mr thiessen reviews the challenges for canadian monetary policy in the year 2000 remarks by mr gordon thiessen, governor of the bank of canada, to the greater charlottetown area chamber of commerce, charlottetown, prince edward island, on 2 november 1999. * * * monetary policy actions take a relatively long time to affect the economy and inflation - anywhere between 12 to 24 months. because of this, central banks must always look ahead and must put in place today the monetary conditions that are needed to help keep the economy on a sustainable path down the road. by “ sustainable ” i mean a situation where economic growth and job creation are not at risk from rising inflation. it is in this forward - looking context that i would like to talk to you today about the challenges that may face canadian monetary policy in the year 2000. first, of course, is the turn of the century itself. so let me start by saying a few words about year 2000 readiness in the canadian financial sector. year 2000 preparations as i said in regina a little over a month ago, the canadian financial sector has done its year 2000 homework - and, i might add, done it very thoroughly. the bank of canada and providers of financial services are confident that canadians can expect “ business as usual ” in the financial sector as we head into the year 2000 and beyond. the critical systems of financial institutions, including those systems that support automated banking machines, credit and debit cards, and telephone banking, have been modified where necessary and tested. providers of infrastructure services to the financial sector ( for example, electricity and telecommunications ) have also reported that they are year 2000 ready. and major canadian deposit - taking institutions have guaranteed the safety of their clients ’ accounts and records from any year 2000 computer - related disruptions. the bank of canada has given the same guarantee to holders of canada savings bonds. even so, retesting of systems and contingency planning will continue right up to, and including, the new year ’ s weekend. right now, the canadian financial sector is so well prepared that the major issue is no longer one of potential technical problems. rather, it is a matter of dealing with a possible overreaction to year 2000 fears that could be more disruptive than the year 2000 problem itself. with this in mind, the bank of canada has built up a large inventory of banknotes. this is not because we think that canadians will actually experience widespread problems using means of payment other than cash, such as credit and

introduced many new business models, both in processes and in products. we should also embrace them in albania. the great technological revolution has eliminated physical barriers, making it easier for the people to access the financial market, regardless of the geographical location, age, qualification, cultural formation, or tradition. in addition to easier access, the costs and speed of obtaining services have improved notably. our banking system should not only make use of all these elements, but it should also develop them further. financial inclusion and education are two challenges that i think should be an integral part of our agenda in the years ahead. world development indicators show financial inclusion of the population continues to be low. in 2014, only 38 % of the population had an account with licenced institutions of the financial system, while 22 % of adults had a debit card and only 6 % of them had a credit card. this shows a large gap between us and oecd countries, where 92 % of the population has a financial account, whereas 80 % of adults own a debit card and 40 % a credit card. the role of banks in concerning financial education is very important and i would say unique. the deepening and expansion of your clientsa€™ financial literacy has a high social impact and, at the same time, banks will reap benefits, because, in turn, the clients are consumers of banking products and services. ladies and gentlemen, lastly, i would like to focus on the contribution by the banking sector to the fight against 2 / 3 bis central bankers'speeches informality, a very harmful and, unfortunately, still wide - spread phenomenon in the albanian economy, to the extent that it may be considered a serious risk to the economic and financial stability of the country. even in this aspect, the role of the banking system is very important. using information certified by authorities, concerning the balance sheet of the companies, as well as other economic actors, has become a necessity. above all, they are prudential measures, which enhance the level of security and stability, especially in lending. the reform against informality amongst the priorities for the albanian authorities, and the banking sector - with its network, expertise and know - how, which many of you bring along from the home country of the respective banking group - should offer its assistance for the common goal. based on the above, i invite you to focus the debate and analysis in this one - day conference on these lines, hoping that this meeting will create a convergence of