the stability of the banking sector, as one of the main sources of stability and growth of an economy. in kosovo, fortunately, we have a banking sector with a high degree of stability, which has the ability to withstand possible negative shocks and, at the same time, help the economy to cope with possible shocks with minimal consequences through stable financing. among the main challenges in modern banking are the advancement of digital banking and the issue of environmental impact on the banking system. during the last years, there has been an important development in the direction of digitalization of financial services, which is transforming the financial system. we see the process of digital transformation as an opportunity for financial institutions to become more efficient and to improve access to financial services for households and businesses. as for the field of payments, the cbk has taken some important steps in the liberalization of the market, where payments and money transfer services have been allowed to be offered by non - banking financial institutions. cbk has planned to further liberalize the payment services market by adopting the eu directive on payment services known as psd2, as well as the two eu directives addressing payment accounts and electronic money, in within the framework of the new law on payment services. this legal framework will allow a diverse group of payment service providers to operate and compete in the payments market, while also helping to create more efficient and affordable local and cross - border payments. it will also prepare us for meeting the conditions of application for membership in the european payments scheme known as sepa, as one of our main goals in the future. this legal framework will set the foundations for the next decade and bring more pronounced competition in the field of digital financial services. it should be noted that the banks in kosovo have been very proactive in terms of undertaking initiatives and actions for new developments and adaptation of the most modern technologies, comparable to those of western european countries. assessing and managing financial risks arising from climate change is one of the challenges facing supervisory authorities and the banking sector. within the western balkan countries, kosovo has also adopted the green agenda for the western balkans at the sofia summit in november 2020, which is a comprehensive strategic roadmap regarding climate change. this agenda shows the way to new energy solutions, which means increased investments in renewable resources as well as sustainable environmental development. the banking sector represents the main component of the financial system of kosovo, so banks will play an important role in the transition towards the green economy. climate change creates risks for banks, so it

a result, the people ’ s bank of china ( pbc ) has continued to intervene massively in the foreign exchange market. at the end of july, foreign exchange reserves were equal to around us $ 1. 4 trillion, or more than 45 % of gdp. reserve accumulation, amounting to about us $ 1 billion per working day in 2006, has more than doubled to above us $ 2 billion per working day in the first seven months of 2007. it is well known that reserve accumulation, although partly sterilised, is one of the drivers of excess liquidity and credit growth in the chinese economy. in this context, i took note with interest that that premier wen, governor zhou, and numerous other chinese authorities, have repeatedly cited the fast growing trade surplus and excess liquidity and investment growth as some of the key domestic imbalances that the country needs to resolve in order to achieve a more sustainable growth pattern. 3 2. trade relations between europe and china trade between the european union ( eu ) and china has expanded at an impressive pace, particularly after china joined the world trade organisation ( wto ) at the end of 2001. according to eurostat, in 2005 china became the second largest trading partner of the eu, having moved up from the fourth place in 1999. and last year china displaced the united states as the largest source of eu imports. in 2006 china accounted for 14. 2 % of total eu see 2006 world investment report by the un conference on trade and development. see, for example, the speech by premier wen jiabao to the davos world economic forum on 7 september 2007. imports and 5. 4 % of total eu exports. as regards the euro area, in 2006 china accounted for 10. 3 % of euro area imports and 3. 9 % of our exports. from china ’ s perspective, the weight of the eu in its total trade has grown even more impressively. according to chinese statistics, the eu is now the first trading partner of china, after overtaking both the united states and japan in 2005. the eu accounted for 19. 2 % of china ’ s total exports ( the us for 21. 5 % ) and 12. 8 % of its total imports ( the us for 8. 4 % ). the dramatic growth in the headline trade figures conceals a large divergence in the growth rates of eu imports from and exports to china. whereas the eu enjoyed a trade surplus with china at the beginning of the 1980s, trade