and has continuously supported the initiatives for increasing the formalization of the economy. we have taken several measures to address informality, which have given their effects over the years. enhancing transparency and lowering the costs of bank transactions, without affecting the operational independence of banks and their decision - making, has brought households and enterprises closer to the financial institutions. the national plan for the reduction of non - performing loans established a regulatory criterion, as an important task for / to the bank of albania. starting from 2018, lending activity should take into account only tax declarations. this is one of the key elements for addressing informality, also for the significant share of the banking activity in the domestic economy. the bank of albania has previously dealt with this phenomenon from a regulatory point of view, but only with large 1 / 2 bis central bankers'speeches borrowers. the coordination of efforts with government bodies and appropriate actions taken in this regard have created the necessary space for taking this regulatory measure further to include a broader base of borrowers. the bank of albania is confident that this measure will bring long - term benefits for all parties involved in the process. - for the banking industry : crediting based on tax declarations facilitates significantly the lending process by putting banks on a common denominator in reading financial data. this eases the lending activity, providing banks with more clarity in the process of financial analysis and selection of borrowers, as well as exchanging information for common borrowers. - for albanian enterprises and households : this process promotes transparency, which will be translated into reduction of credit risk and, most importantly, lowering of financing cost. also, by providing a level playing field, this process fosters competition and efficiency, which, ultimately, contributes to the overall economic development of the country. - for the economy : this process increases the country ’ s economic and financial stability and creates premises for a simpler tax system and a fairer distribution of the tax burden. thank you! 2 / 2 bis central bankers'speeches

by side. while literacy may turn a poor man into a rich man, illiteracy, on the other hand, may conduct a rich man into misery. finances are dangerous when you are not financially literate enough. that is why i consider this conference as highly important. the bank of albania has devoted constant attention to financial education. our education agenda is integral and comprehensive both in terms of geography and age groups, full of interactive elements and modern communication methodology. furthermore, i would like to refer to some of the elements that constitute the philosophical grounds of our educational work. bis central bankers ’ speeches first, i would like to recall that financial welfare is inextricably related with the country ’ s economic progress. it has been already proven that individual ’ s welfare is proportionate to economic activity and prices of financial assets. the cause - effect relation is true on both directions. our economy and financial institutions are strong when revenues and wealth grow. financially healthy individuals are inclined to increase their consumption and, therefore, boost their spending, consequently pushing the economy forward. moreover, financially successful people boost lending potential by channelling their savings into deposits. therefore, they are in a position to have access in crediting by the banking system, giving life to new businesses which, in turn, provide higher employment and welfare. to most of the people, having a job and a salary or estate is essential to personal financial welfare. however, the fact that you may have a job, or a salary does not imply that you automatically have the capacity to make wise decisions on effective money utilisation. this is the point where our relation with financial education is subjected to the test of the truth. is this test passed? the sub - standard credit crisis in the us revealed that individuals in most cases did not manage to pass this test. consequently, the debt load on individuals grew even heavier, while access to crediting became tighter, resulting in a big risk for their financial future. a similar analogy may be drawn for lending in foreign currency in some eastern european countries. secondly, financial education should be seen as a public good that brings about positive externalities to the society. it not only increases individuals ’ financial welfare, but also affects directly economic policy efficiency undertaken by relevant authorities. the more - educated the public, the higher economic policy efficiency is. maintaining inflation and economic activity under control is almost impossible in a society ailing from financial illiteracy. macro - economic balances are achieved and maintained through monetary and fiscal