gent sejko : the role of central banks and the banking sector on the path to eu welcome address by mr gent sejko, governor of the bank of albania, at the annual conference of the bank of albania, co - organised with the albanian association of banks, tirana, 13 november 2024. * * * honourable minister of finance honourable madam minister of state and chief negotiator, honourable chair of parliamentary committee on economy and finance, dear president of the albanian association of banks shella, dear fellow governors and guests it is a great honour and pleasure to welcome you all to the annual conference of the bank of albania. please allow me, in this occasion to congratulate the albanian association of banks for its 25th anniversary. the albanian association of banks, the co - organiser of this conference, has proven to be a serious collaborating and coordinating platform for the banking industry, in addition to being a visionary institution and our important partner on our journey towards development and modernisation. this conference, the 17th one, is a crucial moment in our annual business schedule as it always offers a solid ground for communicating with our institutional partners, field experts and the public at large. it enables us to look away from the challenges of the present, to consider issues of strategic importance for the sustainable and long - term development of albania, as well as to try - through open and constructive dialogue, to identify the policies and adequate instruments for addressing them. in this view, i would like to highlight that despite the rapid economic and political developments of the year we are leaving behind, the long - term headline from 2024 will be our receiving of a green light and the start - in october - of the official process of negotiations for membership in the union european. this new chapter poses a busy agenda ahead of regulatory, legislative and institutional reforms. their realisation is both a prerequisite for our membership, as well as a major and indispensable step on our way of progress. for this reason, we have decided to dedicate the proceedings of this conference to the role of central banks and the banking sector in the integration process. dear guests, before addressing my views on our conference's topic, i would like to focus briefly on the current status of the albanian economy and its financial system. 1 / 4 bis - central bankers'speeches albania of 2024 offers a completely different economic reality compared to a decade ago, when the country received the status of potential candidate for membership. despite

focused on two important directions : i ) increasing the stability and efficiency of our banking system ; as well as ii ) further developing financial markets, payment instruments and financial education. in this regard, we have closely cooperated with our institutional partners : the albanian parliament, the ministry of finance and the albanian association of banks. also, in its capacity as administrator, regulator and promoter of development of the payment 2 / 4 bis - central bankers'speeches system, we have worked for continuous modernization of national payment platforms and updating their regulatory framework, with a focus on reducing the use of cash. finally, in cooperation with other public agencies and groups of interest, we have initiated and are implementing the national strategy for financial education, which is a major and long - term investment for the development of the country. concluding this overview of developments, i would like to address the positive role that the banking sector has played in economic growth and development, as well as in view of the european integration process. this sector has been, continuously, the vanguard segment of the albanian economy in terms of integration and level of advancement. for example, the capital invested in the banking sector by the european union members'countries amounts to eur 1 billion. parallel to its integrating role, the albanian banking sector has been transformed into an important instrument of sustainable and long - term development of albania, through the improvement of the range and quality of banking products, and especially of credit. in this context, i would like to point out that lending of the banking sector to albanian business stands at levels comparable to many of the new member countries of the european union. dear guests, this reflection on the positive growth trends so far should not give us any illusions on the magnitude of the challenges ahead. avoiding the growth trap faced by middleincome countries, as well as the structural challenges of demographics, climate change and financial innovation, requires an even greater effort than what we have undertaken. i think, the structural reforms that we need to undertake in the framework of the integration process provide a unique opportunity for addressing them systematically. focusing on this moment, allow me to conclude this welcome speech with some of my observations on the role of the bank of albania and the banking sector in this process. the bank of albania, as the monetary, supervisory and regulatory authority, has a primary role in the negotiations process of membership. we are an integral part of the working groups for five chapters and chair two of them : chapter 4 " free movement of capital " and chapter 17