requirements of the regulatory framework. we would kindly ask you and your shareholders for dedication in this process, not only to find the necessary human and financial resources, but also the most appropriate forms for a quick, transparent, and consistent handling of non - performing loans. we need to bear in mind that lending carries along risks that are difficult to identify at the time of disbursement. these risks are determined not only by the quality of bank lending procedures, but also by significant external factors, including the performance of the economy. this uncertainty permeates the current phase our banking sector is going through. therefore, it is indispensable that bank management structures and their shareholders commit the necessary financial resources to cope with the possible additional costs in the future. for shareholders, this implies not only retention of profits in the bank, but also adding new capital in case of need. remember that it also represents a more general trend in the banking industry globally, with a number of new forthcoming standards that provide for improving the quality of bank capital and increase of its size. our banks should gradually begin to adapt to these new standards. for senior managers, strengthening the control systems of the bank activity remains a primary objective, especially for those activities that generate the main revenues and expenses arising from the activity. risk management structures should be really empowered and have a stronger voice in decision - making. banks should continue to further improve the efficiency of their operations, including the establishment of a better control over the costs of the activity. setting priority activities for your institution will allow you to identify new investment needs as well as those activities that use bank resources inefficiently ; they should, in turn, be restructured. this process will positively affect the financial performance of the institution, and will allow the implementation of other active policies in areas that benefit the activity of the bank. we all know that banking is an activity based on trust. for this reason, the bank ’ s services to customers should be “ first class ” across the entire bank network. this means that customers should be served correctly, timely and transparently. banking services should be provided in accordance with the clients ’ financial literacy, in any case highlighting, the benefits and the risks that customers may incur as they use your bank products. in the context of its role as the supervisory and regulatory authority of banking operations, the bank of albania will continue to carefully monitor and address the challenges facing this bis central bankers ’ speeches activity. our regulatory framework and supervisory and operational

, banks demand and market operations of the bank of albania to support them. market interest rates were downward, reflecting the trend of policy interest rate and banks'actions to control operations costs and profit margins. the foreign exchange market has been stable, despite increasing trading volumes and higher number of participants in the market. banks were active and prudent in servicing their clients ’ demand for foreign currency. dear bank managers, let me now focus on a number of issues of concern to the banking industry and the bank of albania, which we believe should be addressed carefully during the next year. i would like to start with lending as the activity that has the main impact on the banks ’ financial result. we find that lending growth rates decreased and credit quality continued to deteriorate, particularly for foreign - currency denominated loans. this performance is due to the fall of demand for loans ; however, it also reflects a persistent reluctance of banks to lend. bis central bankers ’ speeches this trend needs to be reversed by addressing problems related to the pace of lending and non - performing loans. the stable growth of deposits as well as the significant increase in non - residential investments show that banks have sufficient financial resources to lend at higher growth rates. these resources should be used to lend mainly to the private sector in albania, acting in accordance with the established regulatory framework and your policies for investment diversification. on the other hand, efforts to address the non - performing loans should multiply, in terms of both prevention and addressing them properly. your focus should be placed on the cautious process of loan restructuring, especially before such loans are transformed into non - performing loans. further, you should act discreetly, but consistently, for the execution of collateral. we are all aware of the problems that exist in this area. nonetheless, also thanks to your work, i find that the awareness of decision - making public authorities in this regard has improved significantly. i had the opportunity to communicate about these issues today to the parliamentary, commission of economy and finance. i am confident that the work started by the ministry of justice for the revision and improvement of some important legal acts, including the code of civil procedures, will be finalized, incorporating and approving some concrete proposals for amendments submitted by the banking industry and the bank of albania in order to enhance the process of collateral execution. in addition, upon the conclusion of legal processes, it is pivotal to proceed swiftly to write - off loss loans from the bank ’ s balance sheets, in accordance with the