, the capital adequacy ratio stood at 18 % showing a considerable ability of the banking sector to withstand risks ; while the non - performing loans ratio dropped close to 5. 0 %. our regular analyses on systemic risks to the banking system, show these risks remain contained. further consolidation of banking activity was also an important development in 2022. otp bank purchased the shares of alpha bank in albania, bringing the number of banks in the albanian banking system to 11. beyond monitoring the soundness of the banking system, we have oriented our work towards the further strengthening of banking supervision and consolidating resolution plans. some of the priorities in the work of the bank of albania in this regard have been the following : first, the bank of albania continued improvement of its supervisory and regulatory framework aiming at its approximation with eu acquis and basel principles. revision of regulations has been aimed at implementing the requirements on strengthening the capitalisation standards for banking activity ; second, in the same line, we have further progressed towards assessment of the equivalence of our supervisory and regulatory framework with the eu acquis. this equivalence is quite important to reduce the operation costs of the banking industry in albania and to further prompt expansion of the banking sector and development of financial markets. in this context, we carried out an independent assessment of equivalence, pursuant to the new methodology published by eba. this re - assessment concluded that both our regulatory framework and supervisory practices have a high convergence with the european union standards. based on this conclusion, we submitted our request to eba to include albania in their official assessment process. third, we completed the regulatory framework on payment services. upon the approval of the law " on payment services ", the sub - legal acts regulating the activity, supervision and management of risks for entities which provide payment services were approved in 2022. completion of the regulatory framework enables the safe and effective functioning of electronic money institutions, by creating the premises for increasing payment services, strengthening competition in the market, and enhancing both transparency and protection of albanian consumers. fourth, the recommendations from the committee of experts of coe on the evaluation of anti - money laundering measures and the financing of terrorism – 5 / 8 bis - central bankers'speeches moneyval were implemented. as an integral part of the national plan in relation to anti - money laundering measures and the financing of terrorism, the bank of albania has fulfilled its responsibilities, improving the regulatory framework and strengthening the effectiveness of the oversight process. in addition, we have continued with

, the bank of albania is working on the implementation of an instant payment infrastructure. this novelty in the field of payments aims at reaching those market segments which do not use electronic instruments. in the field of currency issue, in 2022 circulation of the new series of albanian banknotes was completed with the denomination of 10. 000 leke. the new series bears 6 / 8 bis - central bankers'speeches contemporary and sophisticated security features. an educational campaign on the use of the national currency accompanied the entire process. the bank of albania has scrupulously managed the international reserve, by observing the main objectives of liquidity and security. despite the problems faced by international markets in the last year, the level of our foreign reserves is in compliance with our adequacy criteria and with the best international practices. the bank of albania has fulfilled its institutional obligations in the framework of the national plan for european integration. since the opening of negotiations in july 2022, the bank of albania has intensified its participation and contribution in bilateral meetings with the european commission, while it has continued economic and financial dialogue through the participation in joint committees with the authorities of the euro area market. enhancing transparency and accountability through open communication has guided our relationships with the general public and with interest groups. though, our decisions cannot be adequately conveyed in an economic environment, which is characterized by a limited degree of financial education. for this reason, in 2022, work has been done on drafting and implementing the " national strategy of financial education and inclusion ", which aims to improve financial literacy and inclusion of the public at large. finally, significant improvements have taken place in terms of improving the governance of the institution, through updating risk management systems and ensuring business continuity with the best international practices. in particular, due to the organized cyber - attacks that the country faced last year, the bank of albania paid special attention to the enhancement of stability in : the banking sector ; in markets ; and in the payment systems which the bank of albania operates. in more concrete terms, the bank of albania reviewed continuity plans for the recovery of the institution's activity in the event of a cyber - attack, intensified the controls and monitoring it performs on the systems and services it provides, and strengthened cooperation with local institutions, such as the national electronic certification agency and cyber security ( akcesk ) and the albanian association of banks, as well as with international institutions, such as the international monetary fund and the world bank. * * * honourable members of the committee,