gent sejko : financial inclusion, governance, tackling nonperforming loans, and albania ’ s milestones for 2020 address by mr gent sejko, governor of the bank of albania, at the meeting organised by the albanian association of banks, tirana, 12 february 2020. * * * dear ladies and gentlemen, it is always a pleasure for me to attend meetings and round tables with representatives of banks operating in albania. they are also an excellent opportunity to discuss and harmonise our efforts for a stable deepening and expansion of the financial market, as one of the core pillars of the economy and the main driver for sustaining development and enhancing the public ’ s welfare. i would like, in my brief address, to bring to your attention some highlights of 2019, regarding the contribution of the banking and financial systems, as well as some milestones for 2020. let me first focus on the overall state of affairs in the albanian economy. the devastating earthquake that hit albania on 26 november 2019 was a major event with a strong impact for 2019, on all the sectors of economy and the whole society. it was an unexpected shock giving rise to economic and psychological consequences in the affected areas and beyond. on the other hand, it was a difficult test, and i may say that all banks passed it successfully, in terms of continuity of financial market ’ s critical functions. in such a disastrous situation, it was very important that people could perceive the security, at least in the financial aspect, regarding their deposits with banks and continuous access to their funds to meet their basic needs. under these circumstances, not only did all banks generously contribute to recovering from earthquake consequences, but they also supported their clients in alleviating their pain and offering adequate solution, while ensuring continued operations and activities. beyond this event, overall, the albanian economy in 2019 performed in positive terms. its growth pace continued to trend upward, employment increased, internal and external balances strengthened, and main indicators of the banking sector ’ s soundness have been improving. all the above reasons boost the optimism on the outlook of economic growth in the medium - term horizon. among others, albania has reached an important milestone on its path to development and integration : the expected opening of accession negotiations with the european union. these negotiations should be definitely considered as an important development anchor and an additional guarantee for both domestic and foreign investors. year 2019, as i stated above, affirmed the stability of the albanian banking system. all structural changes that started

s repayment capacity, but also optimises the time and cost of assessment for both the bank and the client. the bank of albania remains committed in supporting energetically such collaborative projects, by guaranteeing impartiality ; meanwhile banks should show a good will in this regard. last, in these days of daily technology advancement, banking business would not be able to survive without investing in technology, in the right time. all banks are fully aware of this, but the pace of development in each of them has been different. thanks to the strong relations and exchanges with our european neighbours, and the firm aspiration to be part of the eu, a postponing of the necessary investments in this regard would be at the cost of competitiveness. but, investments in technology only, without the support of internal human resources, may expose banks to high operational risks and irreparable consequences. while educated young people are moving abroad, i invite you to consider investments in technology, not only for the automation of processes, but also as an opportunity to prevent the impoverishment of the labour market, thus contributing to setting up conditions for keeping the qualified labour force in this market, which is also part of the elite clientele of the banking market. in conclusion, let me assure you that the bank of albania provides the maximum support and attention to all your proposals, not only in capacity of the regulatory authority, but also, as a loyal, supportive and serious partner, aiming at achieving the common objective, that is a developed market which offers attractive possibilities for investors, for financial stability and a fair competition which respect the consumer ’ s rights. our decision - making will be transparent and all our initiatives will be guided by a spirit of cooperation with the banking sector, aiming at ensuring highest efficiency. thank you for your attention! 3 / 3 bis central bankers'speeches