the economy, which is the ultimate aim of financial system stability, relying only on such regulation and supervision based on microprudential principles. the first reason is that without considering the relationship between economic and financial activities, it is essentially impossible to determine the optimal level of capital and liquidity requirements. if absolute priority is given to financial system stability, then capital and liquidity requirements inevitably have to be raised significantly, but the inherent role expected of financial institutions is to engage in leveraging and maturity mismatches between assets and liabilities. financial institutions carry out financial intermediary functions with a certain amount of capital, raising funds with short - term debt instruments and investing in long - term assets, and provide value added through the provision of liquidity and settlement services. if financial institutions cannot properly fulfill their financial functions, the economy will not grow. of course, in reality, a capital adequacy ratio of 100 percent is not required, but as highlighted here, conventional regulation and supervision has also in fact been based on some sort of macroeconomic assessment of the relationship between the financial system and economic activity as well as the interaction between financial systems. however, i believe that efforts to take such a macroeconomic perspective into account in a more systematic manner have been insufficient. the second reason why i think microprudence alone is insufficient is that financial institutions ’ incentives are greatly affected by macroeconomic factors. on this point, i recall the famous remark made before the surfacing of the subprime mortgage problem by the then ceo of a major financial institution that “ while the music is playing, you have to dance. ” if, in the future, benign economic conditions similar to that time, namely high economic growth, low inflation, low interest rates, and low market volatility continue for a long time, would managers of financial institutions and investors choose different management and investment strategies? moreover, even if one were to choose a different strategy oneself, what strategy would one expect competitors to take? following this line of reasoning, it becomes clear that there will always be someone who takes on the risks. ultimately, the risks in the financial system as a whole are affected not only by micro - level incentives but to a great extent also by macro - level incentives, that is, the economic and financial environment. if we follow this line of reasoning, in order to ensure the stability of the financial system, microprudence, which secures the soundness of individual financial institutions, and macroprudence, which

. this is a child & youth finance international ( cyfi ) initiative, with the support of the organisation for economic co - operation and development ( oecd ), and over 53 thousand institutions and organisations and over 32 million children and young people participate in this year ’ s edition. the slogan for this year is ‘ learn. save. earn. ’ around this slogan, partner institutions organise awareness - raising and educational activities. as active participants in the money week activities, we have chosen to focus on educating the young people and encouraging them not to use the 1 / 2 bis central bankers'speeches outdated terms “ new lek ” – “ old lek ” in our day - to - day financial interactions. our slogan for this year is “ too young to speak in old lek ” this is the overarching theme for most of our contest categories. i take this opportunity to thank, on behalf of the bank of albania, all the participants and i exhort them to be an active part in the efforts for eliminating such outdated terminology. the bank of albania, with long - standing support from the albanian association of banks, and the precious support from the ministry of education, sports and youth, will organise a series of awareness - raising activities for children and young people on such topics. thus, during the week, a number of activities will be organised such as lectures, contests, visits to commercial banks and the museum of the bank of albania, aimed at involving as many students as possible. in all educational activities of the bank of albania, including these contests, we appreciate and encourage inspiration, originality and proactive thinking. the submitted projects for all the categories, whose winners are present today, feature all these elements. i take this opportunity to personally congratulate all of them for their qualitative works presented during the submission phase. their work and engagement are a source of constant inspiration for the bank of albania to introduce increasingly ambitious projects. the projects category targeted sixth graders, the photomontage category targeted ninth graders and the videos category targeted high - school students. the participation rate was very high, with around 340 students from 40 schools. i would like to extend my special thanks to the teachers and professors, whose commitment and passion is a key and necessary element for the realisation of these educational projects. lastly, i would like to thank you all for the insofar commitment, and invite all the participating institutions to continue the cooperation in the future, with a view to advancing our financial