implement an independent monetary policy. both similarities and differences are important in order to understand the role of our institutions in the assessment and availability of actions taken to safeguard financial stability. despite the arsenal of these actions, central banks cannot carry out this mission alone. central banks are in possession of a full arsenal of measures and instruments, but their implementation, albeit timely and complete, cannot have full effect unless they are coordinated and supported by other agents ’ actions. it is thus essential that all economically - important agents, public authorities, the public at large and the media are fully aware of this matter. apart from legal definitions, this awareness requires receiving comprehensive, regular and timely information on the events that may jeopardize financial stability and identifying the necessary protective actions. the regular release of reports dedicated to financial stability is the key instrument that meets this obligation. let me now share with you our experience at the bank of albania. according to our concept, the bank of albania has full legal responsibility for safeguarding financial stability. the bank of albania is attributed the exclusive role in terms of licensing and supervising the banking activity, the right to organize and monitor the operation of the payment systems, the lender - of - last - resort function to assist banks facing difficulties, the liquidity management function in the interbank market, and the determinant role in foreign exchange policy. the bank of albania has the obligation to inform the public about the events that may jeopardize the financial stability. in early 2007, the supervisory council of the bank of albania considered a better coverage of developments in the financial system – that is, not only in the banking sector ’ s alone – as highly important. in addition, it required strengthening the analysis of interaction between macroeconomic developments and the financial system ’ s activity. our ultimate goal was setting up a more sustainable mechanism that would allow the conversion of these analyses into proposals for concrete actions, in order to reduce systemic risk not only through the bank of albania ’ s actions but also through measures taken by other public authorities that have a role in monitoring the developments in the financial market. from the institutional viewpoint, in september that year, the supervisory council of the bank of albania, approved the establishment of the financial stability department, by selecting the most outstanding human capacities in the area of monetary operations, banking supervision, research and statistics. the conclusions derived from the analysis of this department would be regularly discussed at a higher central bank level, thus providing a useful filtering and enriching mechanism prior to

be part of the trialogue philosophy, which involves the bank of albania, the government and the market, at an appropriate level of transparency before the media and the public at large. • fourth, we intend not only to produce a report that limits to the description of past event, but also enrich it gradually and to a certain extent with research analyses and incorporate elements of forecast. • fifth, the report should arrive at some conclusions on the issues it addresses, which enable the identification of relevant recommendations. • sixth, the contents of the report should include a main part, which must be consistent over time for the effect of consistency of analysis and its comparability, and another part which provides greater degree of freedom to elaborate on more specific issues that materialize the main analysis. • lastly, we have paid special attention to the language used in producing this report, aiming at using plain and clear language, free of equivoques and understandable to the professionals of this area and the public at large. we are fully aware that this process requires constant improvement. dear guests, in conclusion, let me offer the support of the bank of albania in cooperating with the central bank of the republic of kosovo on matters relating to financial stability. this cooperation may aim at identifying matters of importance for both institutions, which later may turn into joint projects. more concretely, we can cooperate on the assessment of the suitability of stress - test methodologies or on the process of systemic risk quantification. in a more informal fashion, the parties may exchange information on the issues to be addressed in the next financial stability report. the parties may also discuss the way of transforming the findings in the financial stability report into concrete actions of the central bank and other public authorities. i am fully convinced that regular and constant communication on these issues will expand into possible directions of cooperation. once again, i wish you success in your work! thank you for your attention.