anchored long - term expectations of the economy. this move has increased the space for harmonising better the short - term stimulation with the long - term stability of the economy. in response to shocks, we have progressively eased the monetary policy since 2009. this approach has brought the key interest rates to their record low to boost consumption and investments. the depreciation of the nominal and real exchange rate has provided another incentive for the albanian economy, encouraging exports and discouraging imports. we have continuously adjusted our monetary operations to guarantee an increasing supply of liquidity against an expanded collateral base with longer maturity terms. given the current situation of the albanian economy, we believe that macroeconomic policies should continue to be stimulating even in the future. the need for stimulating economic policies is conditioned first by the fact that the albanian economy is operating below its potential, as the demand may not guarantee a complete utilisation of capacities. second, it is enabled by short and medium - term controlled risks to economic stability. in the context of harmonisation of fiscal and monetary policies, the bank of albania has supported the increasing orientation of the fiscal policy towards debt consolidation. we remain ready to respond within a short time to any consolidating initiative of the public sector. our easing measures will remain within the legal framework of bank of albania ’ s instruments and in line with the consolidated philosophy of central banks action. the monetary policy may prove successful only if its transmission mechanism is functional. in this context, the banking system plays a key role, as the first actor of the transmission mechanism. b ) a prudent supervisory and regulatory policy. this policy maintains sound balance sheets of the financial system and the private sector. thanks to the timely measures to manage credit, capital and liquidity risks, the albanian economy has successfully withstood the shock from global financial markets and has now a consolidated financial stability and a banking system that is able to credit and support the albanian economy. maintaining banking sector stability is one of the two main priorities of the bank of albania. i take this opportunity to draw the attention of the banking industry executives, to engage bis central bankers ’ speeches maximally to act in full compliance with the legal and regulatory framework and respect the standards for sound management of banking activities. our objective remains unchanged ; maintaining and strengthening public confidence in the banking sector. to this end, the banking system should : verify constantly the compliance and strengthen the internal audit systems. empower capacities for risk assessment and management. maintain adequate capital and liquidity

ardian fullani : important issues for the future of the albanian banking system speech by mr ardian fullani, governor of the bank of albania, at the inter balkan forum of banking associations, durres, 20 may 2005. * * * ladies and gentlemen, it ’ s a great pleasure to participate in this prestigious event of the banking system of balkan region. my pleasure is great due also to another reason, because i had for years and years governed the albanian association of banks and in addition i had given my personal contribution in initiating and organising this meeting in albania. i would like to thank you again for having accepted today my invitation already proposed last year for organising this meeting in albania. of course, my delight is great but also my responsibility today to present myself as governor of the bank of albania ; therefore please consider me as being yours. in this spirit, i would like sincerely to begin my speech with the wishes : successful and fruitful proceedings of the meeting. allow me first to tackle an important issue, which within the context of this meeting, i believe, is of paramount importance. i mean by that the regional co - operation, an initiative that has been completely supported by the european central bank. we have already taken the first steps in this regard through establishing bilateral relationships in banking supervision with national bank of macedonia, central bank of montenegro and banking and payment authority of kosovo. meanwhile, we are in the process of negotiating with national bank of bosnia and herzegovina, national bank of serbia, etc. i estimate that regional co - operation is an important forerunner of the integration process of the region with the rest of europe ; therefore i will not stop working to encourage a regional co - operation of high standards among the financial systems of balkan countries. i hope that you share the same opinion with me, because only in this way, our region will be more credible and efficient to have its european dream. on the other hand, a developed and financially integrated region will be more attractive for foreign strategic investors, opening up the path toward regional development projects, particularly infrastructure ones where region ’ s banks might be the financing and co - financing ones. further on i would like to give you an overview on some different issues of importance for the future of the albanian banking system. in diverse meetings organised by the bank of albania with the banking community and other actors on relevant opportunities, a range of problems were highlighted and evidenced of which i think there is still room for a joint commitment, of both the bank of albania