prices ; hence, restructuring measures were necessary to address inherent risks in the financial institutions, which were coming from : bis central bankers ’ speeches • high leverage ; • falling asset quality ; • funding constraints ; • insufficient capitalization ; • fragmentation and conflicts of interest in supervision ; such measures were associated with public intervention in the financial system ( mostly banks ), increasing further the linkage between “ banks and sovereigns ” and creating more “ moral hazard ”. at this point, a financial regulatory reform was necessary at international level, to address such risks. under the guidance of the g20, broader and more comprehensive regulatory reforms were designed, with a special contribution by basel committee, the financial stability board, imf / wb group and many other. such reforms were aiming to : • strengthen the resilience of the financial system ; • avoid future similar crisis ; in more details, such reforms included : • improving the surveillance superstructure of the financial system, through : – establishing institutions with macro - prudential powers to monitor, assess and address systemic risk ( in eu – esrb, ecb ; in us – fsoc ; in uk – fpc ; etc. ) ; – reducing fragmentation and possible conflicts of interest in supervision, and achieve supervision consistency : notably in eu through the “ banking union / single supervisory mechanism ” : ecb – eba – esrb ; in uk – boe – pra – fpc ; – new directives to ensure timing and effective restructuring of banking business ( brrd ) ; – better design and use of tools to assess resilience of financial institutions to risks, like stress - testing ( in eu – eba / ecb ) ; • improving the financial system infrastructure, through : – better protecting the “ core ” banking activity from other activities like “ proprietary investment ” through new rules and proposals ( in us – the “ volcker ” rule ; in uk – proposals of the “ vickers ” commission ; in eu – proposals in “ liikanen ” report ) ; – improving clearing and settlement of securities transactions and streamlining financial reporting ; – improving deposit guarantee schemes • improving in banks under “ basel iii ” : – the quantity and quality of the capital ; – the funding structure – their risk management requirements and capabilities ; to summarize, the legacy of previous financial excesses and the following crisis, is a changing financial landscape ultimately determined by international financial regulatory reform, local financial market characteristics and the crisis impact itself. bis central bankers ’ speeches following

has been drafted and is pending approval by the parliament. this law regulates the licensing, supervision and activity of the slas in compliance with the best standards. in close collaboration with the albanian deposit insurance agency, amendments to the law on deposits insurance have been drafted. these amendments consist in new norms addressing the slas and include legal persons in the insurance deposits scheme. the past year was successful also regarding the information technology. although such projects are less visible to the public, they are of key importance. at the beginning of 2015, the afisar system started operation - this is the central electronic register for the documentation of each element that accompanies the issue and transactions with securities issued by the albanian state. in the meantime, other successes achieved with regard to information technology include : • automation of the reporting system of banks to the bank of albania ; • integration and optimisation of the it network utilisation, thus reducing operational costs of the bank of albania ; • automation of accounting operations at boa branches ; • and increase of information processing and storing capacities. bis central bankers ’ speeches bigger challenges lie ahead of us in 2016. another important objective is boosting credit to support the private sector, certainly at lower interest rates. the business plans of banks for 2016 render us optimistic in this regard. meanwhile, once again i emphasise that our monetary policy stance will remain accommodative in 2016. furthermore, private sector's demand will be low throughout 2016, thus creating premises to increasingly channel the banking system's liquidity to the private sector. i would like to guarantee the banking system in albania that the bank of albania will be a reliable, open and serious partner, in compliance with its mandate, implying its supervisory function. one of the main aspects in our work will be the compilation of a particular law to deal with banks facing a difficult financial situation, also known in our daily jargon as the resolution law. this is in the light of an important contemporary directive of european union, which we are working to introduce in our banking legislation. last, but not least, we will continue our efforts during 2016 for the further institutional perfection the bank of albania, aiming a fast approximation to the model of escb central banks. the new organisational structure and the three - year development strategy of the bank of albania will guide a set of decisions of the bank of albania's supervisory council to improve legal and sub - legal acts. the daily activity of the bank of albania's departments,