gent sejko : launching of the new albanian banknote serie address by mr gent sejko, governor of the bank of albania, at the launching of the new albanian banknote serie, tirana, 12 september 2019. * * * honourable minister denaj and minister shalesi, your excellencies, distinguished guests, ladies and gentlemen, it is a great pleasure to have you with us in this very important day for the bank of albania and our national currency. in the history of the modern albanian state, the establishment and modernisation of its monetary and financial systems has a substantial place. the albanian currency is a symbol that has been present throughout the development of the country, bearing distinctive features of each era in the history of albania. it is not a coincidence that one of the key objectives in the creation of a national bank was, among others, the issue of the albanian currency, immediately after the sublime act of the declaration of independence that laid the foundations on which the albanian state was created. in 1926, one year on from its founding, in 1925, the national bank of albania presented and put in circulation, for the first time, a complete series of albanian banknotes and coins. subsequent developments in the centralisation and later modernisation of the albanian state dictated the need for continuous improvements of banknotes in terms of both content and design. it has always represented, however, the economic, social and political development phases of albania. through the themes and art embodied in its design, the national currency remains a faithful herald of the development, culture and history of a country. thanks to these attributes, the currency is in itself a significant element of the national identity. the theme of the current series of albanian banknotes, created more than 20 years ago, features important historical periods of the albanian nation, and prominent personalities of albania. these themes, embodied in each banknote through the portraits of some of the most illustrious national figures, evoke notable episodes in the history of albania in its endeavours for freedom and prosperity. the themes lead us on a journey through historical eras, starting from antiquity, moving through the middle ages, the national awakening, the independence of albania, and concluding with the symbols of the national flag and anthem on the latest and largest denomination, the 10. 000 lek banknote. these symbols have been chosen as representative and unifying elements for every albanian. while the new series that we are presenting today retains the same themes of the already existing series, its design

even say that the transition to a modern financial system is approaching its end. however, allow me not to fully agree. do not forget that what i have been talking about represents a crucial, but solely, segment of the financial system. it is in the interest of the economy, private sector and households, and in our interest as well, as the monetary authority, to push the development of the entire financial system. i think that the financial system we have is not enough to foster our expectations in the context of the economic and financial development of the country. i would not exclude the banking system from the observation. the high and stable profits have further deepened the concentration of the banking system and investment in a financial market segment. such a trend might affect financial stability due to an undesired mix of financial and human capital and of managerial abilities in a restricted segment of financial market. moreover, these risks could be fuelled by reckless competition and market share deriving from the concentration and issues of immoral speculations. the launching of this scheme, apart from emphasizing the confidence in our development policies, helps to provide the layers for the financial system and to fill in the gaps in the financial markets, stating an indisputable fact that there is room for boosting and strengthening those segments which do not seem to be lucrative. this is a significant signal for small - sized enterprises having great ambitions. these developments should help us to really understand the true potential of the albanian economy and they must be read by all players as such. moreover, they must understand that such entries will make the rules of participating in the market clearer. they set the standards for the quantity and quality of both financial and human capital, which make a company an eligible market player. time requirements impose the necessity for building similar capacities with the new entrants, otherwise the market will not tolerate. in this context, the bank of albania will be cautious to avoid any negative consequences deriving from the timely misinterpretation of current and expected developments. in our belief, all participants in the system should act responsibly and professionally, no matter how small they are. the misinterpretation of this new philosophy would be intolerable, with consequences for the financial stability, since it operates as a whole. these developments impose to us, as a monetary and supervisory authority, the adoption of more contemporary standards. the new players, in additional to sound macroeconomic policies, require the establishment of a market that can accommodate their