter 2020 ), capital is adequate and the banks ’ balance sheets remain healthy, signalling their ability to withstand first - round shocks. we are optimistic that the economic activity is expected to revitalize over the next two years. however, the economic outlook for the future is accompanied by a high level of uncertainty and downside risks. in the short term, the risks are mostly related to 1 / 3 bis central bankers'speeches the uncertainty of the pandemic itself, its severity, duration, and potential return of restricting measures. in the long run, the risks relate to the long - term damage sustained by the productive capacities and domestic demand, as well as potential structural change sustained in the economy as a result of the altered behaviour of economic agents. we are sure that research based evidence, analysis and forecasts will provide accurate and timely information for policy orientation and coordination. research in the area of monetary policy, financial stability and banking supervision has always dominated the topics of our workshop. this year covid - 19 has entered the agenda by brute force. this shock and the negative effects that it brought upon the economy and the central bank policies have been beyond comprehension. the authorities are feeling the difficulty of performing their task in the zero lower bound or very close to it. in this respect central banks have lost the traditional instruments of monetary policy and are reverting to money as the instrument of monetary policy. the shift has been significant not only in size but also in concept. the leading central banks in developed economies, the ones which set the trends, are under process of reviewing their objectives and monetary policy. using support of research analysis and conclusions they are eventually rewriting monetary economics by giving central banks new instrument in the form of permanent use of the central bank balance sheet as a tool of monetary

, we will see these topics discussed in our future workshops. my most important recommendation is that research produced at the central bank, remains close to central bank interest and has practical value for policy and decision making to achieve their objective. it must flow naturally into policy making and provide solid foundations for 2 / 3 bis central bankers'speeches monetary and financial stability policy. finally, i am proud to see how our researchers have progressed in the adoption of the most sophisticated techniques of research. simultaneously, i am glad to see that the adoption of research methods has crossed the boundary of research department and is spreading well into other departments. our economists are doing independent research work in support of their day to day activity. this is the result of our continuous efforts to increase the impact of research in policymaking. however it is without doubt also a result of activities like this, which introduce or staff to the relevant work that is done in academia and other central banks. whether you are from academia or central banks, we are grateful for your continued interest and thankful for your participation. we hope that you and your colleagues will continue to join our workshop in the future, hopefully, in a covid free world. hence, we can go back to our traditional ways of the past, and give you the opportunity to present your works at bank of albania, engage with our research and introduce yourself to our beautiful tirana, albanian culture and the delicious taste of albanian cuisine. wish you the best and the most productive event! 3 / 3 bis central bankers'speeches