gent sejko : achievements in 2022 and setting the milestones for 2023 address by mr gent sejko, governor of the bank of albania, at the year - end event organised by the albanian association of banks, tirana, 15 december 2022. * * * honourable aab chairman, dear ladies and gentlemen, as every year, it is a pleasure for me to joint this special meeting with banking industry, sharing our achievements and efforts made throughout the past year, the most meaningful experiences, and setting the milestones for 2023. let me first focus on the overall performance of the albanian economy. the sharp upsurge of prices and inflation in international markets in the wake of russia's war against ukraine shaped the performance of the albanian economy over the course of 2022. this supply - side shock caused another steep challenge for the albanian economy, driving to the need for a review of public economic policies and business - plans in both private sector and banking industry. in this context, i would like to highlight that the albanian economy was in sound positions when this shock hit, following the rapid rebound from the pandemic - related shocks in 2021. also, the monetary and financial stability was consolidated. the sound financial balance sheets of albania, the strengthened confidence in banking system, and the reduced risk premia reflect this stability. also, the latter is anchored in the positive experience that we both, public institutions and you, as financial sector, have gained in tackling such shocks. in addition, the monetary policy normalisation we have embarked on has established the premises for controlling inflation and safeguarding the economic and financial stability of albania. in this view, i would like to welcome the positive role played by the banking industry over 2022, by maintaining a positive approach towards lending to private sector and taking the necessary measures to manage added risks in your balance sheets. i am confident that these measures, and others we may take in this regard, will pave the way for a rapid return to normality. though risks remain present, our projections suggest inflation will return to target within the first half of 2024 and the albanian economy will continue to maintain a positive growth pace throughout this period. as important actors in the economic and financial life of albania, i would like to reemphasise that our decision making should be forward - looking, decisive and courageous. albania has a solid economic growth prospects in both medium and long term. they have enabled the continuous expansion of economy and of

individuals, are capable to make healthy financial plans, from an early stage of their career. their knowledge enables them to plan their finances for retirement, children ’ s education and accumulation of financial assets. these individual behaviours, seemingly irrelevant, bring about great benefits in the national perspective. fifth, i would like to underline that financial education is a long - term process, extended over time, and that the presence of specialised institutions is indispensable. although in financial crisis individuals incur large damage, they continue to be involved in future crisis. the number of individuals, who are familiar with interest rates they either receive or pay in financial transactions, remains low. the same may be said about investment strategies, financial risk identification and assessment, and other elementary money management concepts. many people do not think in financial terms and do not perceive accurately profits and costs resulting from bank loan use, or wealth - related effects originating from home ownership and other similar long - term assets. reasons behind this behaviour are understandable and related to the fact that the majority of the society acquires information circumstantially, hoping that the actual failure becomes a lesson for the future. one way to eradicate circumstantial learning is the introduction of financial reading at an early stage of education. in this view, i would proudly say that, the bank of albania has provided an outstanding contribution. allow me to briefly make an resume of our work in this aspect. the first strategic station of financial education provided by the bank of albania was needs assessment and identification of training priorities. from this point of view, we assessed that it was indispensable to open the bank “ de facto ” to the public. more frequent communications with the market and its important participants, as well as periodic explanations of monetary policy decision - making and risks balance related to inflation and financial stability, are some initiatives that we consider as a very effective education process. i am proud to say that now we have : a public opinion that builds up expectation as regards our decision - making ; a media sector, which has admirably enhanced understanding, interpretation and expectations related to our decision - making ; a banking sector, which reads accurately and responds with high flexibility to the direction oriented by us ; a qualified public critique, where bank of albania finds a mirror of alternative opinions on its adopted decisions and practices. another important aspect is the identification and division of the population according to their demographic, geographic and cultural characteristics. for us, financial education is