to improve financial literacy, across the board. among other things, financial education would help both individuals and firms establish sounder financial situations and reduce financial risks such as unnecessary exposure to exchange rate volatility. the bank of albania has been on the vanguard of financial education in albania and will continue to spearhead such efforts. albania needs also to develop further payment systems and improve access to finance for various segments of the society, such as small and medium - sized enterprises or the rural sector. the bank of albania has responsibly exercised its duties in the area of payment system development. in this regard, we : established, in 2015, the national payments system committee, to coordinate the work of all relevant public and private sector agencies ; compiled the draft law “ on payments services ”, which approximates the respective eu directive and paves the way for developing new payment products ; and, improved the technological infrastructure for payments, reducing therefore their costs. however, our work may not be considered as completely finished. lastly, albania should pay attention to the development of new financial market segments, such as capital markets and pension and investment funds. in this context, alignment of the legal and regulatory framework is of primary importance with a view to preventing the potential emergence of systemic risks or the possibility of regulatory arbitrage. * * * dear ladies and gentlemen, our agenda for the work that lies ahead of us is as complex as ambitious. its successful realisation will enable our economy to grow at a fast and steady pace, and will mark a step forward in our journey towards eu integration. on behalf of the bank of albania, let me affirm our readiness to rise to the challenge. i am also confident that today ’ s conference will provide a significant contribution to finding optimal solutions. hoping that you will find the conference and your stay in tirana both valuable and enjoyable, i wish the conference a great success! thank you for your attention! 4 / 4 bis central bankers'speeches

exceed their short - term costs. third, financial integration provides an additional channel of exposures to foreign shocks, whether in the form of global financial crisis or volatility in the regulatory framework. overall, financial integration has been and remains a positive factor for development. in the case of albania, it brings in financial capital and managerial know - how, with a series of positive effects on the albanian economy, spearheading the economic and political integration of the country. yet, integration requires fostering cooperation and exchanging information with our international partners and counterpart institutions. lastly, the monetary and financial stability of the country should not be seen as an exclusive responsibility of the central bank, notwithstanding its primary role in it. it requires the contribution and cooperation of all state authorities. dear ladies and gentlemen, the albanian economy has solid premises for continuing and even accelerating the pace of growth. strengthened financial stability, coupled with prudent monetary policies, offers additional guarantees for its sustainability. however, let me point out that many challenges lie ahead of us. from a broader perspective, the financial industry, both in our region and globally, is under pressure from four powerful currents : rapid development of information technology, which has created opportunities for financial innovation and has challenged classical banking models. new payment and credit instruments, new financial market actors, and new business models, such as digital and electronic banking and payments, boost the penetration of financial services. conversely, they challenge not only classical actors of the financial sector but also its regulators. globalisation, which has expanded the scope of market actors and regulators. this phenomenon significantly exposes emerging economies to volatility in the regulatory framework or in the risk appetite in advanced economies. re - regulation, currently underway in the financial system in europe and globally. this process is aimed at enhancing security in the banking sector, lowering the probability of systemic crisis, and enhancing the capacities of authorities for managing them. however, it imposes additional costs on the banking sector and places it under less favourable conditions vis - a - vis other market participants. very low interest rates that characterise many segments of the global financial market. 3 / 4 bis central bankers'speeches these rates reflect the accommodative monetary policy stance adopted by major central banks, the decline in global productivity and unfavourable demographic developments in advanced economies. these have a toll on the balance sheets of broader segments of the financial market such as banking sector, pension funds and insurance companies. from a nearer - term perspective, albania needs