facilitate the digitalization, in terms of payments and other services, such as lending and investments, contributing significantly to the common objective for a formalised and sustainable economic growth. i also assess that by exploring the experiences of our neighbours and beyond, we can identify additional measures that will promote the formalization of the economy and reduce the use of cash in the economy. i would like to end my speech by expressing once again the full commitment of the bank of albania to support any necessary development, in order to achieve the intended objectives. i take this opportunity to congratulate the albanian association of banks for its huge and longstanding work, in boosting and supporting every project, initiative or need identified by the market and more broadly. your dedication and professionalism has contributed very effectively, in fully accomplishing the intermediation role between the parties, while also serving as a catalyst to promote the achievement of objectives. i am convinced that the discussions of this forum will be very fruitful in these areas and in addressing rather important issues. thank you! 3 / 3 bis central bankers'speeches

barriers that used to separate the analysis of risks in different lines of business have slowly been breaking down. to give you another example, unlike in their old ( standard ) business models, banks are now paying more attention to the adequacy of pricing risk exposures so as to at least cover expected losses. in many business models, this is called the probability function for loss given default. curiously, this is central to and is a long - standing practice among insurance firms. as we are now able to appreciate, this product and financial structure convergence has been driven by financial liberalization and advances in information and financial technology. developments in risk management and in valuation methodologies also helped to heighten convergence. these factors nurtured convergence, particularly during the extended lowinterest rate environment – referred to as the great moderation – when market participants sought to enhance yield and “ offload ” or spread risk. b. convergence in the framework of prudential regulation and supervision a second major development in the financial market, which makes information efficiency among regulators urgent, is the convergence in the framework of prudential regulation and supervision. just as in banking, for instance, a set of core principles now lays out the broad prudential framework in insurance too. the international association of insurance supervisors ( iais ) has released just two weeks ago an issues paper on group - wide solvency assessment and supervision. this sets out the future iais work on the development of a comprehensive suite of supervisory papers on group - wide solvency assessment and supervision. one could look at this as the international insurance industry ’ s version of the capital adequacy framework under basel ii for banks. it is not only, however, the framework for prudential regulation and supervision that has converged. at the national level ( counting over 30 countries now ), there has also been a physical convergence of the different financial supervisory bodies – more specifically the establishment of “ integrated supervisors ” ( i. e., supervisors that are responsible for at least two ( 2 ) types of financial institutions ). internationally though, the convergence has not really been physical but only intellectual, with the creation of the joint forum. the joint forum is composed of international financial supervisory organizations, namely, the basel committee on banking supervision ( bcbs ), the international organization of securities commissions ( iosco ), and the iais. the forum has been performing a valuable role in identifying differences in prudential arrangements across sectors and in considering the ever