good geographical coverage, we still observe a lot of cash entering the country in bags. i retain, this is more a regulatory problem rather than the preference of emigrants to go informal. the disparity between our two countries in terms of bank accounts accessibility is largely a reflection of the fact that in italy you cannot get your salary if you do not provide with your bank account number. the anti - cash program initiated by the bank of albania clearly indicates that in order to lower the cash economy, we have to abolish the option of cash payments, including here salaries of the private sector, payments of utilities, etc. our bank is fully committed to support this process at all levels, being these regulatory or technical. of course, this comes at some cost, which in case of remittances is going from zero rates that informal or cash channels offer to some positive commissions required by formal channels. i understand the concerns raised by some analysts that legislation on exchange rate control or anti - money laundering could increase transfer rates further and push people to go underground. this calls for a revision of regulation that does not penalize the volume of remittances. as i mentioned earlier, the formalization of the economy is a major component of improving business environment in albania. therefore, “ forcing ” individuals to get into formal channels while comes at a short term cost of some positive rates most probably will have the long term benefit of signaling the serious intentions that we are moving on the right directions to both emigrants and foreign investors. for recipient families, accessibility to financial institutions plays a more important role due to large percentage of receipts delivered straight to the recipient ’ s door. in fact, the disconnection between the physical receipt of funds and the location of the financial institution may have a great impact on disintermediation among recipients. assuming that receivers can exercise some control over the mode and location of receipt, the geographic proximity of a branch or the ability to pick up a remittance in an office ( as required by western union ) can determine an institution ’ s ability to compete in the remittance market of the albania, not to mention the possibility of mobilizing savings from these new potential clients. remittances can be a point entry for many remitters and their families to the formal financial system. many emigrant families are either not familiarized with banks or have limited access with financial institutions. the bank of albania through its public communication strategy is aiming to bring the public

28. 9 % of total assets. as part of the regular stress - test analyses conducted by the bank of albania, in the context of a more comprehensive risk evaluation, the banking sector results stable. let me now elaborate on some issues i find critically important for the future. the banking sector weathered the hard liquidity situation in year - end 2008 and early 2009 successfully. following that period, public deposits in banks have grown at stable rates and liquidity has improved markedly. however, lending has contracted pronouncedly, initially as a result of the higher credit risk and later, due to the fall of business and consumer demand for loans. therefore, the free funds were invested in non - resident assets against a background of lower return on investment in the global market. the deteriorated loan quality, the obligation to increase the reserve funds and the lower average rate of return were followed by the decline in the banking sector net profit. for some banks, this situation needs careful monitoring by the governing structures and shareholders in order to identify those operations that would improve the expenditure and income structure and maintain its capitalization levels. with regard to lending, the bank of albania has continuously called for greater banking sector commitment in this regard. this has not been a rhetorical - like request considering that we have taken all the necessary actions to meet the banking sector needs with ample liquidity and we have cut the key interest rate several times. these measures, coupled with lower government borrowing, have provided room for lower interest rates on all lending. nonetheless, their decrease still seems insufficient to push credit demand higher. loan quality remains a challenge both for all and foreign currency - denominated loans. against this setting, it is essential that banks do not only create in a prompt and rigorous fashion reserve funds according to the regulatory requirements, but they should also complete and improve the procedures and human and financial capacities that enable following - up insolvent borrowers. complete acknowledgement of loan quality - related concerns and the full commitment of governing structures and shareholders allow for its more rapid and ultimate handling. otherwise, the banking sector ’ s capacity to intermediate more effectively would be impaired for a longer time. banks need to be determined to follow collateral execution procedures for insolvent borrowers. on the other hand, court decisions and particularly the actions of bailiff officers should be prompt and effective. i take this opportunity to appeal to the authorities to prioritize these actions. if legal procedures need to be complemented and improved further in order to enhance efficiency, the