asset prices and financial frictions. under the current conditions, the largest central banks in developed countries have stretched central banking theory and practice beyond traditional activities. their balance sheets have increased beyond imagination and, in some cases, include private assets ; they have accepted a much broader role and have assumed more responsibility. this all new and untested type of central banking will have a strong impact not only on the nature of monetary policy and its interaction with other central bank objectives but also on the independence and credibility of the central bank itself. the nature of future monetary policy will largely depend on the success of the largest central banks to get out of this situation in a controlled and timely manner, without causing excess inflation and damaging central banks hard - earned credibility. these developments will affect monetary policy in the emerging markets through interest and exchange rates, but most importantly in the way central banks conduct their monetary policy. influenced by current practices of leading central banks, some other central banks have reoriented their objectives and engaged in activities which are traditional for development banks and governments. we have been careful to stay away from adopting and targeting such objectives not only in monetary policy but also in our macro - prudential policy. the bank of albania has traditionally based its policy on two important pillars. our first focus has been to achieve our inflation target and manage inflation expectations to preserve the purchasing power of our currency. this policy has simultaneously provided necessary stimulus to economic activity. second, our focus on banking supervision and financial stability has enhanced the confidence on our financial system and therefore increased the efficiency and credibility of our monetary policy. as i have said in april of 2008, during the annual conference with the banking system in albania, “ every investment we make today in financial stability yields increased efficiency in our monetary policy ”. bis central bankers ’ speeches recently, the bank of albania has introduced financial literacy as a third pillar of our policy and independence. this objective is founded on my belief that the first two pillars gain sustainability only if the public understand the role of the central bank, its independence and its policy. last but equally important, i would like to emphasise the need of cooperation and coordination with the fiscal policy. fiscal policy and its impact are facts of life which can ’ t be ignored. therefore, monetary and macro - prudential policies have to be designed and implemented in full awareness of its existence. a central bank does not live in an isolated island ; its success will, among others, depend on its ability to act in coordination and cooperation

finance corporation at usd5. 2 trillion in developing countries alone. with the devastation wrought by covid - 19 on smes, we expect that this gap has widened. as we bring back our smes to life, digital practices will be core. we have already seen the increasing use of digital lending to smes based on business transaction histories, alternative data from mobile phones and other government public records. in kenya, a consortium of five banks launched a mobile - centric msme financing product dubbed stawi in november 2019. stawi provides “ anytime anywhere ” financing to msmes and will be a powerful weapon in our arsenal as we reimagine the post - covid posture of our msmes. second, building the foundations for sustainable digital ecosystems, which requires collaboration between the public and private sectors in developing three critical components : core connectivity infrastructure required to extend digital services across countries, and necessitating secure digital identity for citizens to connect to the digital infrastructure. creating an enabling market and regulatory framework that enables fintechs to scale up their innovations. enlightening citizens on their rights and protections in the digital realm. third, strengthening inclusive international governance. regulations and standards governing digital financing need to be informed by sdg commitments and goals, with a particular need to ensure that the sdgs inform the governance of a new generation of global digital financing platforms. the pandemic has accelerated the growth of global digital platforms particularly in e - commerce, payments and entertainment. this unprecedented growth has increased the market concentration enjoyed by the platforms. a critical concern is that this growth has been more technology - centric as opposed to being people - centric. the concerns particularly on data privacy and security are pertinent to emerging countries that may not be on the table in discussions on these platforms yet they are potentially their largest users. accordingly, the taskforce has mooted another pathfinder initiative, the international dialogue on global digital finance, spearheaded by kenya and switzerland. it seeks to facilitate a balanced and more inclusive dialogue, particularly involving developing nations, on sdg - aligned governance of global digital finance platforms. it will convene representatives from central banks, finance, trade and other relevant ministries, cross - sector regulatory bodies, non - state actors from developing countries, and representatives from key institutions such as the financial stability board, bank for international settlements, international monetary fund and the world bank. these three recommendations represent opportunities for establishing a global financial system that would support shared prosperity by focusing on people