be directed to achieve this common vision, consideration needs to be given to the stage of development of the respective economies. in particular, the expected role that the banking system needs to fulfill can be identified accordingly. this could range from the development of an islamic banking system to efficiently intermediate funds in the economy, to having in place a sophisticated islamic banking and financial system that is internationally integrated and that is in itself, an engine of growth. pre - requisites of the islamic banking system the development of a vibrant and dynamic islamic banking system that has a meaningful role in a nation's future economic and social development requires well - defined strategies that focus on two main areas, building institutional capacity and the development of the supporting financial infrastructure. allow me to highlight the key areas of the strategies. the first task is to identify the nature of islamic banking system that is appropriate for the country - whether to ultimately adopt a dual banking system where islamic banks and conventional banks offering islamic banking products operate in parallel with the conventional banking system, or alternatively to adopt a single banking system that fully accords the shariah injunctions where all the banks are islamic. second, measures need to be in place to ensure that the islamic banks are well - capitalised and resilient. for islamic banks that are already in existence, clear criteria need to be specified on the minimum capital size that would enable them to be significant players in the market, be able to gain from economies of scale, have a diversified earnings base and stronger market presence. such minimum size can either be achieved through organic growth or merger with a partner bank which would bring about the desired outcome in a shorter period of time. incentives can be provided to induce the banks to consolidate while guidelines on minimum capital size can be imposed to ensure that the banks either merge or undergo a recapitalisation exercise. in the case of countries that are just embarking on the introduction of islamic banks, this could be achieved by the issue of new islamic banking licences. third, for countries that have a dual banking system, where conventional banks are allowed to offer islamic banking products, there must be adequate firewalls to ensure absolute separation of banking operations to avoid co - mingling between the islamic and conventional funds. this is to ensure the integrity of islamic banking operations and the sanctity of islamic funds. the firewalls would need to include separate capital funds, cheque clearing systems, clearing accounts with the central bank, settlement accounts and reporting systems. fourth, regardless of

in the framework of the national plan for the reduction of non - performing loans. in view of this goal, the bank of albania has : ( i ) prepared a draft - regulation on the out - of - court treatment of non - performing borrowers ; ( ii ) extended the requirements for using official financial statements in the assessment of credit risk for all categories of borrowers ; ( iii ) initiated measures for improving the credit registry ; and, ( iv ) started work for harmonising credit reporting in accordance with international standards. the bank of albania has initiated concrete measures to promote the use of the domestic currency in our financial system and has continued working on the development of the macro - prudential policy and on establishing early warning systems for systemic risks. increased attention has been paid to the oversight of the implementation of measures for the prevention of money laundering, in cooperation with the directorate general on the prevention of money laundering. the final evaluation report of the committee of experts on the evaluation of anti - money laundering measures and the financing of terrorism ( moneyval ), rated the effectiveness of financial institutions as “ substantial ”. in particular, banks show they know well their legal obligations and risks, and have generally taken due measures commensurate to the risk level. the evaluation process was accompanied by a plan of measures for addressing the main problems ; their implementation will continue in 2019. in the capacity of the resolution authority, in 2018, the regulatory and procedural framework for resolution planning was prepared and the compilation of individual resolution plans started. also, in 2018, the resolution fund was established and the procedure for its management was put in place. lastly, i would like to reiterate that safeguarding financial stability is a responsibility not only of the bank of albania, but also of other regulatory agencies and the government of albania. policies and measures for safeguarding financial stability and strengthening banking system ’ s resilience require that all parties continue the coordinated, inter - institutional and multi - dimensional efforts. 3. improvement of financial markets and payment systems in view of its duties and commitments, the bank of albania has continued to promote the development of the financial market and to improve further the payment system. thus, in cooperation with the ministry of finance and economy, the project for promoting the development of the primary and secondary markets for government securities continued 3 / 5 bis central bankers'speeches successfully. this project paves the way for deepening the financial market, expanding and diversifying the base of investors in government debt and reducing its cost